[Click eStock] "LG Innotek Expected to Achieve Record Q4 Performance... Target Price Maintained"

Daishin Securities maintained a buy rating and a target price of 350,000 KRW for LG Innotek on the 28th, stating that "the highest performance is expected in the fourth quarter of this year."

On the day, Kangho Park, a researcher at Daishin Securities, forecasted, "Fourth-quarter sales are expected to reach 7.25 trillion KRW, up 10.8% from the same period last year, and operating profit is projected to increase by 201.9% to 513.2 billion KRW, marking the highest quarterly performance." LG Innotek is a comprehensive manufacturer of mobile, automotive, and display components. The company focuses on businesses such as smartphone camera modules, 3D sensing modules, automotive LEDs, and cameras.

The production disruptions of Apple’s iPhone 15, LG Innotek’s largest client, in the third quarter are expected to normalize in the fourth quarter, and production and demand for the top-tier iPhone 15 Pro Max model are also expected to increase, leading to a rise in the average selling price. The production ratio of the Pro Max model is estimated to be about 37%, an increase of 6-8% compared to last year, and additional profitability is anticipated as the folded zoom camera is adopted for the first time. The increase in the main camera resolution to 48 million pixels on the standard iPhone 15 model is also a positive factor.

Researcher Park analyzed, "Total sales of 21.6 trillion KRW and operating profit of 1.03 trillion KRW are expected next year, representing increases of 6.5% and 19.5%, respectively, compared to this year. The replacement demand for iPhone 16 and the expectation of higher pixel counts beyond the main camera could lead to an increase in the average selling price."

He added, "Furthermore, with the growth of the global smartphone market, sales and operating profit of semiconductor packages are expected to increase. The launch of the Apple Vision Pro next year, expansion of North American electric vehicle camera sales, and the reflection of new sales from high-value-added semiconductor products such as flip chip ball grid array (FC BGA) are considered positive factors for the stock price."

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