[Click eStock] "LG Display, Earnings Turnaround Becomes Visible"

On the 26th, KB Securities maintained its investment opinion of 'Buy' and a target price of 20,000 KRW for LG Display.

From the third quarter of this year, shipments of OLED panels for the iPhone 15 by LG Display will be in full swing. The shipment volume of OLED panels for the iPhone 15 is expected to increase by 13% year-on-year to 92 million units, with OLED panel supply shares projected at 60% for Samsung Display and 40% for LG Display. Additionally, LG Display is expected to hold the largest supply share of 60% for the iPhone 15 Pro series OLED panels. Notably, LG Display is also forecasted to be the top supplier (60%) of OLED panels for the iPad next year, indicating a significant performance improvement for LG Display's small and medium-sized OLED panel business in the second half of this year and next year.

[Image source=Yonhap News]

Starting from the third quarter, it is also expected that new large OLED panel supplies to Samsung Electronics will begin, leading to a turnaround to profitability due to increased operating rates of both small/medium and large OLED panel production lines. From the third quarter of this year, LG Display will start supplying ultra-large OLED panels such as 77 and 83 inches to Samsung Electronics, with new products estimated to be launched as early as the fourth quarter. In particular, for the production of 77 and 83-inch ultra-large OLED panels, only 2 panels are produced per one mother glass on the 8th generation production line, unlike the 5 panels produced for 55 and 66-inch panels, so when converted to 55 and 65-inch equivalents, LG Display's large OLED panel production is expected to increase by 2.5 times in volume. It is also estimated that from next year, Samsung Electronics will fully utilize the remaining capacity of LG Display's large OLED panels.

Dongwon Kim, a researcher at KB Securities, analyzed, "With new large OLED panel supplies to Samsung Electronics, a turnaround to profitability is expected in the fourth quarter, and the OLED supply share for the iPhone 15 is expected to double year-on-year, driving a performance turnaround in the second half."