LG Chem targets upward -NH Investment in quick earnings recovery trend

[Korea goyounghun financial newspaper reporter] NH Investment & Securities are saying show a rapid earnings recovery trend than expected on the 31st LG Chem has raised the target price to BUY with 40 million.

NH Investment & Securities, said even brighter LG Chemical 1Q earnings doendamyeo unexpected strong outlook based on the material spreads and strong second quarter earnings as the main raw material butadiene price plunge. Following the first quarter operating profit of 768.3 billion won, the annual operating profit in 2017 increased 68% compared to the previous year was estimated to be 2.7798 trillion won, up 40% compared to the previous year.

NH Investment & Securities Huang learned researchers "electronic materials are estimated first-quarter operating profit recorded since 2015," said "the won / yen was introduced raw material prices to the exchange rate, polarizing film costs in China factory production capacity utilization rises the reduction is expected, "he said.

He added that jungyimyeo polarizing film capacity utilization rising in China as Chinese LCD module production increase, can reduce costs of transportation and the like.

Huang researcher for saying "polymer batteries and seasonality, 3G sized battery R & D investment, enhanced by cell division operating losses will continue in the energy storage device." "But the technical advantage by proceeding 3G cell development that electric cars are commonplace faster than other to maintain deemed to be significant, "he said.

He added, "Palm Hannong is half black, and QoQ operating profit growth rate in the fourth quarter for the second half deficit structure is estimated at 71.4 billion won," and "Life Sciences ago merged into enterprise-based, reflecting the first results the first quarter after the merger insolvency He had predicted that because of the fully depreciated assets will be maintained, the existing operating profit increasing as is ".



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