[Stock Scope] LG Corp. rises during trading

By 최희석

Published : Sept 6, 2016 - 15:47 Updated : Sept 6, 2016 - 16:58

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- Lower risk, higher returns than competitors

- Related stocks mixed, Services industry -0.6 percent

- Target price 88,000 won,

29 percent

target-current price

disparity

- Institutions and foreigners buy, private investors sell

- Turnover rate and price range both proper

- Institution 34.73 percent, foreigners 50.22 percent

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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)
Close Competitors	1 Mo	3 Mo	6 Mo	STD (1Mo)	Return on Risk (1Mo)
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

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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%.