April 19, 2024

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[THE INVESTOR] LG Household and Health Care’s lifestyle goods and beverages sectors are slowing down, said Eugene Investment and Securities on Sept. 29, maintaining a “neutral” rating and 1.05 million won (US$915.99) target price. 

Its third-quarter revenue will fall 2.6 percent on-year to 1.52 trillion won and operating profit by 5.4 percent to 230.9 billion won, estimated analyst Lee Seon-hwa.

Despite the THAAD row with China in the second quarter these two sectors have bolstered the company profits as a whole, but as they slow down LG H&H’s profits will decline for the first time since the first quarter of 2014, said the analyst.

The company covers all aspects of lifestyle and its far-reaching business portfolio could be attractive so it can defend its profits from struggling cosmetics industry, but its earnings improvement could be relatively slow, noted the analyst. 

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