[Edaily Reporter Kwon Oh Seok ] NH INVESTMENT & SECURITIES announced on the 3rd that it is maintaining its “Buy” investment rating and 600,000 won target price for LS(006260).

Lee Seung-young, an analyst at NH INVESTMENT & SECURITIES, explained, “This is a time to focus on the potential for a revaluation of the holding company’s value and the improved performance of its subsidiary, LS Cable,” adding, “LS’s stock price has also been sluggish due to the recent stock market downturn and the decline in the share price of its subsidiary ‘LS ELECTRIC’ (48.5% stake).”
He further elaborated, “The current discount to NAV (net asset value) stands at 63.2%, the highest among major holding companies,” adding, “With the implementation of dual-listing guidelines, the value of unlisted subsidiaries such as LS Cable and LS MnM is expected to be fully reflected in the holding company’s value, leading to a narrowing of the discount.”
The analyst emphasized, “We forecast medium- to long-term earnings growth for the subsidiary LS Cable (92.6% stake), driven by expanding sales of highly profitable ultra-high-voltage cables and bus ducts, as well as the effects of selectively winning high-value-added projects,” adding, “In the second quarter, the trend of improved profitability is expected to continue due to increased bus duct sales.”
The analyst expects subsea cable performance to improve starting in the fourth quarter, as the effects of the expansion at Donghae Plants 4 and 5 are fully reflected. The analyst noted, “The U.S. subsea cable plant is scheduled for completion in the third quarter of 2027, with mass production set to begin in the first quarter of 2028,” and “Recently, LS Cable has secured long-term bus duct supply contracts totaling over 5 trillion won with global big tech companies, primarily through its subsidiary LS Cable & System USA. LS Cable is currently investing in a bus duct plant in Mexico, with the goal of commencing mass production there in March 2027,” the analyst added.