 |
View of LG Innotek factory. (Photo=LG Innotek) |
[Alpha Biz= Reporter Kim Minyoung] KB Securities raised its target price by 20% from 250,000 won to 300,000 won on the 25th, saying LG Innotek's second-quarter operating profit forecast (011070) will quadruple from a year earlier. The investment opinion remained 'buy'.
KB Securities said, "The sluggish iPhone sales bottomed out in March, and the operating profit in the first half of the year will double from the previous estimate (123.8 billion won) to 253.9 billion won."
"We raised LG Innotek's net profit estimates by 29% and 30% between 2024 and 2025, respectively," KB Securities said. "In particular, iPhone sales as of the second quarter are expected to offset the slump in China due to increased demand for premium smartphones in the US, India and Southeast Asia."
LG Innotek said earlier that its operating profit in the first quarter was 176 billion won. It exceeded market expectations (138 billion won) by about 28%.
"We expect sales of LG Innotek to be around KRW 4.5 trillion in the second quarter," KB Securities said. "It will increase 16% year-on-year due to the increase in average unit price (ASP) due to increased shipments of high value-added products (Pro Max)." As a result, sales in the first half of this year are expected to reach a record high of 8.8 trillion won.
KB Securities said, "On the other hand, the estimated operating profit for the second quarter will increase 324% year-on-year to 77.8 billion won, more than quadrupling the consensus operating profit (19 billion won)."
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
