[주간HOT종목]Donghak Ant, the first week of the new year’LG Electronics’ great interest

Operating profit of more than 3 trillion won this year without Innotek’s earnings

[아시아경제 금보령 기자] In the first week of 2021, individual investors showed great interest in LG Electronics.

According to the Korea Exchange on the 9th, from the 4th to the 8th, individual investors net bought LG Electronics shares of 522.5 billion won. LG Electronics ranked second in the top net buying by individual investors during this period.

Stock prices rose. The closing price, which was 135,000 won on December 30 last year, ended at 147,500 won the day before, and rose 9.26% between the five trading days.

LG Electronics announced on the previous day that its sales for the fourth quarter of last year were 18,782.6 billion won and operating profit of 647 billion won. Compared to the previous year, sales and operating profit increased by 16.9% and 535.6%.

Jeong-woo, a researcher at NH Investment & Securities, said, “The figures for each business segment have not been released, but the home appliance, TV, and electronic parts business is believed to have driven the earnings growth.” We expect profitability to improve thanks to improved product mix and online sales growth. The electronic parts business is expected to have a positive impact on company-wide earnings due to increased shipments of electric vehicle parts.”

At the end of last year, LG Electronics drew attention from the market by unveiling its plan to establish a joint venture in the powertrain division with Magna International, the world’s third largest auto parts company. Growth opportunities are expected to arise through strategic alliances with global auto parts makers.

This year, operating profit of over 3 trillion won is expected without Innotek’s earnings. Seong-ryul Kwon, a researcher at DB Financial Investment, said, “This year’s pure LG Electronics operating profit is expected to exceed KRW 3 trillion. Even assuming that H&A (home appliance) and HE (TV) did not have a special effect last year, good profitability can be maintained through improved product mix. In addition, VS (electronic parts) and MC (smartphone) are expected to reduce their deficit.” “H&A is the blast of new home appliances, HE is the expansion of OLED TV sales, and VS has a lot of low-priced orders and sales are reduced. It is expected to turn into a surplus in the second half of this year with a significant increase. MC will reduce the deficit due to production efficiency improvements such as the launch of a new form factor and an increase in the proportion of ODMs.

Reporter Geum Boryeong [email protected]