AlphaBIZ - Hana Securities raised its target stock price by 10.4% from 326,000 won to 360,000 won, saying LG Innotek′s third-quarter earnings are likely to rise.

View of LG Innotek factory. (Photo=LG Innotek)

 

[Alpha Biz= Reporter Kim Sangjin] On the 18th, Hana Securities Raised the Target Price for LG Innotek from 326,000 KRW to 360,000 KRW, a 10.4% Increase, and Maintained a 'Buy' Rating.

Hana Securities stated, 'LG Innotek's Q2 sales this year are expected to be 4.64 trillion KRW, a 19% increase year-on-year, and its operating profit is expected to be 145.4 billion KRW, a 689% increase over the same period. Sales and operating profit are projected to exceed Hana Securities' previous forecasts by 4.4% and 58.8%, respectively.'

Hana Securities explained, 'The main reasons for the strong performance are favorable exchange rates and the optical solutions division. The iPhone 15 series is estimated to have had favorable shipment and sales volumes due to promotions in China.'

Hana Securities further noted, 'Despite the off-season, the increase in camera module shipments reduced the burden of fixed costs, leading to notable improvements in profitability. The substrate materials and automotive components divisions are not expected to deviate from existing estimates.'

Hana Securities added, 'LG Innotek's stock price was at its lowest level of the year before the Q1 earnings announcement, and it has been reaching new yearly highs due to strong Q2 performance and improved investor sentiment toward North American customers.'

Hana Securities concluded, 'The most important factor for the stock price is the potential for future earnings upgrades. There are signs that North American customers are actively preparing for next-generation models with expectations related to artificial intelligence (AI). This opens up the possibility of an upward revision for LG Innotek's Q3 performance this year.'

 

 

 

AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)