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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Minyoung] On June 12, Daishin Securities predicted that LG Innotek's operating profit would return to the 1 trillion won range this year after two years. They estimated an operating profit of 1.11 trillion won for the year, representing a 33.4% increase from the previous year.
Daishin Securities stated, "In the second half of 2024, we anticipate a premium-focused revenue structure in the optical solutions business, an increase in pixel counts in optical cameras, and expanded OIS sales. Annual revenue and operating profit growth estimates remain valid. Capital expenditures are expected to decrease from 1.8 trillion won in 2023 to around 800 billion won in 2024. The company will focus on cost reduction efforts to secure profitability. The attractiveness of expanding the portfolio from a semiconductor concentration to include some large IT companies is expected to increase."
Daishin Securities estimated LG Innotek's second-quarter revenue at 4.52 trillion won, with an operating profit of 1.068 billion won. They forecast that the operating profit would exceed consensus for two consecutive quarters.
"In the second half of 2024, we expect increased sales of the iPhone 16. Apple will apply AI services to build a distinctive IT device ecosystem. Considering the highest sales of the iPhone 13 (66 million units from launch to the end of the year), we anticipate replacement demand for the iPhone 16," said Daishin Securities. "If sales increase, we expect an upward revision of LG Innotek's performance in the second half of 2024. With an increase in pixel counts and expanded OIS supply (applied to two models), the average supply price is expected to rise, resulting in year-over-year revenue and operating profit growth."
Daishin Securities projected LG Innotek's operating profit for the second half of the year to increase by 23.8% year-on-year to 825.6 billion won.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
