Korea Stock Market Insights

Tag: HDB

  • LG H&H Q2 2025 Earnings and IR Presentation Analysis: Investment Outlook

    LG H&H Q2 Earnings Analysis: Performance by Division

    LG H&H showed mixed results across its three business divisions: Beauty, HDB (Home Care & Daily Beauty), and Refreshment. While the luxury cosmetic brand ‘The History of Whoo’ continued its steady growth, the Chinese market slowdown and intensified competition remain risk factors. The HDB business maintained stable sales by fostering premium brands, and the Refreshment division actively responded to consumer trends with zero-calorie products.

    Key Takeaways from the IR Presentation: Beauty Business Recovery and China Market Strategy

    The key focus of this IR presentation will be the recovery of the beauty business and the company’s strategy for the Chinese market. Investors should pay attention to the impact of the ‘LG Pra.L’ acquisition and new brand investments on the stock price. Furthermore, management’s explanation of specific countermeasures to the Chinese market slowdown and their future outlook will be crucial investment criteria.

    Action Plan for Investors: Analyzing IR Content and Managing Risks

    Investors should thoroughly analyze the IR presentation content and comprehensively consider factors such as growth by business division, China market strategy, and ESG management performance. It is crucial to carefully examine potential risk factors such as the global economic slowdown, exchange rate fluctuations, and intensified competition before making investment decisions.

    What are LG H&H’s main businesses?

    LG H&H operates three main businesses: Beauty, HDB (Home Care & Daily Beauty), and Refreshment.

    What are the key takeaways from this IR presentation?

    Key areas of focus include the recovery of the beauty business, the China market strategy, the impact of the ‘LG Pra.L’ acquisition, and the new business vision.

    What are the risks to consider when investing in LG H&H?

    Key risk factors include the global economic slowdown, the slowdown in the Chinese market, intensified competition, and fluctuations in exchange rates and raw material prices.

  • LG H&H Q2 Earnings Shock: Beauty Business Slump, What’s the Investment Strategy?

    1. LG H&H Q2 Earnings: Key Findings

    LG H&H reported Q2 2025 revenue of KRW 1.6048 trillion, operating profit of KRW 54.8 billion, and net profit of KRW 38.5 billion, significantly missing market expectations. The poor performance of the beauty business has been cited as the main reason, likely due to a combination of increased competition in the Chinese market and weakened consumer sentiment.

    2. Why the Beauty Business Slump?

    Intensified competition in the Chinese market, weakened consumer sentiment, and geopolitical risks are among the main factors contributing to the beauty business slump. Despite the growth potential of luxury brands, these external factors negatively impacted performance.

    3. What about HDB and Refreshment Businesses?

    While the HDB business maintained its leading position in the domestic market and continued growth in premium brands, it wasn’t enough to offset the overall decline. The Refreshment business performed relatively well, driven by the growth of the zero-calorie beverage market, but raw material price volatility remains a risk factor.

    4. Action Plan for Investors

    Analysts have issued a ‘HOLD’ rating for LG H&H, with the recovery of the beauty business seen as key to future stock performance. Investors should carefully monitor signals of recovery in Q3 and beyond, new market entry strategies, and management of exchange rate and raw material price volatility before making investment decisions.

    Frequently Asked Questions

    What is the main reason for LG H&H’s disappointing Q2 earnings?

    The slump in the beauty business is the primary cause, driven by a combination of increased competition in the Chinese market, weakened consumer sentiment, and geopolitical risks.

    What is the outlook for LG H&H’s stock price?

    Analysts currently have a ‘HOLD’ rating on the stock. The recovery of the beauty business is expected to significantly influence future stock performance.

    What should investors pay attention to?

    Investors should closely monitor signals of recovery in the beauty business, new market entry strategies, and the company’s management of exchange rate and raw material price fluctuations.