[Click eStocks] Short-Term Investment Prospects... LG Electronics, KCC, Lotte Chilsung, Cheonbo, SeAH Steel, and More

[Asia Economy Reporter Lee Seon-ae] Hana Securities on the 1st presented LG Electronics, KCC, Lotte Chilsung, Cheonbo, and SeAH Steel as promising short-term investment stocks.

First, LG Electronics was recommended based on its second-quarter performance, which held up better than expected. LG Electronics reported an operating profit of 792.2 billion KRW in the second quarter, a 12% decrease compared to the previous year. However, it achieved a quarterly revenue of 19.464 trillion KRW, setting a new record for the highest second-quarter revenue ever. In particular, the first half revenue exceeded 40 trillion KRW for the first time in history. Hana Securities explained, "LG Electronics reaffirmed its premium position in home appliances," and added, "The Vehicle Components (VS) division turning profitable due to eased supply constraints on automotive semiconductors is also positive." Considering the expected growth potential of LG Electronics, Hana Securities viewed the current stock valuation as undervalued, making it highly attractive for investment.

KCC was also recommended. Despite market adjustments due to China's lockdowns, the increase in new demand sources in the US and Europe has tightened the supply of silicon, which is a key investment point. Hana Securities stated, "Since KCC directly owns factories in the US and Europe, benefits from this are expected."

Lotte Chilsung was recommended as well, with carbonated beverage sales centered on the 'Zero Series' maintaining a steady level, and benefits expected from price increases in alcoholic beverages such as soju and beer.

SeAH Steel and Cheonbo were also recommended. SeAH Steel is expected to benefit from the booming North American energy steel pipe market, especially with orders for offshore wind power and LNG terminals anticipated in the second half of the year. Cheonbo's recommendation is based on expected profitability improvements due to the decline in raw material prices for electrolytes.