AI's Pick: Samsung SDI·LG Energy Solution, North American ESS Domination Begins / Don't Be Fooled by the Transformer Slump Illusion, Power Stock Top Pick is 'This' | Director Lee Ju-yeon

Summary

Director Lee Ju-yeon discusses investment opportunities in secondary batteries and power equipment. She argues that despite weak EV demand, ESS growth and US/EU anti-China policies will lift Korean cell makers LG Energy Solution and Samsung SDI, while LFP cathode shortages benefit L&F and POSCO Future M. AI data center supercapacitor plays like Vitzrocell are highlighted. In power equipment, LS Electric is the top pick on order momentum, while HD Hyundai Electric should be avoided due to overoptimistic market expectations.

• Global ESS demand forecast revised up 50%, driven by AI data centers and US/China, with Europe joining from 2027.
• US Section 48C and AMPC rules increasingly exclude Chinese batteries, forcing a shift to Korean cells; LG and SDI already securing large US orders.
• LFP cathode materials face a 30% supply shortfall by 2028, benefiting L&F and POSCO Future M as prices and profitability rise.
• Samsung SDI expected to turn profitable in Q3, earlier than forecast, thanks to data center BBU/UPS and European EV recovery.
• AI data center CBU and supercapacitor market opens; Korean capacitor makers Vitzrocell, Bihwa Tech, LS Materials are core beneficiaries.
• Power equipment ultra-large transformer exports remain strong; LS Electric has the strongest earnings momentum and order growth, likely beating consensus.
• Hyosung Heavy offers relative value but Q2 may slightly miss; Sanil Electric has top growth but limited liquidity; HD Hyundai Electric faces downside risk from high market expectations.