Asia Pacific Reports/Notes

研报英文原文证据摘录

Asia Pacific Reports/Notes

Asia Pacific Equity Research

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Asia Technology Tracker 03 July 2026

LG Electronics (Neutral), South Korea

Navigating the fair value post-robotics hype; maintain Neutral after PT reset to W190k (Jay Kwon)

LGE shares have been volatile in the past 2M (up 100% in May and down ~50% from May-peak) mainly on

robotics business growth expectations, in our view. Fundamentally, after two years of earnings decline, we

anticipate a sharp recovery in LGE’s core business thanks to the reciprocal tariff refund, AI DC HVAC

business progress, and narrowing MS losses. We, however, remain conservative on its robotics business

outlook due to the distant timeline (MP of actuator in the 2H26E and launching humanoid in 28E) and pre-

mature business synergies between key operations. Following revisions to our assumptions, we raise FY26-

27E EPS by 8-13%, introduce FY28E EPS estimates (+11% y-y), and raise PT to W190K using 17x core

EPS. Our Neutral rating on the stock is unchanged as we take a conservative stance on the Robotics

business opportunity. Separately, LGIT's share price has appreciated meaningfully and now accounts for

66% of LGE’s market cap, but historical trading patterns indicate a detachment between LGIT’s OP

contribution vs. LGE share price. We highlight that our price target does not bake-in LGIT’s asset value and

we expect LGE’s core business to be the leading indicator of its share price outlook.

LG Innotek (Overweight), South Korea