[Click eStock] "LG Electronics, Profitability Improvement Expected in Second Half"

Shinhan Investment Corp. forecasted on the 20th that LG Electronics' earnings per share (EPS) will increase in the second half of this year due to demand recovery and profitability improvement. The investment rating was maintained at 'Hold', and the target stock price was kept at 140,000 KRW.

Researcher Oh Kang-ho of Shinhan Investment Corp. stated, "A long-term upward trend in the stock price is expected."

He also cited changes in the business model as a reason for the profitability improvement. It is judged that LG Electronics has entered a valuation growth phase due to market expansion driven by enhanced functions such as artificial intelligence (AI) and automotive electronics. He explained that attention should be paid to the expansion from a hardware-centered business model to software.

Considering this, 2024 is expected to be more positive than last year, and the second half of this year should be focused on rather than the first half. Researcher Oh said, "Sales of home appliances & air conditioning (H&A) are expected to increase by 6% compared to last year," adding, "Demand for heating, ventilation, and air conditioning will improve, and major countries' appliance demand will improve due to AI function enhancement."

He added, "LG Electronics can secure competitiveness within the global peer group and strengthen its market position through a balance of volume zone and premium lineup."

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