[Click eStock] "LG Saenghwal Geonhang, Q3 Earnings Expected to Meet Consensus... Target Price Up"

[Asia Economy Reporter Oh Ju-yeon] KB Securities evaluated that LG Household & Health Care's third-quarter earnings this year are expected to meet market consensus, and despite the novel coronavirus disease (COVID-19), a stable profit growth trend continues. Accordingly, they maintained a 'Buy' investment rating and raised the target stock price by 12% to 1.9 million KRW.

According to KB Securities on the 15th, LG Household & Health Care's consolidated sales for the third quarter of this year are expected to record 1.9351 trillion KRW, a 2% decrease compared to the same period last year, and operating profit is expected to increase by 4% to 325.2 billion KRW. Both sales and operating profit are forecasted to meet consensus.

Researcher Park Shin-ae diagnosed, "Despite the difficult business environment in the cosmetics market due to COVID-19, LG Household & Health Care is demonstrating superior performance compared to competitors based on differentiated brand competitiveness."

Cosmetics sales are estimated to decline by 13%, and operating profit is expected to decrease by 12%. Duty-free sales are expected to fall by 30%, but this is seen as slightly outperforming the domestic duty-free market growth rate (estimated -35%). Sales of the Chinese subsidiary are expected to grow by 24%, recovering a solid growth trend.

Sales and operating profit of household goods are forecasted to grow significantly by 30% and 70%, respectively. Additionally, beverage sales and operating profit are expected to grow by 1% and 12%, respectively.

Researcher Park mentioned, "As stable profit growth trends are confirmed every quarter, the stock price is expected to continue an upward trajectory."

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