April 24, 2024

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[THE INVESTOR] LS Industrial Systems will post strong earnings in the fourth quarter, said Kiwoom Securities on Oct. 18 maintaining a “buy” recommendation and 100,000 won (US$88.56) target price. 

Its operating profit in the third quarter will slip 2 percent on-year to 54.3 billion won, slightly lower than market expectations. Although the figures may not seem satisfactory after robust earnings in the first half, investors can see its stronger automation solutions and conversion businesses as well as Chinese operations, said analyst Kim Ji-san.

In the fourth quarter it will gain significantly from being a high season including orders in power infrastructure. High-voltage direct cable division is likely to win the second West Coast project and will rise from next year. Industrial demand for energy saving systems may slow down but demand for new and renewable energy will remain strong, forecast the analyst. 

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