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Photo = Yonhap news |
[Alpha Biz= Kim Sangjin] Kiwoom Securities has lowered its target price for LG Display from 14,000 KRW to 13,000 KRW, a 7% decrease, citing that the company's Q4 2024 earnings will fall below expectations. However, the firm has maintained its "buy" rating on the stock.
Kiwoom Securities stated, “We expect Q4 consolidated revenue to be 7.4765 trillion KRW, a 1% increase compared to the same period last year, with operating profit of 1.78 trillion KRW, a 35% increase year-over-year. However, operating profit will be below both our estimate (2.53 trillion KRW) and the market consensus (2.767 trillion KRW).”
The report added, “Despite a seasonal boost in mobile panel (POLED) sales, leading to a return to profitability after four quarters, IT OLED panel shipments are expected to be worse than anticipated. Additionally, costs related to voluntary retirement programs are expected to be included in the Q4 results. We understand that voluntary retirements were conducted for office staff in Q4, following a similar program for production workers in Q3. This cost-cutting initiative is expected to continue through workforce restructuring.”
Kiwoom Securities also mentioned, “Q4 exports of domestic tablets and laptops OLED panels fell 37% compared to the previous quarter, and LG Display's IT panel shipments are expected to have been weak.”
However, Kiwoom Securities is optimistic for 2025, forecasting a 2% increase in revenue to 26.8 trillion KRW and a return to profitability with operating profit of 534.8 billion KRW, expecting the company to turn a profit for the first time in four years.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
