[Special Stock] LS Hits 52-Week High in 10 Months... Subsidiary Earnings Expectations Highlighted

Surpassing 151,300 Won in July Last Year
Subsidiary LS Cable & System Sees Increased Orders Due to Rising Copper Demand
Expectations for Dividend Expansion and Treasury Stock Cancellation

LS hit a 52-week high for the first time in 10 months. LS, the holding company of LS Group, appears to reflect expectations for improved subsidiary performance and shareholder returns.

As of 9:14 a.m. on the 13th, LS is trading at 152,000 KRW, up 4.83% (7,000 KRW) from the previous session. This surpasses the 52-week high of 151,300 KRW set in July last year, marking a new peak after about 10 months. LS reached an intraday high of 154,200 KRW earlier in the session.

LS is a stock with high expectations for dividend increases. In June last year, it announced that during the 2023-2025 fiscal years, dividends would be determined based on a basic direction of gradually increasing year-over-year dividends per share, considering the average market dividend yield of the securities market. Lee Sang-heon, a researcher at Hi Investment & Securities, said, "The core of the government's recent corporate value-up program and improvements to the treasury stock system is the determination to eradicate major shareholders' private interests and improve governance." He added, "This trend is likely to lead to expanded shareholder return policies such as high dividends and treasury stock cancellations by companies, and LS can also be expected to implement shareholder return policies including dividend increases and treasury stock cancellations." LS is also the stock with the highest shareholding ratio (13.68%) among the stocks held by the National Pension Service.

Additionally, LS Cable & System, a key subsidiary, is expected to see an increase in orders. This is due to the global expansion of power grid construction driven by the replacement of aging power grids, offshore wind power, and increased power consumption from data center construction. LS Cable & System's order backlog increased from 2.8 trillion KRW at the end of 2022 to 4.4 trillion KRW at the end of 2023, supported by new orders. With rising demand for copper, the recent copper price is approaching 10,000 USD per ton.

The researcher said, "The rise in copper prices can lead to improved profitability through increased orders for LS Cable & System, and the profitability improvements of subsidiaries such as LS I&D and LSMnM will also become visible."