[Click eStock] "LG Display, Expecting Profit Turnaround in Second Half... Target Price Up"

On the 27th, IBK Investment & Securities raised the target price for LG Display from 16,000 KRW to 20,000 KRW.

LG Display's sales in the first quarter of this year amounted to 4.441 trillion KRW, a 39.6% decrease compared to the previous quarter. Operating loss widened to 1.098 trillion KRW, increasing the deficit from the previous quarter. Both sales and operating profit fell short of market expectations. While sales in the TV and mobile segments exceeded forecasts, the IT segment, including monitors, laptops, and tablets, experienced a larger-than-expected downturn. The deficit in large OLED significantly increased compared to the previous quarter, and the LCD TV deficit also grew. P OLED turned to a loss due to a decrease in volume.

The second quarter performance is expected to show little difference from the first quarter. This is because the volume increase of P OLED and W OLED, which caused the poor performance, is concentrated in the second half of the year. Improvement in the underperforming LCD IT panel segment compared to previous years is also expected in the second half. The LCD TV segment, which recorded significant operating losses last year, is expected to see a rapid reduction in operating losses each quarter.

Kim Unho, a researcher at IBK Investment & Securities, said, "We expect operating profit to gradually improve from the first quarter low point, and anticipate a possible turnaround to operating profit in the second half of the year. The P AMOLED division has normalized production since the fourth quarter of last year, and volume is expected to increase significantly this year. Large OLED volume is expected to stabilize starting in the second half."

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