[Click eStock] "LG Electronics Expects Record Earnings with HVAC and Subscription Appliances"

On the 4th, KB Securities evaluated that LG Electronics is expected to achieve record-high performance due to operating profit contributions from heating, ventilation, and air conditioning (HVAC) and subscription-based home appliances.

[Image source=Yonhap News]

Dongwon Kim, a researcher at KB Securities, stated, "50% of the power used by AI data centers is consumed for cooling, highlighting the importance of power efficiency, and benefits from cooling system solutions including chillers are expected." He added, "Additionally, the 20-year replacement cycle for aging air conditioners installed in the 2000s is approaching, leading to a significant increase in new demand for system air conditioners."

Researcher Kim continued, "Meanwhile, the stock price of Lennox, a North American HVAC company, has risen 23.5% over the past six months due to market expansion expectations, approaching a 52-week high." He noted, "In contrast, LG Electronics’ stock price has only increased by 0.6% during the same period, indicating that the HVAC performance outlook is not reflected at all." He further added, "In particular, LG Electronics’ operating profit is expected to reach an all-time high by 2025, driven by sales growth in HVAC systems including AI data centers and subscription-based home appliances."