[Click eStock] "LX Inter, Entry into Secondary Battery Value Chain through Acquisition of Indonesian Nickel Mine"

NH Investment & Securities evaluated on the 28th that LX International's business division has diversified and its profit resilience has improved, thanks to the acquisition of Indonesia's AKP Nickel Mine and other factors.

LX International China Inner Mongolia Potash Fertilizer Plant Panorama

Dongyang Kim, an analyst at NH Investment & Securities, stated in a report on the same day, "LX International has increased coal production in Indonesia and China amid weak coal market conditions," adding, "Following LX Glass and Poseung Green Power, the Indonesian nickel mine has been consolidated as a subsidiary, and performance is expected to improve from last year's bottom."

Analyst Kim also diagnosed, "As maritime freight rates have bottomed out and rebounded, the logistics division's performance will also improve," and "With the increasing profit contribution from new business sectors, earnings volatility is decreasing."

He projected second-quarter sales this year to increase by 6.8% year-on-year to KRW 3.6686 trillion, and operating profit to decrease by 8% to KRW 119.2 billion. These figures correspond to the market consensus estimates.

He added, "In the second half of the year, it is expected that a growth strategy including additional acquisitions of nickel mines and smelters, as well as shareholder return policies, will be announced in the stock price value-up plan," expressing optimism that "the current undervaluation phase, with a price-to-book ratio (PBR) of 0.5 times and a price-to-earnings ratio (PER) of 5.9 times, will be resolved."