[Click eStock] "LS Electric Expected to Miss Q3 Operating Profit Estimates"

Hana Securities analyzed on the 16th that LS Electric's operating profit for the third quarter of this year likely fell short of market expectations. The target stock price was lowered from the previous 275,000 KRW to 240,000 KRW.

Yoo Jae-sun, a researcher at Hana Securities, stated, "Third-quarter sales are expected to be 1.07 trillion KRW, a 2.1% decrease compared to the same period last year," explaining that "the main reasons for the sales slowdown are the reduction in operating days due to seasonal effects and the decrease in scale of renewable energy and overseas subsidiaries."

He added, "The power infrastructure segment's decline in scale is expected to be limited based on existing order backlogs," and "operating profit is estimated at 59.9 billion KRW, a 14.5% decrease compared to the previous year."

He estimated, "even considering the trend of weaker performance in the second half of last year compared to the first half, the results are slightly disappointing," and "profits in the power infrastructure segment likely decreased compared to the previous quarter."

Researcher Yoo emphasized, "During the depletion of the distribution board order backlog, sales of secondary batteries and semiconductors for North America may be somewhat delayed," and "in the case of ultra-high voltage transformers, a favorable trend of backlog increase is expected, but they will significantly contribute to profits starting in 2025 when production capacity expands."