LG Energy Solution (373220.KS): Investor call takeaway "2027F a turning point"

We hosted an investor call for LG Energy Solution (LGES) on 1-2 October, during which management projected continued strong growth momentum driven by energy storage system (ESS) expansion while maintaining cautious optimism on EV recovery. For LGES, we think the turnaround will likely emerge from early-2027F. 2H26F earnings will likely be subdued as it is undergoing reforming/optimizing for its US plants to produce ESS. Our positive investment thesis for LGES is based on: 1) sizeable US advanced manufacturing tax credit (AMPC) of KRW1.3tn/1.8tn in 2026F/27F to support operating margins of 2.6%/5.9%; 2) global ESS capacity expansion to 60GWh (US: 50GWh) by end-2026 to generate revenue of KRW8.5tn (+204% y-y) in 2026F;