[Click eStock] "LG Display, Positive Outlook on POLED Business... Target Price Up"

[Asia Economy Reporter Eunmo Koo] DB Financial Investment stated that LG Display is expected to achieve its most positive performance since the start of its plastic-organic light-emitting diode (P-OLED) business, as the volume of P-OLED from overseas strategic customers is ramping up. The investment opinion was maintained as 'Buy,' and the target price was raised to 20,000 KRW.

On the 11th, DB Financial Investment analyst Sungryul Kwon said in a report, "LG Display's operating profit in the third quarter of this year is expected to turn from a loss to a profit, and the scale of operating profit in the second half is improving more than expected," adding, "We have revised the full second-half operating profit from -33.9 billion KRW to 37.3 billion KRW. The operating profit for the third quarter alone is expected to be 94.2 billion KRW." Analyst Kwon explained, "The performance of P-OLED and large organic light-emitting diode (OLED) is becoming full-fledged, and the prices of liquid crystal display (LCD) panels and exchange rates are better than expected," adding, "Although the overall operating profit will decline in the fourth quarter due to the seasonal weakness of IT panels, the significant improvement compared to the same period last year cannot be reversed."

With the ramp-up of P-OLED volumes from overseas strategic customers, the most positive performance since the start of the P-OLED business is expected. Analyst Kwon said, "Although the new model launch was somewhat delayed, causing a late start, the effect of the new model may continue partially until the first quarter of next year." He also noted, "In addition to the increase in volume due to the strong European market for large OLEDs, the effect of introducing MMG (Multi Model Glass) at the Guangzhou plant should be closely watched," explaining, "MMG is operated by matching 48-inch and 77-inch panels, and the recent market response to these two sizes has been explosive." Analyst Kwon added, "After LG Electronics launched first, Sony, Philips, and others have also added 48-inch lineups, and although this product is small, it is highly profitable."

The investment opinion was maintained as 'Buy,' and the target price was raised to 20,000 KRW. Analyst Kwon explained, "Some views ignore the improvement in the second half and worry about the off-season in the first half of next year, but with a clear improvement compared to the same period last year, a soft landing rather than a hard landing is possible."

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