[Click eStock] "LG Display, Stock Price Expected to Maintain Upward Trend"

[Asia Economy Reporter Oh Ju-yeon] Hana Financial Investment analyzed on the 3rd that LG Display's current stock price still has room to rise to the PBR (Price-to-Book Ratio) level of 0.6 times, which is the lower end of the historical band during normal business conditions, due to the completion of the 2020 restructuring and expectations of business normalization in 2021. In terms of price, this translates to 19,000 KRW to 20,000 KRW. LG Display's stock price was 16,350 KRW as of the closing price on the 2nd.

Researcher Kim Hyun-soo forecasted, "LG Display's Q4 performance last year is expected to show sales of 5.4 trillion KRW and an operating loss of 535.3 billion KRW, marking the fourth consecutive quarter of losses." He explained that amid the continued decline in LCD TV panel prices, one-time costs related to the restructuring of LCD line production staff are expected to widen the deficit compared to the previous quarter, and the OLED TV segment is inevitably turning to a loss due to delays in the normalization of operations at the Guangzhou line. However, the operating rate of the OLED mobile segment is expected to continue rising, somewhat alleviating the loss burden.

Researcher Kim analyzed that although the business environment is unstable, the stock price will continue an upward trend for the time being. The stock price has risen 10% over the past month and 30% compared to the price at the time of CB issuance. Considering the possibility of LCD panel price increases and OLED front-end demand, he explained that the direction of the stock price is on the rise.

Researcher Kim diagnosed, "Future stock price movements between the 5-year average PBR of 0.7 times and the historical band lower end of 0.5 times depend on the strength of the LCD panel price increase, the scale of one-time costs related to the sale of the LCD TV Fab, the number of panels supplied in the OLED mobile segment, and the speed of yield normalization at the OLED TV Guangzhou line."

He added, "Considering the scale of LCD line shutdowns by Samsung Display and LG Display, LCD panel prices are highly likely to rise in the first quarter. The number of panels supplied in the OLED mobile segment and the strength of yield normalization at the OLED TV Guangzhou line have already passed the bottom. Taking all this into account, the stock price still has room to rise to 19,000 KRW to 20,000 KRW," he concluded.

This content was produced with the assistance of AI translation services.