[Asia Economy Reporter Oh Ju-yeon] NH Investment & Securities maintained its 'Buy' rating and target price of 20,000 KRW for LG Display on the 23rd, noting that the company's operating profit in the third quarter turned positive for the first time in seven quarters.
LG Display announced that its consolidated operating profit for the third quarter was 164.36 billion KRW, marking a turnaround to profit compared to the same period last year. Sales increased by 16% year-on-year to 6.737646 trillion KRW, and net profit also turned positive at 11.121 billion KRW.
NH Investment & Securities forecasted that LG Display's sales in the fourth quarter will rise 16% year-on-year to 7.2 trillion KRW, with operating profit continuing in the black at 164.4 billion KRW.
Researcher Ko Jung-woo explained, "The OLED business is expected to stand out. The shipment volume of small and medium-sized OLED panels (smartphones + watches) to North American companies continues to increase to 19.18 million units, while the shipment volume of large OLED panels is expected to rise by 1.59 million units due to demand events, positively impacting performance."
Researcher Ko added, "Since profit achievement is expected to continue into the fourth quarter following the third quarter, the direction of the stock price and valuation is likely to be positive."
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