[Special Stock] LX Hausys Surges Over 6% on 3Q 'Surprise Strong Earnings'

[Asia Economy Reporter Myunghwan Lee] LX Hausys is rising more than 6% in early trading on the 8th. This is interpreted as the reason for the strong performance that significantly exceeded market expectations for the third quarter of this year.

As of 9:51 a.m. on the day, LX Hausys is trading at 35,200 KRW, up 6.02% (2,000 KRW) from the previous trading day.

On the previous day, LX Hausys announced that its consolidated operating profit for the third quarter of this year was preliminarily estimated at 15.345 billion KRW, a 172.0% increase compared to the previous quarter. This figure greatly exceeded market expectations and represents a 29.5% increase compared to the same period last year.

Sales increased by 5.6% year-on-year to 913.995 billion KRW, and net profit rose 246.1% to 10.566 billion KRW.

Securities firms forecast that LX Hausys' performance will gradually improve. Eun-sang Lee, a researcher at NH Investment & Securities, said, "Although the domestic housing market situation is difficult, the proportion of building materials sales for business-to-business (B2B) transactions is higher compared to competitors, and the price of polyvinyl chloride (PVC), which surged last year, is normalizing." He added, "With the newly expanded PF board (phenolic foam) plant starting full operation from next year, it will be able to partially compensate for the sales gap in building materials for business-to-consumer (B2C) markets."