[Click eStock] "LG Saenghwal Geonhang to Meet Q4 Expectations"... Target Price 2.1 Million Won

Ebest Investment & Securities Issues 'Buy' Rating and Sets Target Price at 2.1 Million KRW... Closing Price on 11th at 1.602 Million KRW

[Asia Economy Reporter Kum Bo-ryeong] An analysis has emerged that LG Household & Health Care's fourth-quarter performance last year will meet market expectations.

According to Ebest Investment & Securities on the 12th, LG Household & Health Care's consolidated sales for the fourth quarter of last year are estimated at 2.0654 trillion KRW, and operating profit at 239.8 billion KRW. Compared to the same period last year, sales increased by 2.6%, while operating profit decreased by 0.5%.

Orin Ah, a researcher at Ebest Investment & Securities, said, "We expect results that meet market expectations," adding, "Cosmetics division sales are estimated at 1.2844 trillion KRW, down 3.9% year-on-year, and operating profit is expected to decrease by 3.3% to 206.8 billion KRW. Duty-free store sales are expected to show solid defense with a low single-digit decline, but there was likely an impact from sluggish domestic channels due to an increase in confirmed COVID-19 cases and strengthened social distancing measures. However, retail sales of cosmetics in China continue to grow in double digits, and with the Chinese Ministry of Commerce announcing consumption stimulation measures this year, local growth in China is an encouraging factor for 2021 performance," she explained.

For the household goods division, sales are expected to increase by 26.4% year-on-year to 432.6 billion KRW, and operating profit to rise by 31.1% to 12.1 billion KRW, due to a higher premium product ratio and the reflection of Physiogel's performance.

Ebest Investment & Securities gave LG Household & Health Care a 'Buy' investment rating with a target price of 2.1 million KRW, up from the previous 1.8 million KRW. The closing price on the 11th was 1.602 million KRW. Researcher Oh said, "Despite the impact of COVID-19 and rapid changes in the Chinese cosmetics market, the company has shown stable performance, and improvements in the fundamentals of the beverage and household goods divisions are also positive."