Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 25 years of experience in analyzing hundreds of companies, especially in Asia. Deep expertise in the following sectors:
- Technology (E-commerce, SaaS, Internet)
- Consumer 
- Special Situations/Deep Value Plays
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

LG Chem Trading Cheap As LG Energy Opens Its Books

LG Chem – Holdco Discount Narrowed Like a Charm… Time to Exit

The Launch of Three New Climate Change Indices by the KRX

LG Corp: SoTP Valuation Analysis Update + Four Key Catalysts

Initial Thoughts on the LG Energy Solution IPO

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/lg-chem-ltd" target="_blank" data-smartkarma-citation="entities:3583:1" rel="noopener">LG Chem Ltd (051910 KS)</a> reported its 3Q 2021 results today. The company generated sales of 10.6 trillion won (up 41.4% YoY and 6.0% lower than the consensus) and operating profit of 726.6 billion won (down 19.6% YoY and 29.6% lower than the consensus). Although LG Chem's results were stagnant in 3Q 2021, its results are likely to improve materially in 4Q 2021. The consensus currently estimates LG Chem to generate sales of 11.7 trillion won (up 31% YoY) and an operating profit of 1.2 trillion won (up 925% YoY) in 4Q 2021.LG Chem also announced <a href="https://www.chosun.com/economy/industry-company/2021/10/25/5V5L3Z7LONEFPBUA3TKQNRYS7M/?utm_source=naver&amp;utm_medium=referral&amp;utm_campaign=naver-news" target="_blank" rel="noopener">Kwon Young-Soo</a> as the new CEO for LG Energy Solution today. Kwon Young-Soo is currently the Vice Chairman and the Chief Operating Officer (COO) of <a href="https://www.smartkarma.com/entities/lg-corp" target="_blank" data-smartkarma-citation="entities:6653:1" rel="noopener">LG Corp (003550 KS)</a>. Having worked in various companies of the LG Group for nearly 42 years, clearly Kwon Young-Soo shown a lot of loyalty to the LG Group. In addition, he has proven record of successfully leading numerous LG Group businesses. Overall, we believe that the market will have a positive view of the decision to put Kwon Young-Soo as the CEO of LG Energy Solution.At this point, it appears that the higher probability of an IPO for LG Energy Solution is sometime in 1Q 2022, rather than in November/December 2021. LG and GM have settled on a <a href="https://www.reuters.com/article/businessNews/idUSKBN2HF0EO" target="_blank" rel="noopener">$2 billion cost</a> related to the Bolt recall earlier this month, paving the way for an IPO in the next several months.

LG Chem Ltd (051910 KS) reported its 3Q 2021 results today. The company generated sales of 10.6 trillion won (up 41.4% YoY and 6.0% lower than the consensus) and operating profit of 726.6 billion won (down 19.6% YoY and 29.6% lower than the consensus). Although LG Chem's results were stagnant in 3Q 2021, its results are likely to improve materially in 4Q 2021. The consensus currently estimates LG Chem to generate sales of 11.7 trillion won (up 31% YoY) and an operating profit of 1.2 trillion won (up 925% YoY) in 4Q 2021.LG Chem also announced Kwon Young-Soo as the new CEO for LG Energy Solution today. Kwon Young-Soo is currently the Vice Chairman and the Chief Operating Officer (COO) of LG Corp (003550 KS). Having worked in various companies of the LG Group for nearly 42 years, clearly Kwon Young-Soo shown a lot of loyalty to the LG Group. In addition, he has proven record of successfully leading numerous LG Group businesses. Overall, we believe that the market will have a positive view of the decision to put Kwon Young-Soo as the CEO of LG Energy Solution.At this point, it appears that the higher probability of an IPO for LG Energy Solution is sometime in 1Q 2022, rather than in November/December 2021. LG and GM have settled on a $2 billion cost related to the Bolt recall earlier this month, paving the way for an IPO in the next several months.

LG Chem - Major Highlights of 3Q 2021 Earnings & A New CEO for LG Energy Solution