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The Korea Herald
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THE INVESTOR
March 29, 2024

Stocks & Bonds

[EQUITIES] ‘LG H&H to be hit by Chinese tourism ban’

  • PUBLISHED :March 28, 2017 - 11:06
  • UPDATED :March 28, 2017 - 11:06
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[THE INVESTORLG Household and Health Care’s growth will slow down as the number of tourists from China declines following a government ban on travel to South Korea, said Dongbu Securities on March 28, lowering the target price to 920,000 won (US$826.37) from 1 million won. 




Revenue from duty-free stores, some standalone stores in Seoul, and department stores will suffer and its earnings in cosmetics division will decline inevitably, said analyst Park Hyeon-jin. 

Its revenue in the first quarter will rise 5.5 percent on-year to 1.60 trillion won and operating profit by 6.7 percent to 249.4 billion won, missing the market expectations, estimated the analyst.

Duty-free stores will suffer further in the second quarter and the growth rate of department stores and door-to-door sales, also dependent on Chinese customers, will fall by close to 5 percent, said Park. 

Its relatively low exposure in China, though, compared to its rivals, could be positive in that its stock price will not be affected, noted the analyst. 

By Hwang You-mee (glamazon@heraldcorp.com)

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