From Reuters via Nasdaq, January 10:
Days before pricing its $10.7 billion IPO, South Korean battery maker LG Energy Solution (LGES) forecast its market share would overtake main rival CATL thanks to its wider range of customers and said it was aiming for a double-digit operating margin.
Days before pricing its $10.7 billion IPO, South Korean battery maker LG Energy Solution (LGES) forecast its market share would overtake main rival CATL thanks to its wider range of customers and said it was aiming for a double-digit operating margin.
LGES Chief Executive Officer Kwon Young Soo told reporters that he expected the company's market share to overtake that of Chinese rival Contemporary Amperex Technology Co Ltd (CATL) 300750.SZ, without specifying a time-frame, because it had a wider range of customers and CATL only currently operated factories in China.
Kwon also said the company aimed to achieve double-digit operating margins by reducing material and overhead costs -- addressing a profitability issue raised by institutional investors during the IPO roadshow, which kicked off last week. He did not specify by when LGES aimed to achieve this.
"We have a wider range of customers not only limited in China, but also in the United States as well as in Europe, while CATL's growth has been mostly backed by Chinese automakers," Kwonsaid at a news conference on Monday....
....MUCH MORE
Here we are breaking our general rule against posting every 'breakthrough' or change in chemistry or manufacturing process for the second time in a week* but when it's CATL or Tesla you almost have to pay attention or risk getting stuck as the market moves away from you.
On the other hand we have no interest in something like QuantumScape which recently reiterated their target dates for commercialization as 2024 -2025. Too much can happen in the meantime.And a small underfunded company may not be able to react.....
As a side note, last month Bloomberg reported that CATL's chairman had passed Jack Ma on the Asia Rich List and was now among the top five on the continent with a $50 billion pile....
