[Featured Stock] LG Innotek Rises on Strong iPhone Sales and Surprise Earnings Outlook

LG Innotek's stock price is on the rise. The expectation of an earnings surprise due to strong iPhone sales appears to be influencing the stock price.

As of 9:38 AM on the 10th, LG Innotek is trading at 283,500 KRW, up 3.09% from the previous day.

Dongwon Kim, a researcher at KB Securities, said, "Users of the iPhone 12 and iPhone 13, which recorded the highest sales volume in the past five years, are expected to start upgrading from the second half of this year, and the iPhone replacement demand is projected to continue until the iPhone 17 in 2025," adding, "We anticipate the entry into a big cycle of iPhone replacement demand."

Additionally, researcher Kim stated, "Following the first quarter, the second quarter earnings are also expected to significantly exceed market expectations, forecasting two consecutive quarters of earnings surprises," and added, "The current stock price reflects a 12-month price-to-book ratio (PBR) of 1.1 times and a price-to-earnings ratio (PER) of 7.7 times, which is only the historical lower average over the past 10 years. LG Innotek is a company that simultaneously possesses earnings momentum for the second half of the year and undervaluation appeal."