L&F "NCM share loss and LFP execution risks; Maintain Sell" (Sell) Bush

Research evidence excerpt

L&F "NCM share loss and LFP execution risks; Maintain Sell" (Sell) Bush

Powered by Lab Global17 JuneResearch2026ab Evidence UBS YES

L&F Equities

KoreaNCM share loss and LFP execution risks;

Maintain Sell Chemicals, Specialty

12-month rating Sell

12m price target Won104,000Lift PT to Won104,000; Maintain Sell

Prior : Won54,000

L&F shares have risen 49% YTD, outperforming the 25% gain of covered Korean battery

/ material peers, as investors price in potential LFP cathode share gains in the U.S BESS Price (17 Jun 2026) Won141,900

market. We cut 2026E loss per share 76% on inventory gains, Tesla Shanghai rebound, RIC: 066970.KS BBG: 066970 KS

and ~10% EPS dilution from BW conversion. For 2027/28E, we revise EPS down 8% /

39% on NCM share loss, partially offset by LFP ramp. We raise our PT 93% to Won104k Trading data and key metrics

but maintain Sell on what we see as a rich valuation, as well as NCM share erosion, 52-wk range Won213,000-48,950

LFP execution risks and excessive gearing. Debt to equity ratio reached 398% in 1Q26 Market cap. Won5,710b/US$3.77b

with likely negative operating cash flow in 2026E and heavy capex needs through Shares o/s 40.2m (ORD)

2027E. We are 72-79% below 2027-28E consensus net profit on lower operating profit Free float 66%

per ton estimates. Avg. daily volume ('000) 837

Avg. daily value (m) Won139,123

LFP: potential largely priced in, yet competition and execution risks persist Common s/h equity (12/26E) Won959b

L&F is a first mover in“China free” LFP cathodes, targeting 30kt capacity in Korea by P/BV (12/26E) 6.4x

3Q26 and scaling to 60kt by 1H27, supported by $1bn LFP supply agreement with Net debt to EBITDA (12/26E) 4.4x

Samsung SDI (~100kt total vol 2026-29). However, we believe overseas Chinese entities