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LG Household & Health Care Gwanghwamun Building (photo = Yonhap News) |
[Alpha Biz= Reporter Kim Sangjin] Several major securities firms have lowered their target prices for LG Household & Health Care (051900) following disappointing Q3 results, citing challenges in achieving substantial growth. On October 30, firms like NH Investment & Securities (from 500,000 KRW to 370,000 KRW), Kiwoom Securities (470,000 KRW to 450,000 KRW), Shinhan Investment (440,000 KRW to 380,000 KRW), Hana Securities (500,000 KRW to 390,000 KRW), and Sangsangin Securities (530,000 KRW to 500,000 KRW) adjusted their targets.
LG H&H reported Q3 revenue of 1.7136 trillion KRW, a 2% decrease year-over-year, meeting market expectations. However, its operating profit of 106.1 billion KRW missed estimates by around 25%. Jung Ji-yoon, an analyst at NH Investment & Securities, commented, “Growth in China’s The History of Whoo sales is promising, but the reduction in domestic sales channels makes it challenging to achieve expected revenue growth.”
The outlook suggests continued underperformance in Q4, with a potential recovery beginning next year as profitability in China and North America may improve. Jo So-jung, an analyst at Kiwoom Securities, noted, “In China, the unfavorable business environment and increased marketing investments will likely hinder profitability improvements this year. The U.S. is also expected to experience continued impact from operational efficiency adjustments through year-end.”
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
