April 25, 2024

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[THE INVESTOR] LG Display’s unease over its earnings guidance announcement is growing, said NH Investment and Securities on Jan. 5, lowering the target price to 35,500 won (US$33.40) from 40,000 won.

Its revenue in the fourth quarter last year fell 14 percent on-year to 6.8 trillion won, and operating profit plunged 74 percent to 236 billion won, as its liquid crystal display smartphone panel shipments declined, while small and medium-sized organic light-emitting diode depreciation costs increased, said analyst Go Jeong-woo.

LCD panel prices continue to slide and the won-dollar exchange rate remains unfavorable, with some voicing concerns over the competitiveness of small and medium-sized OLED products, pointed out the analyst. 

Although the government has greenlighted its investment in a large-sized OLED factory in Guangzhou, China, the market remains unresponsive. It is hard to tell when the LCD market will recover, while smaller OLEDs are likely to be burdened by growing costs, explained Go.

The analyst maintained a “buy” recommendation, though, saying it is strengthening its status in the large OLED market, and smaller OLEDs are still in demand from North American clients. 

By Hwang You-mee (glamazon@heraldcorp.com)