[Click eStock] "LS Jeonseon Asia, Despite Expectations of Record High Performance This Year, Stock Price Remains Overlooked"

[Asia Economy Reporter Park Jihwan] Kiwoom Securities evaluated on the 9th that LS Jeonseon Asia is expected to see improved performance mainly in power cable products due to the recent sharp rise in copper prices. With the resumption of project orders in Vietnam, which were delayed due to COVID-19, profitability is expected to rebound rapidly. Accordingly, the investment opinion 'Buy' and the target price of 10,500 KRW were maintained.

Researcher Kim Jisan of Kiwoom Securities explained, "Due to the rise in copper prices and the increase in orders, a favorable operating environment is expected in the first half of the year," adding, "copper prices surged more than 15% compared to the beginning of the year, reaching 8,900 USD per ton amid expectations of a global economic recovery."

It is explained that the improvement in performance centered on power cables is accelerating, and profitability is expected to improve as orders for projects delayed by COVID-19 resume. Researcher Kim Jisan stated, "As short-term low-price orders decrease and high value-added power cable project orders increase, operating profit of 6 billion KRW is expected despite the first quarter being an off-season."

Although it slowed down last year due to the impact of COVID-19, this year the increase in renewable energy projects in Vietnam and the growth of the Asian power market are expected to sustain the increase in orders. The Hai Phong (LS-VINA) corporation is reflecting carryover volumes of ultra-high voltage project products from the fourth quarter, and with the increase in demand for transmission facility replacement and renewable energy (solar, wind) project orders in Vietnam this year, growth in the distribution business division is expected.

Researcher Kim stated, "The Ho Chi Minh (LSCV) corporation is normalizing profitability as the proportion of low-price orders for some products such as UTP is gradually decreasing, and the increase in demand for optical cables linked to wind power generation in Vietnam this year is also noteworthy." The Myanmar corporation succeeded in turning a profit in the fourth quarter of last year due to the start of deliveries for local construction company projects and the establishment of a domestic business base.

He emphasized, "Based on a favorable operating environment, operating profit this year is expected to reach 30.9 billion KRW, achieving an all-time high," and added, "the current stock price is in a neglected state, so the investment attractiveness is judged to have increased."

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