[Click eStock] "LS, Full-Scale Power Grid Investment Expected This Year"

Korea Investment & Securities forecasted on the 24th that LS's investment in power grids will accelerate this year. They maintained a 'Buy' rating and raised the target price from 150,000 KRW to 160,000 KRW.

LS is expected to record sales of 5.719 trillion KRW and an operating profit of 173.2 billion KRW in the first quarter of this year. The operating profit is 16.7% below the market expectation of 208 billion KRW.

Choi Moon-seon, a researcher at Korea Investment & Securities, explained, "The main businesses, electric wires and power equipment, have clear seasonality and variables such as the timing of revenue recognition cause quarterly performance volatility. Therefore, there is no need to be disappointed even if the first-quarter results fall short of market expectations."

Researcher Choi added, "The world is moving toward a direction where more electricity is needed, but due to the impact of ESG (Environmental, Social, and Governance), supply growth will be limited. This year will mark the beginning of a super cycle in copper prices due to the full-scale investment in the U.S. power grid." He further noted, "LS Cable & System and LS Electric are expected to benefit long-term from the U.S. power grid investment."