'3.9 Trillion Won Contract Falls Through' LG Energy Solution Says 'No Problem'... CJ Logistics Emerges as Biggest Beneficiary of Coupang Incident [Zootopia]

[Financial News] On the morning of December 31, we summarize key reports from major securities firms.
LG Energy Solution’s 3.9 trillion won contract with Freudenberg Battery Power Systems (FBPS) has been terminated, but the actual revenue generated was minimal, so the financial impact is expected to be limited. CJ Logistics is projected to be the biggest beneficiary of the Coupang data breach incident, as the government is likely to reduce its reliance on Coupang. Given its logistics capabilities similar to Coupang, CJ Logistics is expected to benefit the most.
◆LG Energy Solution (373220)― Yuanta Securities Korea / Ianna Lee, Analyst
- Target Price: Not Provided
- Investment Opinion: Not Provided
Yuanta Securities Korea stated that the cancellation of the $2.795 billion (about 3.92 trillion won) contract between LG Energy Solution and FBPS is expected to have only a limited impact on future profitability. Analyst Ianna Lee explained that the contract was not for a specific client, but rather aimed at increasing the utilization rate of existing shared production lines. Therefore, even if the contract is canceled, there is little risk of line shutdowns or idle facilities. Lee also noted that further negative disclosures are likely finished, and considering that LG Energy Solution is leading in the conversion of its US Energy Storage System (ESS) lines and has strong order prospects, a positive stock trend is expected through the first half of next year.
◆CJ Logistics (000120)― KB Securities / Kang Seong-jin, Analyst
- Target Price: 130,000 won (Up from previous 110,000 won)
- Investment Opinion: Not Provided
KB Securities raised its target price for CJ Logistics to 130,000 won, citing expectations that the company will benefit most from the Coupang data breach. Analyst Kang Seong-jin identified the 'Coupang incident' as the biggest issue in the transportation industry this year. He predicted that the Korean government will seek to reduce excessive reliance on Coupang in the distribution and logistics sectors as a result of this incident. Kang also noted that Coupang may have to accept additional government demands to avoid interference in management. He concluded that CJ Logistics, which has invested in developing logistics capabilities such as parcel delivery and seven-day-a-week service similar to Coupang, stands to benefit the most in this environment.

sms@fnnews.com Seong Min-seo Reporter