[Special Stock] LG Innotek Rebounds After Four Days on Strong Earnings Outlook

[Asia Economy Reporter Song Hwajeong] LG Innotek is showing a rebound after four days amid expectations of strong first-quarter earnings.

As of 9:15 AM on the 25th, LG Innotek was trading at 213,000 KRW, up 9,000 KRW (4.41%) from the previous day. This marks a rebound after four days.

The expectation of strong first-quarter earnings is interpreted as leading to the stock price increase. Daishin Securities forecasted that LG Innotek will record a surprise performance in the first quarter of this year and raised the target price from 250,000 KRW to 280,000 KRW.

Park Kangho, a researcher at Daishin Securities, analyzed, "LG Innotek's first-quarter operating profit is expected to record 291 billion KRW, a 65.6% increase, surpassing consensus with a surprise performance," adding, "The background of the surprise performance includes strong sales of Apple iPhones, maintaining high profit margins due to the mix effect of optical solutions, additional improvement in profitability of semiconductor substrates due to the mix effect, and a turnaround to profitability in automotive components." The annual operating profit for this year is also expected to reach a record high of 948.2 billion KRW, a 39.2% increase compared to the previous year.