LG Innotek is strong on the 15th on expectations for solid second-quarter earnings.
As of 9:40 a.m. that day, LG Innotek was trading on the Korea Exchange at 1,153,000 won, up 117,000 won (11.29%) from the previous session.
That day, the securities industry said LG Innotek would begin in earnest to see high growth in its substrate business for AI Semiconductor chips and increased demand for iPhone components driven by the spread of artificial intelligence (AI) smartphones.
Kim Dong-Won, head of research at KB Securities, said, "LG Innotek, which has advanced optical technology, will enjoy both an expansion in market share and a rise in average selling price (ASP)," adding, "Substrates for SOCAMM2 and GDDR7 AI Semiconductor chips, which have shifted to a supplier-driven market, and server FC-BGA substrates are emerging as key pillars for mid- to long-term earnings improvement."
Accordingly, Kim projected LG Innotek's operating profit this year at 1.3 trillion won, up 96% from a year earlier. He also forecast 2027 operating profit at 1.6 trillion won. Second-quarter operating profit is expected to jump 18-fold year over year to 202.8 billion won, beating the market consensus of 146.0 billion won.
At the same time, Samsung Electro-Mechanics was trading at 1,953,000 won, up 230,900 won (13.94%) from the previous session.