LG Gwanghwamun Building [LG Household & Health Care] 사진 확대 LG Gwanghwamun Building [LG Household & Health Care]

LG Household & Health Care is soaring in early trading on the 30th as it announced earnings that exceeded market expectations in the second quarter. Securities companies also raised their target stock prices and investment opinions one after another, believing that the performance improvement will begin in earnest.

As of 9:37 a.m., LG Household & Health Care was trading at 309,500 won, up 46,500 won (17.68%) from the previous day.

It is the “earnings surprise” that has boosted investor sentiment. LG Household & Health Care announced that it recorded consolidated sales of KRW 1.6574 trillion and operating profit of KRW 102.8 billion in the second quarter of this year after the market closed the previous day. This is an increase of 3.3% and 87.6%, respectively, from the same period last year. In particular, operating profit exceeded market consensus and significantly exceeded expectations.

After the earnings announcement, securities firms raised their target stock prices and investment opinions one after another. Eight out of 11 securities companies that released the report raised their target stock prices. DB Securities raised from 250,000 won to 380,000 won and LS Securities raised from 250,000 won to 350,000 won. Shinhan Investment & Securities raised it from 279,000 won to 335,000 won and KB Securities raised it from 310,000 won to 330,000 won, respectively.

The stock market noted the recovery of the cosmetics business and the growth of the North American market. There was a one-time factor reflecting about 15 billion won in U.S. tariff refunds, but even excluding this, the improvement in performance was significant. In particular, as the profitability of the North American business improved structurally, it positively assessed that North American sales exceeded Chinese sales for the first time in the quarter.

“The base burden in the cosmetics sector is easing and the growth and profitability of the North American business is improving,” said Orinah, a researcher at LS Securities, raising her investment opinion on LG Household & Health Care from “Hold” to “Buy.”