[Click eStock] "LS Eco Energy, Sustained High Growth"

LS Securities forecasted on the 7th that LS Eco Energy will experience rapid growth starting this year. The target stock price was raised by 9%, from 53,000 KRW to 58,000 KRW.

LS Eco Energy recorded consolidated sales of 233.1 billion KRW and an operating profit of 7.8 billion KRW in the fourth quarter of last year. These figures represent increases of 17% and 8%, respectively, compared to the same period last year.

Seong Jonghwa, a researcher at LS Securities, explained, "The forecast was sales of 220.6 billion KRW and an operating profit of 9.5 billion KRW," adding, "Sales exceeded the forecast by 6%, but operating profit fell short by about 18%."

He added, "Excluding one-time expenses, the results can be seen as surpassing the forecast," noting that the export of extra-high voltage cables by LS-VINA and the domestic demand recovery for distribution cables due to the economic recovery in Vietnam are driving the performance improvement."

Researcher Seong analyzed, "Considering the continued strong export of extra-high voltage cables by LS-VINA, domestic demand recovery, and the start of exports to the United States from this year, growth will not stop."

He emphasized, "With the UL certification in the United States, a significant new volume of underground residential distribution (URD) cables for the U.S. market by LS-VINA will emerge starting this year." He also expressed expectations, saying, "The distribution method using superconducting cables, which can distribute large-capacity power without substations when building IDC, is expected to attract attention, and the superconducting cable business will gain momentum through synergy with affiliates."