[Edaily Reporter Kwon Oh Seok ] DaishinSecurities announced on the 24th that it is maintaining its “Buy” investment rating for LG Innotek(011070)and raising its target price from 810,000 won to 1.3 million won.

Park Kang-ho, an analyst at DaishinSecurities, said, “We expect second-quarter operating profit to reach 193.6 billion won, a 1,599% increase year-over-year and 30.2% above the consensus estimate,” adding, “Revenue is projected to rise 27.4% to 5.01 trillion won, exceeding the consensus by 3.2%. Overall, we anticipate strong earnings for the second consecutive quarter.”
He noted, “A revaluation of the company’s valuation has been underway due to strong performance in semiconductor substrates, an expansion of the server segment’s share from a mobile-centric focus, and enhanced competitiveness in FC BGA (flip-chip ball grid array).” He emphasized, “At this point, we estimate that the profitability of camera modules will be reaffirmed, and that profit improvements in optical solutions in the second half of 2026 and in 2027 are highly likely to exceed expectations. Further valuation expansion is warranted.”
Operating profit is estimated at 4889억 won for the first half of this year, representing a 258% year-over-year increase. Furthermore, operating profit for the second half is projected to rise 12.7% to 5956억 won, resulting in an annual increase of 11.4% to 1.08조 won. Analyst Park noted, “While the mix effect from semiconductor substrates and revenue growth centered on high-value-added products are positive, we believe the increased production share of premium Apple models within the optical solutions segment has maximized the mix effect.”
He added, “Strong sales of Apple’s iPhone 17 are also contributing to stable utilization rates. At this point, it is important to pay attention to further upward revisions to 2027 revenue and operating profit forecasts,” explaining, “Due to Apple’s smartphone launch strategy and changes to the iPhone lineup, we expect iPhone sales in 2027 to reach 273 million units, a 5.6% increase. This represents a significant increase compared to the market’s growth rate of 2.9%,” the analyst explained.