[Click eStock] "LG Electronics, Excessive Undervaluation Considering Earnings Improvement"

NH Investment & Securities stated on the 8th that "considering the high possibility of LG Electronics' performance improving in the second half of this year, the current stock price is excessively undervalued."

Lee Gyu-ha, an analyst at NH Investment & Securities, commented on LG Electronics' announced first-quarter results for this year, saying, "Operating profit recorded 1.3329 trillion KRW, down 11% compared to the same period last year, meeting market consensus," and analyzed, "Despite concerns such as weakening demand for home appliances and rising transportation costs, the company achieved volume zone (the area with the largest consumer demand) expansion-driven top-line growth and cost stabilization, resulting in favorable profitability."

The analyst added, "LG Electronics achieved results in line with market expectations, supported by solid performance in the home appliance sector," and forecasted, "In the second half, demand for home appliances and IT devices including TVs will recover, and in the long term, the automotive electronics sector will steadily grow."

He stated, "Considering somewhat uncertain home appliance demand and profit margin decline due to rising TV panel prices until the first half, we are lowering this year's operating profit forecast by 4.9%," but emphasized, "Considering the mid- to long-term growth trend in the automotive and electric vehicle (EV) electronics sectors, recovery in home appliance demand, and profit margin increase through the TV platform ‘Web OS,’ the current stock price is in an excessively undervalued range."

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