Korea/Asia, Events, IPOs/Douglas Research Advisory

Douglas Kim

Equity Bottom-Up

<ul>
<li>Our NAV analysis of LG Corp suggests an implied market cap of 16.9 trillion won or 107,217 won per share which is 28.4% higher than current share price. </li>
<li>We believe that LG Corp could announce another share buybacks representing 2-3% of outstanding shares in the next 6-12 months. </li>
<li>Another reason that could result in LG Corp's shares outperforming other major LG related shares is due to the value investors increasing capital allocation to higher dividend paying LG Corp.</li>
</ul>


Our NAV analysis of LG Corp suggests an implied market cap of 16.9 trillion won or 107,217 won per share which is 28.4% higher than current share price. 
We believe that LG Corp could announce another share buybacks representing 2-3% of outstanding shares in the next 6-12 months. 
Another reason that could result in LG Corp's shares outperforming other major LG related shares is due to the value investors increasing capital allocation to higher dividend paying LG Corp.


LG Corp: Updated NAV Analysis & Outperformance Likely Driven by Value Investors

Event-Driven

<ul>
<li>In this insight, we discuss an increasing probability of the cancellation of LG Corp preferred shares.</li>
<li>We provide five major reasons as to why LG Corp should cancel its entire preferred shares and how this could have a positive impact on LG Corp's share price. </li>
<li>We believe a 5-10% buyback and cancellation of LG Corp's preferred shares in the next 1-2 years is a higher probability.</li>
</ul>


In this insight, we discuss an increasing probability of the cancellation of LG Corp preferred shares.
We provide five major reasons as to why LG Corp should cancel its entire preferred shares and how this could have a positive impact on LG Corp's share price. 
We believe a 5-10% buyback and cancellation of LG Corp's preferred shares in the next 1-2 years is a higher probability.


An Increasing Probability of LG Corp Preferred Shares Cancellation

<ul>
<li>There is a major family feud on LG Group. Koo Kwang-Mo (Chairman of LG Group)'s mum and sisters are suing Chairman Koo to demand more money. </li>
<li>We believe that this family feud among the members of the LG Group regarding the inheritance recovery is likely to heighten the importance of the controlling stake in LG Corp.</li>
<li>Similar to what has happened with Osstem Implant, it is very possible that mum and sisters are discussing various strategies with some of the biggest private equity dragons in Asia/globally. </li>
</ul>


There is a major family feud on LG Group. Koo Kwang-Mo (Chairman of LG Group)'s mum and sisters are suing Chairman Koo to demand more money. 
We believe that this family feud among the members of the LG Group regarding the inheritance recovery is likely to heighten the importance of the controlling stake in LG Corp.
Similar to what has happened with Osstem Implant, it is very possible that mum and sisters are discussing various strategies with some of the biggest private equity dragons in Asia/globally. 


LG Corp: A Family Feud! (Mother & Sisters Sue Their Chairman Son) Enter the Private Equity Dragons?

<div class="content-highlight">
In this insight, we provide an updated SoTP valuation analysis on <a href="https://www.smartkarma.com/entities/lg-corp" target="_blank" data-smartkarma-citation="entities:6653:1" rel="noopener">LG Corp (003550 KS)</a>. We have a positive view of this stock. Our base case valuation analysis suggests an implied price of 120,787 won per share, representing a 60% upside from current levels.
</div>
In addition to its deep discount versus its NAV, there are also 4 key catalysts for the company which are as follows:
<ul>
<li>Potential for higher dividends</li>
<li>IPO of LG Energy Solutions</li>
<li>
Split of LG International and LG Hausys from the LG Group 
</li>
<li> Time to Close to the Gaps With Major Affiliates </li>
</ul>


In this insight, we provide an updated SoTP valuation analysis on LG Corp (003550 KS). We have a positive view of this stock. Our base case valuation analysis suggests an implied price of 120,787 won per share, representing a 60% upside from current levels.

In addition to its deep discount versus its NAV, there are also 4 key catalysts for the company which are as follows:

Potential for higher dividends
IPO of LG Energy Solutions

Split of LG International and LG Hausys from the LG Group 

 Time to Close to the Gaps With Major Affiliates 


<ul>
<li>In this insight, we lay out the thesis that LG H&amp;H is likely to be one of the biggest beneficiaries of the return of Chinese group tours to Korea. </li>
<li>LG H&amp;H consistently generated more than 1 trillion won in operating profit from 2018 to 2021.</li>
<li>We expect LG H&amp;H to generate 1 trillion won or more in operating profit in 2024 and 2025, which would be 20-25%+ higher than current consensus estimates in this period. </li>
</ul>


In this insight, we lay out the thesis that LG H&amp;H is likely to be one of the biggest beneficiaries of the return of Chinese group tours to Korea. 
LG H&amp;H consistently generated more than 1 trillion won in operating profit from 2018 to 2021.
We expect LG H&amp;H to generate 1 trillion won or more in operating profit in 2024 and 2025, which would be 20-25%+ higher than current consensus estimates in this period. 


LG H&H - A Key Beneficiary of the Return of Chinese Group Tours to Korea

South Korea

LG Corp. is a holding company, which operates subsidiaries including LG Electronics, LG Household & Health Care, LG Chem Ltd., and Dacom Corp. The Company's main business areas are electronics, chemicals, and household products manufacturing and telecommunications services.

52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

LG Corp (003550 KS)

LG Corp: Updated NAV Analysis & Outperformance Likely Driven by Value Investors

Our NAV analysis of LG Corp suggests an implied market cap of 16.9 trillion won or 107,217 won per share which is 28.4% higher than current share...

Douglas Kim

An Increasing Probability of LG Corp Preferred Shares Cancellation

We provide five major reasons as to why LG Corp should cancel its entire preferred shares and how this could have a positive impact on LG Corp's...

Douglas Kim

LG Corp: A Family Feud! (Mother & Sisters Sue Their Chairman Son) Enter the Private Equity Dragons?

There is a major family feud on LG Group. Koo Kwang-Mo (Chairman of LG Group)'s mum and sisters are suing Chairman Koo to demand more money. This...

Douglas Kim

LG Corp: Deep Value + 4 Key Catalysts

In this insight, we provide 4 key catalysts of LG Corp as well as an updated SoTP valuation analysis on the company. Our base case value suggests a...

Douglas Kim

LG H&H - A Key Beneficiary of the Return of Chinese Group Tours to Korea

We expect LG H&H to generate 1 trillion won or more in operating profit in 2024 and 2025, which would be 20-25%+ higher than current consensus...

Douglas Kim

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)