[Click eStock] LX Semicon, Expected Expansion of IT Panel Production Next Year

[Asia Economy Reporter Junho Hwang] Hi Investment & Securities maintained the target price of LX Semicon at 230,000 KRW on the 6th, citing steady demand for display driver ICs (DDI) due to expanded IT panel production and the launch effect of the iPhone 13 new product next year.

Hi Investment & Securities expected LX Semicon's sales growth to be steep next year due to increased shipments. LX Semicon secured major 8" and 12" foundry capacities for DDI contract manufacturing in preparation for next year's demand and expanded the scale compared to the previous year.

One reason for this expansion is the increase in LG Display's WOLED TV panel shipments. Starting next year, Samsung Electronics plans to newly adopt LG Display's WOLED TV panels. By securing Samsung Electronics, the world's number one company, as a new customer, LG Display's OLED TV panel volume expansion is becoming certain.

The market share of T-Con+DDI for TV and IT products of Chinese key customers BOE and CSOT is also rising. LX Semicon's market share within Chinese panel companies is highly likely to increase naturally.

Jung Wonseok, a researcher at Hi Investment & Securities, said, "We maintain a 'Buy' rating and a target price of 230,000 KRW for LX Semicon," adding, "As a key affiliate within the LX Group driving future growth, the company is preparing various new businesses (SiC PMIC, MCU, BMS IC, etc.) to secure new growth engines, which are gradually materializing and are expected to have a positive impact on the stock's multiple re-rating."