Exchange Rate Drops by 50 Won, Korean Air Shares Rally... LG Innotek Target Price Raised on Strong iPhone Sales [Zootopia]

[Financial News] Here is a summary of major securities firms' reports as of the morning of December 30.
Korean Air is expected to benefit from a declining exchange rate and the completed merger with Asiana Airlines, providing momentum for a stock price increase by 2026. NCSoft is anticipated to enter a phase of normalized earnings by 2026, thanks to the introduction of its own payment system, which will reduce transaction fees. LG Innotek is projected to deliver stronger-than-expected fourth-quarter results, supported by robust iPhone 16 sales and favorable exchange rate effects.
◆Korean Air (003490)― Hana Securities / Researcher Ahn Do-hyun
- Target Price: 28,000 KRW
- Investment Opinion: Buy
Hana Securities estimates that Korean Air's standalone fourth-quarter revenue will reach 4.315 trillion KRW, up 7% year-on-year, while operating profit will decrease by 7% to 405.5 billion KRW. Researcher Ahn Do-hyun cited the completed merger with Asiana Airlines as a key factor for 2026, anticipating fare increases and higher transfer demand through a premium strategy. New orders for Low Observable Unmanned Aerial Vehicles (LO UAV) and upgrades to the Sikorsky UH-60 Black Hawk (Black Hawk) are expected to boost the aerospace division’s sales by 30% year-on-year, reaching 850 billion KRW annually. Additionally, a 10 KRW change in the exchange rate results in approximately 48 billion KRW in foreign exchange gains or losses, with over 50% of Korean Air’s costs tied to the US dollar. The recent sharp drop in the exchange rate is therefore seen as a driver for stock price growth.※Low Observable Unmanned Aerial Vehicle (LO UAV)Refers to unmanned aerial vehicles equipped with stealth technology to evade radar detection.※Sikorsky UH-60 Black Hawk (Black Hawk)A multi-purpose military helicopter manufactured by Sikorsky Aircraft, widely known as the 'Black Hawk,' and currently operated by the South Korean military.
◆NCSoft (036570)― NH Investment & Securities / Researcher Ahn Jae-min
- Target Price: 300,000 KRW (Down from previous 320,000 KRW)
- Investment Opinion: Buy
NH Investment & Securities lowered its target price for NCSoft to 300,000 KRW, reflecting a downward revision of post-2026 earnings forecasts. Researcher Ahn Jae-min explained that stable revenue from AION 2 and the implementation of a proprietary payment system since November are expected to reduce transaction fees, leading to normalized earnings by 2026. The expansion of PC-based payments is projected to reduce transaction fees by about 110 billion KRW.
◆LG Innotek (011070)― Hana Securities / Researcher Kim Min-kyung
- Target Price: 340,000 KRW (Up from previous 310,000 KRW)
- Investment Opinion: Buy
Hana Securities raised its operating profit estimate for LG Innotek by more than 30%, projecting fourth-quarter revenue of 7.5071 trillion KRW and operating profit of 398.8 billion KRW. Researcher Kim Min-kyung noted that sales of new smartphone models by a North American client in September and October increased by 20% year-on-year, and the sales share of high-end models such as the iPhone 17 Pro and iPhone 17 Pro Max remains similar to previous versions. Additional momentum is expected next year with the start of memory package substrate supply, new PC chipset Flip Chip-Ball Grid Array (FC-BGA) supply, and the visible expansion of camera module supply for humanoid robots.※Flip Chip-Ball Grid Array (FC-BGA)A high-performance packaging technology that connects semiconductor chips to substrates, used in high-end products such as PC chipsets.

sms@fnnews.com Reporter Seong Min-seo Reporter