Record-high earnings of Korean semiconductor and display giants sent their domestic component manufacturers’ stock prices rising high.
The stock prices regarding light-emitting diode, printed circuit boards and LED display makers saw 40.4 percent, 38.8 percent and 38.7 percent hikes, respectively, as Samsung, LG Electronics and SK hynix’s profit skyrocketed in the first three months, according to Daeshin Securities on Friday.
During the same period, the Korea Composite Stock Price Index rose by 8.96 percent, while the Korean Securities Dealers Automated Quotations index increased by 0.48 percent.
LG Innotek, which deals with LEDs, printed circuit boards and LED displays, in particular, saw a dramatic stock price surge in the quoted period. The firm’s share price climbed 52.4 percent to 130,500 won ($114) as of March 27, compared to 85,000 won on Jan. 2.
IBK Securities on April 5 raised the target price to 180,000 won from the previous 145,000 won, saying LG Innotek has entered a phase of long-term growth.
LG Innotek’s operating profit in the first quarter marked 66.8 billion won, an increase of 16,600 percent from the same period last year, when its operating profit was 400 million won. The company marked a record-high operating profit of 117 billion won in the fourth quarter in 2016.
LED display and PCB manufacturer Samsung Electro-Mechanics’ stock price also rose by 44.3 percent in the first quarter.
Samsung Electronics posted operating profit of 9.9 trillion won in the first quarter, its second-highest ever. SK hynix’s operating profit grew by nearly 400 percent on-year, reaching 2.4 trillion won. LG Display’s operating profit also surpassed 1 trillion won for the first time in its history.
By Shim Woo-hyun (email@example.com