[Click eStock] "LG Electronics Enters Peak Season in Q1"

BK Investment & Securities Presents 'Buy' Investment Opinion and Target Price of 92,000 KRW... Closing Price on 30th at 67,200 KRW

Photo by Asia Economy DB

[Asia Economy Reporter Kum Bo-ryeong] LG Electronics is entering its peak season, according to an analysis.

On the 31st, IBK Investment & Securities reported that LG Electronics' sales in the fourth quarter of last year decreased by 2.3% compared to the previous year, totaling 13.2414 trillion KRW. Operating losses increased in scale, mainly due to the expanded deficit in the Mobile Communications (MC) division.

However, the first quarter is positive as it is a seasonal peak period. Kim Un-ho, a researcher at IBK Investment & Securities, stated, "LG Electronics' sales for the first quarter of this year are expected to increase by 9% compared to the fourth quarter of last year and by 5.1% compared to the first quarter of last year, reaching 14.4311 trillion KRW. Operating profit is expected to turn positive compared to the fourth quarter of last year but decrease by 16.7% compared to the first quarter of last year, amounting to 758.8 billion KRW." He added, "Compared to the same period last year, the profitability of the MC division and the Vehicle Components (VS) division is expected to deteriorate, while the Business Solutions (BS) division's operating profit margin is expected to improve. The performance of the MC division will be a variable factor."

IBK Investment & Securities gave LG Electronics a 'Buy' rating with a target price of 92,000 KRW. The closing price on the 30th was 67,200 KRW. Researcher Kim said, "It is judged that more attention should be paid to seasonality in the first half of this year, and the four-month period of adjustment reflects the poor performance in the fourth quarter."

This content was produced with the assistance of AI translation services.