Leeno Industrial: Challenging business outlook ahead, labor union poses new risk - trim PT to W75K, remain Neutral

研报英文原文证据摘录

Leeno Industrial: Challenging business outlook ahead, labor union poses new risk - trim PT to W75K, remain Neutral

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

24 July 2026

Leeno Industrial Neutral

058470.KQ, 058470 KS

Challenging business outlook ahead, labor union poses Price (24 Jul 26):W68,800

new risk - trim PT to W75K, remain Neutral ▼Price Target (Dec-26):W75,000 Prior (Dec-26):W100,000

After surging 104% in 1Q (vs. KOSDAQ: +21%), Leeno’s share price has

corrected 45% from its March peak (vs. peers: flat and KOSDAQ: -33%) on Technology - Semiconductors

passive outflow but also multiple risks emerging across labor union, smartphone Sangsik Lee AC

market outlook, and ownership selldown, in our view. Given Leeno’s quality track (82-2) 758 5146

record, we sense multiple investors are eyeing a bottom-fishing opportunity. We sangsik.lee@jpmorgan.com

expect better-than-feared 26E earnings on resilient flagship smartphone sell- Jay Kwon AC

through, but expect the risk to linger and roll-over to 2027 amid a materializing (82-2) 758-5725

jay.h.kwon@jpmorgan.com

memory cost burden. We expect limited operational impact from the labor strike J.P. Morgan Securities (Far East) Limited, Seoul

but see margin impact from higher labor costs and pre-emptively trim 27E OPM Branch

to 45% (vs. pro-forma 48%). Valuation has fallen to a comfortable level (27x FTM

P/E vs. previous peak of 50x in March-26 and past 3Y of 26x) but we see limited

Key Changes (FYE Dec)

catalysts and recommend investors stay on the sidelines. We cut 27E EPS by 11%

Prev Cur Δ

to reflect weak smartphone sales and higher labor expenses and accordingly trim Adj. EPS - 27E (W) 2,976 2,649 -11.0%

our price target to W75K based on 28x FY27E EPS (slightly higher than mid-cycle

valuation). Quarterly Forecasts (FYE Dec)