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Hana Securities raised its target price for LG Electronics [066570] from 230,000 won to 260,000 won on the 3rd, stating that its Q2 performance significantly exceeded market expectations due to the effect of US tariff refunds, and the full-scale launch of new businesses is expected in the second half. The investment opinion was maintained at 'buy'.
Researcher Kim Min-kyung analyzed in a report on the same day, "LG Electronics' Q2 operating profit on a separate basis is expected to record 1.2489 trillion won, a 100% increase year-on-year, significantly exceeding market forecasts."
He stated, "The biggest factor will be the effect of US tariff refunds." He added, "Even excluding one-off factors, it is positive that profitability is being defended through price increases and cost efficiency in an environment where raw material and logistics costs continue to be a burden."
He also expressed expectations for new businesses, such as robotics, to become full-fledged in the second half.
Researcher Kim expected, "The concretization of new businesses such as data center cooling systems and robotics will act as stock price momentum in the second half." He added, "The cooling system's testing by North American hyperscaler (large-scale AI data center operating company) clients is entering its final stage, and will begin contributing to performance within 6 to 9 months after final testing."
Furthermore, he stated, "The robotics business is also building a data factory for humanoid robot learning. This is expected to accumulate action data necessary for the advancement of Robot Foundation Models (RFM)," and "From a medium-to-long-term perspective, this will lead to the possibility of industrial expansion across the entire home and industrial robot markets."
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