LG Electronics shares 'buy' opinion was maintained.
Exports of new home appliances have increased, especially in the European market, and the rental business has shown a good trend in Korea, which has great growth potential.
Hyundai Motor Securities maintained its target price of LG Electronics at 190,000 won and investment opinion 'buy' on the 3rd.
"Exports of new home appliances are increasing at a rapid pace as brand preferences are on the rise due to excellent supply chain management in Europe," Hyundai Motor Securities said. "The sales of the rental business in the domestic market are also rising sharply, which has great growth potential.".
Despite the spread of COVID-19, LG Electronics has shown high competitiveness in supply chain management, increasing brand preference among European and US consumers. At the same time, exports of new home appliances such as clothing managers and dryers are increasing rapidly.
Sales of rental businesses in Korea are also rising steeply. LG Electronics'rental business surpassed 100 billion won for the first time in 2016 and grew 44% annually to 591 billion won in 2020.
The TV business was concerned about stagnant demand, but it was expected to maintain high profitability due to increased sales of 8K large TVs.
LG Electronics is expected to generate 71.313 trillion won in sales and 4.677 trillion won in operating profit on a consolidated basis in 2021. Sales are up 12.7% and operating profit is up 6.6% from 2020.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
