[Featured Stock] LG Household & Health Care Falls Below 1 Million Won Amid Earnings Slump and Concerns Over Chinese Market

[Asia Economy Reporter Song Hwajeong] LG Household & Health Care fell below the 1 million KRW mark during trading due to poor performance and concerns about the Chinese market.

As of 9:55 AM on the 10th, LG Household & Health Care was trading at 956,000 KRW, down 148,000 KRW (13.41%) from the previous day. During trading, it dropped to 921,000 KRW, marking a 52-week low.

The decline in stock price is attributed to poor fourth-quarter results last year and concerns about the Chinese market. Meritz Securities stated that structural threats related to the Chinese cosmetics market are widespread, making it difficult for the dark clouds over the entire industry to clear in the short term. Consequently, they downgraded their investment opinion on LG Household & Health Care from 'Buy' to 'Hold' and lowered the target price from 1.6 million KRW to 1.2 million KRW. Meritz Securities estimated LG Household & Health Care's fourth-quarter sales at 2.0678 trillion KRW, a 1.3% decrease year-on-year, and operating profit at 246.3 billion KRW, down 3.9%. Hanuri, a researcher at Meritz Securities, said, "In the short term, there is a burden from the low base effect, and in the mid-to-long term, structural threats related to the Chinese cosmetics market, such as entering a low-growth phase, are widespread. Additionally, the shift of major distribution channels from domestic duty-free to local Chinese markets raises concerns about profitability deterioration."

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