[THE INVESTOR] LG Innotek’s fourth-quarter earnings will beat market consensus, said Hana Financial Investment on Dec. 20, maintaining a “buy” recommendation and 200,000 won (US$184.60) target price.
Its revenue will hike 25 percent on-year to 2.58 trillion won and operating profit by 40 percent to 165.4 billion won, estimated analyst Kim Rok-ho.
There have been serious concerns over supply for its North American client’s new model but it has not faced any problems, and manufacturing of new sensing modules has fairly stabilized contributing to external growth, noted the analyst.
Its revenue next year will rise 16 percent from this year to 8.54 trillion won and operating profit by 67 percent to 534.9 billion won, forecast Kim.
Optical solutions sector will continue to boost the earnings as a new smartphone model is likely to be equipped with dual cameras and sensing modules, he added.
By Hwang You-mee (firstname.lastname@example.org)