April 24, 2024

• 

[THE INVESTOR] LG Display’s shift to large OLED panels from LCD is being delayed, said Mirae Asset Daewoo on Oct. 25 lowering the target price to 22,500 won (US$19.77) from 27,000 won while maintaining a “buy” recommendation. 

Its operating profit in the third quarter has plunged 76.10 percent on-year to 140.1 billion won, but it turned to black from the previous quarter. The price rise of LCD and large OLED panels, as well as favorable exchange rate, has boosted its profitability and the upward trend will continue. Price of LCD panels, however, has taken a downturn since October, which will lead to a vicious cycle in OLED TV sector, said analyst Kim Cheol-jung.

The display manufacturer has announced that it is reviewing investment in moving on to larger OLED panels but did not offer a specific timeline. It needs to speed up the decision-making process and leave the LCD market that will soon be oversaturated, he underlined.

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