Equity Bottom-Up

Brief Equities Bottom-Up: LG Electronics – Boost from Higher Dividends, Air Motion Technology, & The War Against Huawei and more

In this briefing:

  1. LG Electronics – Boost from Higher Dividends, Air Motion Technology, & The War Against Huawei

1. LG Electronics – Boost from Higher Dividends, Air Motion Technology, & The War Against Huawei

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  • In this report, we provide an update on Lg Electronics (066570 KS), including the potential impact of the war on Huawei on the company, dividend policy, debt issue, sales of non-core assets, and the launch of new smartphones. 
  • Although LG’s V50 ThinQ product is a bit disappointing, another new LG smartphone called G8ThinQ appears to be promising. This is one of the first smartphones to use “air motion” technology to activate some of the features including playing a song or video or adjusting volume (remember Tom Cruise in the movie Minority Report)? The airmotion technology could bring back the “thrill” of using a smartphone. 
  • Many investors around the world are asking, “What companies will benefit from the continued war on Huawei by the US government?” LG Electronics, the 7th largest smartphone maker globally, could be one of the key beneficiaries of the war on Huawei. 
  • LG Electronics recently announced that it will pay DPS of 750 won for its common shareholders in 2018, which is nearly twice as high the DPS of 400 won in 2017. 

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