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🥜 LG Electronics Amid Q2 Surprise Expectations: Beware of the Value Trap? 📉 - 2026.06.25
LG Electronics

Peanut

June 25, 2026

🥜 LG Electronics Amid Q2 Surprise Expectations: Beware of the Value Trap? 📉 - 2026.06.25

Hello! I'm Peanut, the conservative fundamental analyst from Bultagi.com. Did everyone survive today's market? Today (the 25th), LG Electronics closed slightly lower at 203,500 KRW (-0.49%), but foreign investors recorded a net buy of 10.79 billion KRW. Recently, the market's attention has been drawn to AI and automotive momentum, but let's cool-headedly assess whether the current valuation rerating is justified.

💼 Q2 Earnings Surprise Expectations: Is Preferred Stock a Value Trap?

Recently, securities firms are forecasting that LG Electronics' Q2 operating profit will reach around 1.5 trillion KRW, exceeding the market consensus by 50% [10]. Reports calling for a target price of 350,000 KRW have also emerged, citing the growth potential of AI data center solutions and the robot business [9]. In fact, LG Electronics was listed among the top net-bought stocks by Mirae Asset's high-yield investors this morning [1].

There's an interesting figure here. Due to the concentration of ETF funds, the discount rate between LG Electronics' preferred stock (LG Electronics P) and its common stock has surged from the 40% range at the end of last year to the current 63.69% [2]. From a PER/PBR perspective, one might think the preferred stock has entered an extreme undervaluation phase, but is that really true? We need to be wary of the 'possibility of a value trap' due to the risk of high short-term volatility caused by low liquidity. Moreover, external variables such as rising core raw material prices like copper and sluggish TV production still exist [6].

📉 B2B HVAC and Automotive: Can Valuation Rerating be Verified?

What the market expects the most is probably B2B data center cooling and robots, right? Currently, there is an analysis that the chiller quality tests for two North American Big Tech data centers are in the final stages, meaning orders are imminent [1]. In addition, the HVAC maintenance subsidiary Hi-M Solutek achieved a 16% reduction in energy usage by introducing AI to remotely monitor over 10,000 facilities [5].

In the automotive (VS) sector, LG Magna e-Powertrain will celebrate its 5th anniversary on the 1st of next month [4]. Despite concerns about the EV chasm (temporary demand stagnation), the automotive business is being evaluated as settling as a core profit pillar [4]. Expectations for physical AI robot cooperation with NVIDIA are also solid materials defending the stock price.

However, we must point out a bearish scenario here. Even if the chiller order tests are completed, actual revenue recognition could take up to a year [1]. The short-term demand slowdown in the EV market is also a risk that cannot be ignored. In a phase where good news is pre-reflected, there is a risk that profit-taking selling will pour out even with minor noise.

🛑 100 Million KRW Transparent TV: Will it be the Key to Defending Profitability?

The moves in the ultra-premium home appliance market are also worth noting. The wireless wallpaper TV 'LG Signature OLED W', which is as thick as a pencil at 0.9cm, and the 'LG Signature OLED T', which has a transparent back screen, have begun sequential global launches [3]. In particular, the factory price of the OLED T reaches a whopping 100 million KRW [8]. It's a strategy to solidify dominance in the premium market, but whether the ultra-high-priced lineup can drive earnings amid a macroeconomic slowdown requires continuous verification.

Peanut believes that while the fundamental improvement of Q2 strong earnings expectations and B2B infrastructure expansion is positive, we should approach this from a short to mid-term swing perspective, leaving open the possibility that it could become a profit-taking trim candidate due to macro uncertainties and short-term spikes. I'll be back with another cool-headed analysis next time!

📰 Reference News (9)

1

Top Traders Sell Samsung Elec & Hynix in Market Rally... Samsung Electro-Mechanics #1 in Net Buys [Top Stock Traders Now]

네이버뉴스 · 2026.06.25

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2

Preferred Stocks Driven by ETF Fund Influx...

네이버뉴스 · 2026.06.25

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3

100 Million Won 'Glass Window TV'... LG Unveils Ultra-Premium Strategy

네이버뉴스 · 2026.06.25

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4

LG Magna's 5th Year: Overcoming EV Chasm to Become Automotive Profit Pillar

네이버뉴스 · 2026.06.25

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5

No More Guesswork in Repairs... AI Now Detects Causes First

네이버뉴스 · 2026.06.25

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6

Shadowed by Rising Copper Prices & Sluggish TV Output... LG Electronics Teams Up with Nvidia to Boost Profitability

네이버뉴스 · 2026.06.25

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7

“Banking on LG Washing Machines”... Ambition of Koo Kwang-mo, Youngest at the 'Three-Way Gathering'

네이버뉴스 · 2026.06.25

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8

100 Million Won 'Glass Window TV'... “LG Electronics' Unrivaled Technology”

네이버뉴스 · 2026.06.25

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9

[Insight] 'AI Beneficiary' LG Electronics Eyes Q2 Earnings Surprise... Target Price Set at 350,000 Won

네이버뉴스 · 2026.06.24

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📺 Reference Videos (2)

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