MacquarieLG研究报告100323.pdf

KOREA LG Electronics 066570 KS Outperform Price 22 Mar 10 Won 107,000 Managing low expectations 12-month target Won 140,000 Event Upside/Downside % 30.8  We visited LG Electronics (LGE). The appliance and LCD TV set businesses Valuation Won 140,000 - EV/Sales appear to be tracking ahead of expectations but the slower-than-expected GICS sector recovery at the handset business may keep shares rangebound. Maintain Consumer Durables Apparel Outperform with a lower target price of Won140,000 (fromWon160,000). Market cap Wonbn 15,472 Impact 30-day avg turnover US$m 101.1 Market cap US$m 13,919  Handset margin bottom in 1Q10. Due to a lack of compelling new model Number shares on issue m 144.6 launches and sustained ASP pressure, we expect LGE’s 1Q10 handset margin to fall QoQ to 0.8%. Led by new smartphone launches for developed Investment fundamentals markets, we expect LGE’s handset margin to rebound to 2.1% in 2Q10. Year end 31 Dec 2009A 2010E 2011E 2012E Total revenue bn 30,513 29,694 31,026 32,289  Appliance and LCD TV firm. Our checks indicate that LGE continues to gain EBIT bn 1,615 1,175 1,628 1,599 global market share in the appliance and LCD TV businesses despite a EBIT growth % 31.6 -27.2 38.5 -1.8