Continue to buy after the’battery division controversy’
It was revealed that in the new year, foreigners continued to buy LG Chem shares.
According to the Korea Exchange on the 24th, foreigners net bought LG Chem shares worth 65.4 billion won until the 22nd this year.
This is the second largest net purchase size after Naver (610.3 billion won) on an individual stock basis.
Foreigners also showed’affection’ last year as they bought LG Chem the most among domestic companies.
Last year, foreigners net bought LG Chem worth 2.3894 trillion won.
This is a different move from the net selling by individuals after the’battery injection controversy’.
The individual has sold 2.544 trillion won in net sales since the news that LG Chem is going to split the battery business on September 16 last year.
This is the largest net selling amount among domestic stock market stocks.
The reason was that the’real’ battery business was being pulled out, and that even if LG Energy Solutions, a new corporation, was established as a subsidiary, a’parent company discount’ (discount) occurred, which undermined shareholder value.
The national pension, a major shareholder of LG Chem, and Sustin Best, an advisory agency for voting rights, also expressed opposition to the split on the grounds of’diluting shareholder value’.
On the contrary, after the battery controversy, foreigners made the most net purchases among domestic stocks, with a total of KRW 3.79 trillion.
Hwang Yoo-sik, a researcher at NH Investment & Securities, said, “If you look at overseas competitors, the Chinese CATL stock price continues to rise, and the electric car companies that use it, Tesla and China’s Nio are good.” It is very cheap compared to companies and comparable companies (peer group).
It seems that foreigners are continuing to buy to match their height.”
Regarding the controversy over the division, he said, “A little different from the holding company is a business community, such as (battery) materials and recycling at the head office, so the discount should be different from that of the general holding company.” I do” he said.
Amid news that LG Energy Solutions is preparing for an IPO, there are still criticisms about the damage to shareholder value.
In a report entitled’Analyze the effects of corporate restructuring such as division,’ said Eun-jung Lee, policy committee member of the Solidarity for Economic Reform, “For IPO success, the public offering price is determined at a price lower than the appropriate value.” Shareholders will lose money from dilution following IPO.”
He also added, “Existing LG Chem shareholders (who want LG Energy Solution shares) must receive LG Energy Solution shares through a public offering stock subscription with the same qualifications as other investors,” he said. “In the current IPO market, existing shareholders can receive allotment. The probability is very low.”
However, LG Chem’s share price is striking high.
After the controversy over the division, the stock price, which had gone down to 611,000 won, has recently risen to the 1 million won level and has risen to’emperor stock’.
There is also a positive outlook for LG Chem’s battery industry.
Kang Dong-jin, a researcher at Hyundai Motor Securities, said, “We are expecting faster-than-expected electric vehicle (EV) growth due to intensifying competition between aggressive governments’ (carbon) regulations and self-driving platform companies.” And observed.
Seong-Hyun Hwang, a researcher at Eugene Investment & Securities, said, “Considering the company’s aggressive expansion plans and global market share expansion, the gap between CATL and valuation will continue to narrow.” Said.
/yunhap news