LG Innotek (011070) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
LG Innotek is an electronic-components company whose mainstay is making camera modules for smartphones; it supplies cameras for Apple's iPhone, and optical solutions account for more than 80% of total revenue. On top of this come semiconductor substrates (FC-BGA, RF-SiP, and others) and automotive electronics, giving revenue of ₩21.9 trillion and net profit of ₩341.3 billion in 2025. What stands out lately is that first-quarter 2026 net profit rose 167% year over year to ₩229.1 billion, with AI semiconductor substrates and a camera recovery driving the earnings rebound. That said, its heavy dependence on Apple alone means results swing significantly with iPhone sales.
This page organises public market and filing data for information purposes. It is not a recommendation to buy or sell, nor investment advice. Metrics labelled “forward” are our own unverified estimates. Please verify with the original DART filings and decide at your own responsibility.
30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Electronic Components” (Semiconductors & IT Components), a type typically read first through forward P/E.
Electronic components swing with set-makers' product launches and demand cycles, so what lies ahead matters more than earnings already booked. That makes forward P/E — pricing the shares against expected earnings — the first metric to read.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 3.3% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 11.1% higher than a year earlier.
- ROE is 8.0% (controlling-interest basis). It is above the sector average.
- Operating margin is 3.7%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2025-12-31
Largest shareholder LG Electronics 40.79% (corporate)
Controlling bloc incl. related parties 40.8%
With the controlling bloc holding 41%, the ownership structure is stable.
🔎 In-depth analysis Reading
LG Innotek's core is making and selling smartphone camera modules. More than 80% of revenue comes from the 'optical solutions' division, most of it camera modules that go into Apple's iPhone. Two growth axes attach to this. One is 'package solutions (semiconductor substrates),' making components that mount semiconductor chips on substrates to connect signals (RF-SiP, FC-CSP, FC-BGA). FC-BGA in particular is a high-value product used in high-performance semiconductors for AI servers and PCs, which the company is pushing as a future breadwinner. The other is 'mobility solutions (automotive electronics),' supplying vehicle cameras, lighting modules, and communication modules, with an order backlog in the range of ₩19 trillion as of the end of 2025. In short, the iPhone camera currently accounts for most of revenue, while semiconductor substrates and auto parts serve as growth engines that reduce that dependence.
The latest close is ₩554,000 and the market capitalization is ₩13.1 trillion. The price sits below its 20-day moving average (₩602,000) and below its 60-day moving average (₩871,817). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 40.7, a neutral level. The one-month change is -31.9%, the three-month change is -12.3%, and the position relative to the 52-week high is -63.8%. Relative strength versus the KOSPI is 85 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 86% of all stocks. Over the past three months it outpaced the index by 3.5%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
When looking at valuation, it matters that this company's earnings bottomed last year (2025). 2025 net profit was ₩341.3 billion, down 24% from the prior year, and this low profit makes the P/E ratio (how many times one year's earnings the share price represents) look high at 47.7x. But with first-quarter 2026 net profit already reaching ₩229.1 billion (+167% year over year), recalculating on this year's earnings brings the P/E down sharply to around 20x. In other words, last year's trailing (past-results) P/E makes this company, which is at an earnings inflection point, look more expensive than it is. ROE (how much the company earns in a year on its equity) is still low at 5.9% but is improving alongside the earnings recovery. The balance sheet is solid. Net debt (total borrowings minus cash) is negative — that is, it holds net cash of about ₩1.4 trillion, more cash than debt. EV/EBITDA (enterprise value, which also reflects debt and cash, divided by pre-depreciation operating profit) is 10.5x, looking less burdensome than the P/E, and EV/Sales (enterprise value divided by revenue) is 0.88x, low relative to the size of revenue. The FCF yield (the ratio of cash actually earned to market cap) is 2.8%. For a stock like this, whose earnings are rebounding off a bottom, the nature of its subsector makes it more accurate to look at the forward P/E on this year's earnings than at the past P/E.
