[Alpha Biz= Paul Lee] SEOUL, October 31, 2025 — Shinhan Investment Corp. has raised its target price for LG Innotek Co., Ltd. from ₩250,000 to ₩280,000, citing clear signs of earnings recovery and expectations for accelerated growth in 2025.


Analyst Kang-ho Oh stated, “We believe LG Innotek has entered an earnings rebound phase and is transitioning into a growth acceleration cycle next year,” adding, “The company’s third-quarter performance confirmed profitability improvement, driven by stronger sales of global flagship smartphones.”


In the third quarter, LG Innotek reported ₩5.4 trillion in revenue, down 6% year-on-year, and ₩203.7 billion in operating profit, up 56% from a year earlier — in line with Shinhan’s projections. By segment, optical solutions and automotive components sales each declined by 7% and 6%, respectively, while substrate and materials revenue grew 18%.


Oh emphasized, “The focus should now shift to sustained growth in key businesses as profitability improves,” forecasting a 27% increase in Q4 sales, marking “a decisive rebound in the second half.”


He added, “It is the right time to highlight LG Innotek’s next-generation growth drivers — including mobility solutions, high-value substrates, and robotics — while noting potential risks from intensifying supply chain competition and IT demand slowdown.”

 

 

 

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