Source Facts: Eugene Investment & Securities / 2026.06.25
Investment Rating & Target Price: BUY (Maintained) / 111,000 KRW
Key Momentum: Full-scale expansion of AI infrastructure and robotics business through strategic cooperation with NVIDIA.
📊 1. Valuation and Financial Analysis
- Investment Rating: BUY (Maintained)
- Target Price: 111,000 KRW (Up 19.4% from the previous 93,000 KRW)
- Valuation Basis: Applied a Target Multiple of 24.1x, which reflects a 30% discount on the domestic peer group average PER of 34.5x, applied to the estimated 2026 EPS of 4,621 KRW.
- Key Financials (2026E):
- PER: 17.2x
- ROE: 14.4%
- PBR: 2.3x
- EV/EBITDA: 8.6x
🚀 2. Market Opportunity (TAM) and Detailed Earnings Estimates
- AI Business Strategy:
- Agentic AI: Scaling the ‘AgenticWorks’ platform to efficiently support customers’ AX (AI Transformation) across the entire service lifecycle.
- PhysicalWorks: Providing comprehensive robot services through ‘PhysicalWorks Forge’ and ‘PhysicalWorks Baton’ platforms, with plans to expand external business based on group-wide references.
- Annual Earnings Estimates (2026E):
- Revenue: 6.4155 Trillion KRW (Projected 4–6% growth YoY).
- Operating Profit: 591.5 Billion KRW (Expected to maintain prior-year profit margins).
- 2Q26 Earnings Outlook:
- Revenue: 1.5208 Trillion KRW (Up 4.2% YoY).
- Operating Profit: 145.4 Billion KRW (Up 3.3% YoY).
📝 Editor’s Comment (by K-STOCK Editor)
The latest research report on LG CNS highlights a clear transition from a traditional System Integrator (SI) to a specialized AX (AI Transformation) powerhouse that integrates AI infrastructure with robotics solutions. In particular, the momentum generated by the collaboration with NVIDIA is noteworthy, as it suggests the company is moving beyond simple technical partnerships to securing tangible references in future markets such as data centers and Physical AI. With a projected 2026 PER of 17.2x and consistent revenue growth of 4–6% annually, the company demonstrates high visibility in earnings compared to its industry peers. The speed of commercialization for its RX (Robotic Transformation) services is identified as the key variable that could drive a ‘quantum jump’ in future financial performance.
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