[Click eStock] "LG Display to Supply OLED to Samsung Electronics... Profit Expected Next Year"

KB Investment & Securities Report

KB Securities expects LG Display to return to profitability next year. This is because it is anticipated to start supplying large organic light-emitting diode (OLED) panels to Samsung Electronics from the second half of this year. Accordingly, the investment opinion of 'Buy' and the target price of 20,000 won were maintained.

On the 17th, Dongwon Kim, a researcher at KB Securities, stated, "From next year, LG Display's production lines will operate at 100%, breaking the deficit trend," adding, "In particular, the large OLED business is expected to reduce annual costs by more than 500 billion won from 2025 as the depreciation of the Guangzhou and Paju production lines in China ends." The Guangzhou and Paju plants each have a production capacity of 45,000 units per month.

Recently, Reuters reported that LG Display is expected to supply OLED panels to Samsung Electronics as early as the second quarter. The plan is to supply 2 million units next year and then increase shipments to 3 million and 5 million units thereafter. The initial supply is estimated to be 77-inch and 83-inch white OLED TV panels.

Researcher Kim said, "Assuming LG Display supplies 2 million panels next year, the global OLED TV shipment volume is expected to increase by 38% year-on-year to 10 million units," and forecasted, "The operating rate of large OLED production lines will rise in the future." He also noted, "Since only two panels can be produced per mother glass for ultra-large panels over 77 inches, OLED panels are likely to shift to a supply shortage."

KB Securities predicted that LG Display will return to profitability from the fourth quarter of this year and record an operating profit of 83.2 billion won next year.

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