KOSPIElectronic Components034220

LG Display

₩8,580 0.00%2026-10-02 close

Market Cap

₩4.3T

Turnover

₩18.1B

Volume

2.1M

Shares out.

500M

PER

—

PBR

0.7×

EPS

-₩2,704

Dividend Yield

0.00%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close

Report overview

OLED Pivot Faces Its Profit Test

After its first annual operating profit in four years in 2025, the company kept operating income positive in the first half of 2026, yet net losses tied to currency and debt persist, making the second-half iPhone 18 and large OLED peak season the key variable.

1
After three straight years of operating losses (KRW -2,085.0bn in 2022, KRW -2,510.2bn in 2023, KRW -560.6bn in 2024), the company posted an operating profit of KRW 517.0bn in 2025, a 2.0% operating margin.
2
In Q2 2026 revenue was KRW 5,612.1bn with an operating loss of KRW 107.7bn; the company said roughly KRW 240bn of one-off costs from a voluntary retirement and workforce efficiency program were booked in the quarter.
3
Operating results improved but the bottom line diverged: owners' net loss continued for three consecutive quarters from Q4 2025, summing to about KRW -1,352.1bn across Q3 2025 through Q2 2026.
4
The mix has shifted toward mobile and IT; based on Q2 2026 conference call materials, revenue split was IT 36%, mobile 32%, TV 21%, auto 11%, with OLED at 57% of company revenue (as compiled by Daishin Securities in July 2026).
5
The debt-to-equity ratio fell from 307.0% in 2024 to 243.4% in 2025 but remains high, and the 2026 capex plan has been raised to the mid-to-high KRW 2 trillion range, keeping cash management central.

Business structure

LG Display manufactures and sells TFT-LCD and OLED panels, operating production and module subsidiaries in China, Vietnam and elsewhere. Its product groups are TV, IT (monitors, notebooks, tablets), mobile and others, and auto.

Based on brokerage compilations of Q2 2026 conference call materials, the revenue split was TV 21%, IT 36%, mobile 32% and auto 11%, with OLED at 57% of company revenue. In the prior quarter, Q1 2026, OLED accounted for 60% of total revenue, with mobile and others the largest block.

Customer concentration is high: quarterly filings show a customer presumed to be Apple at 58.4% of revenue, and Apple is its sole smartphone OLED customer.

The large-panel business centers on white OLED (WOLED) TV panels and gaming monitor OLED, and the company is concentrating on expanding monitor OLED shipments while maintaining TV panel supply.

The restructuring axis has been shrinking LCD: after ending LCD TV panel production in Paju in 2022, it sold its Guangzhou LCD plant in China to CSOT for KRW 2,246.6bn, and its TV panel market share fell from 23.6% in 2022 to 10.4% in 2025 per the annual report.

It competes with Samsung Display and BOE in small and mid-size panels and with Samsung Display's QD-OLED and Chinese mini-LED players in large panels, differentiating through premium and high-end lineups.

Earnings trend

Quarterly revenue · Operating profit

₩5.6T-₩116B25Q2₩7T₩431B25Q3₩7.2T₩168.5B25Q4₩5.5T₩146.7B26Q1₩5.6T-₩107.7B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩26.2T-₩2.1T2022₩21.3T-₩2.5T2023₩26.6T-₩560.6B2024₩25.8T₩517B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩5.6T	-₩116B	−2.1%
2025Q3	₩7T	₩431B	6.2%
2025Q4	₩7.2T	₩168.5B	2.3%
2026Q1	₩5.5T	₩146.7B	2.7%
2026Q2	₩5.6T	-₩107.7B	−1.9%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩26.2T	-₩2.1T	-₩3.1T	−8.0%	−31.1%	215.3%
2023	₩21.3T	-₩2.5T	-₩2.7T	−11.8%	−37.8%	307.7%
2024	₩26.6T	-₩560.6B	-₩2.6T	−2.1%	−39.2%	307.0%
2025	₩25.8T	₩517B	₩226.3B	2.0%	3.4%	243.4%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04

Earnings analysis

The earnings direction changed in 2025.

