External broker reports(aggregated public sources), Mirae Asset Securities

Mirae Asset Securities

External broker reports(aggregated public sources)

Leading full-service brokerage firm in Vietnam. 

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Equity Bottom-Up

<ul><li>We maintain our Buy rating on LG Chem and raise our target price to W480,000 (from W360,000), as we revised up our valuation of the company’s equity stake in LG Energy Solution (LGES).</li><li>For LGES, we raised our fair value estimate by 15%, mainly due to a higher valuation for the ESS business.</li><li>While LG Chem plans to sell shares of LGES, reducing its stake from 81.4% to 79.4%, management said that it intends to use the proceeds to improve its finances, invest in new growth engines, and enhance shareholder returns; this announcement led us to reduce the discount applied to its LGES stake from 80% to 75%. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We maintain our Buy rating on LG Chem and raise our target price to W480,000 (from W360,000), as we revised up our valuation of the company’s equity stake in LG Energy Solution (LGES).For LGES, we raised our fair value estimate by 15%, mainly due to a higher valuation for the ESS business.While LG Chem plans to sell shares of LGES, reducing its stake from 81.4% to 79.4%, management said that it intends to use the proceeds to improve its finances, invest in new growth engines, and enhance shareholder returns; this announcement led us to reduce the discount applied to its LGES stake from 80% to 75%. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

LG Chem (051910 KS/Buy)Discount applied to LGES stake to narrow gradually

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>LG Chem is considering on paying higher dividends using sale proceeds from LG Energy Solution. </li>
<li>This breaks the company's principle of using only ordinary income from operating activities as a source for dividends.</li>
<li>If indeed LG Chem goes ahead with this plan, this would be as a result of heightened demands from major activist investors including Palliser Capital.</li>
</ul>


LG Chem is considering on paying higher dividends using sale proceeds from LG Energy Solution. 
This breaks the company's principle of using only ordinary income from operating activities as a source for dividends.
If indeed LG Chem goes ahead with this plan, this would be as a result of heightened demands from major activist investors including Palliser Capital.


LG Chem: Considering Higher Dividend Payout Using Sale Proceeds from LGES

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Last week, London-based activist Palliser Capital tapped <a href="https://www.smartkarma.com/entities/lg-chem-ltd" target="_blank" data-smartkarma-citation="entities:3583:1" rel="noopener">LG Chem (051910 KS)</a> to remedy its NAV market discount. Palliser also said it now holds a little over 1% in LG Chem.</li>
<li>LG Chem's large NAV discount is well known. It has been present since ~82%-held <a href="https://www.smartkarma.com/entities/lg-energy-solution" target="_blank" data-smartkarma-citation="entities:33464:1" rel="noopener">LG Energy Solution (373220 KS)</a> (LGES) was listed in January 2022. </li>
<li>An obvious solution is to pare down the LGES stake, and buy back shares. Yet the discount remains as the market views management as being (stubbornly) set in their ways.</li>
</ul>


Last week, London-based activist Palliser Capital tapped LG Chem (051910 KS) to remedy its NAV market discount. Palliser also said it now holds a little over 1% in LG Chem.
LG Chem's large NAV discount is well known. It has been present since ~82%-held LG Energy Solution (373220 KS) (LGES) was listed in January 2022. 
An obvious solution is to pare down the LGES stake, and buy back shares. Yet the discount remains as the market views management as being (stubbornly) set in their ways.


LG Chem (051910 KS): Palliser Targets Steep NAV Discount

<ul>
<li>Palliser discloxes stake in <a href="https://www.smartkarma.com/entities/lg-chem-ltd" target="_blank" data-smartkarma-citation="entities:3583:1" rel="noopener">LG Chem Ltd (051910 KS)</a>, and subsequently seeks to spill the board and undertake buybacks. </li>
<li>The family  increased their bid for <a href="https://www.smartkarma.com/entities/pacific-industrial-co-ltd" target="_blank" data-smartkarma-citation="entities:6261:1" rel="noopener">Pacific Industrial (7250 JP)</a> by 42.4%, from ¥2,050 to ¥2,919/share. This now becomes a short-term rate of return trade. It will trade relatively tight.</li>
<li>
<a href="https://www.smartkarma.com/entities/first-pacific-co-ltd" target="_blank" data-smartkarma-citation="entities:173:1" rel="noopener">First Pacific Co (142 HK)</a> appears to have squeezed the most out its unlisted subsidiary MPIC, for now, with the forthcoming Maynilad IPO.</li>
</ul>


Palliser discloxes stake in LG Chem Ltd (051910 KS), and subsequently seeks to spill the board and undertake buybacks. 
The family  increased their bid for Pacific Industrial (7250 JP) by 42.4%, from ¥2,050 to ¥2,919/share. This now becomes a short-term rate of return trade. It will trade relatively tight.

First Pacific Co (142 HK) appears to have squeezed the most out its unlisted subsidiary MPIC, for now, with the forthcoming Maynilad IPO.


Last Week In Event SPACE: LG Chem, Pacific Industrial, Critical Minerals, First Pacific

<ul>
<li>In this insight, we provide the top 10 stock picks and key catalysts in the Korean stock market for the next two weeks (24 October to 7 November 2025).</li>
<li>Top 10 picks in this bi-weekly include Samsung Life Insurance, Samsung C&amp;T, KT&amp;G, LG CNS, Samchully, Hyundai Elevator, Korea Zinc, LG Chem (Pref), SK Inc, and LS Corp. </li>
<li>Rechargeable battery was the best performing sector in KOSPI in the past two weeks including L&amp;F (+87.1%) Posco Future M (+65.4%) CosmoAM&amp;T (+51.9%) and EcoPro Materials (+46.8%).</li>
</ul>


In this insight, we provide the top 10 stock picks and key catalysts in the Korean stock market for the next two weeks (24 October to 7 November 2025).
Top 10 picks in this bi-weekly include Samsung Life Insurance, Samsung C&amp;T, KT&amp;G, LG CNS, Samchully, Hyundai Elevator, Korea Zinc, LG Chem (Pref), SK Inc, and LS Corp. 
Rechargeable battery was the best performing sector in KOSPI in the past two weeks including L&amp;F (+87.1%) Posco Future M (+65.4%) CosmoAM&amp;T (+51.9%) and EcoPro Materials (+46.8%).


Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (24 October to 7 November 2025)

South Korea

LG Chem Ltd. is a chemical manufacturer.  The Company's products include petrochemicals, plastic resins, and engineering plastics.  LG Chem also produces industrial and electronic materials.

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LG Chem Ltd (051910 KS)

LG Chem (051910 KS/Buy)Discount applied to LGES stake to narrow gradually

We maintain our Buy rating on LG Chem and raise our target price to W480,000 (from W360,000), as we revised up our valuation of the company’s...

Mirae Asset Securities

LG Chem: Considering Higher Dividend Payout Using Sale Proceeds from LGES

LG Chem is considering on paying higher dividends using sale proceeds from LG Energy Solution. We believe that its full year DPS for 2025 could...

Douglas Kim

LG Chem (051910 KS): Palliser Targets Steep NAV Discount

At a 72% discount to NAV, you're hard pressed to be negative on LG Chem. I would also argue LG Corp (003550 KS), where the Koo family is aligned,...

David Blennerhassett

Last Week In Event SPACE: LG Chem, Pacific Industrial, Critical Minerals, First Pacific

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (24 October to 7 November 2025)

Top 10 picks in this bi-weekly include Samsung Life Insurance, Samsung C&T, KT&G, LG CNS, Samchully, Hyundai Elevator, Korea Zinc, LG Chem (Pref),...

Douglas Kim

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