[Click eStock] "LG Display, Target Price Maintained at 14,000 Won"

On the 24th, Samsung Securities maintained a target price of 14,000 KRW and a buy rating for LG Display.

The third-quarter results recorded sales of 6.8 trillion KRW and an operating loss of 80.6 billion KRW. This was in line with the expected loss (79 billion KRW) but below the market consensus (96.3 billion KRW). While shipment area growth was initially expected to increase by 4% quarter-on-quarter, it actually decreased by 3%, resulting in sales below the market expectation (7.3 trillion KRW). This was interpreted as a result of weak sales due to sluggish demand in the notebook market. Considering that the operating loss included a one-time workforce efficiency cost in the mid-100 billion KRW range, profitability was judged to have meaningfully improved compared to the previous quarter (96 billion KRW loss).

Panel shipments for the iPhone in the fourth quarter are expected to be robust as anticipated, with growth of more than 50% quarter-on-quarter, which is positive. However, due to weakness in the IT LCD segment, the expected profit outlook has been inevitably revised downward, and with iPad sales in the second half performing worse than expected, fourth-quarter panel shipments are forecasted to decline significantly compared to the third quarter. As a result, with a decrease in operating rate and an increase in fixed cost burden, the operating profit for the fourth quarter has been revised down to 283 billion KRW.

Researchers Jang Jeong-hoon and Seo Ji-hyun of Samsung Securities analyzed, "In 2025, mobile OLED utilization is expected to remain solid with additional OLED volume for low-priced iPhone models, and the effect of depreciation completion for mobile OLED as well as some Guangzhou OLED TV lines will contribute to an annual operating profit surplus expectation, which remains valid."

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