Long-term revenue has grown steadily. Over the past five years revenue went ₩14.9 trillion → ₩19.6 trillion → ₩20.6 trillion → ₩21.2 trillion → ₩21.9 trillion, roughly 10% growth a year on average. Profit, by contrast, fell from a peak in 2022 (net profit ₩976.9 billion) to 2025 (₩341.3 billion), the result of pricing pressure on camera modules combined with weakness in the optical division. But the trend turned in 2026. First-quarter revenue was ₩5.53 trillion, a record for a first quarter; operating profit was ₩295.3 billion, +136% year over year; and net profit was ₩229.1 billion, +167%. Two growth axes are clear. First, semiconductor substrates (package solutions) grew revenue +16% on AI demand, and FC-BGA mass production is expanding. Second, optical solutions recovered with revenue +11.4% alongside the expansion of vehicle cameras. The company expects the second half (its traditional peak season) to add price increases and higher volumes for new iPhone cameras. Reflecting this trajectory, this year's net profit is expected to recover well above last year's ₩341.3 billion. On a forward-earnings basis, the current share price trades at a much lower multiple than last year's P/E implies.
Disclosures and company IR show a clear earnings rebound. The April 27, 2026 preliminary-results disclosure confirmed first-quarter revenue of ₩5.53 trillion and operating profit of ₩295.3 billion (+136% year over year). By division, optical solutions ₩4,610.6 billion (+11.4%), package solutions ₩437.1 billion (+16%), and mobility solutions ₩487.1 billion (+4.2%) all rose in a balanced way. In semiconductor substrates (package solutions), strong supply of high-value products such as RF-SiP, FC-CSP, and FC-BGA continued. At its May IR the company laid out a goal to lift the operating-profit contribution of the substrate business to the level of optics within five years. On dividends, a cash dividend (₩1,880 per share) was decided on April 3. Beyond this, changes in share ownership by executives and major shareholders, half-year and quarterly reports, and IR notices were disclosed. The automotive division has secured an order backlog in the range of ₩19 trillion as of the end of 2025, giving mid-to-long-term revenue visibility.
The strengths are clear. This company is in a phase of rebounding after its earnings passed a bottom. Last year's P/E of 47.7x looks expensive because of the low profit, but on this year's earnings it comes down to around 20x. The balance sheet is also stable, with ₩1.4 trillion in net cash. If the two growth axes — AI semiconductor substrates (FC-BGA) and a recovering camera business — work together, earnings improvement can continue. The automotive order backlog is also a mid-to-long-term support. The cautions are just as clear. More than 80% of revenue is optical, and most of that is for Apple's iPhone, so results swing significantly with Apple's sales flow and component-price negotiations. With the smartphone market stagnant, explosive growth in camera volumes is hard to expect. In the end, the key is how quickly semiconductor substrates and automotive electronics can reduce dependence on Apple. If iPhone demand holds firm and AI substrate expansion continues, results rebound strongly; if iPhone sales are weak or substrate competition intensifies, the pace of recovery could slow.
🔎 Valuation vs peers Undervalued
Domestic makers of electronic components such as camera modules and semiconductor substrates are used as the comparison set. Samsung Electro-Mechanics is the most direct competitor, combining camera modules, MLCCs, and substrates, while Korea Circuit is a comparison for the semiconductor-substrate (PCB) business.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Samsung Electro-Mechanics | 130.00x | 9.35x | 8.33% |
| Korea Circuit | 28.22x | 2.70x | 10.74% |
Because last year's (2025) earnings were at a bottom, the trailing P/E of 47.7x looks expensive, but this has the limitation of distorting a company at an earnings inflection point. First-quarter 2026 net profit rebounded +167% year over year, and the forward P/E reflecting that trajectory comes down to around 20x. Its most direct competitor, Samsung Electro-Mechanics, likewise shows a high 149x P/E last year due to the components-cycle trough, but for both companies the actual multiple falls much lower once the earnings recovery is reflected. LG Innotek's P/B, at 2.8x, is also far below Samsung Electro-Mechanics (11x). Add net cash of ₩1.4 trillion, so EV is below market cap and EV/EBITDA is 10.5x, easing versus the P/E. On the premise that the earnings recovery actually continues, viewing the low P/B and forward-basis multiple together points to an undervalued signal. That said, given the heavy dependence on Apple, the certainty of the recovery pace rests on iPhone demand.
