1. LG Chem’s Q2 Performance: What Happened?
LG Chem reported revenue of KRW 114.177 trillion and operating profit of KRW 4.768 trillion in Q2 2025, surpassing market expectations. However, the company recorded a net loss, contrary to projections.
2. What Drove the Performance?
- Positive Factors: Improved profitability in the petrochemical business, growth in the advanced materials segment, efficient cost management, and increased sales of high-value-added products.
- Negative Factors: The specific reasons for the net loss remain unclear, but factors like corporate taxes and financial expenses are suspected. Furthermore, exchange rate and raw material price volatility remain risk factors.
3. Outlook for LG Chem: What’s Next?
The growth of LG Energy Solution and the anticipated improvement in the macroeconomic environment in the second half are expected to have a positive impact on LG Chem. However, analyzing the causes of the net loss and preparing for volatile exchange rates and raw material prices are crucial.
4. Action Plan for Investors
While short-term stock price gains are anticipated, careful investment decisions are necessary. Investors should consider the reasons for the net loss, future earnings trends, and LG Chem’s strategies for navigating changes in the macroeconomic environment. In the long term, restructuring the business portfolio and securing new growth engines will be key investment points.