[Click eStock] LG Household & Health Care Q1 Earnings Also Expected

[Asia Economy Reporter Junho Hwang] Ebest Investment & Securities maintained its buy rating on LG Household & Health Care on the 26th, with a target price of 2.1 million KRW.

Ebest Investment & Securities expects the company's first-quarter earnings this year to exceed market expectations. LG Household & Health Care's consolidated first-quarter sales are estimated at 2.036 trillion KRW, up 7.4% year-on-year, and operating profit is expected to be 356.6 billion KRW, up 6.9% year-on-year. This outlook aligns with market expectations.

Looking at each segment, first-quarter cosmetics sales are expected to increase by 9.4% year-on-year to 1.1673 trillion KRW, with operating profit expanding 10.5% to 245.1 billion KRW, driven by a recovery in duty-free sales. Additionally, cosmetics sales in China are estimated to have grown 36% year-on-year to 251.8 billion KRW. Household goods sales are expected to rise 4.9% year-on-year to 502.8 billion KRW, while operating profit is forecast to decline 3.6% to 62.9 billion KRW. Beverage segment first-quarter 2021 sales are projected to increase 4.4% year-on-year to 365.9 billion KRW, with operating profit rising 2.1% year-on-year to 48.7 billion KRW.