LG Display: 2Q26 results in-line but 2H26E outlook uncertain despite strong seasonality; stay Neutral with a new PT of W11.5k

研报英文原文证据摘录

LG Display: 2Q26 results in-line but 2H26E outlook uncertain despite strong seasonality; stay Neutral with a new PT of W11.5k

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area shipments rose 12% Q/Q (in-line with the low -10% increase guidance) Adj. EPS - 27E (W) 1,692 1,282 -24.2%

and ASP per area was US$1,079/sqm (-13% Q/Q, in-line with the low to mid

Quarterly Forecasts (FYE Dec)

10% % decline guidance) supported by above seasonal L/A OLED operations

Adj. EPS (W)

and F/X tailwind. On the sales mix side, the TV sales mix improved to 21% in 2025A 2026E 2027E

2Q26 (vs 16% in 1Q26), whereas mobile declined by 5ppt Q/Q, with auto/IT Q1 (734) (1,141)A (137)

showing a broadly flattish trend respectively. OLED sales mix continued to Q2 1,732 (809)A (0)

Q3 (41) 672 654

stay elevated at above 57% amidst ongoing IT LCD product mix rebalancing Q4 (712) 788 766

initiatives. The company acknowledged that 1H26 sales were better than FY 487 (490) 1,282

expected due mainly to pull-in IT panel demand and sports event seasonality,

indicating potential demand headwinds in 2H26E. We expect MNT OLED Style Exposure

demand (mainly for gaming segment) to perform well but for the rest of the

applications end demand environment could face greater challenge. Our 3Q26

sales estimate is broadly in line with management guidance (MSD% shipment

increase and high-teens % ASP/sqm increase sequentially) with our quarterly

OP estimate of W532bn. We view the business risk to be greater in 2027E as

CE panel end demand appetite likely remains under pressure mainly due to

price inflation (negative to LGD’s LCD/OLED IT Panel as well as OLED TV

Panel end demand). While the iPhone retail selling price hike is uncertain, we

note pricing pressure on key components to be greater next year. These are the