LG Chem(893,000 +0.45%)And SK Innovation(244,000 +5.63%) An analysis that the stock price is still undervalued came from the securities industry. Considering the growth potential of the electric vehicle market, it was based on the point that the valuation (share price level compared to earnings) measurement method was inappropriate.
SK Innovation closed the transaction at 244,000 won, up 5.63% on the 5th. Following a surge of 21.58% on the previous day, the trend continued on this day. Heungkuk Securities released a report on that day that SK Innovation could go up to 370,000 won. It means that it can be 51.6% higher than now. Heungkuk Securities argued that the EV/EBIDTA (market value/pre-tax operating income), which was mainly used as a valuation method for battery stocks, was not correct. For EV/EBIDTA, profits from operating activities are important. It is pointed out that in the period of rapid growth in the battery industry, immediate profits are inappropriate for comparison.
Instead, China’s CATL, the number one battery maker, was used as a standard for comparison. If the production capacity of CATL is set to 100 in 2023, when each company’s battery production capacity is in a stable phase, LG Chem 163, SK Innovation 53, and Samsung SDI(686,000 +2.24%) The production capacity comparison value comes out with 44 and so on. This was compared with CATL’s current market cap (approximately 158 trillion won), but a 50% discount rate was applied to the three Korean companies in consideration of the specificity such as subsidies from the Chinese government.
As a result, the value of the battery division was estimated at 128 trillion won for LG Chem, 42 trillion won for SK Innovation, and 35 trillion won for Samsung SDI. Jeon Woo-je, a researcher at Heungkuk Securities, said, “There is a calculation that the stock price of LG Chem and SK Innovation can rise to 1.98 million won and 370,000 won, respectively.”
Reporter Yoon Sang Ko [email protected]
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