Weathering the challenging environment well: Maintain Buy; lower TP to KRW13,000, implying 28.6% upside

研报英文原文证据摘录

Weathering the challenging environment well: Maintain Buy; lower TP to KRW13,000, implying 28.6% upside

Global Markets Research

LG Display 034220.KS 034220 KS 22 July 2026

EQUITY: DISPLAYS

RatingWeathering the challenging environment well Remains Buy

Target priceMaintain Buy; lower TP to KRW13,000, implying 28.6% Reduced from KRW 13,000upside KRW 16,000

Reiterate Buy with a reduced TP of KRW13,000, implying 28.6% upside Closing22 July 2026price KRW 10,110

We reaffirm our Buy rating with a lower TP of KRW13,000 (previously: KRW16,000). Our

target price is derived by multiplying 2027F BVPS of KRW15,585 (previously: Implied upside +28.6%

KRW15,957) with a target P/B of 0.85x (previously: 0.99x), which is at a 20% premium

(previously: 40% premium) to LGD’s average upcycle (2014, 2016 and 2021) P/B of Market Cap (USD mn) 3,421.3

0.71x. We have lowered the premium to reflect market concerns around sluggish IT set ADT (USD mn) 105.3

sales caused by “memory-flation.” We believe the premium is still justified, as our 2027F

ROE of 15.8% is 88.5% higher than its average upcycle ROE of 8.4%. Relative performance chart

LG Display (LGD) lacks exposure to AI, and we note IT set component companies have

been negatively impacted by the recent memory price increase. However, we maintain

our Buy rating on LGD, as: (1) its 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 a 2027F P/B of

0.65x. Downside risks: 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 hikes.

2Q26 OP in line with consensus; one-off cost from restructuring