[Edaily Reporter Kwon Oh Seok ] SKSecurities announced on the 23rd that it is maintaining its “Buy” investment rating on LG Display(034220)but lowering its target price from 20,000 won to 16,000 won.

Park Hyung-woo, an analyst at SKSecurities, stated, “Second-quarter operating profit stood at -107.7 billion won (a narrowing of the loss compared to the previous year). Cumulative operating profit for the first half of the year was 39 billion won, marking the first first-half profit in five years since 2021,” he said. “The second quarter included 240 billion won in voluntary retirement costs. Excluding this, the company’s core operating profit improved by approximately 250 billion won year-over-year.”
He continued, “Revenue was in line with consensus estimates. Net income attributable to controlling shareholders was -404.6 billion won. Foreign currency translation losses resulting from the rising exchange rate were recorded in non-operating items,” and added, “We forecast third-quarter operating profit at 430.4 billion won. Due to seasonality, the majority of annual profits are concentrated in the second half of the year.”
While noting that attention is focused on the sluggish device market and the company’s unstable financial structure—including its debt-to-equity ratio and cash flow—he pointed out that the company’s trend toward structural improvement is more important than the uncertainties Chonbang.
Analyst Park said, “The 240 billion won in voluntary retirement costs is a one-time expense for this quarter. However, the benefits will start to appear on the income statement starting next quarter. Depreciation expenses in the second quarter totaled 980 billion won, a decrease of 190 billion won year-over-year. The break-even point has lowered,” he said, adding, “CAPEX (capital expenditures) is also limited. It is no longer a competitive market where companies spend 5 to 8 trillion won as they did in the past. This year’s CAPEX is in the mid-to-high 2 trillion won range.”
He anticipates a valuation re-rating, emphasizing, “We expect to successfully normalize operations and maintain a profitable trend. If earnings continue to improve year-over-year, market perception will shift.”
He continued, “Net income works in the opposite direction when exchange rates stabilize. If improvements in operating profit coincide with a reduction in non-operating losses, net income will rebound sharply. We forecast 2027 net income attributable to controlling shareholders to reach 811 billion won,” adding, “Risks include a slowdown in IT demand, rising component costs, and intensifying price competition with Chinese companies.”