[Click e-Stock] "Easing Tariff Concerns to Be Catalyst for LG Innotek Stock"

On April 24, iM Securities analyzed that while it is fortunate that high tariffs on Chinese-made iPhones have been postponed, it remains uncertain how tariffs will be imposed on each product category. The company noted that recent 'panic buying' prompted by anticipated iPhone price hikes is a factor that reduces visibility into demand for the second half of the year.

Ko Euyoung, a researcher at iM Securities, stated, "Reflecting concerns about iPhones, the stock price of LG Innotek is declining," and added, "This year's iPhone sales estimates have been revised downward due to the recent tariff issue."

He continued, "For the second quarter of this year, we estimate that LG Innotek will achieve sales of 4.2 trillion won and operating profit of 71.6 billion won," and added, "From a conservative perspective, our operating profit estimate for the second half of the year has been revised downward by about 10%, from the previous 470 billion won to 422.4 billion won."

He emphasized, "The potential risk in the second quarter is the possibility that the recent sharp weakening of the dollar could intensify," and concluded, "Ultimately, the catalyst for the stock price will be the easing of tariff concerns."