LG Display (US:LPL)2025-10-30 06:02Financial Data and Key Metrics Changes - Revenue for Q3 2025 was KRW 6.957 trillion, up 25% QoQ and 2% YoY [4] - Operating profit reached KRW 431 billion, improving by over KRW 500 billion QoQ and YoY [4] - Net income was KRW 1.2 billion, influenced by foreign currency translation gains [5] - EBITDA in Q3 was KRW 1.4239 trillion with an EBITDA margin of 20% [5] - Cash and cash equivalents stood at KRW 1.555 trillion, largely unchanged QoQ [7] - Debt-to-equity ratio was 263%, down 5 percentage points QoQ [7] Business Line Data and Key Metrics Changes - Mobile and others segment revenue share reached 39%, up 11 percentage points QoQ [6] - The share of OLED products out of total revenue was 65%, up 9 percentage points QoQ [6] - TV segment revenue share was 16%, down 4 percentage points QoQ [6] - Auto segment's share was 8%, down 2 percentage points QoQ [6] Market Data and Key Metrics Changes - Area shipment fell 1% QoQ despite growing shipments of small and medium OLED products [5] - ASP per square meter was $1,365, up 29% QoQ [5] - Total area shipment is projected to grow in low single-digit percentage QoQ for Q4 [8] Company Strategy and Development Direction - The company is focusing on an OLED-centered business structure upgrade and cost innovation [10] - Plans to expand panel shipments in the small mobile business and invest in new technologies for IT OLED [12] - In the IT LCD business, the company aims to reduce low-margin products while focusing on B2B and high-end segments [13] - The company intends to maintain strong partnerships with strategic customers to solidify its market leadership [21] Management's Comments on Operating Environment and Future Outlook - Management expects external uncertainties and shipment volatility to persist in Q4 [11] - The company plans to address challenges by prioritizing business efficiency initiatives [11] - OLED products revenue share is expected to remain stable QoQ in Q4, with an annual share projected at a low 60% level [11] Other Important Information - The company plans an additional workforce improvement program in Q4 as part of ongoing cost innovation efforts [11] - Capex for the year is expected to be in the high KRW 1 trillion range, below last year's level [14] Q&A Session All Questions and Answers Question: Does the company believe it has the structure to sustain current business performance? - The company has improved performance through internal capabilities and cost innovation, aiming for stable performance moving forward [19][21] Question: How will the company respond to potential pressure to lower ASP due to macro uncertainties? - The company will maintain an optimum pricing strategy while upgrading product mix and continuing cost innovation [22] Question: What is the market reception for new models by the North American customer? - The company has achieved stable performance and positive reception for new models, with potential changes in shipment plans based on market trends [26] Question: What is LG Display's strategy for the foldable smartphone panel business? - The company is maximizing supply volume for existing products while preparing for potential market growth in foldable smartphones [33] Question: What are the plans for the LCD IT business amidst intensifying competition? - The company is focused on maintaining profitability by selecting strategic customers and downsizing low-margin models [38] Question: What is LG Display's strategy for the OLED TV business in light of competition? - The company projects growth in OLED panel shipments and aims to strengthen competitiveness through cost innovation and partnerships [43]