[Click eStock] "Copper Price Rise Benefits... LS, Target Price Raised"

On the 5th, SK Securities stated about LS, "Copper prices and LS stock prices show a high correlation. The recent rise in copper prices is expected to lead to an increase in stock prices," and raised the target price from 115,000 KRW to 135,000 KRW. The buy rating was also maintained.

On the same day, Kwansoon Choi, a researcher at SK Securities, said, "Copper prices recorded $9,328 per ton based on London Metal Exchange (LME) futures yesterday, marking the highest level since January last year."

The rise in copper prices is largely due to supply factors. The closure of large-scale mines in Panama and Peru, as well as production cuts at Chinese smelters, had an impact. The rebound in the Purchasing Managers' Index (PMI) of the US and China also reflected expectations for economic recovery. Researcher Choi explained, "The spot price is $9,150 per ton, and the gap with futures prices has widened, indicating a high possibility of further increases," adding, "The performance of major subsidiaries such as LS Cable & System and LS MnM is highly correlated with copper prices."

Ultimately, expectations for business improvement due to the recent rise in copper prices and the emphasis on the value of treasury shares held are expected to lead to stock price increases. Researcher Choi said, "LS purchased 111,000 treasury shares from November last year to February this year. As a result, the treasury shareholding ratio is 15.1%," and added, "Although no decisions have been made regarding the use of treasury shares, all treasury shares were purchased on the market, so there is no tax burden if they are canceled. Considering the government's corporate value-up program and improvements to the treasury share system, cancellation is worth considering."