[Click eStock] "LX Inter, Logistics Performance 'UP' Amid Strong Marine Freight Rates"

NH Investment & Securities forecasted on the 2nd that LX International will continue its trend of improving performance through the fourth quarter, supported by strong results in the logistics sector.

Dongyang Kim, an analyst at NH Investment & Securities, stated, "Despite the sluggish coal market, logistics sector performance is expected to improve as sea freight rates rise due to increased coal production in Indonesia and China."

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He also estimated that LX International achieved sales of KRW 4.2972 trillion and an operating profit of KRW 139.1 billion in the third quarter. These figures represent increases of 17% and 119%, respectively, compared to the same period last year.

Analyst Kim added, "Although sea freight rates weakened in September, considering the time lag before the decline in freight rates is reflected in the results, strong performance is expected to continue through the fourth quarter."

He further noted, "The inclusion of LX Glass, Poseung Green Power, and Indonesia's AKP nickel mine in consolidated earnings has strengthened growth potential. Considering this, the current stock price is undervalued at a price-to-book ratio (PBR) of 0.5 times and a price-to-earnings ratio (PER) of 4.9 times."