[EQUITIES] ‘LG Display’s Guangzhou plant approval imminent’
[THE INVESTOR] LG Display’s factory in Guangzhou, China is close to getting approval from the Ministry of Trade, Industry and Energy, said Hana Financial Investment on Dec. 8, maintaining a “buy” recommendation and 40,000 won (US$36.55) target price.
The government authorization of its eighth-generation OLED factory, whose maximum manufacturing capacity is 60,000 units a month, is around the corner, said analyst Kim Hyeon-su.
The new factory will begin to produce up to 24,000 units every month from the second half of 2019 and will begin full operations from the second quarter of 2020, forecast the analyst.
About 1.8 million large OLED panels will be supplied this year and the number will leap to 2.8 million in 2018, 3.9 million in 2019, and 7 million in 2020, according to Kim.
The ministry’s approval for the plant will serve as a momentum to propel the stock price rise into the first quarter of 2018, noted the analyst maintaining a “top pick” rating.
By Hwang You-mee (email@example.com)