SEOUL, Oct. 7 (Korea Bizwire) — Shares of South Korea’s largest chemical firm, LG Chem, hit a 52-week low during Monday trading on the Seoul bourse following a grim third-quarter earnings outlook and concerns over its energy storage system (ESS), analysts here said Monday.
LG Chem plunged 3.21 percent to touch a new 52-week low of 286,500 won before closing at 289,000 won, down 2.36 percent from the previous session.
“LG Chem’s third quarter performance is going to be below market consensus because of decreased profits in its petrochemical business and continuing losses in the battery business,” said Yoon Jae-sung, an analyst at Hana Financial Investment Co.
“Until it improves profitability in electric vehicle batteries and ESS, it seems there’s no momentum to boost its share price.”
Adding to its stock price concerns, LG Chem also had to deal with ESS fire incidents involving its products.
According to Rep. Lee Hoon of ruling Democratic Party, 14 of the 26 ESS fire cases reported in South Korea since August 2017 were related to LG Chem batteries.