NH Investment & Securities on the 22nd said LG Innotek is expanding its Autonomous Driving-related business beyond in-vehicle camera modules to in-vehicle application processor (AP) modules and flip chip ball grid array (FCBGA) substrates for autonomous driving. It maintained a Buy rating and raised the target price to 1.2 million won from 1 million won. The previous day's closing price was 838,000 won.
LG Innotek presented a target of 5 trillion won in automotive parts revenue for 2030. It plans to grow its automotive parts business—including in-vehicle communications, lighting, cameras, and BMS—by an average of 20% annually over the next five years.
Hwang Ji-hyeon, an NH Securities researcher, said, "As it expands from its existing IT set-centered portfolio into automotive and semiconductor areas, business risk is gradually diversifying," and noted, "Business expansion through cooperation with external firms is also gaining traction."
Hwang said, "LG Innotek made an investment last year in Aeva in the United States, a company adopted in Nvidia's Hyperion 10 reference platform, and is currently pursuing business cooperation related to composite sensing modules," adding, "This year, by forming a strategic partnership with Applied Intuition, a U.S. Autonomous Driving software (SW) company that has secured many top global automakers as customers, synergy can be expected in terms of future sales and expanding customer touchpoints."