[Infostock Daily= Reporter An Hoe Hyun] SK Securities maintained its investment opinion 'Buy' and target stock price of 18,000 won on the 4th, saying that LG U+'s possibility of further earnings improvement this year was hardly reflected in its stock price.
"In the fourth quarter, operating profit rose 10.8% year-on-year to 3.5173 trillion won and operating profit fell 3.7% to 175.5 billion won," researcher Choi said and analyzed, "Operating profit was positive due to an increase in wireless subscribers, an ARPU rebound and an increase in high-quality subscribers in the wire sector."
"However, due to increased marketing costs following the launch of the iPhone 12, operating profit fell below market expectations," researcher Choi explained, adding, "Last year, operating profit reached a record high based on increased 5G subscribers, increased competitiveness in the wired sector and eased competition for subscriber recruitment."
"LG U+, which recorded its highest operating profit last year, is expected to continue to improve its performance this year," Choi predicted, adding, "It is expected that LG U+, whose portfolio is concentrated in telecommunication businesses such as 5G and IPTV, will benefit from this."
Reporter An Hoe Hyun ahh@infostock.co.kr
