[Stock in Focus] LG Display Rises 3.49% on 'OLED-Driven Profitability Improvement'

LG Display's stock price is on the rise, driven by a sharp improvement in profitability. The recovery in sales of OLED (organic light-emitting diode) panels has led to an overall boost in profitability, and this trend is expected to accelerate further next year.

As of 9:20 a.m. on September 29, LG Display was trading at 14,520 won, up 490 won (3.49%) from the previous trading day.

On this day, Daishin Securities initiated coverage on LG Display with a "Buy" investment opinion and a target price of 20,000 won, stating, "Internal cost improvements are translating into strong profitability."

The company is expected to rapidly improve its profitability, with both third-quarter and next year's operating profit projected to exceed market expectations. Third-quarter operating profit is forecast at 448 billion won, marking a turnaround from losses in both the same period last year and the previous quarter. Next year's total operating profit is projected at 1.36 trillion won, a 57.6% increase compared to this year.

Park Kangho, a researcher at Daishin Securities, said, "The discontinuation of the loss-making LCD (liquid crystal display) business, a reduction in low-margin products, and decreased fixed costs have all contributed to improved profitability in the third quarter. OLED panel sales now account for 60% of total sales, and market share among major clients such as Apple and Samsung Electronics has also increased. With higher utilization rates, next year is expected to be the best year yet for the company."