LG Innotek Stock Trapped in a Box Range, Will iPhone 14 New Release Have an Effect?

Up 3.61% During Trading
Jeonjang Business Also Expected to Turn Around Performance

[Asia Economy Reporter Kwon Jae-hee] As Apple unveiled its new iPhone 14, attention is also turning to LG Innotek's stock price, which is considered a representative beneficiary of the iPhone. Despite positive outlooks from the securities industry, LG Innotek's stock price has fluctuated between 300,000 and 410,000 KRW since the beginning of this year.

As of 9:16 a.m. on the 8th, LG Innotek was trading at 338,000 KRW, up 1.81% from the previous trading day. During the session, it rose as much as 3.61% to 344,000 KRW. This year, LG Innotek's stock price has fluctuated between a low of 307,000 KRW and a high of 414,500 KRW.

Although the stock price remains within a box range, the securities industry still views LG Innotek positively. This is due to increased valuation appeal following this year's price adjustment, as well as the expansion of new businesses not only in iPhone but also in mixed reality (MR) and autonomous driving (ADAS). Apple's new iPhone 14 has an initial shipment volume exceeding 90 million units, and the proportion of the high-end Pro series is at its largest scale, which is expected to raise LG Innotek's average selling price (ASP).

Another positive factor is the expected turnaround in performance of LG Innotek's automotive division next year for the first time in seven years. Additionally, it currently supplies core components for autonomous vehicles such as Camera, LiDAR, Radar, and V2X (Vehicle to Everything) to 30 global automobile companies, and supply expansion to North American electric vehicle and autonomous vehicle companies is anticipated from next year.

The outlook for the third quarter is also bright. Daishin Securities projected LG Innotek's third-quarter operating profit at 420.3 billion KRW, while KB Securities estimated 418.8 billion KRW. Both figures exceed market expectations and the results from the same period last year.

Yu Woo-hyung, a researcher at KB Securities, analyzed, "Considering that LG Innotek's stock price has undergone sufficient adjustment over the past eight months and the expansion of new businesses such as autonomous driving, the stock price adjustment is expected to come to an end."

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