April 25, 2024

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[THE INVESTOR] LG Chem posted the highest earnings in six years and will remain on the trajectory, said NH Investment and Securities on July 20, maintaining a “buy” recommendation and raising the target price to 440,000 won (US$391.01) from 400,000 won.

Its second-quarter operating profit was boosted as basic materials sector continued to be strong and battery unit turned to black, explained analyst Hwang Yu-sik. The petrochemical division managed to post high income despite the sharp decline in oil and naphtha prices on the back of robust sales of downstream products, added the analyst. 

Batteries propelled the lucrative figures and profits will expand further in the second half, noted Hwang. New product launch of a key IT client and expanding European EV market will boost the company as well, he added.

Mirae Asset Daewoo echoed the forecast, raising the target price by 10 percent to 450,000 won. The chemical company beat market expectations in the second quarter and will continue to rise, said analyst Park Yeon-ju, estimating that operating profit will rise to 708.5 billion won.

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