[Click eStock] "LG Saenghwal Geongang Continues to Contribute to Growth in Household Goods and Beverages"

[Asia Economy Reporter Jang Hyowon] Shinhan Investment Corp. analyzed on the 13th that LG Household & Health Care's growth contribution in the household goods and beverage sectors will continue. The target stock price was revised upward from 770,000 KRW to 890,000 KRW.

Park Hyunjin, a researcher at Shinhan Investment Corp., stated in a report on the same day, "LG Household & Health Care's consolidated sales in the fourth quarter of last year are expected to be 1,989.1 billion KRW, a 1.7% decrease compared to the same period last year, and operating profit is expected to be 176.6 billion KRW, a 26.8% decrease during the same period, which will meet the market consensus forecast."

Researcher Park said, "Cosmetics sales are gradually reducing the decline due to the domestic and overseas reopening effects," and "Cosmetics sales last year are expected to have decreased by 9.9% compared to the same period last year, while household goods and beverages likely ended last year maintaining the growth rate at the previous quarter's level."

He continued, "The decline in the KRW/USD exchange rate seems to have reduced cost burdens, and mix improvement focusing on high-margin products in beverages and household goods is continuously occurring," adding, "Although local consumption in China did not quickly normalize in the fourth quarter of last year, efforts to improve profits, such as conservative marketing expenditures, are being made, which is the current trend among cosmetics companies."

He further analyzed, "Overseas business sales excluding China also steadily show single-digit growth," and "Opportunities for mergers and acquisitions of well-known brands overseas are opening, and the pursuit of stable growth in household goods and beverages when the cosmetics market is difficult is one of LG Household & Health Care's mid- to long-term advantages."

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