🛑 LG Innotek, a Hidden Value Trap Amidst AI and Robot Hype - 2026.07.22

Hello, it's Peanut, here to scrutinize valuations from the ground up. Today, LG Innotek surged to as high as 685,000 KRW during the session, heating up the market. It's time to coolly verify whether this rebound marks the beginning of a true structural growth phase.

Robots and AI Substrates, the Dream of Multiple Expansion 💼

Recently, the market's perspective on LG Innotek is broadening beyond being just an Apple supplier to include AI and robots. Notably, news has emerged that the company is in discussions to supply camera modules for humanoid robots to the U.S.-based Figure AI ^[1]. Furthermore, as the explosion in AI demand leads to a shortage in semiconductor substrate supply, it is reported that the company is pushing for LTA (Long-Term Agreements) with various clients regarding the expansion of its FC-BGA facilities in Gumi and Vietnam ^[2]. In essence, the AI tailwinds from the U.S. stock market have directly translated into a stock price surge ^[3]. Looking at the story alone, it feels like a PER re-rating could happen at any moment. However, it is not yet at a stage where we can verify how much these expectations will translate into actual operating profit figures.

Strong Performance and MSCI Inclusion Expectations 📈

Short-term momentum is also quite robust. Analysis suggests that the anticipation of an earnings surprise from the parent company, LG Electronics, is largely driven by LG Innotek's strong performance and tariff refund effects ^[4]. Added to this is the brokerage consensus that LG Innotek has the highest probability of being newly included in the August MSCI review ^[5]. In fact, the closing price on the 22nd was 648,000 KRW (+3.02%), and the stock saw strong buying pressure throughout the session. Institutions and foreigners net-bought 13.65 billion KRW and 5.30 billion KRW respectively, effectively defending the stock price.

Hidden Value Trap in a Bull Market 🛑

At this point, everyone might only see a rosy future, but is that really the case? From a short-to-medium-term swing perspective, there are certainly attractive supply-demand events waiting. However, even in a bullish atmosphere, we must always be wary of bearish scenarios. The MSCI inclusion event carries the risk of leading to a 'sell-the-news' effect once the announcement date approaches, and the expectations for new businesses like substrate expansion or robot modules have not yet been proven by concrete PBR growth logic. I believe there is a sufficient possibility of a value trap where the speed of fundamental improvement fails to keep pace with expectations behind the current flashy positive factors. Now is the time to obsessively crunch the numbers to see if the current upward trend is true strength or a temporary illusion created by supply and demand.

📰 Reference News (5)

1

'Next-Gen Golden Egg' Robot Eyes… The Race for Dominance Begins

네이버뉴스 · 2026.07.22

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2

Daeduck Electronics Pushes for Consecutive LTAs with Big Tech... Accelerating Semiconductor Substrate Investment - THE ELEC

네이버뉴스 · 2026.07.22

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3

Focus on the AI Infrastructure Value Chain... LG · LG Electronics · LG Innotek

네이버뉴스 · 2026.07.22

📰 View original

5

MSCI August Review Outline… LG Innotek Expected to be Included, 4 Stocks Including HLB Expected to be Excluded

네이버뉴스 · 2026.07.22

📰 View original