Market Review

As of Sept. 6 1:40 p.m., LG Corp. was up 1.95 percent to 68,100 won. It has increased 7.92 percent over the past month. Standard deviation, the risk index for stock price, was 1.4 percent over the same period.

Compared to KOSPI-listed competitors within the same industry, the monthly earnings rate of LG Corp. was considerably higher. But its volatility during the month was the lowest. Over the recent month, the return-on-risk ratio was 5.6. In comparison, the KOSPI average was 3.6.

Comparing industry to the market, the KOSPI industry including LG Corp. records lower volatility but a higher earning rate than services. In other words, the industry had been safer with high returns.

Close Competitors Earning rate (%) STD (1Mo) Return on Risk (1Mo)
1 Mo 3 Mo 6 Mo
Samsung SDS (018260) -7.2 1.6 -19.5 2.3 -3.1
PACIFIC (002790) 8.2 -12.4 7.0 2.1 3.9
HanmiPharm (008930) 1.1 -14.0 -13.4 2.1 0.5
Kangwonland (035250) -1.6 -9.1 -0.4 1.4 -1.1
LG Corp. (003550) 7.9 4.9 0.4 1.4 5.6
Services 2.0 0.3 -4.0 0.7 2.8
KOSPI 2.2 4.5 1.7 0.6 3.6

Target price 88,000 won, currnt price 29% short According to analysts' projections in recent months, the average target price of LG Corp. is 88,000 won. The stock price stood at 68,100 won on Sept. 5.

Earnings & Valuation

LG Corp.(003550): 2Q(Apr ~ June) of 2016 Earnings (reported on Aug. 16. 2016)
Revenue Operating Income Net Income
2Q of 2016 26,815.8 T 4,176.9 T 3,548.2 T
Previous Quarter 14.0% increase 26.9% increase 21.4% increase
YoY 11.0% increase 22.2% increase 19.0% increase

Financial structure Overview

Compared with four close competitors with similar market capitalization, LG Corp.'s P/B ratio, the financial ratio of a company's book value, and its P/E ratio, a price-paid ratio of annual net income, are both at the lowest level.

P/E ratio and P/B ratio

Close Compatitors ROE PER PBR Basic Date
LG Corp. (003550) 8.1 10.5 0.9 Mar. 2016
HanmiPharm (008930) 30.6 45.8 14.0 Mar. 2016
Kangwonland (035250) 15.3 19.0 2.9 Mar. 2016
PACIFIC (002790) 14.8 16.0 2.4 Mar. 2016
Samsung SDS (018260) 10.5 23.7 2.5 Mar. 2016

Investor Group

Institutions and Foreigners buy, Individuals sell From Aug. 31, foreigners have been continously buying LG Corp. during the past four trading days. Over the past 4 weeks, foreigners have bought 260,779 shares and institutions have bought 433,676 shares. However, during the same period, individuals have sold 694,455 shares with a decreasing position.

Turnover Rate and Price Range both proper Regarding the statistics for the past month on trade volume to total outstanding shares, the daily turnover rate of LG Corp. was 0.12%. And the daily volatility, the average range of rise and fall, during the same period is 2.24%.

Institution 34.73%, Foreigners 50.22% As per the inquiry for shareholding by investor group, the major investor group is foreigners with 50.22% from total outstanding shares. Institutions and individuals each hold 34.73% and 15.03%. And as recent 5-day shareholding change by investor group, foreigners are the major investor group with 43.96%. Institutions hold 35.15% and individuals hold 20.88%.

Cumulated shareholdings per investor group (1Mo) Total shareholdings per investor group

* Other Investor groups, included as "other corporations", are considered as "Individuals".

By HeRo (hero@heraldcorp.com)

This article is produced by the algorithm developed by the artificial intelligence developer ThinkPool in collaboration with Herald Corp.


cheesuk@heraldcorp.com