SOUTH KOREA FIRST TO MARKET

研报英文原文证据摘录

SOUTH KOREA FIRST TO MARKET

Asia Pacific Equity Research

South Korea First to Market 23 July 2026

Top Stories

LG Display (Jay Kwon) (034220 KS, N)

2Q26 results in-line but 2H26E outlook uncertain despite strong seasonality; stay Neutral with a new

PT of W11.5k

Following the in-line 2Q26 results and key industry dynamic changes, we reset our PT (cut to a March -27 PT of W11.5k using

0.65x FTM P/B) and estimates (+1%/-24% 26E/2027E EPS). While 1H26 results (barring one-offs) showed improvements in

core operations (W100bn Y/Y), we are mindful of possible margin headwinds in the key operations, given that end customers

are facing increased BOM costs resulting from semiconductor and memory price hikes. Apple (OW, covered by Samik

Chatterjee) has historically proven resilient through product cycles amidst price inflation (note) but we believe risks of

component price concessions are mounting for non-semi across the board. We view risk-reward as fairly balanced at the

current share price and maintain a Neutral view after the TP cut. We recommend investors stay on the sidelines for a better

entry point.

Korea Defense (Simon Han)

Investor Feedback Ahead of 2Q26 Earnings

Sector sentiment remains weak given limited near-term catalysts, muted order momentum, and subdued expectations for the

2Q26 earnings print (see our preview). LIG D&A remains our top pick into the season: we will focus M-SAM II export

margins, production pace, and most importantly management guidance on outer-year output increases, which could

drive mid-term street estimate revisions. Across Hanwha Aerospace / Hyundai Rotem / LIG D&A, we believe the market bar

is low into 2Q. Upside risk is skewed to 1) faster export deliveries / milestone recognition, and 2) better than feared export