IBK Investment & Securities expects LG Innotek's fourth-quarter sales to reach 4.97 trillion won on the 24th, up 30.9 percent from the previous quarter.
Sales growth is expected to be led by optical solutions. Substrate materials are expected to grow slightly, and electronic components are expected to increase by 7% due to base effects.
Operating profit for the fourth quarter is expected to increase 26.7% compared to the previous quarter to 425.2 billion won. This is the largest quarterly figure ever.
Investment opinion was raised by 38.3% from 'buy' and target price from 300,000 won to 415,000 won.
IBK Investment & Securities expects LG Innotek's optical solution business to improve its performance significantly with the launch of new models by overseas customers.
"We expect record-high earnings in the fourth quarter," said IBK Investment & Securities. "In 2022, we expect to see an increase in average sales prices (ASP) and further improvement in performance of new products."
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
