April 25, 2024

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[THE INVESTOR] LG Innotek’s earnings in the latter half will be a record high, said Kiwoom Securities on Sept. 12, maintaining a “buy” recommendation and 210,000 won (US$186.43) target price.

Its earnings will begin to improve in earnest from August and rally until November, Its operating profit in the third quarter will double from the same period last year to 111.8 billion won, propelled by 3D-sensing modules. The product’s clients have tripled from last year, while competition, sales price and supply rate will remain favorable. Its current stock price is yet to reflect the earnings prospects, and it is too early to be concerned about whether the new iPhone model will be a success, said analyst Kim Ji-san.

In the short term, LG Innotek’s earnings will move in tandem with sales of iPhone, but it has already secured solid growth momentum based on Apple’s strategy to expand equipment of 3D and multi-cameras, added the analyst. 

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