[Click e-Stock] "LG Uplus to See Improved Performance Next Year... Target Price Raised"

On December 18, SK Securities analyzed that LG Uplus is expected to see improved performance next year as well. The company maintained its 'Buy' investment opinion and raised its target price to 18,000 won.

SK Securities projected that LG Uplus's operating revenue and operating profit for the fourth quarter of this year would reach 3.9 trillion won and 228.7 billion won, respectively, representing year-on-year increases of 4.5% and 60.8%. Choi Kwansoon, a researcher at SK Securities, stated, "Operating profit is expected to increase as the one-off labor costs reflected in the fourth quarter of last year due to the ordinary wage ruling have now normalized."

The company expects this year's operating profit to reach 950.3 billion won, up 10.1% from the previous year. He added, "Strong performance in both wireless and wired telecommunication businesses, such as consumer mobile and smart home, as well as cost stabilization including depreciation expenses, are expected to drive improved results. As profits become more stable, we anticipate continued growth in operating profit next year, and expectations for expanded shareholder returns remain valid."

He also emphasized that LG Uplus is now actively enhancing shareholder returns. He said, "In August, the company canceled treasury shares worth 100 billion won, and from August this year to August next year, it is repurchasing treasury shares worth 80 billion won. Regardless of the mandatory treasury share cancellation proposal currently being discussed by the government and the ruling party, it is highly likely that the repurchased treasury shares will be canceled."

He further explained, "This year's total dividend payout is expected to remain at the previous year's level. Considering the reduction in the number of outstanding shares due to treasury share repurchases, the annual dividend per share is projected to be 660 won, and it is expected to rise to 700 won next year, reflecting improved performance."