[Stock to Watch] 'Rising Expectations in the Robotics Industry' LG Innotek Up 5.96%

The stock price of LG Innotek, which is strengthening its presence in the robotics industry, is on the rise.

As of 11:12 a.m. on March 19, LG Innotek was trading at 284,500 won, up 5.96% from the previous trading day.

On this day, DS Investment & Securities maintained its buy rating on LG Innotek and raised its target price from 370,000 won to 390,000 won, stating, "Performance related to expanding applications for humanoid (human-type) robots is steadily becoming more concrete."

Daehyung Cho, a researcher at DS Investment & Securities, explained, "It is understood that the supply of camera modules for robots to North American clients, following Boston Dynamics (BD), is imminent. As mass production volume is expected to increase significantly from 2027, performance improvement effects can be expected from an increased business share."

The growth in sales in the robotics sector is also viewed positively. It is expected that seven camera modules will be installed per humanoid robot, and since these will likely be high-priced modules, average selling price (ASP) increases are possible. Furthermore, the company is expected to expand its supply to include sensing-related components such as sensors and LiDAR (light detection and ranging), which will further strengthen its role as a provider of robot solutions.

First-quarter results this year are expected to exceed market expectations. DS Investment & Securities estimated LG Innotek's first-quarter sales at 5.361 trillion won (up 7.6% year-on-year) and operating profit at 192.2 billion won (up 53.6% year-on-year). Both figures surpass previous estimates and the market average forecast. This is attributed to continued demand resulting from the policy of freezing prices despite improved performance in new smartphone models, as well as the alignment of the physical replacement cycle. Profitability in the substrate materials business is also improving.

Researcher Cho added, "Considering that the company has entered a period of profit growth, the current stock price is significantly undervalued. A solid demand trend is expected to continue in the second half of the year due to the launch of next-generation models and an increase in foldable devices."

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