[Click eStock] "LG Uplus, Positive Earnings Outlook for Q1"

[Asia Economy Reporter Oh Ju-yeon] SK Securities expects LG Uplus's earnings for the first quarter of this year to be favorable, following the strong performance in the fourth quarter of last year. Despite the recent stock price decline, the profit forecast and target price of 18,000 KRW are maintained, with the expectation that the effects of 5G and the acquisition of LG HelloVision will be simultaneously confirmed in the second half of the year. Accordingly, it is analyzed that the potential for stock price increase will also expand.

Researcher Choi Kwan-soon forecasted LG Uplus's operating revenue for the first quarter of this year at 3.2848 trillion KRW (an 8.8% increase compared to the same period last year) and operating profit at 190.1 billion KRW (a 2.3% decrease). It is expected that favorable performance will continue following the fourth quarter of last year. The operating profit is also expected to exceed the market expectation of 180.9 billion KRW.

Researcher Choi explained, "LG Uplus has secured a higher proportion of 5G subscribers compared to competitors, so the wireless segment's growth trend continues, and IPTV and high-speed internet net subscriber additions are also maintained at a higher level than competitors, indicating that the competitiveness of the wired segment remains effective." He added, "In the second half of the year, synergies in the paid broadcasting sector due to the acquisition of LG HelloVision will also be fully realized."

As of the end of February, LG Uplus had 1.33 million 5G subscribers, accounting for 9.3% of total subscribers. The combined proportion of LTE and 5G subscribers is 96.4%, indicating that high-quality subscribers have been secured.

Researcher Choi stated, "The 5G effect, which will be fully realized in the second half of the year, can be maximized," and added, "LG, the largest shareholder of LG Uplus, has decided to additionally purchase 8,530,806 shares (90 billion KRW, 1.95%) of LG Uplus on the market. This confirms the high growth potential of LG Uplus, and favorable supply and demand conditions are expected to continue."