Kiwoom Securities has maintained its 'buy' rating on LS, forecasting strong performance in the second half of the year due to favorable market conditions and rising copper prices. However, the firm has adjusted its target price from 700,000 won to 500,000 won, reflecting the stock performance of its listed subsidiary LS Electric and the valuation of its unlisted subsidiary LS Cable.
In a report released on the same day, analyst Son Ye-bin noted, "LS Electric is experiencing explosive growth in its orders for transformers and switchgear, and is expected to continue improving its performance in the second half. With copper prices recently reaching an all-time high of $14,000 per ton, LS Cable and LS I&D are also anticipated to see profitability improvements due to rising product prices in the latter half of the year."
He added, "LS MnM is seeing a rebound in precious metal prices after a weak second quarter, while sulfuric acid prices remain stable, suggesting a continued solid performance in the second half. Considering these factors, we expect quarterly operating profits to remain robust at around 400 billion won."
Additionally, he mentioned that the company has already retired 500,000 shares in August of last year and February of this year, and currently holds 3,465,097 shares, which is 11.1% of its total issued shares. Following the introduction of mandatory share buybacks this year, discussions regarding additional share retirements are expected to intensify in the latter half of the year.
* This article has been translated by AI.
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