[Click eStock] "Expecting Subsidiaries' Performance Improvement such as LX Holdings and LX Semicon"

Heungkuk Securities Report

Heungkuk Securities recently evaluated LX Holdings' sharp stock price decline as a buying opportunity from a mid- to long-term perspective. The investment opinion is 'Buy' with a target price of 12,000 KRW.

On the 10th, researcher Park Jong-ryeol of Heungkuk Securities stated, "Although the poor performance of LX International, the main company, is somewhat negative due to last year's high base effect, steady performance is expected thanks to the improved results of other subsidiaries such as LX Semicon, LX Hausys, and LX MMA."

It is analyzed that the solid value of listed and unlisted investment securities will serve as a safety margin, and steady stock price revaluation will be possible due to the ability to generate EBITDA of 180 billion KRW.

LX Holdings' annual operating performance this year is expected to show a steady trend. Consolidated sales for 2023 are projected at 235.3 billion KRW, a 0.6% increase from the previous year. Operating profit is expected to increase by 11.3% to 176.9 billion KRW.

Researcher Park said, "Despite the decline in LX International's profits, the turnaround in the performance of other equity-method subsidiaries is the reason," adding, "Although poor performance momentum is inevitable through the first to third quarters of this year, considering the low base effect in the fourth quarter of last year, performance is expected to improve significantly in the fourth quarter."

LX Holdings is expected to enhance corporate value through the advancement of subsidiaries' own businesses and the promotion of new businesses. Based on this, it is anticipated to maximize shareholder value through an active shareholder return policy.

Plans for LX International (growth and new business development, portfolio restructuring including eco-friendly businesses), LX Pantos (new growth business development, digital innovation, specialized services by industry, global Top 10 logistics company), LX Semicon (expansion of high-margin premium product lines, business area expansion into high value-added semiconductors), LX Hausys (production and sales of premium interior products), and LX MMA (cost competitiveness enhancement, productivity improvement, supply of high value-added products) are also positive.

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