[Click eStock] "LG Electronics Expected to Achieve Record Q4 Performance"

[Asia Economy Reporter Eunmo Koo] LG Electronics is expected to achieve not only its highest quarterly performance but also its best-ever annual performance next year.

On the 6th, KB Securities maintained its investment rating and target price for LG Electronics at 'Buy' and 120,000 KRW respectively, designating it as the top preferred stock in the electrical and electronics and home appliance sectors for next year. Dongwon Kim, a researcher at KB Securities, explained in a report on the same day, "Next year, the automotive components (VS) business is showing clear visibility of turning profitable due to a surge in sales of electric vehicle parts, which have increased by more than 100% compared to the same quarter last year. Additionally, in the first half of next year, shipments and price increases in the home appliances (H&A) and TV (HE) sectors are expected to occur simultaneously, and with sales diversification across North America, Europe, and Latin America, an improvement compared to the previous year is highly likely."

He added, "Furthermore, amid the trend of a stronger Korean won next year, LG Electronics, which has secured a hedge business structure between different currencies, is estimated to have the lowest risk of profit decline due to exchange rate drops among the seven major large IT companies."

KB Securities estimates that LG Electronics' operating profit for the fourth quarter will reach 551.6 billion KRW, a 442% increase compared to the same period last year, marking the highest quarterly performance. In particular, operating profit for next year is expected to increase by 21% year-on-year to 3.7 trillion KRW, setting a record high. Researcher Kim explained, "This is because, from a conservative perspective, even assuming no profit increase in home appliances and TVs next year, it is estimated to be possible solely through automotive components and a reduction in smartphone losses."

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