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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Sangjin] Hana Securities has downgraded LG's target price from KRW 120,000 to KRW 105,000 due to reduced expectations for fundamental improvement. The firm cited declining stock prices of major subsidiaries such as LG Chem as a key factor in the revision.
The report highlighted that LG's Q2 consolidated operating profit fell by 32% year-on-year to KRW 309.4 billion, significantly missing consensus estimates. This decline is attributed to a decrease in equity method gains, driven by poor performance of LG Chem and LG Energy Solution. Additionally, LG Uplus is expected to incur amortization costs related to intangible assets from Q4, further impacting profits.
Despite earlier momentum from LG's value-up program, LG's stock has reversed gains and is currently weaker due to deteriorating fundamentals of its major subsidiaries.
As of the last trading day, LG's stock price was KRW 78,000, with a projected annual P/E ratio of 9.09x and a P/B ratio of 0.46x.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
