LG Innotek is showing a downward trend in early trading on the 24th. Although it recorded the highest quarterly revenue in its preliminary results announced the previous day (23rd), operating profit has sharply decreased.
As of 9:12 a.m. on that day, LG Innotek was trading at 139,200 won, down 6,300 won (4.33%) from the previous day in the KOSPI market.
In its earlier announced preliminary results, LG Innotek noted that its revenue for the first quarter of this year was 4.9828 trillion won, a 15% increase compared to the same period last year. This is the highest revenue ever for the first quarter. Although the first quarter is typically a low season, the recovery in demand for high-spec camera modules, semiconductor and display substrates, as well as exchange rates, appears to have contributed to the revenue increase.
However, operating profit has actually decreased significantly. The operating profit for the first quarter was 125.1 billion won, a 28.9% decrease compared to the same period last year. This figure does not meet market expectations (consensus). It is estimated that the decline in performance was driven by the slowing growth of upstream industries, including electric vehicles, and intensified competition in the optical industry.