LG Group headquarters in Yeouido, western Seoul (Newsis)

LG Electronics on Tuesday announced a mid-to-long-term plan to boost the company’s corporate value, with a goal to achieve sales of 100 trillion won ($72.6 billion) by 2030.

The new announcement comes about two months after it said it would participate in the government’s Value-up Program, being the first to do so among the country’s top 10 conglomerates.

In a regulatory filing, the home appliance giant reiterated its Triple 7 goal, under which the company aims to see a 7 percent growth rate in sales, an operating profit margin of 7 percent, and a valuation target of 7 times EBITDA, every year until 2030.

To achieve the goals, the company said it will strengthen its platform-based services, and business-to-business capacity in the heating, ventilation and air conditioning, and automotive parts businesses. The platform-based services include its web operating system and smart home systems. The company will also explore new business items.

The company expects the three business areas to account for 52 percent of sales and 76 percent of operating profits in 2030. Currently, they take up 39 percent of the total revenue and 55 percent of the operating profit, the company said.

By 2027, the company seeks to achieve a return on equity of over 10 percent.

LG said it decided to allocate at least 25 percent of its consolidated net profit, based on the portion attributable to equity holders of the parent company and excluding any one-time non-operating gains, for shareholder returns.

To enhance the predictability for investors, the company will maintain a minimum dividend of 1,000 won per share, and continue its semi-annual dividend payments, LG said, adding that it is also reviewing the possibility of canceling its treasury shares and conducting additional share buybacks.

By Jo He-rim (herim@heraldcorp.com)