Daishin Securities raised its target price for LG Innotek, a leading South Korean electronics components maker, from 810,000 won to 1.3m won on the 24th, while reaffirming its buy recommendation.
Park Kang-ho, an analyst at Daishin, forecasts operating profit for the second quarter of 2026 to reach 193.6bn won, a 1,599% increase year on year — beating market consensus by 30.2%. Revenue for the same period is expected to rise 27.4% to 5.012tn won.
For the full year 2026, the brokerage projects operating profit of 1.085tn won, up 11.4% from the previous year. The first half is expected to contribute 488.9bn won (up 258% year on year), with the second half adding 595.6bn won (up 12.7%).
The primary driver of the improved earnings outlook is stronger profitability in LG Innotek's optical solutions division. Analysts cite a favourable product-mix effect, as the company supplies a growing share of camera modules for Apple's premium iPhone models. Robust sales of the iPhone 17 are also seen as supporting stable factory utilisation rates.
The outlook for 2027 is equally encouraging. That year will mark the first time Apple expands its annual iPhone launch lineup from four models to six or seven, which is expected to lift total iPhone shipments 5.6% to 273m units. Sales of foldable phones — another growth avenue for component suppliers — are projected to more than double, from 7m units in 2026 to 18m units in 2027.
Daishin derived its new target price by applying a target price-to-earnings multiple of 38.7 times to its 2027 earnings-per-share estimate of 33,630 won. LG Innotek's shares closed at 991,000 won on the 23rd, implying upside of roughly 31% to the new target.