LX International logistics operating profit jumps 151.2% on strong container shipping rates

[Financial News] Shinhan Investment Securities said on the 5th that LX International’s logistics operating profit rose 151.2% year on year to 93.2 billion won in the third quarter, amid strong container shipping rates. This came as container shipping rates strengthened, with the average SCFI for the third quarter rising to 3,405 points. Total operating profit for the third quarter came to 143.1 billion won, exceeding the consensus of 127.3 billion won. Shinhan Investment Securities maintained its “Buy” rating on LX International and its target price of 66,000 won.
Analyst Han Seung-hun of Shinhan Investment Securities explained, “Operating profit in the resources division came to 14.9 billion won, supported by rising thermal coal prices in Indonesia. Plans to acquire a new mine are expected to take shape next year.”
LX International’s trading and new growth businesses posted operating profit of 35 billion won.
The analyst noted, “Operating profit grew by a triple-digit percentage, thanks to favorable coal market conditions and improved results at major subsidiaries Poseung Green Power and LX Glass.” He added, “Compared with the previous quarter, however, lower production in the jointly developed areas of Indonesia’s coal mines reduced the profit margin in resource trading.”

[email protected] Kang Gu-gwi Reporter