[Infostock Daily= Reporter An Hoe Hyun] Kiwoom Securities predicted that profitability of LS Cable & System Asia, which had deteriorated significantly in the aftermath of the new coronavirus infection(COVID-19), will normalize in the second half of the year. Investment opinion 'BUY' and the target price were 10,500won, respectively.
The impact of the Vietnamese government's closure of the country due to COVID-19 has recovered, and the power sector's order backlog has increased by 70% from the first quarte to 120 billion won as large orders have continued. In the same period, earnings growth is expected to continue due to favorable operating environment and expansion of production capacity of flagship products due to high growth in Vietnam's economy.
Vietnam's urbanization rate, which was 22% in 2000, is expected to exceed 50% by 2025. As a result, smart city construction such as large-scale urban infrastructure design will be carried out, and the amount of electricity energy investment required by 2030 will reach $ 150 billion.
"The Myanmar corporation(LSGM), which has been in operation since late 2018, will contribute to LS Cable & System Asia’s earnings growth by turning to surplus next year," the company said.
Reporter An Hoe Hyun ahh@infostock.co.kr
