[Click eStock] "LG Display Expected to Return to Profit in Q3"

Daishin Securities Issues 'Buy' Investment Opinion and Sets Target Price at 18,000 Won... Closing Price on 8th Was 15,850 Won

[Asia Economy Reporter Kum Boryeong] As LG Display is expected to return to profitability in the third quarter, Daishin Securities has issued a 'Buy' investment rating on LG Display with a target price of 18,000 KRW. The target price was raised by 20% from the previous 15,000 KRW. The closing price on the 8th was 15,850 KRW.

According to Daishin Securities on the 12th, LG Display's third-quarter operating profit is estimated at 78.9 billion KRW.

A return to profitability in the third quarter is anticipated. The main factor is that shipments of plastic OLED (POLED) panels for the iPhone, scheduled for release in November, will begin, generating revenue. LG Display's POLED panel shipments are expected to reach 24 million units in the second half of the year (5.45 million units in the first half).

Additionally, the Guangzhou White OLED (WOLED) TV production line has started full-scale operations, reducing fixed cost burdens. WOLED TV shipments this year are expected to be 3 million units in the second half (1.5 million units in the first half).

Daishin Securities analyst Lee Subin explained, "The blended average selling price (ASP) of LCD panels in the third quarter rose 14% compared to the previous quarter. A surge in TV set shipments drove an increase in TV panel shipments," adding, "Sales expanded due to increased panel shipments in the IT division (monitors, laptops, etc.) driven by remote work and online classes amid the COVID-19 pandemic."

The analyst also forecasts a reduction in operating losses next year. He said, "The first half of next year is expected to be an off-season for IT sets, leading to a decline in TV and mobile panel shipments. Fixed cost burdens will increase again, resulting in a return to losses, but profitability is expected to resume in the second half, which is the peak season."