[Edaily Reporter Shin Ha-yeon ] On the 3rd, Shinhan Investment Securities analyzed that while Samsung Display’s ( LG Display(034220)) second-quarter earnings would be weak due to one-time costs, investors should focus on the mobile peak season in the second half of the year and improved profitability from large-sized OLEDs. The firm maintained its “Buy” rating and target price of 18,000 won.

Park Hyun-woo, an analyst at Shinhan Investment Securities, stated, “Rather than focusing on temporary weakness related to restructuring, this is the time to focus on the mobile peak season centered on flagship models in the second half of the year and the end of depreciation for large-sized panels.” He added, “Compared to global peers, the stock is undervalued in terms of price-to-book ratio (PBR) relative to the expected return on equity (ROE) for 2026–2027, making a trading strategy effective given the excessive decline in the stock price.”

Analyst Park explained, “We forecast second-quarter revenue of 5.4 trillion won and an operating loss of 117.6 billion won,” noting that “this reflects the significant inclusion of one-time costs related to voluntary retirement programs amid the seasonal off-peak period.” However, he noted, “Recurring operating profit is estimated to be in the 800억 won range or higher,” adding, “We expect large-sized OLED panels to grow in the mid-to-high 10% range, driven by the impact of major sporting events and rising monitor penetration rates.”

The company anticipates that earnings will begin to improve in earnest in the second half of the year. Analyst Park analyzed, “Smartphone panel shipments are expected to grow by around 10% due to spillover benefits within the bar-type segment following the launch of foldable phones,” adding, “We expect the blended average selling price (ASP) to rise as we supply both high-end models.” He continued, “Although the possibility of price adjustments for new smartphone models has been raised following recent price hikes for IT products by global clients, decisions will likely be made within a range that does not undermine demand, given the company’s strategy to expand market share.”

He also expressed optimism regarding improved profitability in the large-sized OLED business. “With the additional completion of depreciation for the Guangzhou fab, a more flexible pricing policy is now possible,” he explained, adding, “Large-sized OLED shipments in 2026 are projected to increase by more than 10% year-over-year.”

He also emphasized the company’s attractive valuation. Analyst Park explained, “The 12-month forward PBR stands at 0.7x,” adding, “Global panel manufacturers have successfully achieved a revaluation of their stock prices, driven by momentum from new businesses such as glass substrates and CPO.” He continued, “Although the pace of expansion into new businesses varies, a gradual narrowing of the valuation gap is expected given expectations for second-half earnings and capital efficiency,” adding, “It is also important to note efforts to improve the financial structure, such as securing production capacity for core products through the streamlining of IT OLED lines.”