LS Cable & System Asia stock gains on business expansion plan

Panoramic view of LS Cable & System Asia Ltd. subsidiary LSCV in Ho Chi Minh City, Vietnam [Courtesy of LS Cable & System]

Shares of South Korea’s LS Cable & System Asia Ltd. gained Tuesday following the company’s announcement of a business expansion plan to engage in submarine cables and rare earth elements.

Shares of LS Cable & System Asia, a subsidiary of LS Cable & System, were trading 4.6 percent higher at 14,090 won ($10.9) as of 10 a.m. on Tuesday. Earlier in the morning, the shares soared 12.32 percent.

The surge comes after LS Cable & System Asia announced that it will change its name to LS Eco Energy and promote new business ventures.

Recently, the company signed a memorandum of understanding with Petrovietnam Technical Services Corp. (PTSC), a key subsidiary of Vietnam Oil and Gas Group, to collaborate in the underwater business.

LS Cable & System Asia also plans to engage in rare earth elements by supplying neodymium and other elements to general trading companies and permanent magnet companies after refining them overseas.