[Featured Stock] LG Uplus Hits Record High... Expectations for Next Year's Performance and Inclusion in Value-Up Index

Return to the 10 Trillion Won Operating Profit Club Next Year
Active Shareholder Returns, Share Buybacks Expected
Anticipation for Inclusion in the 'Korea Value-Up Index'

LG Uplus has broken its 52-week high for two consecutive days. This is interpreted as a combined reflection of positive earnings forecasts for next year and expectations that telecom stocks will be included in the Value-Up Index.

As of 10:12 AM on the 21st, LG Uplus is trading at 10,820 KRW, up 2.36% (250 KRW) from the previous trading day. LG Uplus's stock price surpassed the 52-week high of 10,550 KRW recorded in December last year, reaching an intraday high of 10,590 KRW the day before. On the 21st, the stock continues its record-high rally, expanding its gains.

LG Uplus is expected to return to the '1 trillion KRW operating profit club' next year. Daishin Securities recently forecasted that LG Uplus will achieve an operating profit of 1.048 trillion KRW in 2025. LG Uplus's operating profit declined from 1.081 trillion KRW in 2022 to 998 billion KRW in 2023. Kim Hoe-jae, a researcher at Daishin Securities, stated, “After returning to the 1 trillion KRW operating profit range in 2025, it is expected to show an average annual growth rate of 7% until 2028.”

The shareholder return policy is also positive. It is expected to pay dividends of more than 40% of separate net income from 2024 to 2026, and although the scale is not large, there is a high possibility of implementing share buybacks and cancellations through Value-Up disclosures. The total shareholder return yield in 2025 is projected to reach around 7%. Additionally, the fact that telecom stocks are considered candidates for new inclusion in the 'Korea Value-Up Index' is another factor boosting stock price expectations. The Korea Exchange plans to conduct a special rebalancing (changing constituent stocks) of the Value-Up Index for companies that have posted official disclosures of corporate value enhancement plans by December 6.