Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

LG Energy Solution / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/lg-energy-solution" target="_blank" data-smartkarma-citation="entities:33464:1" rel="noopener">LG Energy Solution (LGENERGY KS)</a> (LGES) is looking to raise up to US$10.8bn in its upcoming South Korea IPO.</li>
<li>LGES is the EV battery unit of LG Chem. It was spun off in December last year. The company is a major supplier to customers including Tesla and General Motors.</li>
<li>In this note, we take a look at assumptions, valuation, sensitivity analysis, and potential trades to put up.</li>
</ul>



LG Energy Solution (LGENERGY KS) (LGES) is looking to raise up to US$10.8bn in its upcoming South Korea IPO.
LGES is the EV battery unit of LG Chem. It was spun off in December last year. The company is a major supplier to customers including Tesla and General Motors.
In this note, we take a look at assumptions, valuation, sensitivity analysis, and potential trades to put up.


LG Energy Pre-IPO - Valuation - LGES Inexpensive, Potential LG Chem Trade Leading up to IPO

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>Our base case valuation of LG Energy Solution is price per share of 424,093 won, which is 41% higher than the high end of the IPO price of 300,000 won.</li>
<li>Our valuation is based on 29.8x EV/EBITDA multiple times our estimated EBITDA of 3,276 billion won in 2022, resulting in EV of 97.5 trillion won.</li>
<li>Given the attractive upside, we have a positive view of the LG Energy Solution IPO.</li>
</ul>


Our base case valuation of LG Energy Solution is price per share of 424,093 won, which is 41% higher than the high end of the IPO price of 300,000 won.
Our valuation is based on 29.8x EV/EBITDA multiple times our estimated EBITDA of 3,276 billion won in 2022, resulting in EV of 97.5 trillion won.
Given the attractive upside, we have a positive view of the LG Energy Solution IPO.


LG Energy Solution IPO Valuation Analysis: An Attractive IPO with a 40%+ Upside

<ul>
<li>
<a href="https://www.smartkarma.com/entities/lg-energy-solution" target="_blank" data-smartkarma-citation="entities:33464:1" rel="noopener">LG Energy Solution (LGENERGY KS)</a> (LGES) is looking to raise up to US$10.8bn in its upcoming South Korea IPO.</li>
<li>LGES is the EV battery unit of LG Chem. It was spun off in December last year. The company is a major supplier to customers including Tesla and General Motors.</li>
<li>LGES will likely continue to be the dominant battery player in the market second to CATL based planned capacity.</li>
</ul>



LG Energy Solution (LGENERGY KS) (LGES) is looking to raise up to US$10.8bn in its upcoming South Korea IPO.
LGES is the EV battery unit of LG Chem. It was spun off in December last year. The company is a major supplier to customers including Tesla and General Motors.
LGES will likely continue to be the dominant battery player in the market second to CATL based planned capacity.


LG Energy Pre-IPO -  Industry and Competitive Landscape - LGES Will Remain a Dominant Player

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>In <a href="https://www.smartkarma.com/insights/lg-energy-solution-ipo-initiation-amp-my-ride" target="_blank" data-smartkarma-citation="insights:62402" rel="noopener">LG Energy Solution IPO Initiation: Amp My Ride</a>, we stated that LGES has attractive fundamentals with a strong backlog, healthy revenue growth and improving margins (recall provisions have peaked). </li>
<li>In <a href="https://www.smartkarma.com/insights/lg-energy-solution-vs-catl-vs-samsung-sdi-vs-sk-innovation" target="_blank" data-smartkarma-citation="insights:62445" rel="noopener">LG Energy Solution Vs CATL Vs Samsung SDI Vs SK Innovation</a>, we benchmarked LGES and its listed battery peers across key financial metrics. </li>
<li>In this note, we look at the syndicate's valuation methodology and present our valuation methodology. Our valuation analysis suggests that the IPO price range is attractive. </li>
</ul>


In LG Energy Solution IPO Initiation: Amp My Ride, we stated that LGES has attractive fundamentals with a strong backlog, healthy revenue growth and improving margins (recall provisions have peaked). 
In LG Energy Solution Vs CATL Vs Samsung SDI Vs SK Innovation, we benchmarked LGES and its listed battery peers across key financial metrics. 
In this note, we look at the syndicate's valuation methodology and present our valuation methodology. Our valuation analysis suggests that the IPO price range is attractive. 


LG Energy Solution IPO: Valuation Insights

Equity Long-Short Analyst

Pyari Menon

Thematic (Sector/Industry)

<ul>
<li>The companies that are best positioned to take advantage of the 5G growth are a mix of equipment vendors, chipset companies, device makers, and enterprise solution providers. </li>
<li>The top ten companies to benefit from 5G rollout based on innovation and citation count are <strong>Samsung Electronics, Qualcomm, LG Electronics, AT&amp;T, Huawei, Intel, Google, Ericsson, Apple,</strong> and <strong>Nokia </strong>
</li>
<li>A stand-out in 5G technology rankings is <a href="https://www.smartkarma.com/entities/lg-electronics-inc" target="_blank" data-smartkarma-citation="entities:8814:1" rel="noopener">LG Electronics (066570 KS)</a> which is punching well above its current market share in the industry. </li>
</ul>


The companies that are best positioned to take advantage of the 5G growth are a mix of equipment vendors, chipset companies, device makers, and enterprise solution providers. 
The top ten companies to benefit from 5G rollout based on innovation and citation count are Samsung Electronics, Qualcomm, LG Electronics, AT&amp;T, Huawei, Intel, Google, Ericsson, Apple, and Nokia 

A stand-out in 5G technology rankings is LG Electronics (066570 KS) which is punching well above its current market share in the industry. 


Stock Ideas from Data Mining Technical Publications: A Look at 5G

Japan

Panasonic Corporation manufactures electric and electronic products. The Company produces home appliances, car navigation systems, digital devices, computer peripherals, telecommunications, industrial equipment, and electronic parts. Panasonic has associated companies around the world.

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Panasonic Corp (6752 JP)

LG Energy Pre-IPO - Valuation - LGES Inexpensive, Potential LG Chem Trade Leading up to IPO

LG Energy Solution is looking to raise up to US$10.8bn in its upcoming South Korea IPO. In this note, we take a look at assumptions, valuation,...

Sumeet Singh

LG Energy Solution IPO Valuation Analysis: An Attractive IPO with a 40%+ Upside

Our base case valuation of LG Energy Solution is price per share of 424,093 won, which is 41% higher than the high end of the IPO price of 300,000...

Douglas Kim

LG Energy Pre-IPO - Industry and Competitive Landscape - LGES Will Remain a Dominant Player

LG Energy Solution (LGES) is raising US$10.8bn in its upcoming South Korea IPO. LGES will likely continue to be the dominant battery player in the...

Sumeet Singh

LG Energy Solution IPO: Valuation Insights

Our valuation analysis suggests that the IPO price range is attractive. Pre-marketing closes on 17 Dec and the international roadshow will run...

Arun George

Stock Ideas from Data Mining Technical Publications: A Look at 5G

5G connectivity is expected to spawn new business and services across sectors. We review the technological positioning of companies competing in...

Pyari Menon

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