[Click eStock] "LG Innotek, Q3 Earnings Below Expectations"

Hana Securities forecasted on the 24th that LG Innotek's stock price will be influenced by sales volume to North American customers going forward.

LG Innotek recorded sales of 5.6851 trillion KRW and an operating profit of 130.4 billion KRW in the third quarter of this year. Compared to the same period last year, sales increased by 19%, but operating profit decreased by 29%.

Kim Rok-ho, a researcher at Hana Securities, explained, "Sales exceeded Hana Securities' estimates, but the reason for the sluggish operating profit was that the profitability of the optical solutions and substrate materials divisions was lower than expected." He added, "Demand in the display division slowed down, and the increase in sales of package substrates for smartphones was weaker than expected."

Researcher Kim said, "We maintain a 'Buy' rating on LG Innotek and lower the target price to 280,000 KRW," analyzing that "operating profit estimates for this year and next year are revised downward by 31% and 27%, respectively, compared to previous estimates."

He continued, "Due to poor performance and downward revisions of forecasts, the stock price may undergo short-term adjustments," but explained, "Any changes in sales volume of the iPhone 16 series will be a factor for potential short-term stock price increases."

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