In today’s briefing:
- LG Electronics: A SELL Candidate Amid Difficult Business Condition for Consumer Electronics in 2023
- Samsung Biologics (207940 KS): Near-Term Key Positive Catalysts
LG Electronics: A SELL Candidate Amid Difficult Business Condition for Consumer Electronics in 2023
- After a disappointing earnings results in 4Q 2022, we believe LG Electronics (066570 KS) is a SELL candidate.
- The decline in housing prices in major countries such as the US and South Korea have negatively impacted consumers’ purchases of consumer appliances.
- With the consensus that is likely to cut their operating profit estimates significantly in 2023, we think that LG Electronics’ shares could fall another 20-25% over the next year.
Samsung Biologics (207940 KS): Near-Term Key Positive Catalysts
- Samsung Biologics (207940 KS) is expected to report strong Q4 results, with double-digit revenue growth. Partial operation of Plant 4 will impact profitability, which will be continued through H12023.
- The Chairman of the company has been selling shares, causing recent pullback in the stock, which should be considered as an attractive entry point.
- The long-term growth story remains intact, with all eyes being on upcoming conference where the company may unfold its capex plan amid stellar order book and industry demand.
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