April 27, 2024

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[THE INVESTOR] LG Household and Health Care’s earnings improvement this year will be limited, said Eugene Investment and Securities on Jan. 24, maintaining a “neutral” rating and 1.38 million won (US$1,287) target price.

Its earnings in the fourth quarter last year satisfied market expectations but its stock price is sliding since it released a statement that forecast exceedingly conservative earnings prospects, said analyst Lee Seon-hwa.

The introduction of new international audit standards will affect its revenue but not its profits, but the company projected that its operating profit will rise merely 2 percent on-year to 945.0 billion won, disappointing the market, noted the analyst. 

It managed to stifle the repercussions from THAAD row between Korea and China last year by diversifying its business portfolio and focusing on higher-end range, but earnings improvement this year will be narrow, she added.

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