Shinhan Investment said on the 17th, "LG and LX Holdings are undervalued excessively after the split and re-list," maintaining their investment opinions as 'buy' and target stock prices at 125,000 won, respectively.
"The combined market capitalization was KRW 21.8 trillion before LG split, but LG and LX's combined market capitalization was KRW 16.9 trillion (-22.4%) based on the previous day's closing price," Shinhan Financial Investment said. "LG Chem, which was the reason for LG Group's stock price adjustment, also adjusted only -9,2% and LG Electronics -4%."
Shinhan Investment said, "In the future, Chairman Koo Kwang-mo's 15.95% stake in LX and Chairman Koo Bon-joon's 7.72% stake in LG are expected to be swapped."
Shinhan Investment also said, "LX Holdings and LG have 22% and 59%, respectively, showing excessive discount rate to asset value. LG will be able to focus its capabilities and resources on electronic, chemical and telecommunications services through the separation of its affiliates."
Shinhan Investment said, "LG Chem is estimated to be traded at a 37% discount from its value after the listing of energy solutions," adding, "It is believed that concerns over the listing of LG Energy Solutions have been fully reflected in LG's stock prices.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
