Back To Top

[EQUITIES] ‘LG Int’l Q3 earnings very disappointing’

[THE INVESTORLG International's third-quarter operating profit was disappointing at 21.6 billion won (US$18.96 million), falling way short of market consensus, securities firms said on Oct. 27.

NH Investment and Securities lowered the target price to 31,000 won from 48,000 won and changed its recommendation to "hold."

The firm’s operating profit dropped 28 percent as its resources business reflected costs of mine waste processing while the logistics division aggressively sought to increase volume despite the sluggish marine transport industry, explained analyst Kim Dong-yang.

Samsung Securities echoed the sentiment lowering the target price to 36,000 won but maintained a “buy” recommendation.

“The volume of logistics business is continuing to grow, and the upturn of coal price can boost the 2017 performance,” said analyst Baek Jae-seung, adding that “its gas-to-liquid project slated to be launched in the first half of next year is a variant that can be favorable.”

By Hwang You-mee (