Revenue plunged from KRW 26,151.8bn in 2022 to KRW 21,330.8bn in 2023, then recovered to KRW 26,615.3bn in 2024 and KRW 25,810.1bn in 2025, while operating results swung from losses of KRW -2,085.0bn (2022), KRW -2,510.2bn (2023) and KRW -560.6bn (2024) to a KRW 517.0bn profit in 2025, a 2.0% operating margin.

Owners' net income also turned positive at KRW 226.3bn that year, against massive prior losses (KRW -3,071.6bn in 2022, KRW -2,733.7bn in 2023, KRW -2,562.6bn in 2024).

On the balance sheet, the debt-to-equity ratio eased from 307.7% in 2023 and 307.0% in 2024 to 243.4% in 2025, while operating cash flow held at KRW 1,682.7bn, KRW 2,411.8bn and KRW 2,352.1bn over 2023-2025, more stable than profit given the heavy depreciation base.

Quarterly, revenue and operating profit were KRW 6,957.0bn and KRW 431.0bn in Q3 2025, KRW 7,200.9bn and KRW 168.5bn in Q4 2025, and KRW 5,534.0bn and KRW 146.7bn in Q1 2026 - three consecutive profitable quarters.

Q2 2026 turned to a loss with revenue of KRW 5,612.1bn and an operating loss of KRW 107.7bn; the company explained that about KRW 240bn of one-off workforce efficiency costs including voluntary retirement were booked, and that excluding them the underlying business was profitable.

It stated that first-half revenue was KRW 11,146.1bn with operating profit of KRW 38.7bn, its first first-half operating profit in five years since 2021.

The issue lies below the operating line: owners' net loss ran for three straight quarters at KRW -356.1bn in Q4 2025, KRW -570.7bn in Q1 2026 and KRW -404.6bn in Q2 2026, totaling roughly KRW -1,352.1bn from Q3 2025 through Q2 2026.

Reports pointed to translation losses on foreign-currency debt amid a weak won, while conversely the KRW 865.8bn owners' net income in Q2 2025 - a quarter with an operating loss - reflected non-operating items including the Guangzhou plant divestiture.

In short, recent results show operational improvement and financial or currency burdens working at the same time.

Industry analysis

The display industry has been reshaped: with LCD leadership moving to China, profit now has to come from premium OLED. Korean panel makers' LCD revenue fell 20.6% from USD 8.077bn in 2024 to USD 6.416bn in 2025, per the Korea Display Industry Association and Omdia.

Apple smartphone OLED demand, by contrast, is expanding: UBI Research projects 2026 iPhone OLED panel demand of 264.7mn units, with Samsung Display supplying 144mn, LG Display 82.24mn and BOE 38.5mn.

The company's standing at Apple has risen: Sigmaintell said LG Display shipped 31.5mn iPhone OLED panels in the first half of 2026, up 21.6% from 25.9mn a year earlier. Its first-half share of OLED supply to Apple was 29.1%, the highest first-half level since 2023.

Samsung Display still leads in the newest high-end areas, and OLED for Apple's first foldable iPhone is expected to be supplied essentially exclusively by Samsung Display.

In mid-to-large panels, monitors are the growth engine: UBI Research reported 2025 monitor OLED shipments up about 64% from 1.95mn units in 2024, with over 50% growth expected again in 2026.

Competitive pressure persists - on the Q2 2026 call the company noted intensifying high-end competition as Chinese rivals run aggressive mini-LED TV promotions.

Outlook

Management's Q3 framing is entry into the peak season.

It said large OLED and mobile OLED shipments should expand in Q3, but given pull-forward demand in Q2 and continued IT LCD portfolio optimization, total shipment area should rise by a mid single-digit percentage quarter on quarter, with area-based prices up by a high-teens percentage on the mobile OLED peak season.

Second-half volume rests on Apple's new products: industry sources said mass production of OLED for the iPhone 18 Pro and Pro Max and the iPad mini began in June 2026, with foldable iPhone OLED production also starting that month, while LG Display is reported to handle all OLED for the Apple Watch 12.

Some observers expect second-half shipments for new models alone to reach 40mn units as its share within the iPhone 18 Pro lineup grows.

