Source Facts: iM Securities / June 30, 2026
Investment Opinion and Target Price: Buy (Maintain) / 620,000 KRW
Key Momentum: Steep growth in Energy Storage Systems (ESS) and structural growth driven by the surge in demand for AI data centers.
📊 1. [Valuation Metrics and Investment Indicators Analysis]
- Current price (as of June 29, 2026): 400,500 KRW.
- Based on 2028 projected earnings, the PER is approximately 23.5x, indicating a significantly eased valuation burden compared to the 2020–2023 period.
- Financial Projections (2026–2028):
- 2026: Revenue of 3.1196 trillion KRW, Operating Profit of 99 billion KRW.
- 2027: Revenue of 4.1002 trillion KRW, Operating Profit of 351.3 billion KRW.
- 2028: Revenue of 4.9191 trillion KRW, Operating Profit of 537.7 billion KRW.
🚀 2. [Market Opportunity (TAM) and Detailed Performance Estimates]
- Q2 Earnings Outlook: Revenue is expected to be 7.6 trillion KRW (+25% YoY, +15% QoQ) and Operating Profit 229 billion KRW (-54% YoY, returning to profit QoQ), slightly exceeding market expectations.
- ESS Division:
- AMPC (Advanced Manufacturing Production Credit) is estimated to increase by approximately 28% compared to the previous quarter, driven by increased US ESS production.
- ESS revenue is expected to increase by approximately 40% from the previous quarter, driving profit improvement.
- AI Data Center (AIDC) Demand:
- AIDC requires high power consumption and shows high volatility, increasing the necessity for ESS.
- According to market research firm GGI, global battery shipments for AIDC-bound ESS are projected to surge from 12GWh in 2025 to approximately 272GWh by 2030.
- It is highly likely that the 2030 ESS demand forecast in the US will be revised upwards.
📝 Editor’s Comment (by K-STOCK Editor)
LG Energy Solution is transforming its business structure by offsetting the sluggishness in its existing automotive battery division with the explosive growth of its ESS division. As new power demand sources like AI data centers emerge, ESS is set to become more than a mere auxiliary tool; it will establish itself as core power infrastructure. Policy incentives in the US (such as ITC and MACR) and supply chain regulations are creating a favorable environment for domestic battery cell manufacturers compared to Chinese competitors. It is time to focus on structural ESS growth and performance visibility rather than short-term automotive battery demand fluctuations.
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