April 19, 2024

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[THE INVESTOR] LG Innotek will have to deal with an adverse environment next year, said KTB Investment and Securities on Dec. 24 lowering the target price to 120,000 won (US$106.51) from 180,000 won.

Its revenue in the fourth quarter will decline 8.6 percent on-year to 2.62 trillion won and operating profit by 1.6 percent to 135.9 billion won. Its major client Apple suffered not only from slow iPhone sales, but also the ban of old models in China and Germany. Annual shipments of iPhone will fall to 190 million next year from this year’s 205 million, decreasing for the first time ever, said analyst Lee Dong-ju.

In 2020, however, demand for Apple may rebound due to new technologies and changing form factors, said the analyst maintaining a “buy” recommendation. 

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