[Click eStock] "LG, Enhancing Shareholder Value and Increasing Dividend Appeal"

[Asia Economy Reporter Kwon Jae-hee] Daol Investment & Securities maintained a 'Buy' rating on LG on the 2nd and raised the target price to 100,000 KRW.

Daol Investment & Securities forecasted LG's standalone recurring net profit for this year at 715 billion KRW. Dividend income is estimated at 526 billion KRW, and brand royalties at 359 billion KRW. This year's dividend per share (DPS) is 3,100 KRW, up 300 KRW from the previous year. Based on a DPS of 3,100 KRW, the total dividend payout is 497 billion KRW, which is 70% of the recurring net profit. This is a comfortable level, and there is potential for further increases to benefit shareholders. Given the trend of dividend expansion among listed companies and the expected sales growth of affiliates, there is sufficient room for recurring profit growth in the future.

Kim Han-i, a researcher at Daol Investment & Securities, stated, "The stock is undervalued compared to its stable equity value, and the excellent performance growth of LG CNS, expectations for future dividend increases, and the company's commitment to improving the discount on net asset value (NAV) through treasury stock acquisitions are all positive factors." He added, "Even if market volatility increases, the elevated stock price level is expected to be supported."

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