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LIGNEX1 office building (photo = LIGNEX1) |
[Alpha Biz= Reporter Kim Minyoung] On the 29th, Korea Investment & Securities emphasized the importance of LIG Nex1’s strong domestic business profit margins, maintaining a "Buy" rating with a target price of 260,000 won.
LIG Nex1's second-quarter consolidated revenue and operating profit were 604.7 billion won and 49.1 billion won, respectively. These figures fell short of market expectations, missing revenue and operating profit consensus by 13.3% and 11.1%, respectively.
This shortfall was attributed to slower-than-expected recognition of overseas sales progress. However, it is noted that overseas operations are progressing without issues, and the recognition speed for sales in the second half of the year is expected to improve.
Korea Investment & Securities particularly highlighted the high domestic business profit margin in LIG Nex1’s second-quarter results. The estimated operating margin for domestic operations was 7.4%, 1.2 percentage points higher than previous estimates. This robust domestic profitability has led to an upward revision of the overall domestic business operating margin estimate for the second quarter.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
