Equity Analysis /
South Korea

KR : LG Household & Health Care Ltd - Unexciting DF growth prospects

    CGS-CIMB
    29 March 2022
    Published byCGS-CIMB

    We believe beauty division’s DF sales remained subdued in 1Q22F (after falling 29% yoy in 4Q21) due to logistic disruptions in China. With no signs of reopening in China, we project 1Q22F/FY22F topline growth to slow down to -1.8%/+0.2% yoy due to poor DF and China onshore sales. We downgrade LG HH to Hold with a W900,000 TP, based on 18x FY22F P/E. Our 1Q22F/FY22F OP forecasts are 20%/13% below consensus.