LG Chem, Battery spin-off is a long-term favorable factor(Daishin securities)

[Infostock Daily= Reporter An Hoe Hyun] Daishin Securities said on the 17th that LG Chem's push for the spin-off of its battery business is more likely to serve as a favorable factor in the long run.

"The spin-off of LG Chem's battery business has already been raised several times in the past, and the possibility has expanded even more as its performance improved, with its battery business turning into a surplus in the second and fourth quarters," the company explained.

LG Chem is expected to convene an emergency board meeting to decide on the division of the battery sector. It is heard that this method will be a material division in which LG Chem owns 100% of LG Batteries(tentative name). Existing shareholders are likely to own LG Batteries indirectly through LG Chem.

"The impact of the spin-off of the battery business on stock prices will be possible only after the specific schedule is confirmed after the board of directors," a researcher Han said, adding, "At this point, it is highly likely that it will serve as a favorable factor rather than a negative factor."

"Even if it push ahead with the IPO, we judge positively in terms of future growth investment through new financing," he said and added, "Hidden values such as high-tech materials and life sciences, which have been hidden, will be highlighted."

Reporter An Hoe Hyun ahh@infostock.co.kr