LG share price at lowest point in 12 years

LG Electronics, South Korea's second largest electronics maker, saw its share dropped to its lowest since 2003, and will not recover anytime soon, a local securities firm said.

In a note to clients on Monday, IBK Securities said LG's stock price has hit its lowest since June 16, 2003, and the cause was the firm's "miserable" financials.

On July 13, LG Electronics' share closed at 44,900 won ($39.71).

LG earned 4.67 trillion ($4.13 billion) won in operating profits for four years since 2011. But due to losses and taxes and other costs, net profit of owners was only 200 billion won ($176 million).

IBK said LG's home entertainment business -- which makes televisions -- continues to experience revenue decline, while its mobile business is doubly burdened by slow growth rate and intense competition.

LG has been expanding its automobile component business, but the securities firm said contribution to profit and revenue were still negligible.

IBK expects the tech giant to post an operating profit of 314 billion won ($277 million), a 48 percent decline from a year ago.

LG launched its latest flagship phone, the G4, earlier this year with its biggest marketing campaign in recent years, but the phone has underperformed, according to telco sources.

Source: ZDNet.co.kr