[Click eStock] "'Profit Turnaround Next Year' Forecast LG Display, Target Price Up"

Shinhan Investment Corp. on the 12th raised the target price for LG Display to 15,000 KRW, up 3,000 KRW from the previous target, stating that "efforts to improve fundamentals such as expanding production capacity for IT organic light-emitting diode (OLED) and mobile OLED, and increasing OLED TV shipments are expected to reduce operating losses this year and enable a turnaround to operating profit next year." The buy rating was also maintained.

Namgung Hyun, a researcher at Shinhan Investment Corp., said, "The current stock price might be misunderstood as overvalued at a 12-month forward (12MF) price-to-book ratio (PBR) of 0.9 times, but excluding the increase in the number of issued shares due to the capital increase in the first quarter of this year, it is at the mid-level of the PBR band. The upward momentum still exists."

Regarding the second-quarter earnings outlook, he said, "Sales are expected to increase by 17% from the previous quarter to 6.2 trillion KRW, and operating losses are expected to narrow to 200 billion KRW, exceeding market expectations," adding, "This is influenced by high liquid crystal display (LCD) TV panel prices, a strong dollar, the full-scale supply of IT OLED panels, and increased shipments of large panels due to sports events."

For this year's performance, sales are projected to increase by 24% year-on-year to 26.3 trillion KRW, and operating losses are expected to be 300 billion KRW, exceeding market expectations. Researcher Nam added, "In the second half, shipments to major North American customers in the mobile sector will increase, and market share will expand through the enhanced production capacity. The OLED TV segment will also see a 10% increase in OLED TV shipments compared to the previous year as new customer volumes are supplied in earnest."

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