[Infostock Daily= Reporter An Hoe Hyun] Yuanta Securities said on the 27th that LG Hausys is positive for the change in its business structure as it can focus on improving fundamentals and growth centered on building materials if the sale of the automobile materials sector is realized. The target stock price has been raised by 18% from 79,000 won to 93,000 won.
On the previous day, LG decided to split some affiliates, including LG Hausys, through the board of directors to establish a new holding company, new LG holdings. In addition, LG Hausys announced its plan to streamline its assets to sell some of its assets to LG Household & Health Care and LG Chem(about 35 billion won).
"The realization of the sale of the auto materials sector will be able to improve fundamentals through the sale of the deficit division," the company explained, adding, "We judge it as a positive event for a change in the business structure that can focus on the growth of the construction materials sector."
"If the sale becomes a reality, it is estimated that LG Hausys will improve its operating profit by about 20% in 2021," the company predicted, adding, "In the future, growth in the building materials sector will be materialized as increased investment in premium products such as PF insulation materials and the U.S. Estone, and an increase in construction material B2C performance."
Reporter An Hoe Hyun ahh@infostock.co.kr