LG Corp. nearly doubled second-quarter operating profit as a recovery in the group's electronics businesses sharply lifted equity-method income, underscoring a widening split between stronger consumer electronics and components performance and weaker chemicals profitability. The South Korean holding company reported second-quarter consolidated revenue of ₩2.14 trillion, up 19% year over year, operating profit of ₩533 billion, up 92.5%, and net profit of ₩533.8 billion, up 118.6%. Net profit attributable to shareholders of the parent company rose 127.6% to ₩465.7 billion. As a pure holding company, LG Corp. earns mainly from subsidiary dividends, LG brand licensing fees and rental income, and its second-quarter surge was driven largely by equity-method income, which climbed 274.7% to ₩348.1 billion. The improvement was led by LG Electronics and LG Innotek. LG Electronics posted second-quarter revenue of ₩22.74 trillion, up 10.9%, and operating profit of ₩1.27 trillion, up 99.3%, helped by stronger home appliance sales in growth markets and premium TV demand tied to major international sporting events. LG Innotek reported revenue of ₩5.93 trillion, up 29.8%, and operating profit of ₩245.8 billion, up 114.8%, supported by demand for optical solutions and semiconductor substrates. Cost cuts, U.S. tariff refund effects and higher semiconductor substrate selling prices also supported margins. LG CNS also improved, moving from a ₩37 billion loss a year earlier to a ₩19.3 billion profit. For the first half, LG Corp. reported consolidated revenue of ₩3.94 trillion, up 5.5%, operating profit of ₩946.8 billion, up 3.5%, and net profit of ₩912.8 billion, up 7.1%. Electronics remained the main profit engine, with first-half revenue rising to ₩58.9 trillion from ₩55.4 trillion and operating margin improving to 5.6% from 3.3%. Chemicals revenue rose to ₩29.7 trillion from ₩27.8 trillion, but operating margin fell to 2.6% from 4.0% as lower EV battery production volumes and ESS (energy storage system) transition costs weighed on profitability despite higher petrochemical prices and North American ESS growth. Communications and services also improved, with LG Uplus benefiting from B2B activity including home networking and AIDC (AI data centers). Hon Hai Precision Industry, reporting on the same market theme, posted second-quarter net profit of NT$59.97 billion, up 20% quarter over quarter and 35% year over year, with EPS of NT$4.27, a record for the period. First-half net profit reached NT$109.89 billion, up 27%, with EPS of NT$7.84. Rotating CEO Chiang Chi-heng said order visibility has improved since May, third-quarter operations will continue to trend upward, and 2026 will see strong growth with full-year operating margin expected to top last year's 3.2%. He said AI demand remains very strong, with visibility extending to 2027, while Hon Hai's AI rack market share is approaching 50% and its ASIC (custom chip) server market share is targeted at over 40%. Hon Hai said next-generation Vera Rubin AI racks will begin volume production and shipment in the third quarter and become the flagship product next year, while existing GB series rack demand should continue at least through next year. July consolidated revenue hit a record NT$946.5 billion, and investors expect August and September revenue to keep rising on AI demand and Apple's new iPhone launch cycle. Even so, the stock fell 2.96% on August 13 to NT$262 after opening at NT$274.5 and touching NT$261 intraday, a sell-the-news reaction that contrasted with a 503-point rise in Taiwan's broader market. Brokerages nonetheless lifted targets. Citi kept a Buy rating and raised its target price to NT$400 from NT$360, citing vertical integration and in-house AI rack components exceeding 50%. Nomura raised its target to NT$435, the highest among institutional analysts. SinoPac Securities Investment Advisory lifted its target to NT$355, and Yuanta Investment Consulting set NT$282, pointing to AI server shipments, Apple's second-half production cycle, high-end 800G-and-above switch exposure and ASIC positioning. CFO Huang Te-tsai said ASIC server revenue was about 10% of total AI server revenue last year, and the first-half share this year has already slightly surpassed that full-year level. Chiang also said Hon Hai plans to expand capacity next year in Taiwan, the United States, Mexico and Vietnam to meet AI demand. Together, the results highlight two different positions in Asia's tech supply chain: LG is benefiting from an electronics rebound while managing chemicals transition costs, and Hon Hai is leaning into AI infrastructure growth while facing tighter market scrutiny over valuation and profit delivery.