LG Electronics’buy’ reevaluated as an eco-friendly high-tech company [현대차증권]

Hyundai Motor Securities presented an investment rating of’Buy’ and a target price of 105,000 won to LG Electronics on the rise in demand for eco-friendly home appliances from Corona 19 and performance expectations in the eco-friendly automobile sector.

In a report on the 21st, Noh Geun-chang, a researcher at Hyundai Motor Securities, said, “LG ​​Electronics’ sales and operating profit of last year increased by 1.5% and 31.0% compared to the previous year, respectively, to 63 trillion won and 3.2 trillion won. The background is to increase marketing cost efficiency due to increased demand for home appliances and increased proportion of non-face-to-face sales.

“The demand for eco-friendly products is expected to increase further this year. Accordingly, the growth of the home appliance (H&A), automobile parts solution (VS), and business solution (BS) divisions will continue.” “This year’s consolidated sales and operating profit are It is expected to increase by 8.5% and 21.3%, respectively, to KRW 68 trillion and KRW 3.99 trillion.”

Hyundai Motor Securities believes that the expansion of new growth business will be a greater driving force for the share price increase than the profit improvement from the sale of the mobile phone business division, which is a recent issue.

Researcher Roh said, “We expected to overgrow with new home appliances, and are transforming into a platform company based on core solutions.” “Here, the VS division expected to secure opportunities in the eco-friendly automobile sector, MC) has determined that the negative impact on earnings growth will be limited.”

Recently, LG Electronics’ share price has significantly exceeded the market rate due to expectations for an Apple car. If Apple enters the finished car market, it means that a company in charge of hardware is essential. Researcher Roh explained, “It still takes a lot of time to materialize, but the revaluation of the stock price will be justified in that it is a company that has secured core technology with LG Energy Solutions.”