LG Electronics shares rise on strong quarterly profit

LG Electronics shares advanced 3.2% in Seoul trading on Tuesday after the company posted a quarterly profit that exceeded market expectations.

The South Korean electronics giant reported a net profit of 540 billion won ($395 million) for the second quarter, up 15% from a year earlier, according to a regulatory filing. Revenue rose 8.7% to 21.3 trillion won, driven by strong demand for home appliances and improved profitability in its display panel business.

Analysts at Mirae Asset Securities and KB Securities attributed the stock’s gain to the company’s resilient performance in a challenging macroeconomic environment. Home appliances, including refrigerators and washing machines, saw steady demand, while the display panel segment benefited from tighter supply and higher pricing.

LG’s operating margin expanded to 3.1% from 2.4% a year ago, reflecting cost controls and pricing power in key product lines. The company also reaffirmed its full-year guidance, forecasting revenue growth of 5-7% and maintaining its dividend payout ratio at 30% of net profit.

Investors have increasingly focused on LG’s ability to sustain profitability amid global economic uncertainty. The company’s exposure to both consumer electronics and industrial components has provided a buffer against volatile market conditions.

Shares of LG Electronics closed at 78,500 won, up 2,400 won from the previous session.