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(Photo = Yonhap news) |
[Alpha Biz= Reporter Kim Minyoung] Meritz Securities remained neutral on the 8th, saying it is difficult to expect the best performance for LG Household & Health Care. The target price is 400,000 won.
Meritz Securities said, "LG Household & Health Care will record sales of 1.6892 trillion won, operating profit of 136.4 billion won, and net profit of 79.7 billion won in the first quarter of this year."
"The cosmetics are estimated at 683.3 billion won and 46.5 billion won in sales and operating profit, respectively," Meritz Securities said. "Our operations in China are being normalized due to the completion of the old inventory adjustment and the sale of new products."
For household goods, sales were expected to reach 574.9 billion won and operating profit of 35 billion won. Considering the popularity of Physiogel and the Abon surplus, margins are expected to rise. Beverages are estimated to have sales of 431 billion won and operating profit of 54.9 billion won. It reflects strong carbonic acid sales, non-carbonic price hikes and eased cost burdens.
Meritz Securities, however, said, "It is an uncertain recovery," adding, "The worst has passed, but it is difficult to expect the best."
Meritz Securities said, "This year's net profit is 305.4 billion won, and we will give AmorePacific (344.7 billion won) the throne for the first time in eight years," adding, "The gap will widen further next year, making it relatively expensive." "It is also expected to be reevaluated depending on the performance of expansion in China, the U.S. elite effect, the efficiency of Chinese business and the degree of diversification of duty-free channels," Meritz Securities added.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
