[Public Notice+] T-Plex Reports 35.5 Billion KRW in Q2 Sales... "Thanks to Strong Export Performance"

[Asia Economy Reporter Yoo Hyun-seok] T플랙스 announced on the 10th that it recorded sales of 35.493 billion KRW and an operating profit of 1.294 billion KRW in the second quarter. Sales increased by 13.29% compared to the same period last year, and operating profit surged by 97.55%.

T플랙스 attributed the strong performance to robust exports. The company's export amount in the first half of this year was 4.975 billion KRW, a 21.5% increase compared to the same period last year. T플랙스, which started exporting for the first time in 2017, recorded export performances of 9.042 billion KRW in 2018 and 8.483 billion KRW in 2019. This year, it is expected to achieve the highest export performance ever.

Last month, T플랙스 also signed a supply contract with a Taiwanese company for 300 tons, the largest single export contract to date. Along with the export boom, steady increases in orders in domestic markets for module materials for electric vehicle batteries and ultra-low temperature valve materials for LNG ships have contributed to T플랙스’s improved performance in upstream industries.

A T플랙스 official said, “Building steady trust relationships with clients in Taiwan, a major export country, has led to T플랙스 products being chosen over Japanese or European products despite the COVID-19 pandemic,” adding, “We are not just selling products but conducting technical sales linked to the quality, process, and applications of stainless steel, which has been well received by domestic and overseas clients.”

Along with increased sales, profit margins also improved. T플랙스’s operating profit margin in the second quarter was 3.6%, up from 2.1% in the same period last year and 3.2% in the previous quarter. The company analyzed that the improvement in profit margin was clear as depreciation expenses in the sheet metal business division decreased from about 600 million KRW last year to 300 million KRW this year.

Thanks to increased orders in the wire rod business division, T플랙스 recently expanded its CDM line facilities, increasing production capacity from 700 tons to 1,000 tons per month. The company expects that the operation of the new CDM line will adequately meet the growing demand from upstream industries such as semiconductors. Moreover, with international nickel prices, which affect the unit price of T플랙스 products, continuously rising, the company anticipates continued performance improvement in the second half of the year.

Kim Young-guk, CEO of T플랙스, said, “Despite the difficult situation caused by the recent COVID-19 pandemic, we are implementing an aggressive sales growth strategy to turn the crisis into an opportunity,” and added, “With the expansion of the electric vehicle market, sales in the company’s wire rod business division are expected to continue increasing.”