Daishin Securities maintained its target stock price of KRW 12,000 and its investment opinion of "buy", saying it expects its best performance this year and next year for LS Cable & System Asia.
"Although its third-quarter earnings were sluggish compared to the consensus, we expect annual sales and operating profit to be the highest as it recovers in the fourth quarter," said Daishin Securities.
"This year's annual sales and operating profit are expected to be high at 781.4 billion won and 26.5 billion won, respectively," said Daishin Securities "The fourth-quarter recovery will take place with the resumption of supply of high value-added products that have been delayed in the third quarter, and with Vietnam's With Corona Policy, the Ho Chi Minh corporation will be normalized and orders for large projects will be resumed.".
Daishin Securities also added, "It is expected to break its highest performance due to increased demand for wires such as ultra-high pressure, optical cables and submarine cables due to increased infrastructure investment in Southeast Asia, including Vietnam.".
"Demand for high value-added wires is increasing rapidly due to the advancement of industries such as Vietnam," Daishin Securities said. "In order to solve the power supply problem, the growth of wire sales related to power transmission and distribution is high.".
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
