Samsung Electro-Mechanics Q3 Operating Profit 302.5 Billion KRW... 60% Increase YoY

[Asia Economy Reporter Ki-min Lee] Samsung Electro-Mechanics announced on the 26th that it recorded consolidated sales of 2.2879 trillion KRW and operating profit of 302.5 billion KRW for the third quarter of this year.

Sales and operating profit increased by 3% and 60%, respectively, compared to the third quarter of last year, and rose by 26% and 215%, respectively, compared to the previous quarter.

Samsung Electro-Mechanics explained that the performance of all business divisions, including components, modules, and substrates, improved compared to the previous quarter due to the recovery in demand in the IT and automotive markets, as well as yield and equipment efficiency improvements. Compared to the same period last year, operating profit increased due to expanded sales of high value-added products such as small and high-capacity multilayer ceramic capacitors (MLCC), mobile application processor (AP) packages, and thin CPU package substrates.

By business division, the components division recorded sales of 983.2 billion KRW in the third quarter. It stated that sales of high-spec MLCCs, such as small and high-capacity types, increased due to the launch of new models including Samsung Electronics' Galaxy Note20 series, a major smartphone client. Additionally, MLCC supply for automotive applications increased due to the recovery in demand in the automotive market, rising 17% compared to the second quarter and 20% compared to the same period last year.

The modules division achieved sales of 852.7 billion KRW in the third quarter. It explained that supply of high-performance camera modules, such as folded zoom, increased by 41% compared to the previous quarter, driven by the launch of Samsung Electronics' Galaxy Note20 series. However, it added that sales decreased by 9% compared to the same period last year due to an overall decline in smartphone market demand.

The substrates division recorded sales of 452 billion KRW in the third quarter, up 23% from the previous quarter but down 1% from the same period last year. Samsung Electro-Mechanics explained that supply of new models of package substrates for mobile AP and thin CPU, as well as flexible printed circuit boards (RFPCB) for OLED, increased compared to the previous quarter.

Samsung Electro-Mechanics stated that it expects steady market demand for IT and automotive MLCCs and package substrates in the fourth quarter of this year, and plans to expand supply of high value-added MLCCs, 5G antenna package substrates, and mobile AP package substrates.

It also plans to expand sales of high-performance camera modules for flagship smartphones and high-spec camera modules for mid-range smartphones, and diversify clients for 5G mmWave antenna modules, which began mass production in the third quarter.