Shares of LG Innotek Co., electronic device components making unit of South Korean conglomerate LG Group, are extending winning streak on improved earnings forecast for this year, led by revenue growth in its camera module business.

According to securities industry sources on Friday, LG Innotek is expected to post operating profit reaching 300 billion won ($265 million) this year, doubling from the previous year’s 104.8 billion won.

The buoyant outlook comes after an improvement in its camera module business. Thanks to the success of Apple Inc.’s iPhone 7 Plus smartphones, for which LG Innotek is exclusively supplying dual camera modules, the camera module business of the Korean electronic device components maker also gained traction.

The global dual camera market is anticipated to grow larger, providing a bigger opportunity for LG Innotek as Chinese smartphone makers like Huawei and Oppo decided to release their new smartphone models with dual cameras.

LG Innotek’s operating profit for this year may even replace the previous record high of 314.0 billion won registered in 2014, said Kim Ji-san, an analyst at Kiwoom Securities, adding that the company’s new growth engine vehicle component business also has settled well.

Shares of LG Innotek ended down 3.6 percent at 120,500 won, taking a breath from a week-long winning streak.

Meanwhile, LG Electronics that registered massive 1.3 trillion won operating loss in the wireless business alone last year is predicted to deliver improved earnings this year. Given the electronics maker cuts down expenses worth millions of dollars and its new flagship G6 series smartphone fare well, the mobile communication division is expected to return to the black, industry watchers said.

The outlook for LG Uplus Corp., mobile carrier affiliate under LG Group is also rosy, thanks to strong growth in its high-speed wireless business and internet-based TV service. The country’s monthly average mobile data usage reached a record high of 6 gigabytes per person in the fourth quarter last year, raising prospects that the company’s internet-based TV service revenue to head upwards with an increase in the number of subscriptions to its paid video service. Moreover, the portion of subscribers to the lucrative “unlimited call and data plan” has reached 30 percent, far exceeding the industry average with 25 percent. Its new growth engine businesses like Internet of Things-based service seem to have the upper hand against others, said Kim Jang-won, an analyst at IBK Investment & Securities.

The shares of LG Electronics closed down 0.64 percent at 62,700 won on Friday, snapping a three-day winning streak. Those of LG Uplus ended down 1.50 percent at 13,100 won, also taking a break after three-day gaining streak.

By Hong Jang-won

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]