[Click eStock] "LG Display Accelerates Business Restructuring Through Operational Efficiency"

On September 24, Shinhan Investment & Securities raised its target price for LG Display to 16,000 won, citing expectations for earnings growth as the company undergoes changes in its business structure.

Namgoong Hyun, a researcher at Shinhan Investment & Securities, forecast LG Display's third-quarter sales at 6.9 trillion won and operating profit at 457.9 billion won. This represents a 23.7% increase in sales compared to the previous quarter, and operating profit is expected to turn positive, marking the highest result in 15 quarters.

Namgoong attributed this outlook to several factors: the launch of new smartphones, tablets, and watches by North American set manufacturers; a gradual increase in market share among mobile clients; the withdrawal of a panel supplier competitor in the watch segment; the recovery of profitability in the large OLED segment due to the peak season and the end of depreciation expenses; and improvements in product mix within the IT LCD segment.

Namgoong also predicted that LG Display will continue to improve its performance next year. He projected 2026 sales to rise 3.6% year-on-year to 26.8 trillion won, with operating profit increasing 71.9% to 1.5 trillion won.

Namgoong explained, "Major panel competitors have demonstrated their technological competitiveness through shipments of OLEDs for foldable smartphones and laptops." He added, "We expect mobile sales to increase by 6% due to the redistribution of client orders, and we also anticipate profitability improvements from the expansion of large-size OLED TVs and continued product mix enhancements in LCDs."

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