[Click eStock] "LG Display, the First Year of Earnings Turnaround"

On the 2nd, Kiwoom Securities analyzed that LG Display will have a turnaround year in performance this year due to an increase in OLED shipments and a reduction in depreciation expenses of production lines. The investment opinion 'BUY' and the target price of 13,000 KRW were maintained.

Kiwoom Securities forecasted that LG Display's consolidated financial statements for the first quarter of this year will show sales of 6.3 trillion KRW, a 20% increase compared to the same period last year, and an operating profit of 10.6 billion KRW, turning to a profit. In particular, operating profit is expected to significantly exceed the market consensus (-122.8 billion KRW). Analyst Kim Sowon analyzed, "The shipment volume of mobile POLED panels is expected to increase by 20% compared to the same period last year, leading profitability improvement, and the effects of last year's intensive workforce restructuring are also expected to be reflected."

The total operating profit for this year is projected to turn to a profit of 675 billion KRW, marking the first year of a performance turnaround. An increase in OLED panel shipments is expected across all Apple applications, including the iPhone. Additionally, as depreciation expenses for POLED and WOLED production lines gradually decrease, the operating profit structure is expected to be fully established.

Next year, some production lines of the IT OLED line will be converted for mobile use, and additional increases in iPhone panel shipments are anticipated. With continued reduction in depreciation expenses, the growth trend in performance is expected to continue.

Meanwhile, investment in 8.6-generation OLED and foldable device lines has not yet been decided. He stated, "We expect to focus on stabilizing performance and securing cash until next year, and decide on new technology investments during next year," adding, "If new technology investments are executed, the mid- to long-term performance visibility after 2028 is expected to improve significantly."