[Click eStock] "LS, Undervalued at 60% of Net Asset Value"

On the 15th, NH Investment & Securities evaluated that LS, the holding company of LS Group, is undervalued by about 60% compared to its net asset value (NAV).

Analyst Kim Dong-yang of NH Investment & Securities stated in a report, "LS is expected to increase its annual cash flow to around 200 billion KRW by recognizing LS MnM's performance in the consolidated financial statements."

He also explained, "LS will invest 579.4 billion KRW by 2026 in its affiliates' businesses, including LS Cable & System's submarine cable business, LS I&D's optical cable facility expansion, and LS MnM's electric vehicle material complex construction," adding, "As it increases investment in new growth businesses, its future earnings value is rising."

Analyst Kim said, "LS's stock is trading at a 60% discount to NAV, with a price-to-book ratio (PBR) of 0.6 and a price-to-earnings ratio (PER) of 6.4, indicating undervaluation," and forecasted, "With new business investments and gradual strengthening of shareholder returns, the stock price will find its proper value."

LS recorded sales of 5.8524 trillion KRW in the fourth quarter of last year, a 1% increase compared to the same period the previous year, and operating profit of 153.7 billion KRW, a 20% increase over the same period.

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