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LG Innotek Factory View. (Photo = LG Innotek) |
[Alpha Biz= Paul Lee] Shinhan Investment Corp. maintained its "Buy" rating and 220,000 KRW target price for LG Innotek on Thursday, stating that a valuation re-evaluation period is expected, and a full-fledged stock rebound is anticipated in the early part of the second half of the year.
The firm noted, "For Q1 this year, sales are expected to reach 4.6 trillion KRW, a 6% increase compared to the same period last year, while operating profit is forecasted at 1.281 trillion KRW, a 27% decrease." It also revised its operating profit forecast upwards, factoring in the expansion of high-value products from customers and favorable exchange rates.
"By business segment, optical solutions are expected to generate 3.7826 trillion KRW, an 8% increase from last year, and substrates are expected to reach 353.3 billion KRW, also an 8% increase. The optical solutions sales estimate has been raised by 8%," the report stated.
Shinhan Investment Corp. added, "Despite conservative estimates for the first half, confirming strong performance is positive. Although the annual operating profit estimate is still down by 7%, we expect a valuation re-evaluation, with attention on events like AI function enhancements, developer conferences, and new product launches in the second half."
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
