LG Household & Health Care (051900) showed a slight intraday decline on the 26th. The stock had continued rising through the previous trading day before turning downward today. Meanwhile, the brokerage industry is positively assessing the potential for improving the North American business structure following the sale of Avon.

As of 10:13 a.m. on the 26th, LG Household & Health Care was trading at 314,500 won, down 1,500 won (0.47%) from the previous trading day, with a trading volume of 19,915 shares at the same time.

The stock price has recently shown mild fluctuations. After rising 2.13% on the 21st, followed by gains of 0.80% on the 24th and 0.16% on the 25th, it turned weak again in intraday trading today.

◆ Avon Sale Signals Reorganization of North American Business

On the 25th, Hanwha Investment & Securities published a report on LG Household & Health Care titled 'Comment on the Avon Sale: Confidence in the North American Business,' maintaining a 'Buy' rating.

The brokerage assessed that the Avon sale can be interpreted as a meaningful change in the process of reorganizing the North American business, beyond simple asset disposal. The implication is that by divesting businesses with relatively low profitability and growth potential, conditions have been created to concentrate capabilities on core brands and highly competitive areas.

In particular, the North American market is one of the key overseas markets that LG Household & Health Care has sought to expand in the mid- to long-term. The analysis suggests that if the business portfolio becomes clearer following the Avon sale, there could be greater room for improvement in local brand operations, distribution strategy, and cost efficiency.

◆ Focus on Pace of Earnings Improvement and Cost Structure Changes

The market believes it is necessary to confirm the actual pace of earnings improvement in the North American business going forward, sales growth by brand, and changes in cost structure. Due to the nature of the cosmetics business, consumer sentiment, changes in distribution channels, brand competitiveness, and demand in major overseas markets such as China and North America can also affect earnings.

[Stock prices can experience significantly expanded volatility depending on domestic and international market trends, industry supply and demand, corporate earnings and disclosures, raw material prices, and policy changes. As sudden surges or drops are possible in the short term depending on changes in investor sentiment, future direction should not be determined solely by intraday fluctuations. Please comprehensively check official disclosures, earnings, business progress, and market supply and demand. This article is not intended to recommend buying or selling specific stocks or to guarantee investment returns. This article was written with AI assistance.]