LS, Cosmax NBT, SK Discovery, Neuromeka Stock Price Outlook

LS, a holding company, is currently trading at a 55% discount compared to its fair net asset value of approximately 43.5 trillion won, with a target price of 630,000 won. The company recorded consecutive earnings surprises in both the first and second quarters, demonstrating solid performance. Additionally, there is positive news that it plans to cancel 11% of its treasury shares, which will resolve the dual listing issue and enhance shareholder value.

In the second half of the year, a 5.3 trillion won busduct contract with major US tech companies is scheduled, and in the fourth quarter, it plans to boost performance through submarine cable orders in Europe. Busduct sales in the second half of this year are projected to reach 2 trillion won, a threefold increase from last year, and the company aims to secure high profit margins in the mid-to-long term by completing underground and submarine cable factories in the US next year.

LS's subsidiary L&D, which produces special winding wires for hybrid and ultra-high voltage transformers, continues to grow through continuous expansion. It also supplies optical fiber preforms in the US. Another subsidiary, LS Electric, is expanding sales of advanced high-margin power distribution equipment needed for AI data centers, targeting sales of approximately 3 trillion won next year and over 7 trillion won by 2030.

Total operating profit for the first half of the year soared by an astonishing 452% year-over-year to 18.75 billion won, showing rapid growth in both sales and operating profit. Domestically, it has secured major offline channels such as convenience stores, Olive Young, and Daiso as new clients, while overseas sales have significantly increased in the US and China.

The trend of foreigners purchasing health functional foods has shifted from a focus on taste, practicality, and wellness to emphasizing daily value and cost-effectiveness. Consequently, visits to Olive Young, Daiso, convenience stores, and pharmacies have surged, which is a major factor in Cosmax NBT's sales increase.

This technology is utilized in chewable gummies and jelly-type products, which are well-received in the market for their taste, portability, and convenience, contributing to the achievement of a quantum leap in performance.

SK Discovery is currently significantly undervalued with a PBR (Price-to-Book Ratio) of 0.2 times. The company plans to buy back and cancel 160 billion won worth of treasury shares and is consistently implementing shareholder return policies through dividends of 1,700 won per share and subsidiary dividend income. Analysis suggests that these efforts provide ample room for undervaluation resolution and stock price appreciation.

In particular, it produces integrated smart joints for robot articulation through its independently developed 'Neuro Drive'. The company is actively pursuing overseas projects, including in Italy, and has attracted equity investment from Samsung Group's asset management arm, thereby increasing its growth potential.

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