Price history Close · MA20 · MA60
The latest close is ₩554,000 and the market capitalization is ₩13.1 trillion. The price sits below its 20-day moving average (₩602,000) and below its 60-day moving average (₩871,817). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 40.7, a neutral level. The one-month change is -31.9%, the three-month change is -12.3%, and the position relative to the 52-week high is -63.8%. Relative strength versus the KOSPI is 85 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 86% of all stocks. Over the past three months it outpaced the index by 3.5%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M +3.46% / 6M +82.99% / 12M +79.87%
Key metrics Computed vs whole-market median
Valuation
The P/E of 38.42x is above the whole-market median (12.97x). The P/B of 2.16x is above the whole-market median (0.84x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Intrinsic value (DCF estimate) Estimate
Model output — not a price target. This is what the formula returns under the assumptions below, not a view on where the share price should go.
DCF (discounted cash flow) estimate — discount rate 11.0%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 2.637x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 8.0%, above the whole-market average (3.0%). The operating margin is 3.7%. The debt ratio is 94.4%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $14.5B | $14.9B | $15.4B | +3.28% ↑ faster |
| Operating profit | $583.7M | $496.0M | $467.2M | -5.81% ↑ faster |
| Net profit | $397.1M | $315.6M | $239.7M | -24.04% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $10.5B | $13.8B | $14.5B | $14.9B | $15.4B |
| Operating profit | $888.1M | $893.4M | $583.7M | $496.0M | $467.2M |
| Net profit | $617.4M | $686.2M | $397.1M | $315.6M | $239.7M |
| Revenue CAGR | 4-yr avg 10.02% | ||||
Revenue rose 3.3% year over year (2023 ₩20.6 trillion → 2024 ₩21.2 trillion → 2025 ₩21.9 trillion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit fell 5.8% year over year. That said, the decline narrowed. Over the 5 years on record, revenue compound annual growth (CAGR) is 10.0%. The two-year revenue CAGR is 3.1%. In the most recent quarter (Q1 2026), revenue was 11.1% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-04-27EarningsQ1 2026 preliminary results — revenue ₩5,534.8 billion, operating profit ₩295.3 billion (+136% year over year), net profit ₩229.1 billion. Record revenue for a first quarter.Confirms passage of the earnings bottom and a rebound. Semiconductor substrates (package solutions) drove results, an early signal that the optics-heavy structure is easing. Source
- 2026-04-03DividendCash dividend decision — ₩1,880 per share. The dividend-on-price rate is about 0.25%.The dividend yield itself is low, but the dividend-paying stance is maintained during the earnings recovery. The payout ratio of about 13% leaves ample room to reinvest earnings. Source
- 2026-05-11IRNotice of an investor presentation (IR). The company presented plans to expand semiconductor-substrate capacity and to increase the substrate business's profit contribution.Confirms the company's investment direction toward the mid-to-long-term growth axis (FC-BGA and AI substrates). A concrete step in the strategy to ease optics dependence. Source
- 2026-05-14FilingFiling of the Q1 2026 quarterly report. Detailed results and financials disclosed by segment (optical solutions, package solutions, mobility solutions).Finalizes the preliminary results and officially confirms the revenue mix by segment. Reconfirms the net-cash balance sheet and the visibility of the automotive order backlog. Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-06-01Large-business-group status disclosure
- 2026-06-01Corporate governance report
- 2026-05-15PeriodicQuarterly report (amended)
- 2026-05-14PeriodicQuarterly report
- 2026-05-11Disclosure
- 2026-04-27EarningsFair-disclosure notice
- 2026-04-27OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-08OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-03EarningsEarnings disclosure
- 2026-04-01OwnershipOwnership-change filing
- 2026-03-23Disclosure
- 2026-03-23Shareholders' meeting notice
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.