LG Energy Solution (373220 KP) Buy: 2Q26 prelim – a bump on the path to normalisation

研报英文原文证据摘录

LG Energy Solution (373220 KP) Buy: 2Q26 prelim – a bump on the path to normalisation

n 2H26e. ROE (%) -3.6 0.4 7.2 9.8

ESS upcycle beneficiary: LGES has been the fast mover among Korea battery 52-WEEK PRICE (KRW)

makers on converting EV battery lines to ESS lines, which has enabled the company 550000.00

to secure a 140GW-plus ESS order backlog as of end-2025. LGES is targeting 410000.00

50GW-plus of US ESS capacity by the end of 2026, which we estimate will further

270000.00

increase to 80GW by 2027 as the company is also preparing for prismatic LFP ESS 07/25 01/26 07/26

from 2H27e. We expect the sales and OP contributions of ESS to reach 29% and TargetHigh: 514000.00price: 500000.00Low: 305000.00 Current: 354500.00

87%, respectively, in 2026e (from 11% and 9% in 2025). Additionally, the company is Source: LSEG IBES, HSBC estimates

targeting ESS new orders of +90GWh in 2026, which at the current run-rate implies Yushin Park*

that the majority of new orders will be concentrated in 2H26e. Analyst, Korea Industrials & Utilities The Hongkong and Shanghai Banking Corporation

Limited, Seoul Securities Branch

Catalysts: Amid dented expectations for EV demand, we believe multiple factors yushin.park@kr.hsbc.com

could reverse investors’ bearish sentiment: (1) ESS order wins directly or indirectly +82 2 3706 8756

from AI data centre operators; (2) faster ESS market share gains in the US; and Chan Park*

Research Associate, Korea Autos & Financials

(3) any signs of LGES regaining market share in Europe amid European OEMs’ The Hongkong and Shanghai Banking Corporation

inventory restocking and competitors’ potential struggles in production localisation. Limited, Seoul Securities Branch chan.park@kr.hsbc.com

+822 3706 8713