Report
EUR 21.08 For Business Accounts Only

LG Innotek: Yield noise not loud enough to silence growth story

We maintain BUY on LG Innotek and raise our target price from KRW188,000 to KRW200,000 (2.1x

2018F BPS). We estimate Innotek’s 3Q consolidated sales at KRW1.74tn, close to our previous

estimate despite the uncertain smartphone shipment outlook of its US strategic client.

A buy-and-hold strategy still holds as we expect earnings to continue to grow going forward.

Underlying
LG Innotek Co. Ltd

LG Innotek is engaged in the manufacture of electronic components for mobile phones, computers, wireless communications products and cars. Co.'s products consist of mobile products, including camera modules, printed circuit boards, light emitting diodes ("LED") and touch windows used for mobile phones; display and network products, consisting of power modules, tape substrates and photo masks used for displays, as well as tuners and wireless modems for communications products; LED products, such as back light units and LED lightings; cars components, including motors and sensors used for cars, and motors, such as vibration motors and voice coil motors for electronic and electrical products.

Provider
Hyundai Motor Investment & Securities
Hyundai Motor Investment & Securities

Hyundai Motor Investment & Securities is the investment banking arm of the Hyundai Motor Group. The company offers stock brokerage and advisory services; derivative products brokerage and advisory services; wrap account portfolio management services; and VIP wealth management and tax planning, institutional equities, derivatives, and futures brokerage services, as well as sells investment and institutional products. It also provides equity offering, ABS, real estate PF and real estate PF securitization, offshore SOC, structured financing, asset securitization, real estate sales, IPO advisory, and private equity fund and fund management services; and CMA/RP portfolio management and fixed income based investments, as well as involved in the issuance, management, and brokerage of OTC derivatives. In addition, the company offers research services, including macro economic forecasts and stock market outlook, industry overviews and forecasts, fixed income strategies, corporate credit analysis, and valuation analysis. Further, it offers a range of retirement and pension services for individuals and corporate members; portfolios and asset allocation consulting and marketing services; proposing retirement pension plans; contract and payment management services; pension plan advisory and actuarial services; and system development and implementation services, as well as operates call centers for retirement pension services, etc. 

Analysts
Greg Roh

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