[Click eStock] "LG Innotek's Optical Solutions Sales to Increase Significantly in Q4"

[Asia Economy Reporter Koo Eun-mo] LG Innotek recorded solid results in the third quarter and expects optical solution sales to increase significantly in the fourth quarter.

LG Innotek's sales in the third quarter of this year amounted to KRW 2.2298 trillion, down 8.8% compared to the same period last year, and operating profit decreased by 52.1% to KRW 89.4 billion. Seongryul Kwon, a researcher at DB Financial Investment, evaluated in a report on the 29th, "Despite delays in new model launches by overseas strategic customers, this can be considered a solid performance."

In the fourth quarter, as sales from new models of overseas customers are expected to be fully reflected, optical solution sales are anticipated to increase significantly, with operating profit expected to reach a quarterly record high of KRW 308 billion. Researcher Kwon forecasted, "Optical solution sales will exceed KRW 2.6 trillion due to triple camera modules with increased average selling prices (ASP) and rear ToF (Time of Flight) modules whose sales are being fully reflected, and profitability will also improve to levels seen in previous years."

Furthermore, profits are expected to grow next year due to the restructuring of the LED business. LG Innotek decided to restructure the LED business to improve its business structure and focus on core businesses. Researcher Kwon explained, "The LED business has accumulated losses exceeding KRW 1 trillion due to excessive initial investment and intensified competition from Chinese companies, and it is estimated to have recorded a loss of about KRW 100 billion this year alone. If production at the Haeju corporation ends in November, the related burden of bad assets will disappear from next year."