[Click eStock] "LG Innotek, Reduced Concerns of Negative Growth Due to Strong iPhone 16 Performance"

Daishin Securities has raised the target price for LG Innotek from 250,000 KRW to 260,000 KRW, expecting a surprise performance in the first quarter of this year thanks to strong sales of the iPhone 16 series. The investment rating was maintained at 'Buy.'

Researcher Park Kang-ho of Daishin Securities forecasted that LG Innotek will record an operating profit of 131.8 billion KRW in the first quarter of this year, significantly exceeding the market expectation of 94.5 billion KRW. The annual operating profit for 2025 is expected to increase by about 5% year-on-year to 740.5 billion KRW.

Researcher Park explained, "Apple's iPhone 16 Pro/Pro Max models accounted for 65% of sales in the fourth quarter of last year, with LG Innotek having a high supply share centered on high-value-added cameras. By exclusively supplying the front and rear cameras for the iPhone 16e released last month, fixed cost burdens were reduced, leading to improved profitability." The rise in the KRW-USD exchange rate was also evaluated as contributing to additional profit improvement.

Now, market attention is turning to the success of the iPhone 17, scheduled for release in September. Researcher Park diagnosed, "Apple Intelligence is expected to be applied globally and simultaneously, with sales anticipated to increase compared to the previous year," and expressed expectations for an upward revision of LG Innotek's operating profit in the second half of the year.