[Click eStock] "LG Household & Health Care, Key is Recovery of Chinese Demand"

LG Household & Health Care's 'Gongjinhyang: Mi Luxury Golden Cushion Special Edition'

[Asia Economy Reporter Kwon Jae-hee] On the 14th, Kiwoom Securities downgraded its investment opinion on LG Household & Health Care to 'Outperform' and lowered the target price to 760,000 KRW. The investment opinion 'Outperform' is considered lower than 'Buy' and generally implies a phased buying approach.

Kiwoom Securities expects LG Household & Health Care's fundamentals to recover in the second half of the year. Assuming LG Household & Health Care maintains its position in the Chinese cosmetics market, there is a high possibility of fundamental recovery with the improvement of Chinese consumer sentiment.

On the positive side, despite rising uncertainties in the cosmetics industry, LG Household & Health Care's diverse business portfolio is regarded as a significant advantage. Although profitability has been weak recently due to global inflation, LG Household & Health Care is a company with a strong market position in the industry and is expected to sufficiently defend itself through price increases. This is why profitability improvement is anticipated after the inflation stabilizes.

Sojeong Cho, a researcher at Kiwoom Securities, said, "Although investment sentiment has been greatly weakened recently due to sluggish performance in the local Chinese subsidiaries and duty-free channels, the stock price has the potential to rebound depending on the future macroeconomic situation in China, so we present it as a stock of interest."

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