April 20, 2024
Stocks & Bonds
[EQUITIES] ‘LG Int’l’s logistics division back on track’
[THE INVESTOR] LG International’s stocks will be reevaluated as its logistics division recovers, said Hana Financial Investment on March 29, maintaining a “buy” recommendation and 40,000 won (US$35.90) target price.
Its operating profit in 2017 will hike 42.7 percent on-year to 248.4 billion won, estimated analyst Shin Min-seok. Operating profit from its resources sector will more than double to 87 billion won from last year’s 27.5 billion won, boosted by the strong coal price. The logistics division will also be relieved of one-time cost related to Hanjin Shipping while being bolstered by the rising container rates, to post 90.7 billion won, up 21.9 percent on-year, said the analyst.
The sharp growth in resources department and the recovery of logistics business will gradually push the stock price, which is undervalued by 7.7 times its price-earnings ratio, said Shin.
By Hwang You-mee (glamazon@heraldcorp.com)
Its operating profit in 2017 will hike 42.7 percent on-year to 248.4 billion won, estimated analyst Shin Min-seok. Operating profit from its resources sector will more than double to 87 billion won from last year’s 27.5 billion won, boosted by the strong coal price. The logistics division will also be relieved of one-time cost related to Hanjin Shipping while being bolstered by the rising container rates, to post 90.7 billion won, up 21.9 percent on-year, said the analyst.
The sharp growth in resources department and the recovery of logistics business will gradually push the stock price, which is undervalued by 7.7 times its price-earnings ratio, said Shin.
By Hwang You-mee (glamazon@heraldcorp.com)