Investment is rising again: the company disclosed a KRW 1,106.0bn investment in new OLED technology infrastructure, which the industry reads as equipment upgrades for next-generation products and new processes such as LTPO+ rather than capacity expansion.

It stated that 2026 capex is expected in the mid-to-high KRW 2 trillion range, above the level guided at the Q1 results. In large panels, gaming OLED technology continues to advance, as its 27-inch 540/720Hz DFR OLED gaming monitor panel won Display of the Year at SID Display Week 2026.

Still, on the call the company flagged macro uncertainty including semiconductor supply issues, geopolitics and rising raw material prices, and said of the workforce program that it was pursued as effectively the last one, with larger scale and better terms than past programs.

Valuation

PER

—

PBR

0.7×

ROE

-21.2%

EPS

-₩2,704

BPS

₩12,604

Dividend per share

₩0

With the earnings base still unsettled, profit-based multiples carry little meaning here. Owners' net income summed across the four quarters from Q3 2025 to Q2 2026 was negative, so a price-to-earnings ratio is not computable, and the market effectively looks at net assets and pre-depreciation cash generation instead.

The shares trade below net asset value per share, a discount to book, and the company has not been paying a dividend, leaving no dividend-yield basis for comparison.

For reference, Samsung Securities said in a June 2026 report that peer price-to-book ratios stood at 1.7x for China's BOE, 1.4x for Taiwan's AUO and 2.3x for Innolux, assessed LG Display as trading at a lower multiple than these peers, and maintained a target price of KRW 17,000 with a Buy rating.

KB Securities also said in an April 30, 2026 report that it maintained a target price of KRW 17,000 and a Buy rating (both are those brokerages' views, not KOSAI's).

Ultimately, interpreting the multiple depends on whether the swing from operating losses to profit carries through to the bottom line, and whether the still-high debt-to-equity ratio declines further.

PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04

Bull factors

Structural cost reset showing in operating results

The LCD wind-down and OLED-centric restructuring are visible in the P&L. The operating line narrowed from KRW -2,510.2bn in 2023 to KRW -560.6bn in 2024 and turned to a KRW 517.0bn profit in 2025.

The company said first-half 2026 operating profit of KRW 38.7bn marked its first first-half profit in five years since 2021. Pre-depreciation cash generation has held up as well, with operating cash flow of KRW 2,411.8bn in 2024 and KRW 2,352.1bn in 2025.

Rising share within Apple's premium lineup

Within small and mid-size OLED, the share of high-value models is increasing. Samsung Display and LG Display are expected to split OLED supply for the iPhone 18 Pro and Pro Max, while China's BOE is seen struggling to enter the premium tier.

Sigmaintell said first-half 2026 iPhone OLED shipments reached 31.5mn units, up 21.6% year on year. For Q3 the company guided to a high-teens percentage quarter-on-quarter rise in area-based pricing on the mobile OLED peak season.

Gaming monitor OLED as a second axis

In large panels, a growth axis beyond TV is forming. UBI Research reported 2025 monitor OLED shipments up about 64% from 1.95mn units the prior year, with more than 50% growth expected in 2026. On production efficiency, monitor panels can maintain glass utilization above 90% thanks to IT-standard layouts. Its 27-inch 540/720Hz DFR OLED gaming monitor panel won Display of the Year at SID Display Week 2026.

Bear factors

Net losses despite operating profit

The operating recovery has not reached the bottom line. Owners' net results were KRW -356.1bn in Q4 2025, KRW -570.7bn in Q1 2026 and KRW -404.6bn in Q2 2026 - three consecutive losses.

Reports cited translation losses on foreign-currency debt amid a weak won, while the company said temporary quarter-on-quarter swings arose from debt portfolio adjustments and currency effects. A structure in which currency and financing costs drive the bottom line remains in place.

High leverage alongside rising investment

The debt-to-equity ratio fell from 307.0% in 2024 to 243.4% in 2025, but the absolute level is still high. Per brokerage summaries of the Q2 2026 call, assets were KRW 27.5tn, liabilities KRW 19.9tn and equity KRW 7.7tn, with a 260% debt-to-equity ratio, a 63% current ratio and a 156% net-debt-to-equity ratio.

