Why Are Secondary Battery Stocks Rising? The Time to Buy Again Has Come! | Kim Hyun-soo, Research Fellow, Corporate Analysis Team, Hana Securities Research Center

Summary

Hana Securities research fellow Kim Hyun-soo explains the recent Korean secondary-battery rally as mainly a valuation and trading opportunity: EV demand is still weak, but bad news is largely priced in and the sector is near historical valuation bottoms. He favors LG Energy Solution and the broader battery supply chain for a 30-40% relative trade, with ESS/AMPC and US reshoring as key profit drivers and lithium's rebound supporting battery prices. He also highlights Hyundai Motor's CES physical-AI leadership and its value chain. In the closing segment, Vincent says he remains a buyer of leading stocks ahead of SK hynix earnings, while flagging tariff uncertainty and a soft biotech setup around the JPMorgan conference.

• Kim Hyun-soo says Korean battery stocks are oversold and now a trading buy, not a long-term hold.
• He sees LG Energy Solution at a valuation bottom with around 30% upside at roughly KRW 80tn market cap.
• ESS demand from data centers, US reshoring, and AMPC credits are the key profit drivers for Korean battery cell makers.
• A rebound in lithium carbonate is expected to lift cathode and cell prices with a lag, supporting battery revenue.
• CES highlighted Hyundai Motor as a physical-AI leader; Kim recommends watching its value chain, including Hyundai Mobis.
• Vincent flags tariff uncertainty ahead of a Supreme Court ruling and says product-level tariffs may replace reciprocal tariffs.
• Vincent remains a buyer of leading Korean stocks before SK hynix earnings, while biotech looks weak around the JPMorgan conference.