DB Securities analyzed that on the 11th, LG Uplus is expected to see performance growth due to an increase in new subscribers, and that the scale of its own stock buyback may also increase positively. It raised its target stock price from the previous 16,000 won to 17,800 won, while maintaining an investment opinion of 'buy.' The closing price of LG Uplus on the previous trading day was 14,830 won.
DB Securities forecasted that this year, LG Uplus's revenue and operating profit will record 3.6166 trillion won and 272.4 billion won, respectively, increasing 3.5% and 7.2% compared to last year. Wireless revenue is expected to increase by 2.6% compared to the same period last year, with new subscribers increasing by 200,000. The proportion of 5G subscribers is also nearing 80%, and high growth for budget mobile subscribers continues.
Shin Eun-jung, a researcher at DB Securities, noted, 'Marketing expenses are expected to increase by 3.5% compared to last year due to the effect of subscriber expansion, but overall expenses are being streamlined due to the consolidation of low-margin business units.'
From April to June of this year, the number of subscribers who moved to LG Uplus was a total of 240,000, and the wireless revenue reflecting three months of income is expected to increase by 3.4% compared to last year.
Researcher Shin stated, 'Reflecting the increase in wireless revenue due to new subscribers from the second quarter to the third quarter, and the trend of cost efficiency, the annual operating profit forecast has been slightly raised,' adding, 'The stock price has increased by 43% compared to the beginning of the year, indicating a significant short-term rise.'
Shin continued, 'With a buyback of 70 billion won, this year's total shareholder return yield is 5.4%, and it is necessary to align with competitors who exceed 6%, yet the fact that the scale of stock buybacks can increase every year provides long-term expectations.'