The shares of LG International Corp. showed strength thanks to the recovery in the price of coal and the upturn in its logistics business. On March 29, the general trading company's shares were closed at 31,600 won, up 3.1 percent or 950 won from the previous day.
Over the past five trading days, its shares rose 7.2 percent, boosted by expectations that the performance of its flagship resource and logistics businesses would improve.
Lyu Jae-hyun, analyst at Mirae Asset Daewoo, said, "LG International is expected to post an operating profit of 57.5 billion won in the first quarter of this year, up 29.0 percent year on year. In particular, the operating profit of its coal business would likely almost double to 28.8 billion won."
He added, "The prices of Australian coal, for example, jumped by about 40 percent from US$67 per ton in the third quarter of last year to $95 in the fourth quarter last year."
The logistics business that has dragged the company's valuation is also showing signs of stabilization with its fourth-quarter operating profit estimated at 18.4 billion won.