[Featured Stock] LG Electronics Faces Disappointing Q4, Drops Over 4% Intraday

[Asia Economy Reporter Minji Lee] LG Electronics is experiencing a drop of more than 4% during trading hours. This is analyzed to be due to weakened investor sentiment following the evaluation that the fourth-quarter earnings were below market expectations.

At 9:45 a.m. on the 10th, LG Electronics was trading at 130,100 KRW, down 4.73% from the previous trading day. The fourth-quarter earnings of last year fell short of market expectations, leading to a sell-off by disappointed investors. Operating profit, initially expected to exceed 800 billion KRW, recorded 681.6 billion KRW, a 21% decrease compared to the same period last year.

Dongwon Kim, a researcher at KB Securities, analyzed, “The H&A and HE businesses reflected increases in raw material and logistics costs,” and added, “The automotive components (VS) and business solutions (B2B) sectors showed declines in operating rates due to shortages in automotive semiconductor supply, along with poor performance in solar modules.”

Although short-term earnings were weak, it is predicted that the company will enter a seasonal peak period starting from the first half of this year. Researcher Kim stated, “The H&A business will improve profitability by expanding the sales proportion of premium new home appliances,” and “The HE division is expected to see overall performance improvement due to continued growth in the high-end TV market centered on OLED.” In the automotive components sector, a strong growth trend is anticipated if the semiconductor supply shortage is resolved.

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