April 19, 2024

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[THE INVESTOR] LG International’s coal division will improve while the logistics and infrastructure sectors will continue growth into next year, said Shinhan Financial Investment on April 14, maintaining a “buy” recommendation and 43,000 won (US$37.76) target price. 

Its operating profit in the first quarter will rise 22 percent on-year to 54.4 billion won, mainly due to resource and infrastructure divisions, estimated analyst Heo Min-ho.

The company’s operating profit for the whole year will hike 48 percent to 257 billion won, propelled by the resources sector, said the analyst forecasting that the price of coal will jump 40 percent this year. 

Even when the coal price settles down from the second half, the division will maintain the level of operating profit due to higher output, said Heo, adding that the operating profit ratio in logistics sector will improve gradually by 2019.

As the stocks are undervalued in the mid- to long-term, now is the chance to purchase, said the analyst.

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