[Click eStock] "LG Uplus, Strong Earnings and Value-Up Expectations... Ideal for Short-Term Investment"

Hana Securities evaluated LG Uplus on the 27th as a short-term investment opportunity, forecasting strong performance in the first quarter of this year and future value-up (corporate value enhancement). Accordingly, they maintained a target stock price of 14,000 KRW and a 'Buy' investment rating.

Researcher Kim Hong-sik of Hana Securities analyzed, "LG Uplus is expected to announce solid results for the first quarter of this year, and on an annual basis, a double-digit operating profit growth turnaround is anticipated for the first time in three years," adding, "Along with increased sales in mobile and B2B services, burdens from labor costs, marketing expenses, and depreciation are expected to ease." Researcher Kim projected LG Uplus's consolidated operating profit for Q1 at 240.7 billion KRW, representing a 9% increase year-on-year and a 69% increase quarter-on-quarter. He further explained, "The estimate that annual consolidated operating profit can reach the mid-900 billion KRW range is gaining credibility, and a corresponding rise in stock price is expected."

He also emphasized the possibility of value-up through treasury stock cancellation and additional purchases. Researcher Kim stated, "While the scale of shareholder returns is expected to increase by 25%, from 280 billion KRW in 2024 to around 350 billion KRW in 2025 and 2026, the current stock price increase is limited to 7%, making it highly attractive for short-term investment."

He continued, "If you buy by March 27, you can receive the already confirmed year-end dividend of 400 KRW, and at the Q4 2024 conference call, management announced plans to cancel existing treasury stock amounting to 1.6%. For investors considering a purchase, I recommend advancing the timing of the buy."