[Click eStock] "LG Saenghwal Geongang, Operating Profit Expected to Decrease Double Digits... Target Price Down"

On the 6th, Samsung Securities lowered the target price for LG Household & Health Care from 520,000 won to 480,000 won. This marks the third consecutive downward revision this year. The investment rating was maintained at 'Hold.'

LG Household & Health Care is estimated to record sales of 1.82 trillion won and an operating profit of 149.5 billion won in the third quarter. These figures represent decreases of 3% and 21%, respectively, compared to the same period last year. The cosmetics and daily beauty segments are failing to appeal to Chinese consumers, and there is no clear growth momentum secured in Japan or the United States, which were expected to be alternatives to China. Accordingly, the company has begun expanding marketing investments and restructuring underperforming businesses from a mid- to long-term perspective. Operating profit is expected to continue a double-digit decline compared to the previous year through the end of this year.

Park Eun-kyung, a researcher at Samsung Securities, stated, "As a result of investments in regional and brand diversification, the company's profit growth is expected to fall short of the industry average until 2024," adding, "A conservative investment strategy will remain valid until there is confidence that profit forecasts will no longer be revised downward."

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