[Featured Stocks] LG Innotek and BH Rise on Apple's Strong Earnings...

As Apple posted strong first-quarter results, the stock prices of domestic component suppliers LG Innotek and BH are rising more than 5% during trading hours.

On the 7th, when Apple's new iPhone 14 series was officially released in Korea, citizens were examining the products at the Apple Store in Myeongdong, Jung-gu, Seoul. Photo by Moon Honam munonam@

At 9:40 a.m. on the 8th, LG Innotek was trading at 273,500 KRW, up 5.4% from the previous trading day. The company's stock price surged to 275,000 KRW during the session. BH was also trading at 23,450 KRW, up 6.35% at the same time. The rise in the stock prices of these two component companies is analyzed to be due to Apple's solid first-quarter performance. Apple explained in its earnings announcement, "The pent-up demand for iPhones caused by production disruptions at Chinese factories in the fourth quarter of last year was partially offset this quarter by the normalization of product supply. Although there was weak demand in the U.S. due to macroeconomic factors, growth is emerging in emerging markets."

Accordingly, LG Innotek and BH are expected to show an upward trend in both earnings and stock prices in the second half of the year. Currently, domestic Apple component suppliers are showing a decoupling from Apple's stock price and earnings due to pressure to lower delivery prices (CR), but concerns from the supply side have been resolved and the normalization of iPhone inventory has been confirmed, leading to expectations of improvement in the second half. Jisoo Jang, a researcher at Meritz Securities, said, "Supply chain issues like those last year are not expected to occur with this year's new iPhone launch, and the earnings of domestic Apple component suppliers will show a recovery trend after the new model release," adding, "The iPhone 15 is expected to record high shipment and sales volumes due to replacement demand and deferred demand."