[Alpha Biz= Ellie Kim] LG Innotek, led by CEO Moon Hyuk-soo, is gaining traction in its business transformation in the third year of his leadership, delivering a strong earnings performance despite the seasonal slowdown.

The company announced on the 27th that it posted preliminary first-quarter consolidated revenue of KRW 5.53 trillion and operating profit of KRW 295.3 billion. Revenue rose 11.1% year-on-year, while operating profit surged 136%, with revenue reaching a record high for a first quarter.

Operating profit also exceeded market expectations, marking the third-highest first-quarter figure on record. According to FnGuide, consensus estimates had stood at KRW 219.1 billion.

The earnings surprise reflects Moon’s ongoing push for a profitability-driven business structure since taking office in late 2023. While the first quarter is typically a weak season due to fading demand following new product launches from key client Apple, LG Innotek maintained solid demand for high-performance camera modules used in the latest models, including the iPhone 17 series.

Revenue from the optical solutions segment increased 11.4% year-on-year to KRW 4.61 trillion. The package solutions division, another key growth driver, recorded a 16% rise in revenue to KRW 437.1 billion, supported by increased supply of high-margin products such as RF-SiP and FC-BGA substrates. This has helped diversify the company’s revenue structure beyond its heavy reliance on optical solutions.

The mobility solutions segment also showed steady growth, with revenue rising 4.2% year-on-year to KRW 487.1 billion, driven by strong demand for automotive lighting modules.

Moon, an R&D expert with a background in chemical engineering from KAIST, is credited with enhancing manufacturing efficiency and focusing on high-value markets. Building on this momentum, the company is expected to accelerate expansion into future industries such as automotive electronics and robotics.

Mobility components—including automotive lighting modules and camera systems—are emerging as a second core growth engine, delivering consistent quarterly growth. LG Innotek is also targeting the physical AI market, a key area for autonomous driving and robotics, aiming to evolve from a component supplier into a solutions partner by leveraging its advanced optical technologies.

At the company’s shareholder meeting in March, Moon said revenue from automotive application processor (AP) modules is expected to begin in earnest from the fourth quarter, supporting continued growth in the mobility solutions business.

Industry analysts expect LG Innotek’s solid performance during the off-season to further translate into stronger full-year growth, driven by new product launches in the second half.

 

 

 

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