LG Energy Solution shares rose over 12% in early trading on expectations of a return to profitability in the second quarter. Analysts predict that the company's expansion in the energy storage system (ESS) sector will drive improved performance in the latter half of the year.
As of 10:47 a.m. on June 29, LG Energy Solution shares were trading at 371,500 won, up 40,000 won (12.07%) from the previous day.
Financial analysts forecast that LG Energy Solution's consolidated revenue for the second quarter will increase by 13.06% from the previous quarter to 7.4074 trillion won, with operating profit expected to turn around from a loss of 207.8 billion won to a profit of 163.5 billion won.
NH Investment & Securities anticipates that the company's second-quarter results will exceed market expectations due to increased ESS shipments and compensation from North American facilities. They expect continued improvement in performance in the second half, driven by new ESS contracts and a recovery in Tesla sales.
Yuanta Securities also identified LG Energy Solution as the biggest beneficiary of the expanding U.S. ESS market, noting that despite weak demand for electric vehicles (EVs), the rising demand for ESS and small batteries will support performance. They predict that increased ESS demand from investments in U.S. power infrastructure will lead to improvements in both orders and financial results.
Analysts believe that the transition to profitability in the second quarter will mark the beginning of a growth trend centered on ESS, leading to ongoing improvements in performance.
* This article has been translated by AI.
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