In today’s briefing:
- LG Energy IPO Lock-Up – Largest Lockup Release of the Lot at US$3bn
- Nidec (6594) | Q1 to Beat on Falling Raw Material Costs
LG Energy IPO Lock-Up – Largest Lockup Release of the Lot at US$3bn
- LG Energy Solution (LGES) raised US$10.8bn in its South Korea IPO. The stock was listed on 27th Jan 22. Its six-month lockup is set to expire soon.
- LGES is the EV battery unit of LG Chem. The company is a major supplier to customers including Tesla and General Motors.
- In this note, we will talk about the lock-up dynamics and updates since our last note.
Nidec (6594) | Q1 to Beat on Falling Raw Material Costs
- Nidec share price has declined by 32% YTD on the temporary impact of inflation and lockdowns
- We expect a Q1 beat (tomorrow) as lower raw material input costs and the weak yen boost operating profits
- We are bullish on the stock at 31x forward earnings versus the 5-year average of 55x, especially as China accelerates policies to drive EV adoption
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