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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Sangjin] Hyundai Motor Securities has forecasted that despite the seasonal downturn in the mobile sector in the second quarter, LG Display's operating loss will narrow. They maintained a target price of 12,500 Korean won and a 'buy' rating.
For the second quarter of this year, Hyundai Motor Securities estimates LG Display's revenue to be 6.239 trillion won, with an operating loss of 369 billion won.
The securities firm stated, "We expect the second-quarter operating loss to shrink due to expanded sales of IT organic light-emitting diode (OLED) panels, increased shipments of liquid crystal display (LCD) and OLED TVs, rising panel prices, and favorable exchange rates."
Looking ahead to the second half of the year, they anticipate continued improvement in financial performance driven by the recovery in demand for IT devices.
Hyundai Motor Securities further analyzed, "North American IT OLED panels were launched in the second quarter, and LG Display will gradually increase panel production primarily focusing on high average selling price (ASP) 13-inch panels. The supply cost is estimated to be in the mid-300 dollar range, and profitability is expected to be better than initially anticipated, despite initial ramp-up costs and depreciation expenses."
They added, "Production has already commenced from the first quarter, partially reflected in revenues, and significant impact is expected from the second quarter onwards. Attention should be paid to the volume of IT OLED sales in the second half of the year."
This outlook reflects Hyundai Motor Securities' positive view on LG Display's strategic moves and market dynamics in the display panel industry.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
