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[Alpha Biz=(Chicago) Reporter Paul Lee] LG Household & Health Care, it is difficult to improve its performance without China-KB
KB Securities assessed LG Household & Health Care on the 28th that it would be difficult to improve its performance in a short period of time without recovering sales of its Chinese subsidiary. The target price was lowered from 500,000 won to 450,000 won, and the investment opinion 'buy' was maintained.
KB Securities estimated LG Household & Health Care's fourth-quarter sales and operating profit at 1.6547 trillion won and 47.2 billion won, respectively, below the consensus of 4% and 26%.
LG Household & Health Care is making various changes at the enterprise level due to its deteriorating performance since 2022. It has renewed its brand 'Who' this year and said it will expand its global business (USA, Japan) aggressively compared to the past.
KB Securities said, "Considering that it was highly dependent on Chinese corporations until recently, it is difficult to expect meaningful performance improvement in a short period of time without sales of Chinese corporations."
KB Securities added, "It is difficult to be optimistic about the performance from next year, considering China's sluggish consumption, as yet uncertain branding performance, and the success or failure of price normalization efforts."
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
