LG Innotek's stock is experiencing a significant drop in the latter part of the trading session. Analysts attribute this decline to concerns over profitability due to rising costs and a decrease in exchange rates.
As of 1:42 PM on October 12, LG Innotek shares were trading at 490,000 won, down 82,000 won (14.34%) from the previous trading day. The company's losses have been increasing as the session progresses.
Recent adjustments by securities firms to lower their operating profit forecasts have been cited as a key factor behind the stock's decline. According to financial data provider FnGuide, the consensus for LG Innotek's third-quarter operating profit was 202.9 billion won as of October 8, a 32.8% decrease from 302 billion won a month earlier. This figure also represents a 22.0% drop from the forecast of 260.1 billion won just a week prior.
Analysts are highlighting the profitability pressures stemming from the decline in the won-dollar exchange rate. They note that the timing of raw material purchases and the launch of new models by key clients are contributing to increased profitability challenges.
Yuanta Securities projected LG Innotek's third-quarter operating profit at 78.7 billion won, which is about 38% of the market average forecast of 202.9 billion won on the same day.
Securities firms are consistently lowering their target prices for LG Innotek. Yuanta Securities reduced its target price from 1.4 million won to 1.2 million won, while Daol Investment & Securities cut its target from 1.1 million won to 1 million won. Meritz Securities and Daishin Securities have set target prices of 1 million won and 920,000 won, respectively.
As of 1:42 PM on October 12, LG Innotek shares were trading at 490,000 won, down 82,000 won (14.34%) from the previous trading day. The company's losses have been increasing as the session progresses.
Recent adjustments by securities firms to lower their operating profit forecasts have been cited as a key factor behind the stock's decline. According to financial data provider FnGuide, the consensus for LG Innotek's third-quarter operating profit was 202.9 billion won as of October 8, a 32.8% decrease from 302 billion won a month earlier. This figure also represents a 22.0% drop from the forecast of 260.1 billion won just a week prior.
Analysts are highlighting the profitability pressures stemming from the decline in the won-dollar exchange rate. They note that the timing of raw material purchases and the launch of new models by key clients are contributing to increased profitability challenges.
Yuanta Securities projected LG Innotek's third-quarter operating profit at 78.7 billion won, which is about 38% of the market average forecast of 202.9 billion won on the same day.
Securities firms are consistently lowering their target prices for LG Innotek. Yuanta Securities reduced its target price from 1.4 million won to 1.2 million won, while Daol Investment & Securities cut its target from 1.1 million won to 1 million won. Meritz Securities and Daishin Securities have set target prices of 1 million won and 920,000 won, respectively.
* This article has been translated by AI.
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