Yet investment is rising: the company said 2026 capex was raised to the mid-to-high KRW 2 trillion range from the level guided at Q1. Whether profit recovery keeps pace with investment and repayment needs is the key question.

Single-customer reliance and rival re-entry risk

The customer base is narrow. Quarterly filings show a customer presumed to be Apple at 58.4% of revenue, and Apple is its only smartphone OLED customer.

In the newest flagship area, OLED for the first foldable iPhone is expected to be supplied essentially exclusively by Samsung Display, limiting participation in a fresh growth pocket.

The competitive setup is not fixed either: the industry sees a remaining possibility that BOE re-enters the supply chain with later product groups such as an OLED iPad Air in 2027 and OLED MacBook Pro in 2028.

Risk factors

Currency and financing costs

With a large share of foreign-currency borrowings, exchange-rate swings move the bottom line sharply. Net losses widened in both Q1 and Q2 2026 regardless of operating trends, with translation losses on foreign-currency debt amid a weak won cited as the cause.

If rates stay high, interest costs and refinancing terms can also weigh. This factor amplifies quarterly earnings volatility independently of operating improvement.

End demand and input costs

Panel demand is exposed to both set demand and component costs. On the Q2 2026 call the company cited macro uncertainty including semiconductor issues, geopolitics and rising raw material prices.

Media reports also noted that component price increases and external uncertainties such as tariffs remain in the second half.

Q3 guidance itself points to a mid single-digit increase in shipment area after accounting for Q2 pull-forward demand and continued IT LCD portfolio optimization, framing volume growth as limited.

Restructuring and legal matters

Costs from the turnaround process flow straight into quarterly results. In Q2 2026, as the company explained, roughly KRW 240bn of one-off workforce efficiency costs including voluntary retirement were booked.

It stated that the program was pursued as effectively the last of its kind, but whether further costs arise must be confirmed through future disclosures. Legacy legal matters such as overseas class actions related to past LCD operations also remain, warranting checks in periodic filings.

What to watch next

September-October 2026
Early sell-through and follow-on orders after the iPhone 18 Pro and Pro Max launch. Whether market expectations of 40mn units shipped for new second-half models materialize ties directly to mobile utilization and pricing in Q3 and Q4.
Late October 2026
Q3 results and the earnings call. The check is whether the guided mid single-digit rise in shipment area and high-teens rise in area-based pricing are met, and how the operating margin and bottom line look once one-off costs are gone.
Mid-November 2026
Q3 report filing. Reviewing the debt-to-equity ratio, total borrowings, the maturity profile of short-term debt and the scale of foreign-currency translation gains or losses will show whether operating improvement is translating into better financial metrics.
Q4 2026
Investment execution. The progress of the KRW 1,106.0bn new OLED technology infrastructure investment and actual spending against the mid-to-high KRW 2 trillion annual capex plan should be checked for their impact on cash flow and debt burden.
January 2027
CES 2027 and Q4 plus full-year results. New large OLED and gaming monitor lineups, the 2027 capex plan, and whether full-year 2026 operating profit was sustained will all become visible.

Overall view

Through LCD downsizing and an OLED-centric rebuild, LG Display escaped three consecutive years of losses with 2025 operating profit of KRW 517.0bn (a 2.0% margin), and owners' net income also turned positive.

In the first half of 2026 it recorded a Q2 operating loss of KRW 107.7bn after booking about KRW 240bn of one-off voluntary retirement costs as the company explained, yet kept the cumulative first half in operating profit.

Owners' net results, by contrast, have been negative for three straight quarters since Q4 2025, showing that currency and financing costs still drive the bottom line.

Operationally, two axes are visible - a growing share within Apple's premium lineup and monitor OLED growth - but rivals lead in new areas such as foldables, and customer concentration is high.

Financially, the debt-to-equity ratio eased from 307.0% in 2024 to 243.4% in 2025 yet remains elevated, while the 2026 capex plan has been raised.

On valuation, a profit-based multiple cannot be computed because net income summed over the last four quarters was negative; the shares trade below net asset value per share and no dividend is being paid.

The thing to watch is whether the second-half peak season carries beyond operating-margin improvement into better net results and debt metrics; this report is for information purposes and contains no buy or sell recommendation.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

Show 18 more articles and sources

Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.