[Click e-Stock] "LS Eco Energy, Profitability Forecast Upgraded"

On October 30, LS Securities stated that it is necessary to continuously monitor the progress of new businesses such as rare earth elements and subsea cables at LS Eco Energy. The target price was raised from 48,000 won to 57,000 won.

In the third quarter of this year, LS Eco Energy recorded sales of 232.8 billion won and operating profit of 14.8 billion won. This represents an increase of 4% and 18%, respectively, compared to the same period last year.

Seong Jonghwa, a researcher at LS Securities, explained, "The impact on profitability from tariffs on highly profitable UTP exports to the United States and the temporary absence of sales from URD cable exports to the United States was better than previously expected. Therefore, we are revising up our profit forecasts for the fourth quarter of this year."

He added, "There is no significant change in the growth direction of existing businesses, and the European ultra-high voltage cable business continues to grow steadily."

Researcher Seong analyzed, "For the Vietnam-Singapore subsea cable project, it is important to confirm whether the company will establish a joint venture with PTSC within this year as planned. If there are updates on meaningful milestones in new businesses, there is potential for a step-by-step upward revision in valuation."

He further explained, "In the rare earth elements business, the company is restructuring its partnerships with both Vietnamese and non-Vietnamese mining companies. Currently, only a minimal value is reflected in the valuation. However, if there is progress in the ongoing business schedule, expectations can be reflected in the valuation."

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