[Click eStock] "LG HelloVision, Rapidly Growing"

Ebest Investment & Securities Presents 'Buy' Investment Opinion and Target Price of 7,200 KRW... Closing Price on 18th at 5,260 KRW

[Asia Economy Reporter Kum Boryeong] LG HelloVision appears to be growing rapidly.

According to Ebest Investment & Securities on the 19th, LG HelloVision offers unlimited LTE combined with fiber optic internet for a lifetime monthly fee of 43,000 KRW. Combining unlimited LTE with TV and Wi-Fi is available for a lifetime monthly fee of 40,700 KRW. Hyunyong Lee, a researcher at Ebest Investment & Securities, explained, "This is only 50% of the service fees of the three major telecom companies," adding, "Mid-to-low priced pay TV could serve as a complement to global online video services (OTT), so a different investment perspective from IPTV is needed at this point."

The number of MVNO (Mobile Virtual Network Operator) subscribers is steadily increasing. LG HelloVision has been conducting a large-scale mobile promotion from the 22nd of last month until the 29th of this month. The main offer is unlimited LTE with no contract and no penalty for a lifetime monthly fee of 33,000 KRW. Over ten days, 3,000 new MVNO subscribers were added, which corresponds to a quarterly increase of 30,000 subscribers. The researcher said, "With MVNO operators securing competitive pricing, we expect the market to surpass 9 million subscribers by the end of the year, an increase of over 1 million compared to the previous year."

Additionally, LG Electronics is planning a home appliance rental business. The researcher analyzed, "If the home appliance rental business is expanded, almost all household devices such as smartphones, TVs, internet, water purifiers, stylers, dryers, washing machines, robot vacuum cleaners, and wine refrigerators will be rented from LG HelloVision," adding, "For a family of four, the monthly service fee could range from a minimum of 90,000 KRW to a maximum of 200,000 KRW."

Ebest Investment & Securities has given LG HelloVision a 'Buy' rating with a target price of 7,200 KRW. The closing price on the 18th was 5,260 KRW.