Equity Analysis /
South Korea

KR : Lotte Himart - Resurgent HA replacement demand

    CGS-CIMB
    9 April 2021
    Published byCGS-CIMB

    Buoyed by ‘revenge spending’ sentiment in FY21F, we expect Korea’s strong replacement demand for home appliances (HA) to sail on. We forecast Lotte Himart to report revenue/OP of W4.2tr/W183bn in FY21F (+4%/+14% yoy), driven by firm sales growth for TV/white appliances. Upgrade to Add from Reduce; TP raised to W46,000 on 27%/29% EPS hikes in FY21F/22F. This note marks the transfer of coverage to Jiwon Lee.