Samsung SDS, KT&G, LG Uplus listed as stock buys for earnings growth

Samsung SDS, KT&G, and LG Uplus are cited as stock bets for steady growth in earnings and prices, according to a report from Heungkuk Securities.

Samsung SDS Co., an IT solution provider under South Korea’s largest conglomerate Samsung Group, is estimated to have earned 190.4 billion won ($169 million) in operating profit in the first quarter ended March, up 11.2 percent from a year earlier based on consensus compiled by financial data tracker FnGuide. It eyes even better profit of 228.1 billion won for the second quarter and 235.4 billion won for the third quarter.

“Investors should turn to stocks with promising earnings growth prospects,” said Lim Sung-chul, analyst at Heungkuk Securities.

Other than Samsung SDS, the research pointed KT&G, LG Uplus and BGF Retail for the growth potential.

KT&G Corp., the country’s major tobacco producer, is expected to register 350 billion won for the first-quarter operating profit, up 11.1 percent on year. The company has rapidly expanded its global presence, especially in the Middle East. Its operating profit for the second quarter is projected at 418.4 billion won and the third quarter at 273.0 billion won.

LG Uplus Corp, the country’s third largest mobile carrier, is estimated to have raked in 236.8 billion won in operating profit for the first quarter. Its earnings for the second quarter are projected at 257.1 billion won, followed by 273.0 billion won in the third quarter. The smallest wireless carrier, however, is deemed undervalued compared to its peers.

BGF Retail Co., operator of the country’s leading convenience store chain CU, also makes the growth stock list. Its first-quarter operating profit is estimated at 24.3 billion won, with second quarter profit projected at 58.9 billion won and the third-quarter profit at 75.4 billion won.

“Convenience store chain operators like BGF Retail are expected to benefit from the rise in price of daily necessities,” said Yoo Jung-hyun of Daishin Securities.

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