LG Chem Ltd: 2Q beat on chems and biotech; Cathode outlook remains poor; first glimpse into LT electronic materials strategy

研报英文原文证据摘录

LG Chem Ltd: 2Q beat on chems and biotech; Cathode outlook remains poor; first glimpse into LT electronic materials strategy

of this as part of LG Chem’s strategy to

double electronic materials revenue by 2030, and we expect investors to look

towards actual revenue and earnings delivery before pricing in the upside. LG Key Changes (FYE Dec)

Chem is the industry leader in CCL for DDR5 memory applications, and plans Prev Cur Δ

to commence non-memory CCL sales in coming years. Adj. EPS - 26E (W) 14,365 1,030 -92.8%

Adj. EPS - 27E (W) 27,210 20,554 -24.5%

• Confirming Tesla cathode supply restart in 3Q: Company expects a ramp up

in 2H cathode volumes coming from a “new customer” and LGES, but flagged Quarterly Forecasts (FYE Dec)

potential downward revisions to FY26 volumes due to weak US EV sales. Adj. EPS (W)

Company noted that it had started supplying Tesla with 95% nickel cathodes 2025A 2026E 2027E

Q1 (1,375) (4,013)A

in 3Q, confirming its re-entry into the Tesla supply chain post a 1 year hiatus. Q2 (5,548) 428A

On 2027 outlook, LGC expects new projects to contribute to meaningful FY27 Q3 1,525 24

volume increase. Q4 (17,846) 4,591

FY (23,244) 1,030 20,554

• Advanced materials slight miss: OPM for advanced materials remained

lackluster at 2%, with cathode likely deeply loss-making despite double-digit Style Exposure

OPM seen at electronic materials. We trim our cathode shipment volume

growth estimate to +10% y/y, but see potential for battery materials to

achieve break even by 4Q26 on the back of improved cathode and separator

volumes.

• Surprise biotech beat: Farm Hannong reported 2Q OPM of 9.3% (2Q25:

5.2%) driven by increased sales of crop protection products and advanced

fertilizer purchases ahead of Middle East supply disruption. LGLS also saw