[Click eStock] "LG Display, High Possibility of Turning Profitable in the Second Half"

IBK Investment & Securities Report, Improvement in TV and Mobile Sectors in the Second Half

[Asia Economy Reporter Minji Lee] IBK Investment & Securities maintained a buy rating and a target price of 18,000 won on LG Display on the 19th, expecting a return to profitability in the second half of the year due to improvements in the TV and mobile sectors.

LG Display's second-quarter sales are expected to increase by 7.1% from the previous quarter to 5.058 trillion won. The shipment area is expected to be similar to the first quarter of this year at 6,997 ㎢, and the average selling price is expected to rise by 8.1% from the first quarter to

614 dollars/㎡. The rise in average selling price was largely influenced by changes in the product mix as the proportion of high-priced IT sales increased.

Researcher Kim Unho explained, "Operating losses in the second quarter of this year are expected to increase compared to the first quarter," adding, "Although we anticipated favorable profitability due to increased volume and average selling price of IT products, the TV division and mobile sector are expected to perform worse than in the first quarter."

However, the second half of the year is expected to show a markedly different performance from the first half. This is because the TV and mobile sectors, which were the causes of the first half's sluggishness, are expected to improve. TV panel prices for LCD are rising, and OLED TV volume is expected to increase significantly due to the operation of the Guangzhou facility. Mobile shipments are expected to increase significantly due to the launch of new products by overseas clients, which is expected to largely offset depreciation expenses.

Researcher Kim Unho stated, "With the mass production of the new P AMOLED facility, shipment volume will steadily increase, significantly reducing the scale of operating losses," and added, "The operation of new large OLED facilities will lay the foundation for external growth, and any deterioration in cost structure can be quickly overcome through production efficiency."

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