LG Innotek: 2Q26 result beat and solid 2H26 outlook; focus on substrate growth trajectory

研报英文原文证据摘录

LG Innotek: 2Q26 result beat and solid 2H26 outlook; focus on substrate growth trajectory

J P M O R G A N Asia Pacific Equity Research

27 July 2026

LG Innotek Overweight

011070.KS, 011070 KS

2Q26 result beat and solid 2H26 outlook; focus on Price (27 Jul 26):W609,000

substrate growth trajectory Price Target (Jun-27):W1,100,000

LGIT reported a 2Q26 result beat, and we expect a seasonal uptick in orders to Technology - Semiconductors

ACcontribute to a continued y-y profit growth trajectory in 2H26, albeit concerns Jay Kwon

about iPhone end demand risks amidst lingering price inflation. Semiconductor (82-2) 758-5725

substrate, a new key growth driver, is showing strong near-term margin expansion jay.h.kwon@jpmorgan.com

and looks set to deliver a robust growth profile upon successful ABF substrate Sangsik Lee

order wins. These are key reasons why we believe LGIT shares deserve a multiple (82-2) 758 5146

re-rating over the mid-to-long term horizon and therefore, we stay OW (LGIT sangsik.lee@jpmorgan.com

J.P. Morgan Securities (Far East) Limited, Seoul

shares -59% from their peak in early-June vs. the Kospi -23%). Key risks include Branch

weaker-than-expected iPhone component build (so far, there is no evidence of

demand slowdown or unexpected price pressure on its component margin), and we

would closely monitor relevant supply chain developments and key customers’

pricing strategy updates.

• 2Q26 result beat – Optics division must have delivered a better margin

thanks to favorable FX. LGIT’s overall 2Q26 sales were slightly ahead vs. our

Street high-end estimates and all divisions delivered better top-line trends,

likely indicating better margin trends. The absolute sales beat was the highest

by Optics (~W400bn) thanks to a favorable product sales mix (solid iPhone 17