As the domestic stock market experiences a sharp decline, primarily among major semiconductor stocks, LG Energy Solution is the only company among the top 25 by market capitalization to show an upward trend. This rise is attributed to improved third-quarter results and expectations for growth in the energy storage system (ESS) business, which are bolstering investor sentiment.
According to the Korea Exchange, as of 1:56 PM, LG Energy Solution's shares were trading at 405,500 won, up 7,500 won (1.88%) from the previous trading day. In contrast, Samsung Electronics saw a drop of 8.28% to 229,750 won, while SK Hynix fell 10.16% to 1,442,000 won. Most of the top market capitalization stocks, including SK Square (-12.40%), Samsung Electro-Mechanics (-8.41%), and Hyundai Motor (-4.69%), are showing weakness, with LG Energy Solution maintaining its upward trajectory.
The strength of LG Energy Solution appears to reflect the recently announced preliminary third-quarter results and optimism surrounding the expansion of its ESS business. The company reported third-quarter revenues of 9.6434 trillion won and an operating profit of 756 billion won, marking a 567.3% increase from the previous quarter. Excluding tax credit benefits from the U.S. Inflation Reduction Act (IRA), the operating profit also turned positive at 339.1 billion won.
Particularly amid ongoing concerns about a slowdown in the electric vehicle market, the ESS business is emerging as a new growth driver. There are expectations that increased demand for ESS batteries, driven by the expansion of AI data centers and investments in power grids, will lead to improved performance.
Positive evaluations from the securities industry have also continued. NH Investment & Securities recently raised its target price for LG Energy Solution to 550,000 won. Daol Investment & Securities also highlighted the expansion of the ESS business, setting a target price of 620,000 won.
* This article has been translated by AI.
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