KB Securities noted on the 10th that, following the slowdown in the electric vehicle market growth, the average annual growth rate of L&F's anode material production capacity will decline over the next seven years. Accordingly, the investment opinion remains "buy," but the target price was adjusted downward by about 33% from the previous 120,000 won to 80,000 won. L&F's closing price the previous day was 54,000 won.
KB Securities estimated L&F's first quarter revenue for this year at 415.7 billion won and an operating loss at 95.6 billion won. Lee Chang-min, a KB Securities Research Institute analyst, explained, "The increasing fixed cost burden due to the operation of the G3 plant and the impact of inventory valuation losses still exist, making a substantial loss inevitable."
However, he said, "With last year's significant inventory adjustments, shipments of anode materials for Model 3 have partially recovered, and with shipments of Model Y Juniper products starting at the end of February, anode material sales are expected to increase."
He noted, "Recently, Tesla's electric vehicle sales have plummeted, and Elon Musk's CEO risk has resurfaced, leading to a 33% drop in stock prices this year. However, excluding the intensely competitive Chinese market, sales are expected to substantially recover as Model Y Juniper sales begin."
He added, "If Musk stops his political activities, it is expected to act as a trigger for a rise in stock prices," and "Since most products are exported to China and Europe, the impact of the tariff war initiated by Trump is expected to be less than that on competing companies, which is also a positive factor."