[Featured Stock] LG Innotek Surges Over 7% on Surprise Earnings Outlook

High Proportion of Premium Cameras
Expansion into Automotive Electronics and New Businesses

LG Innotek's stock price is on the rise. The prospect of exceeding expectations with strong performance in the first quarter of this year appears to be a positive factor.

As of 9:36 a.m. on the 6th, LG Innotek's stock price recorded 173,400 KRW, up 7.04% compared to the previous day. The anticipation of a 'surprise performance' in the first quarter of this year seems to have acted as a positive catalyst.

On the same day, Daishin Securities forecasted that LG Innotek would achieve an operating profit of 131.8 billion KRW in the first quarter of this year. This figure far exceeds Daishin Securities' previous estimate of 86 billion KRW as well as the market consensus of 94.5 billion KRW.

Researcher Park Kang-ho of Daishin Securities stated, "Rather than an increase in Apple's iPhone sales, the rise in average selling price (ASP) and the mix effect leading to an expansion of operating profit margin are the main factors." He analyzed, "LG Innotek has a high proportion of high-value-added camera supply, with Apple's iPhone 16 Pro and Pro Max models accounting for 65% of sales, and by exclusively supplying the front and rear cameras for the iPhone 16e, the fixed cost burden has been reduced, which is also a factor in profitability expansion."

Furthermore, the visibility of new businesses is expected to contribute positively. Researcher Park explained, "Sales of FC BGA, a next-generation growth product, have increased, and the possibility of supplying high-value-added products to Intel has risen." He added, "While reducing Apple's share in cameras, LG Innotek is pursuing diversification into automotive electronics, autonomous driving, and humanoid fields."