News
Earnings · LG Electronics · Subsidiaries · Target Price
LG Electronics' first-quarter operating profit is projected to reach 1.484 trillion won, a 17.9% year-over-year increase, surpassing market consensus by 7.4%, prompting Korea Investment & Securities Co.
to raise its target price to 140,000 won from 117,000 won. Korea Investment & Securities Co.
maintained its "Buy" investment rating for LG Electronics. Analyst Park Sang-hyun attributes the strong performance to consolidation subsidiaries, specifically solid smartphone sales from a North American client, which offsets difficulties in the core business.
The Home Appliance (HS) division maintains high-single-digit profitability through cost savings and improved production efficiency, despite a challenging demand environment. The Media and Entertainment (MS) division achieves profitability with a 1,242.7% year-over-year increase in operating profit, driven by workforce redeployment carried out in 2025 and more efficient marketing expenses.
The Vehicle Component Solutions (VS) division's operating profit increased 57% year-over-year, fueled by an improved product mix from higher-value in-vehicle infotainment (IVI) and rising electric vehicle parts utilization. The Heating, Ventilation, and Air Conditioning (ES) division is expected to swing to a profit.
Park Sang-hyun states that LG Electronics is resolving past earnings stagnation risks and developing new growth drivers in HVAC for data centers and robotics, indicating significant upside potential.
The country’s trade surplus reached a monthly record on strong demand for semiconductor shipments, a key growth engine through last year’s tariff-related trade turbulence.
