Source Facts: Daishin Securities / 2026. 06. 24
Investment Rating & Target Price: BUY (Maintained) / 1,300,000 KRW
Key Momentum: Reconfirmation of profitability in camera modules and profit improvement in optical solutions driven by iPhone sales growth
📊 1. [Valuation and Investment Indicator Analysis]
- Investment Rating: BUY (Maintained)
- Target Price: 1,300,000 KRW (Raised)
- Valuation Basis: Applied a P/E of 38.7x to the 2027 estimated EPS, reflecting historical upper-bound valuation and the premium for semiconductor substrates.
- Earnings Indicators (2026E): 2Q26 operating profit of 193.6 billion KRW (YoY +1599%), exceeding consensus estimates.
🚀 2. [Market Opportunity (TAM) and Detailed Earnings Estimates]
- Operating Profit Estimates:
- 1H26 estimated at 488.9 billion KRW (YoY +258%).
- 2H26 estimated at 595.6 billion KRW (YoY +12.7%).
- 2026 annual operating profit projected at 1.08 trillion KRW (YoY +11.4%).
- iPhone Sales and Optical Momentum:
- 2026 iPhone sales projected at 258 million units, a 3.1% YoY increase.
- 2027 iPhone sales projected at 273 million units, a 5.6% YoY increase, significantly outpacing the market growth rate of 2.9%.
- Potential for additional demand arising from lineup changes, including the iPhone 20th-anniversary commemorative model in 2027.
📝 Editor’s Comment (by K-STOCK Editor)
LG Innotek is recording strong performance for two consecutive quarters, underpinned by its overwhelming competitiveness in the optical solution sector. Notably, the company is maximizing profit margins by improving its sales mix, focusing on high-value-added models rather than just simple component supply. Contrary to market concerns, the steady iPhone sales volume and the lineup expansion strategy for 2027 are expected to support stable utilization rates moving forward. As the synergy between semiconductor substrates and optical solutions accelerates, this is a prime moment for the market to re-evaluate the company’s valuation.
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