[Click eStock] "LG Uplus, Balanced Growth in Wired and Wireless Expected to Continue"

Mirae Asset Securities Report
Target Price Raised by 2.6%

[Asia Economy Reporter Minji Lee] Mirae Asset Securities maintained a buy rating on LG Uplus on the 16th and raised the target price by 2.6% from the previous level to 19,500 KRW. This is because the stable growth of 5G subscribers and the resulting increase in average revenue per user (ARPU) are expected to push annual operating profit beyond 1 trillion KRW.

LG Uplus's sales in the second quarter are projected to be 3.3571 trillion KRW, with an operating profit of 264 billion KRW, showing a slight decrease compared to the previous quarter. However, considering that the previous quarter (276 billion KRW) included a one-time gain of about 20 billion KRW related to device inventory, this is estimated to be a slight increase. Researcher Hakmu Lee of Mirae Asset Securities stated, “Although there was no new flagship device launch, the increase of 440,000 5G subscribers and the continued ARPU growth based on the increase in 5G subscribers are considered the main factors for the improvement in performance.”

The effect of ‘Uplus Together,’ a 5G and LTE combined product launched in the first quarter, continued through the second quarter, leading not only to the acquisition of new customers but also to strengthening loyalty among existing customers. Furthermore, efficient marketing expenditure is expected to enhance dominance in the 5G market. It is also positive that market dominance is being strengthened through differentiated services such as Idle Nara, Elementary Nara, and sports content. Following Netflix, the possibility of strengthening content capabilities through the first domestic partnership with Disney Plus is also anticipated, creating synergy between wired and wireless businesses and content.

Researcher Hakmu Lee explained, “Based on the stable growth of wired and wireless businesses, operating profit this year is expected to reach about 1.0953 trillion KRW,” adding, “Considering the upward revision of earnings and the effect of share buybacks, the target price has been raised.”

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