[Featured Stock] LG Innotek Raises Profit Forecast... Up 4% Intraday

[Asia Economy Reporter Minji Lee] LG Innotek is showing an intraday rise of over 4% following an upward revision of its operating profit forecast.

At 9:21 a.m. on the 8th, LG Innotek was trading at 213,500 KRW, up 2.89% during the session. Earlier in the day, the stock surged as much as 4.5% to 217,000 KRW.

LG Innotek is expected to see a significant increase in operating profit due to the early production of legacy models below the iPhone 12 series in the first quarter.

Juminwoo, a researcher at Meritz Securities, explained, “This indicates that the production volume of the iPhone 13 series in the second half is large enough to require early production, which should be seen as a confirmation of Apple’s confidence in iPhone 13 demand. Considering the rise in the KRW-USD exchange rate and the automotive parts division turning profitable, this year’s expected operating profit is forecasted to exceed market expectations by 30%.”

Meanwhile, LG Innotek announced that it will collaborate with the global software company Microsoft (MS) to target the 3D sensing camera market. Through this partnership, LG Innotek plans to develop a ToF module for the Azure cloud platform based on its leading technology in the 3D sensing field and supply this module to various Azure cloud customers via MS.