LG Display: Set to navigate through earnings uncertainty into 2H26

研报英文原文证据摘录

LG Display: Set to navigate through earnings uncertainty into 2H26

Global Research

22 July 2026ab

LG Display Equities

KoreaSet to navigate through earnings uncertainty

into 2H26 Electric Components & Equipment

12-month rating Neutral

12m price target Won11,600Solid 2Q OP (ex-one offs) points to continuing strong OLED execution

Prior : Won14,200

LGD reported 2Q26 OP of Won(108)bn, in-line with UBSe/Cons OP of Won(107)bn/

(110)bn but also reflective of Won240bn of voluntary retirement related one-offs Price (22 Jul 2026) Won10,110

without which LGD would have seen 1H OP come in black for the first time since 1H21. RIC: 034220.KS BBG: 034220 KS

We believe this was primarily in part due to better large OLED area shipments, reflecting

pull in on sporting events but also OLED monitor mix supporting ASP/margins. Mobile Trading data and key metrics

OLED panel shipments, we believe, came in at c.-15% QoQ, largely in-line with UBSe 52-wk range Won16,690-9,210

whilst IT (LCD+OLED) panel shipments came in flat QoQ on IT NB panels helping offset Market cap. Won5,055b/US$3.42b

weaker IT OLED shipments. Shares o/s 500m (ORD)

Free float 56%

Macro/memory cost inflation contributing to 2H26 earnings uncertainty Avg. daily volume ('000) 11,168

We see mixed puts and takes for LGD's earnings setup into 3Q26E (LGD guidance for Avg. daily value (m) Won158,485.5

shipments +MSD% QoQ / blended ASP +High Teens % QoQ) given macro but also likely Common s/h equity (12/26E) Won6846b

more pronounced impact of memory cost inflation. For mobile OLED, while we continue P/BV (12/26E) 0.7x

to expect LGD to gain incremental unit M/S (UBSe c. 34%) on CY26 build setup for Net debt to EBITDA (12/26E) 2.5x

major OEM remaining stable with Foldable launch into 2H26 potentially benefitting LGD