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.
