LG Innotek is undergoing a corporate value reassessment, receiving positive evaluations from the securities industry due to increased substrate demand driven by the expansion of the artificial intelligence (AI) and high-performance semiconductor markets.

Mirae Asset Securities recently raised its target price for LG Innotek in a report. The main reasons for this target price increase were cited as the change in the valuation criteria for the substrate business division and the extension of the earnings forecast period. According to the report, Mirae Asset Securities increased the EV/EBITDA multiple of the substrate business division from the previous 15x to 21x. This is interpreted as a measure reflecting the valuation levels of global semiconductor substrate companies, as the profitability and growth potential of the semiconductor substrate industry are being reassessed due to the recent growth of the AI semiconductor and high-performance server markets.

Additionally, the baseline year for calculating corporate value was extended from 2026 to 2028. This valuation method, which places more weight on mid-to-long-term growth potential rather than short-term performance, reflects the forecast that the company will continue to benefit from the future expansion of the AI industry.

The market is noting that LG Innotek is shifting away from its existing business structure centered on camera modules and expanding the proportion of high-value-added businesses such as semiconductor substrates and automotive electronic components. In particular, advanced substrate businesses like flip-chip ball grid arrays (FC-BGA) are highlighted as areas that will directly benefit from the increasing demand for AI servers and data centers. As global big tech companies expand their AI investments and compete to expand data centers, the installation of high-performance semiconductors is increasing. The resulting accompanying rise in demand for advanced packaging and substrates is heightening growth expectations for LG Innotek.

The securities industry projected that LG Innotek's corporate value could be further reassessed depending on the future expansion of the AI semiconductor market and the growth rate of its substrate business. Investors are closely watching the second-half earnings, new order trends, and AI-related business performance as key momentum drivers moving forward.