LG Innotek (KRX: 011070) surged +96.59% in April 2026, closing at 577,000 KRW on April 28. DB Securities raised its 12-month target price by 60.5% to 650,000 KRW (April 28 report).
Q1 2026 results:
- Operating profit: 2,953B KRW (+136% YoY) in seasonally weak Q1
- Revenue: 5.535T KRW (+11.1% YoY)
- Net profit: +167.6% YoY
Two structural shifts behind the upgrade:
- FC-BGA package substrate entering a price hike cycle. AI server and GPU demand is tightening FC-BGA supply. DB Securities projects the substrate division to reach 1.4T KRW annual revenue at +19%+ YoY growth.
- Vietnam factory production share expanding 25% (2025) to 35%+ (2026), improving optical module margins.
Analyst target range: DB Securities 650K KRW (+12.7%), KB Securities 750K KRW (+30%), SK Securities 850K KRW (+47.3%). The spread reflects how aggressively each firm prices in Apple AI wearable supply wins.
Key risk: Apple accounts for ~80% of LG Innotek revenue. If Apple orders disappoint or AI server capex momentum slows in Q3-Q4, the upside case compresses quickly.
For the full analysis in Korean, visit Snakestock
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