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[Alpha Biz=(Chicago) Reporter Paul Lee] NH Investment & Securities decided on the 5th that LG Household & Health Care will focus on improving the constitution of its flagship brand this year as its operating loss in the cosmetics division is expected in the fourth quarter of last year. The target stock price was KRW 360,000 and the investment opinion was 'neutral'.
NH Investment & Securities estimates LG Household & Health Care's fourth-quarter sales will be 1.6595 trillion won and operating profit will be 40.4 billion won, below market expectations.
NH Investment & Securities pointed out that restructuring of the cosmetics business sector is a major factor. Cosmetics sales fell 17% from the previous year to 720.2 billion won and operating loss to 6.8 billion won.
It estimated household goods sales to fall 3 percent year-on-year to 510.8 billion won and operating profit to fall 29 percent to 13.4 billion won, with beverage sales to rise 4 percent to 428.5 billion won and operating profit to rise 9 percent to 33.7 billion won.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
