[Click eStock] A Company With Strong Core Business and Promising Cooling and Robotics Ventures?

Daol Investment & Securities has raised its target price for LG Electronics from 160,000 won to 240,000 won. The investment opinion remains at "Buy."

On July 9, Daol Investment & Securities researcher Kim Yeonmi stated, "This adjustment reflects improved profitability in home appliances and TVs, increased visibility for the new growth driver of cooling solutions for artificial intelligence (AI) data centers, and the incorporation of mid- to long-term value from the robotics business."

The company’s operating results for the second quarter this year exceeded market consensus. The consensus for consolidated operating profit was 1.074 trillion won, but actual operating profit reached 1.5788 trillion won. Kim explained, "Cost structures in home appliances, such as logistics expenses, have improved, and profitability in TVs has also increased thanks to cost optimization." Kim added, "This stable growth in the core business is supporting the company’s capacity for new business investments."

Kim also commented, "Orders for hyperscaler cooling solutions for big tech companies, expected in the second half of this year, are likely to be recognized as revenue starting in the second half of next year. Given the expansion of the Asian data center market, LG Electronics is well positioned to benefit." Kim further noted, "For robotics, the company operates production bases and smart factories, which enhances its strategic value not only as a hardware supplier but also as a channel for securing robot learning data."

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