LG Innotek target price of 130won proposed; business structure changes draw attention

Hana Securities 26 maintained its Buy rating on LG Innotek. The report said that signs of improvement were evident across all of the company’s business divisions. The analyst explained in the report that these trends supported the assessment.

Hana Securities raised its target price from 70 won to 130 won. The report cited improved profitability as the reason for the increase. The rating remains unchanged.

Hana Securities analyst Kim Min-kyung said profitability is improving for package substrates, including RF SiP and FCCSP, thanks to an expanded customer base and more advanced substrate specifications. The report said this is changing the company’s profit structure. The analyst also noted the potential for improvement across products.

The report states that 2027plans to begin supplying server FCBGA in the year. The report suggested that this plan could act as a multiple re-rating catalyst. It described LG Innotek as undergoing a transformation from a company centered on iPhone camera modules to a semiconductor package substrate company.

The report expected RF SiP to 6G and the expansion of the satellite communications market. The report said that FCCSP and CSP demand is expanding from mobile APs to memory semiconductors. It said that this demand expansion could broaden the revenue base.

The report said that the company is undergoing a transformation, supported by an upward trajectory across all business divisions and an expanded product portfolio. It stated that specific earnings figures and contract details should be confirmed in future disclosures. The above is a summary of the report.