[Market Focus] LG Household & Health Care Weakens on Poor Q3 Outlook... Hits New Low

LG Household & Health Care saw its shares weaken and hit a new 52-week low during trading, amid forecasts that its third-quarter results this year will fall short of market expectations.

As of 9:15 a.m. on September 26, LG Household & Health Care was trading at 282,500 won on the Korea Exchange, down 4,000 won (1.40%) from the previous day. During the session, the stock fell to as low as 280,500 won, setting a new 52-week low.

On this day, Korea Investment & Securities projected that LG Household & Health Care’s consolidated sales for the third quarter of this year would decrease by 5.4% year-on-year to 1.6216 trillion won, with operating profit down 52.6% to 50.3 billion won. Kim Myungjoo, a researcher at Korea Investment & Securities, stated, "Operating profit is expected to fall 24% short of market expectations," and explained, "Since the second quarter, LG Household & Health Care has been aggressively restructuring its beauty business, and as a result, the operating loss of the beauty business in the third quarter is projected to widen significantly to 39.2 billion won, compared to 16.3 billion won in the second quarter." He added, "With the continued weakness in the beauty business and increased profit contribution from beverages and household goods, the company’s current valuation is burdensome. We expect that a meaningful recovery in LG Household & Health Care’s stock price will take considerable time and maintain a conservative outlook."

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