'This Company' Set to Benefit from Corporate AI and Robot Transformation [Weekend Money]

"Unrivaled Competitiveness in Building and Operating Customized AX Solutions"

With the ongoing boom in artificial intelligence (AI), domestic companies are accelerating their shift towards AI transformation (AX). Securities analysts are projecting that LG CNS will be a significant beneficiary of this corporate trend.

Lee Chang-young, a researcher at Yuanta Securities, stated, "Assuming that AX and RX (robot transformation) among domestic companies will accelerate going forward, LG CNS is expected to benefit, so we are raising the multiple (PER) from the previous 18.0 times to 27.4 times and adjusting the target stock price upward." Yuanta Securities raised its target price for LG CNS from 93,000 won to 125,000 won and maintained a 'buy' investment rating. Eugene Investment & Securities also raised its target price from 93,000 won to 111,000 won.

On May 7th, Hyun Shin-kyun, CEO of LG CNS, delivered a welcome address at the LG CNS RX Media Day. LG CNS

According to a survey conducted by data storage company Everpure targeting domestic firms, 69.3% are either planning or actively pursuing AX initiatives. This indicates that most companies recognize the need to reduce costs and enhance productivity through AX. However, 71.4% of companies cited a lack of AI professionals, 68.1% pointed to excessive initial investment costs, and 65% noted a lack of specialized knowledge required to lead AI transformation. Researcher Lee evaluated, "LG CNS has unrivaled competitiveness in providing consulting, agentic AI, and AX platform construction and operation tailored to enterprises, by linking overseas AI LLM models and LG EXAONE for building and operating custom AX solutions."

There is also a growing demand for full-process business automation based on robotics, and LG CNS is considered competitive in RX as well. Lee noted, "LG CNS is a business operator with capabilities in robotics, platforms, and SI, possessing experience in robot technologies from the first to the fourth generation, and maintaining a leading position in next-generation robotics, including humanoids." The reasons cited include ▲ experience in robot businesses across diverse industries such as logistics, factories, cities, and the public sector, and ▲ competitiveness in building robot operation platforms based on essential infrastructure technologies for RX, such as PSG, cloud, and data centers.

Park Jong-sun, a researcher at Eugene Investment & Securities, highlighted the synergy with the LG Group. Park explained, "While expanding its robotics business through synergy within the LG Group, LG CNS plans to offer total robotics services based on its proprietary robot training platform, 'PhysicalWorks Forge,' and integrated control platform, 'PhysicalWorks Baton.' LG CNS has a wide range of references within the group and plans to further expand into external business."

The company is also expected to deliver strong results in the second quarter of this year. Eugene Investment & Securities forecasts LG CNS's consolidated sales for the second quarter at 1.5208 trillion won, a 4.2% increase year-on-year, and operating profit at 145.4 billion won, up 3.3% from the same period last year.

This content was produced with the assistance of AI translation services.