[Click eStock] "LG Innotek, the Biggest Beneficiary of Metaverse and Apple Car"

Long-term Market Cap Expected to Exceed 10 Trillion Won
KB Securities Raises LG Innotek Target Price from 300,000 to 350,000 Won

[Asia Economy Reporter Gong Byung-sun] LG Innotek is being identified as the biggest beneficiary of Apple's metaverse and autonomous electric vehicles. From a mid- to long-term perspective, there are also expectations that its market capitalization will exceed 10 trillion won.

On the 22nd, KB Securities maintained a 'Buy' rating on LG Innotek and raised the target price from 300,000 won to 350,000 won. The closing price on the 19th was 288,000 won.

LG Innotek is expected to benefit from the metaverse and Apple Car. According to the US economic media Bloomberg on the 19th (local time), Apple is expected to launch metaverse hardware devices next year and the autonomous electric vehicle 'Apple Car' in 2025. If released as planned, LG Innotek plans to expand the supply of key components such as optical solutions and automotive parts.

Growth prospects are also anticipated. The metaverse hardware market is expected to show growth similar to the high growth rate of the smartphone market. Additionally, LG Innotek supplies more than 15 key components such as motor sensors, LiDAR, cameras, and communication modules for autonomous electric vehicles to global electric vehicle manufacturers.

Kim Dong-won, a researcher at KB Securities, said, "Considering that LG Innotek is already a verified iPhone supplier, it is evaluated to have sufficiently secured the capability to enter the Apple Car supply chain in the future," and added, "From a mid- to long-term perspective, LG Innotek's market capitalization could exceed 10 trillion won compared to global competitors."

Meanwhile, KB Securities estimated LG Innotek's sales next year to increase by 7% from this year to 15.1 trillion won, and operating profit to also rise by 7% to 1.3 trillion won during the same period. Researcher Kim said, "Next year, the North American strategic customer's camera module will be upgraded to higher specifications, and price increases and volume growth are expected due to prolonged production disruptions of competitors," adding, "In the substrate materials business, including semiconductor substrates and tape substrates (components that connect DDI chips to the main circuit board on long tape-shaped substrates), significant profitability improvements are expected to continue for the time being."

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