LG Innotek IR Key Analysis

LG Innotek will announce its current business status and future strategies at its IR on August 27, 2025. With a market capitalization of KRW 3.8743 trillion, LG Innotek operates optical solutions, vehicle components, and substrate materials businesses.

1. Current Status and Outlook by Business Segment

  • Optical Solutions: Steady sales growth is expected due to the supply of new models to North American customers and the adoption of high-performance camera modules.
  • Vehicle Components: Despite development and orders centered on platform models, sales are expected to decline slightly in the short term, but the focus will be on improving profitability.
  • Substrate Materials: Sales growth is expected due to recovering demand in the mobile/display market. Stabilizing the new FC-BGA business and expanding volume are key tasks.

2. Market Environment Analysis and Response Strategies

The development of autonomous driving technology and the expansion of the eco-friendly car market are expected to positively impact the vehicle components business. Also, increased demand for server semiconductor substrates due to AI technology innovation will drive the growth of the substrate materials business. However, it is also necessary to prepare for negative factors such as geopolitical risks, trade policy uncertainties, and the maturing mobile market. Rising raw material prices are also a factor that can affect profitability.

3. Key IR Watch Points and Investment Strategies

Key points to watch in this IR are the profitability improvement strategy for the vehicle components business and the vision for accelerating growth in the FC-BGA market for the substrate materials business. Successful IR results are expected to positively influence investor sentiment. Investors should carefully review the IR content and establish investment strategies considering future growth potential.