Apple Suppliers LG Innotek, Inventec Lead Rally After Earnings
LG Innotek, the South Korean camera-module supplier, surged 3.5 percent to 93,700 won in Seoul, the highest close since June 19. The company, which today reported stronger-than-estimated second-quarter profit, gets 3.3 percent of its revenue from Apple, according to data compiled by Bloomberg.
Apple, the world’s most-valuable technology company, reported earnings of $7.47 a share from April to June, beating the $7.30 average estimate compiled by Bloomberg. Apple plans to release updated versions of top-selling devices later this year as it tries to reclaim sales ground lost to Samsung Electronics (005930) Co. and Chinese makers of cheaper smartphones.
“Apple’s comments on new products and its better-than-expected profit are positive to South Korean suppliers, especially in the second half of this year,” Eo Kyu Jin, a Seoul-based analyst at IBK Securities Co., said by phone today.
Taiwan’s Inventec, maker of Apple notebooks, surged 6.8 percent at the close, while the benchmark Taiex index fell 0.2 percent.
Other Apple suppliers also climbed after the company’s earnings release. LG Display Co., which gets 3.3 percent of its revenue from the Cupertino, California-based company, recorded its steepest increase in two weeks.
To contact the reporter on this story: Sharon Cho in Seoul at firstname.lastname@example.org