On normalization of businesses

研报英文原文证据摘录

On normalization of businesses

Global Markets Research

LG Display 034220.KS 034220 KS 26 June 2026

EQUITY: DISPLAYS

RatingOn normalization of businesses Remains Buy

Target priceMaintain Buy; lower TP to KRW16,000, implying 40.7% Reduced from KRW 16,000upside KRW 17,000

Maintain Buy and lower TP to KRW16,000, implying 40.7% upside Closing26 June price2026 KRW 11,370

We reaffirm our Buy rating and lower TP to KRW16,000 (from KRW17,000). Our target

price is derived by multiplying 2027F BVPS of KRW15,957 (previously: KRW14,239) with Implied upside +40.7%

a target P/B of 0.99x (previously: 1.17x), which is at a 40% premium (previously: 64.8%

premium) to LGD’s average upcycle (2014, 2016 and 2021) P/B of 0.71x. We have Market Cap (USD mn) 3,698.3

lowered the premium to reflect the likely reduced shipments to its major client owing to a ADT (USD mn) 106.4

recent price increase of its product lineup following the ‘memory-flation’. We believe the

premium is still justified, as our 2027F ROE of 14.6% is 73.8% higher than its average Relative performance chart

upcycle ROE of 8.4%.

LG Display (LGD) lacks exposure to AI, and IT set component companies are negatively

impacted by the recent memory price increase. However, we maintain our Buy rating, as:

1) the major client’s production is increasing (smartphones +7.9% y-y in 2026F), 2)

current valuation looks attractive to us, 3) competition is easing, and 4) financials are

being normalized. The stock currently trades at 0.82x 2026F P/B. Downside risks include

its Chinese competitor re-entering Apple’s (AAPL US, Not rated) new iPhone series

supply chain, and sluggish IT set sales owing to memory price hike.

2Q26F OP to miss consensus; one-off cost from restructuring