[Edaily Reporter Kim Kyung-eun ] LG H&H(051900)is trading higher in early trading ahead of its second-quarter earnings announcement.

According to MP Doctor on the 29th, as of 9:56 a.m. today, LG H&H is trading at 275,000 won, up 19,500 won (7.63%) from the previous trading day.

This is interpreted as reflecting market optimism regarding the second-quarter earnings to be announced today.

According to financial information provider FnGuide Inc., LG H&H’s second-quarter revenue is expected to be 1.5599 trillion won, a 2.8% decrease from the same period last year. However, operating profit is projected to rise 31.7% year-over-year to 72.2 billion won.

Korea Investment & Securities forecasts that LG H&H’s second-quarter operating profit will exceed market expectations by 9.3%. The firm predicts that even if second-quarter earnings fall short of market forecasts, the decline in the stock price will not be significant.

Kim Myung-ju, an analyst at Korea Investment & Securities, stated, “The reason for LG H&H’s weak performance in the second through fourth quarters of last year was a decline in cosmetics industry sales coupled with one-time costs resulting from restructuring in the beauty business.” He added, “We estimate that no such one-time costs occurred in the first quarter of this year, as was the case in the second half of last year, and we expect this trend to continue in the second quarter.”