April 21, 2024

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[THE INVESTOR] LG International’s earnings will continue to improve in the first quarter, said NH Investment and Securities on March 23, maintaining a “buy” recommendation and 34,000 won (US$30.39) target price. 

It will meet market expectations with its revenue reaching 3.27 trillion won and operating profit 57 billion won, estimated analyst Kim Dong-yang.

The resources division will propel its upturn as the rallying price of coal will be adequately reflected, but infrastructure and logistics sectors will be slower as they enter low seasons, explained the analyst. 

As the coal price will be maintained at around US$80, the resource division will be the main source of improved margins, said Kim. 

It remains to be seen when the carried interest from financing gas to liquid project will be accrued by the infrastructure division. The logistics part will concentrate on the smaller-margin land transportation business for the time being, and will not be able to meet the market estimates, added the analyst.
By Hwang You-mee (glamazon@heraldcorp.com)