Kiwoom Securities predicted on the 29th that LG Display will have an earning surprise in the second quarter and that the OLED surplus will open in the third quarter and be revalued. Investment opinion 'buy' and target price remained at 33,000 won.
"Operating profit in the second quarter was KRW 701.1 billion, which led to a rise in LCD panel and WOLED panel sales and achieved the highest performance in four years. Operating profit in the third quarter was KRW 805.6 billion, up 15% compared to the previous quarter, exceeding market expectations," said Kiwoom Securities.
In particular, the WOLED division is expected to post a surplus in the first quarter in eight years, and it is expected that the OLED division will expand its profitability in earnest in the future.
It is expected to announce the expansion of the OLED line in the third quarter, and it is expected that the OLED division will be revalued. LG Display succeeded in turning to profit with sales of 7 trillion won and operating profit of 701.1 billion won in the second quarter, 31% year-on-year. Both the company's estimate of 562.8 billion won and the increased market consensus (591.8 billion won) were far above.
This is the highest level since the second quarter of 2017, and the double-digit operating profit ratio has recovered in four years. It is expected to exceed the market consensus (712.3 billion won) with sales of 7.8 trillion won and operating profit of 805.6 billion won in the third quarter.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
