"LG Display Escapes Deficit Trap... Achieves Best Results in Four Years," Says SK Securities

According to Financial News, LG Display is expected to break its three-year streak of losses and achieve its highest semiannual performance in four years during the second half of this year.
On the 29th, the SK Securities Research Center projected in its LG Display report that the company’s third-quarter operating profit would reach 439.4 billion won—well above the market consensus of 363.3 billion won (compared to an 80.6 billion won deficit in the same period last year). The report also forecasted that this positive trend would continue into next year.
Industry insiders and securities analysts believe LG Display will finally escape its deficit after four years. Currently, domestic securities firms estimate LG Display’s annual operating profit to be between 600 billion and 900 billion won. The company posted an operating loss of over 2 trillion won in 2022, a 2.5 trillion won deficit in 2023, and a substantial 560 billion won loss in 2024.

Kwon Min-kyu, a researcher at SK Securities, identified several key drivers for future earnings improvement: increased market share among major global clients, robust sales of premium models to North American mobile clients, a turnaround in the IT Organic Light Emitting Diode (OLED) division, and higher market share for smartwatch displays due to competitor exits.
Kwon explained, "The core factor is not a rebound in global set demand (smartphones, PCs, TVs, etc.), but rather the expansion of market share within client companies." He added, "Currently, supply to North American mobile clients is proceeding favorably." If aggressive marketing by clients leads to increased sales, he projected, "The company should be able to meet its annual panel shipment targets without issue."
Kwon further stated, "Starting next year, the adoption of OLED by North American clients and changes in panel design are expected to drive strong growth through 2026." He also noted, "With the U.S. expanding sanctions on China’s display industry, the Korean display sector is undergoing positive changes, which could enhance domestic companies’ pricing power in the mid- to long-term."
Meanwhile, Kwon raised his target price for LG Display from 14,000 won to 16,500 won. On the 29th, LG Display closed at 14,630 won.



ehcho@fnnews.com Eun-hyo Cho Reporter