[Click eStock] "LG Innotek, Largest Ever Investment... Strong Growth Expected Next Year"

[Asia Economy Reporter Son Sun-hee] KB Securities recently announced that LG Innotek's investment plan of 1.65 trillion KRW in optical solutions is "a strong proof of growth in 2023 and is expected to have a positive impact on performance and stock prices," on the 26th. No separate investment opinion or target price was provided.

LG Innotek disclosed on the 23rd that it plans to invest a record-high 1.65 trillion KRW in 2023. The market expects this investment to be fully allocated to next-generation new technologies such as folded zoom modules.

In particular, the investment scale in folded zoom is estimated to be more than four times that of competitors. This suggests that LG Innotek may have obtained final quality approval for related products from global big tech companies.

Dongwon Kim, a display and home appliance analyst at KB Securities, said, "It appears that this investment was decided at the request of global big tech companies," adding, "LG Innotek is presumed to have already secured the supply volume of next-generation optical new products to be produced next year."

With this record-scale investment in next-generation new technology, LG Innotek is estimated to generate new sales totaling 6.8 trillion KRW over the next two years. Sales are expected to continue growing until 2025 due to the expansion of models equipped with folded zoom.

LG Innotek's new product sales are estimated at 2.5 trillion KRW in 2023 and 4.3 trillion KRW in 2024. This accounts for 12.2% and 21.1% of LG Innotek's annual sales of 20.4 trillion KRW this year, respectively.

Analyst Kim predicted, "Unlike in the past, this investment is expected to serve as an opportunity to enhance the growth potential of LG Innotek's optical solutions business in the future."

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