[Click eStock] "Top ESG Management Company LG Household & Health Care, Strong Performance Continues"

Included in Dow Jones Sustainability Index for 3 Consecutive Years
1Q Earnings Also Expected to Be Strong

[Asia Economy Reporter Minwoo Lee] LG Household & Health Care, which has long been committed to sustainable management, is expected to stand out in ESG (Environmental, Social, and Governance) management as well. Along with this, its first-quarter performance is also projected to be solid.

On the 5th, Yuanta Securities maintained a 'Buy' investment rating and a target price of 2 million KRW for LG Household & Health Care based on these factors. The previous trading day's closing price was 1.57 million KRW.

Previously, LG Household & Health Care was included in the Dow Jones Sustainability World Index for three consecutive years in the '2020 Dow Jones Sustainability Index (DJSI)' evaluation. The DJSI has been recognized globally for over 20 years for its credibility in sustainability assessment and investment. The evaluation criteria include economic performance as well as environmental, social, and governance aspects. Even before ESG gained attention, LG Household & Health Care established a sustainable growth management policy early on in 2005 and prepared for environmentally friendly sustainable management by setting mid- to long-term strategic directions and phased plans. This was a proactive move even within the LG Group. This year, LG Group is pursuing group-level governance improvements by strengthening ESG management, including establishing an ESG Committee and an Internal Transactions Committee within the board of directors and enhancing the independence of the Audit Committee.

Yuanta Securities evaluated that LG Household & Health Care particularly stands out in the areas of environmental friendliness and management transparency. These aspects are expected to contribute to the increase in corporate value in the future. Researcher Eunjeong Park of Yuanta Securities explained, "As companies' interest in ESG expands, specific target figures for environmental indicators are being set. LG Household & Health Care has established plans to reduce energy consumption and greenhouse gas emissions and is continuously investing in these areas, while also implementing efforts to reduce plastic usage."

Additionally, the company is introducing a professional management system. Since the appointment of Vice Chairman Seokyong Cha in 2004, sales have grown approximately eightfold from 950 billion KRW to about 7.8 trillion KRW last year. Researcher Park stated, "The eightfold increase in sales is the result of the management philosophy, employee ownership, and a bit of luck. LG Household & Health Care's activities to enhance corporate governance and increase corporate and shareholder value serve as a textbook example for all managers."

The performance is also solid. Yuanta Securities forecasts that LG Household & Health Care will record consolidated sales of 2.1118 trillion KRW and operating profit of 362.6 billion KRW in the first quarter of this year. These figures represent increases of 11.4% and 8.7%, respectively, compared to the same period last year. With Chinese consumption showing a stronger trend than last year and demand continuing to focus on high-end products, the company is expected to achieve robust results. Sales growth rates by segment are projected at 17% for cosmetics, 4% for household goods, and 3% for beverages. Duty-free and China sales are expected to grow by 24% and 35%, respectively. Researcher Park predicted, "Although household goods face a base burden, the inclusion of Physiogel will offset this burden."

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