[Click e Stocks] LG Innotek, iPhone Sales "Remain Unshaken"

On the morning of the 8th, when Apple's new smartphone 'iPhone 13' series was officially released in Korea, employees at the Apple Store Garosugil in Gangnam-gu, Seoul, performed a welcoming performance for customers.

[Asia Economy Reporter Hwang Junho] KB Securities has maintained the target price for LG Innotek at 540,000 KRW. This target price is based on the estimate that the global distribution inventory of Apple's iPhone 13 in the U.S. has actually decreased by 20% compared to the beginning of the year.

KB Securities expects LG Innotek's performance visibility to improve in the second half of this year due to increased iPhone component orders, supported by healthy inventory levels resulting from strong iPhone sales.

Currently, over 60% of total iPhone shipments consist of high-end models, making iPhone sales less sensitive to economic downturns. They are not significantly affected by the economic slowdown in China or global inflation.

The expected shipment volume of the iPhone 14, scheduled for release in September this year, is estimated to be between 110 million and 120 million units, representing a 10-20% increase compared to the iPhone 13, indicating that strong iPhone demand is expected to continue in the second half of the year.

Researcher Kim Dongwon of KB Securities stated, "In the second half of this year, global smartphone distributors, including those in China, are presumed to be reducing orders for Android phones, which are facing the dual challenges of declining sales and inventory adjustments, while paying advance payments to secure iPhone 14 units." KB Securities estimates that the advance payments made by Chinese distributors to secure iPhone 14 units are about 50% higher than those for the iPhone 13.

LG Innotek's annual sales and operating profit are expected to reach 16.9 trillion KRW and 1.6 trillion KRW, respectively, representing increases of 13% and 24% compared to the previous year, driven by strong iPhone shipment volumes.

Researcher Kim said, "With performance improvements expected at least until next year, the current stock price corresponds to a P/E ratio of only 6.9, indicating no valuation burden, making it a viable investment alternative amid uncertainties in the second half of the year."

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