Cham Engineering Reports 53.2 Billion KRW in Q3 Sales..."Increase in Exports to China"

[Asia Economy Reporter Yoo Hyun-seok] Cham Engineering, a display repair equipment company, announced on the 3rd that despite the adverse effects of the novel coronavirus disease (COVID-19), exports to China surged significantly in the third quarter, achieving the highest sales and successfully turning a profit.

Cham Engineering stated in its quarterly report that it recorded individual sales of 53.2 billion KRW, operating profit of 6.2 billion KRW, and net profit of 9.9 billion KRW in the third quarter. Compared to the previous quarter, sales increased by 173%, and operating profit and net profit turned positive.

A Cham Engineering official said, "On an individual basis, we posted a surprising performance of 53.2 billion KRW in the third quarter, nearly double the half-year cumulative sales of 27.2 billion KRW," adding, "Most of the sales were from exporting equipment to new OLED and large LCD fabs invested in by Chinese display companies CSOT, HKC, and GVO."

He explained, "Based on the order backlog of 71 billion KRW at the end of the third quarter, new orders and exports to China are expected to continue in the fourth quarter, maintaining steady sales performance," and "The significant increase in net profit in the third quarter was due to a 5.1 billion KRW cash dividend received as an interim dividend from our subsidiary, Cham Savings Bank."

On a consolidated basis, Cham Engineering recorded third-quarter sales of 69 billion KRW, operating profit of 9.5 billion KRW, and net profit of 13.4 billion KRW, boosted by the strong operating performance of its subsidiary Cham Savings Bank. The cumulative third-quarter figures were sales of 126.7 billion KRW, operating profit of 4.3 billion KRW, and net profit of 15.3 billion KRW.

A company official emphasized, "Although the business environment is expected to remain challenging next year due to the spread of COVID-19 and other factors, we will focus on key tasks such as continuous internal efficiency improvement, cash flow stabilization, and sustained investment in new businesses for the future."

Cham Engineering plans to strengthen its performance through the development of new equipment. Recently, there has been an increase in the release of displays such as TVs, monitors, and laptops adopting Mini LED technology. The company aims to complete the development of equipment capable of repairing both Mini LED and Micro LED within this year and plans to enhance marketing efforts targeting global display panel companies and LED backlight manufacturers in Korea, China, Taiwan, and other regions.

Additionally, as sales of smartphones adopting foldable displays are increasing, the company will develop related equipment to strengthen its business. A Cham Engineering official stated, "As the adoption of foldable displays expands from smartphones to tablets and laptops, investment in foldable display production fabs is also expected to increase," adding, "To prepare for increased demand for foldable display inspection equipment requiring new inspection technologies, we have developed post-process cell inspection equipment. We expect to complete the new technology development by the end of this year and to enter the market in earnest next year."