LG H&H shares down on predictions of losing industry lead

[Courtesy of LG H&H Co.]

Shares of LG H&H Co. fell on Monday morning amid analyst forecasts suggesting the South Korean beauty and home care company may lose its position as the industry leader for the first time in eight years.

Shares of LG H&H were trading 2.56 percent lower at 361,000 won ($266) as of 11:35 a.m. on Monday.

The decline came after Meritz Securities projected LG H&H’s first-quarter revenue at 1.68 trillion won, with operating income and net income estimated at 136.4 billion won and 79.7 billion won, respectively.

“The worst has passed, but it is difficult to expect the best,” the brokerage said.

Meritz Securities also forecast LG H&H’s annual net income would reach 305.4 billion won, placing it behind AmorePacific Corp., which is expected to post a net income of 344.7 billion won.

This projection hints at LG H&H ceding the top spot to AmorePacific for the first time in eight years.

Meritz Securities maintained a neutral investment rating on LG H&H, with a target stock price of 400,000 won.