LG Chem is experiencing a decline of over 2% amid forecasts of weak first-quarter earnings this year.
As of 9:42 a.m. on the 23rd, LG Chem is trading at 370,000 KRW, down 8,000 KRW (2.12%) from the previous day.
The stock price appears to be affected by expectations of weak first-quarter earnings this year and a continued period of profitability weakness.
Kiwoom Securities forecasted that LG Chem's first-quarter operating profit would be approximately 117 billion KRW, marking an 85% decrease compared to the previous year, resulting in poor performance. Jeong Kyung-hee, a researcher at Kiwoom Securities, explained, "LG Chem's first-quarter operating profit is expected to fall short of the consensus (average securities firm forecast) of 165.3 billion KRW. The advanced materials division's operating profit is estimated at about 34 billion KRW due to profit declines caused by weak lithium prices, and despite an increase in naphtha prices due to rising oil prices in the petrochemical division, most product lines are expected to continue operating losses due to declining profitability." Kiwoom Securities projected LG Chem's consolidated operating profit for this year to be about 1.6 trillion KRW, a 38% decrease from the previous year. This figure is approximately 46% below the consensus of 2.9 trillion KRW. Kiwoom Securities lowered LG Chem's target stock price from 500,000 KRW to 383,000 KRW and downgraded the investment rating from 'Outperform' to 'Marketperform.'
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