[Click eStock] "LS Eco Energy, Q2 Exceeds Market Expectations"

NH Investment & Securities raised the target price for LS Eco Energy from 37,000 KRW to 40,000 KRW on the 19th, citing that the company's Q2 performance this year exceeded market expectations.

Minjae Lee, a researcher at NH Investment & Securities, explained, "On a consolidated basis, sales in Q2 reached 232.6 billion KRW, and operating profit was 14.7 billion KRW," adding, "This represents an increase of 24% and 148%, respectively, compared to the same period last year."

He continued, "The market expectations were sales of 189 billion KRW and operating profit of 8 billion KRW," noting, "Favorable business conditions, along with supportive copper prices and exchange rate effects, are contributing factors."

Lee analyzed, "The operating profit margins by segment for LS VINA were generally improved, with High Voltage (HV) at 15.0%, Medium Voltage (MV)/Low Voltage (LV) at 5.3%, and Overhead Lines at 21.5%," attributing this to exports of EHV to Denmark and Norway and the delivery of transmission lines connecting central and northern Vietnam.

He emphasized, "For LS CV, the operating profit margins by segment were 9.8% for communication cables (UTP), 4.1% for MV/LV, and 21.9% for electrical distribution systems (Busdact)," highlighting that exports of UTP to North America are increasing.