[Click eStock] "LS, Excessive Stock Price Decline... Steady Orders & Attractive Valuation"

NH Investment & Securities evaluated on the 20th that the stock price of LS, the holding company of LS Group, has excessively fallen below its appropriate value.

Dongyang Kim, an analyst at NH Investment & Securities, analyzed, "The LS stock price declined due to the poor operating profit of its subsidiary LS MnM in the third quarter and increased concerns about the U.S. power cable business following President Trump's election."

However, Analyst Kim stated, "Based on a substantial order backlog, the performance growth centered on LS Cable & System is expected to continue next year," adding, "Due to the recent stock price decline, the valuation based on next year's expected performance is only about a price-to-earnings ratio (PER) of 6.0 times and a price-to-book ratio (PBR) of 0.5 times."

Analyst Kim also predicted, "The LS Cable & System submarine cable plant in the U.S., scheduled to begin construction early next year, can respond by producing volumes for the expanding European orders if the local demand situation worsens significantly," and "The effect of the Donghae plant expansion is expected to be fully realized from the second half of 2026."

He added, "Apart from domestic and international power cable expansions, since the end of last year, LS has been strengthening its power cable value chain by increasing stakes in subsidiaries such as Gaon Cable, LS Eco Energy, and LS Marine Solution," and "There is also potential for initial public offerings (IPO) of subsidiaries like the unlisted LS I&D telecommunications division and LS MnM."