LX International

 

[Alpha Biz= Reporter Kim Minyoung] NH Investment & Securities Maintains 'Buy' Rating and Target Price for LX International

On September 5, NH Investment & Securities reiterated its 'Buy' rating for LX International and maintained its target price at 41,000 KRW. The closing price on the previous trading day was 30,150 KRW.

NH Investment & Securities noted that LX International is showing improved logistics performance and enhancing its business diversification and profit resilience. The firm highlighted the following points:

Performance Improvement: NH Investment & Securities confirmed that last year's performance was the low point. Since the beginning of the year, rising shipping rates have improved logistics performance.
Diversification and Growth: LX International is advancing in its environmental transition through resource-based earnings and entering the secondary battery value chain with the acquisition of the AKP nickel mine in Indonesia. The firm is also exploring additional mine and smelter acquisitions.
Diversified Investments: The acquisition of LX Glass and Posco Green Power has contributed to business diversification and strengthened profit capabilities. Despite weak coal prices, increased coal production in Indonesia and China, along with the acquisition of the AKP nickel mine, are expected to improve performance.
NH Investment & Securities expects LX International to provide further growth through planned value-ups and additional acquisitions in nickel mining and smelting. The firm also anticipates that the company’s current undervaluation, reflected in its PBR of 0.4x and PER of 4.3x, will be addressed as these plans materialize.

For Q2 2023, LX International reported an operating profit of 129.6 billion KRW, a 0.3% increase year-over-year, and sales of 4.0736 trillion KRW, an 18.4% rise. These figures exceeded market expectations.

 

 

[ⓒ AlphaBIZ. 무단전재-재배포 금지]