[Click eStock] LG Display 2Q Earnings Expectations

[Asia Economy Reporter Junho Hwang] LG Display is expected to achieve an operating profit of 708.8 billion KRW in the second quarter, marking the highest performance in four years.

On the 14th, KB Securities forecasted LG Display's operating profit to exceed market expectations (533 billion KRW). If LG Display achieves this performance, it will mark the highest quarterly profit since Q2 2017, four years ago.

KB Securities also predicted that the large OLED business, which started in 2013, will turn profitable for the first time in eight years. With OLED shipments increasing (large panels at 8 million units, an 80% increase year-over-year, and small to medium panels at 50 million units, a 60% increase year-over-year), the profit growth in the OLED business is expected to expand further next year.

Although LCD prices are expected to decline, the extent of the drop will vary depending on the size of TV panels. Prices for small to medium-sized LCD TV panels (32, 43, 50 inches) are expected to fall by an average of 20% by the end of the year. In contrast, large LCD TV panel prices (55, 65, 75, 85 inches) are projected to decline by less than 5% on average. Prices for PC LCD panels are expected to continue rising until the end of the year due to the normalization of remote work and increased demand for corporate PCs.

Dongwon Kim, a researcher at KB Securities, stated, "Even assuming a 20% price drop in LCD panels centered on small to medium TV panels from the second half of this year, LG Display is expected to secure the capacity to generate an annual operating profit of 2 trillion KRW (500 billion KRW per quarter) starting next year."

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