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THE INVESTOR]
LG Household and Health Care’s revenue from duty-free stores should be seen from a conservative perspective following the Chinese cap on tourism to South Korea, according to Samsung Securities on Oct. 26.
The securities firm lowered the target price to 1,010,000 won (US$894.12) from 1,150,000 won, as it cuts the prospective rate of increase in number of Chinese tourists coming to the country in 2017 to 5 percent from 15 percent. The Chinese government recently notified its tourism agencies to decrease the number by 20 percent from 2015 by April 2017.
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LG Household and Health Care's premium comestics brand Whoo |
The health care and beauty giant’s third quarter performance was slightly better than market expectations, with 1.56 trillion won revenue and 244.2 billion won operating profit, up 12.7 percent and 28.4 percent on-year, said the analyst Park Eun-gyeong.
“Based on the Q3 figures, there is no structural change that could alter prospects,” added the analyst maintaining a “buy” recommendation.
By Hwang You-mee (
glamazon@heraldcorp.com)
