「Despite Mirae Asset Securities lowering LG Chem's target stock price from the previous 480,000 won to 440,000 won, it issued a bold diagnosis stating that there is 'approximately 70% upside potential compared to the current stock price,' according to a report by Lee Hui-kyung, reporter at Korea Economic TV, on August 1, 2026. The paradoxical message to seek investment opportunities amid short-term earnings downturn forecasts is drawing investors' attention.」

According to the securities industry today (2nd), Mirae Asset Securities analyst Lee Jin-ho forecasts that LG Chem's chemical division results will slow in the third quarter of 2026. On a consolidated basis, operating profit is expected to reach only 180.2 billion won, and the core business excluding LG Energy Solution is projected to record a 43 billion won operating loss, marking a return to losses. This is interpreted as a result of multiple factors including inventory destocking effects, limitations in passing on raw material price increases to product prices, and cost burdens from rising shipping rates.

However, LG Chem demonstrated strong performance in the previous second quarter, recording consolidated operating profit of 599.6 billion won (exceeding market expectations of 422.4 billion won) and operating profit of 486.3 billion won excluding LG Energy Solution.

Despite the anticipated slowdown in third-quarter results, Mirae Asset Securities maintained a 'buy' investment recommendation for LG Chem. Analyst Lee Jin-ho emphasized that the chemical division's poor performance in the third quarter would be temporary and that attention should be paid to the improvement in profitability of the advanced materials business, a core growth engine.

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In fact, the advanced materials division, which successfully turned profitable in the second quarter, is expected to show a clear rebound from the third quarter onward. Cathode material shipments are expected to more than double compared to the previous quarter, and as supply of upgraded cylindrical cathode materials begins in earnest, fixed cost burdens are expected to ease. Furthermore, in the fourth quarter, profitability is expected to improve further as new project effects and increased separator sales for ESS (energy storage systems) are added, with cathode material operating rates projected to recover to the 70-80% level, according to the analyst.

Mirae Asset Securities' newly presented target stock price is 440,000 won, and as of August 1, 2026, LG Chem's current stock price is 258,000 won. This calculation shows that there remains approximately 70% upside potential compared to the new target price. Analyst Lee Jin-ho recommends utilizing the recent stock price adjustment as a bottom-buying opportunity, highlighting investment appeal.

「As analyst Lee Jin-ho of Mirae Asset Securities analyzes that LG Chem's third-quarter short-term earnings slowdown is temporary, it is time for a strategic approach that focuses on the clear profit improvement trend of the advanced materials business as a core future growth engine and utilizes the current stock price adjustment as a bottom-buying opportunity.」