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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Minyoung] Hyundai Motor Securities downgraded LG HelloVision's target price from 3,900 won to 3,500 won on August 13, citing concerns over structural margin declines. Despite maintaining a 'Buy' rating, the firm pointed out the company's weak second-quarter results and increased competition in the telecom sector.
LG HelloVision reported Q2 revenue of 283.6 billion won and operating profit of 7.4 billion won, marking declines of 1.1% and 46.8% year-over-year, respectively. The operating margin decreased by 2.3 percentage points to 2.6% from the same period last year.
Hyundai Motor Securities' analyst, Kim Hyun-yong, noted that the lower target price reflects the weaker-than-expected performance in TV sales and other business areas, increased labor and network costs, and overall deterioration in profitability.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
