LG Electronics: Upbeat 2Q OP, solid earnings outlook; AI data center cooling seems more promising

研报英文原文证据摘录

LG Electronics: Upbeat 2Q OP, solid earnings outlook; AI data center cooling seems more promising

Accessible version

LG Electronics

Upbeat 2Q OP, solid earnings outlook; AI

data center cooling seems more promising

Reiterate Rating: BUY | PO: 350,000 KRW | Price: 189,100 KRW

Strong 2Q OP driven mainly by proven B2C/B2B products 08 July 2026

LG Electronics (LGE) reported strong 2Q OP of W1.58tn (more than double YoY), beating Equity

consensus and our estimate (~W1.04tn). Key contributors appear to be the reversal of

previously paid US tariffs (likely W0.4tn, according to our analysis), full consolidation of

Key ChangesLG Innotek (LGI, 011070 KS; strongly recovered iPhone camera module sales/margin and

a new order for semis substrates, incl. FC BGA), and 5-9% OPM among home appliances, (W) Previous Current

air solutions (incl. chiller), auto parts, and even TV (broadly better than Samsung). More 2026E EPS 11,952 13,985

details awaited at the earnings call (30 July), but we break down 2Q OPM into 9.4% 2027E EPS 15,807 15,804

home appliances, 5.0% TV, 5.0% auto parts, 7.0% air solutions, and 4.0% LGI. The 2Q 2028E EPS 17,895 17,901

results also underscore LGE’s dominant market positions in both B2C (appliances, TV, air

conditioners) and B2B (auto parts, AI data center cooling solutions). Our 2027-28E EPS Simon Woo, CFA >>

Research Analyst

revisions are sub-1.0% (minimal) vs +17% for 2026 (mostly related to upbeat 2Q OP). Merrill Lynch (Seoul)

+82 2 3707 0554

AI data center cooling solutions stand out more simon.woo@bofa.com

Matt Shin >>

LGE has vertically integrated AI data center solutions from chiller to HVAC (air solutions Research Analyst

for data center room) and CDU/coolant. Thus, it can provide turnkey solutions to US Big Merrill Lynch (Seoul) +82 2 3707 0534

Tech.