[Click eStock] "LS Cable Asia, Continued Outlook for Earnings Improvement"

[Asia Economy Reporter Park Jihwan] NH Investment & Securities on the 20th raised the target price for LS Cable Asia from 9,000 KRW to 10,000 KRW, stating that "continued performance improvement is expected this year." The investment rating was maintained as 'Buy.'

Lee Minjae, a researcher at NH Investment & Securities, said, "LS Cable Asia achieved the performance level initially expected in 2019," and added, "Sales growth due to facility expansion is expected to continue in 2020."

According to NH Investment & Securities, LS VINA (Hanoi branch) is expected to see profit improvement effects from orders of overhead lines by EVN (Vietnam Electricity) and increased sales of high-voltage cables (HV). Additionally, LS CV (Ho Chi Minh branch) is projected to increase operating profit by 13% year-on-year this year due to the expansion of the medium-voltage cable (MV) line and the growth of large projects such as high-rise buildings in Vietnam.

Researcher Lee Minjae explained, "On a consolidated basis, fourth-quarter sales were 125.8 billion KRW and operating profit was 6.9 billion KRW, exceeding our estimate of 6.4 billion KRW," and added, "LS VINA recorded an operating profit of 3.8 billion KRW in the fourth quarter, which was due to profit improvement in the overhead line and distribution sectors following the third quarter."

He particularly emphasized, "The importance of investment in transmission and distribution facilities in Vietnam is gradually increasing."

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