We raise our battery material (cathode) capacity forecasts to 280ktpa by 2025F (230ktpa previously) given a rise in EV production by Ford and GM. We expect its battery revenue contribution to rise to 48%/56%/70% in 2021F/22F/23F (33% in 2020) with an OP CAGR of 60% in 2021-23F. While we are positive on Posco Chemical’s battery material business, we downgrade our call from Add to Hold for its lofty valuation (81x 2022F P/E).
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