LG Display Co. (034220), the second-largest maker of liquid-crystal displays, rose the most in almost nine months in Seoul trading on speculation earnings will improve as flat panel shipments recover.
The shares rallied 7.3 percent to 23,500 won at the close on the Korea Exchange, its steepest gain since Nov. 4. The benchmark Kospi index rose 2.6 percent.
LG Display’s clients are preparing to start selling new products in October and November, while expected supplies to Apple Inc.’s iPhone 5 are also set to provide a benefit, according to Hyundai Securities Co. The company, which posted a second-quarter loss yesterday, may turn to an operating profit of about 290 billion won in the third-quarter ending Sept. 30 before earning 430 billion won in the final quarter of 2012, Woori Investment & Securities Co. said.
“This month will be the bottom for panel shipments, and earnings are likely to improve significantly starting from August,” Jeff Kim, an analyst at Hyundai Securities, wrote in a report today. Kim raised his share price estimate by 25 percent to 35,000 won.
LG Display yesterday reported a net loss of 112 billion won for the three months ended June as a weaker won boosted the value of overseas debt and it set aside funds to settle a lawsuit.
The stock has dropped 4.1 percent this year, compared with a 0.2 percent gain in the Kospi index. (KOSPI)
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