[Click eStock] LG Display, Panel Price Drop Amid Operating Loss Forecast

[Asia Economy Reporter Hwang Junho] Ebest Securities has lowered the target price of LG Display to 18,000 KRW, forecasting an operating loss for the company in the second quarter of this year.

Ebest Securities expects LG Display to record an operating loss of 347 billion KRW in Q2 this year. This is about 13.4 billion KRW below market expectations. Amid weak demand in the second quarter, logistics delays caused by the lockdown in Shanghai, China, had a significant impact on sales decline. Additionally, LCD panel prices fell more sharply than expected.

For the stock price to rise, it was suggested that the decline in LCD panel prices needs to stabilize. TV panel prices, which were expected to stabilize after the first quarter of this year, are experiencing a larger drop in the second quarter. Currently, as the supply of IT panels expands and demand remains weak, IT panel prices are also gradually experiencing a larger decline.

Nam Daejong, a researcher at Ebest Securities, stated, "Overall capacity utilization adjustments need to be expanded, and OLED competitiveness must be restored." He added, "Although capacity utilization adjustments are underway at domestic lines, fundamental cost reduction measures need to be supplemented."

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