[Click eStock] Comico, Rapid Growth in Overseas Sales... "Top Competitiveness in Semiconductor Parts Coating"

[Asia Economy Reporter Ji Yeon-jin] Hana Financial Investment evaluated on the 17th that Comico has secured the best competitiveness in the semiconductor parts cleaning and coating market, as its overseas subsidiary sales exceeded 100 billion KRW last year and the overseas subsidiary growth rate recorded 20% in the first quarter of this year.

Comico is a supplier that cleans and coats parts for semiconductors and displays. Its consolidated performance for the first quarter of this year showed sales of 59.7 billion KRW and operating profit of 13.8 billion KRW, surpassing market expectations. Domestic subsidiary sales recorded the high 20 billion KRW range, exceeding the record high level of the fourth quarter of 2018.

It is analyzed that not only semiconductor customers such as Samsung Electronics and SK Hynix but also customers supplying etching and deposition equipment contributed to Comico’s performance. In particular, overseas subsidiary sales are estimated to have settled in the 30 billion KRW range. Two major overseas subsidiaries recorded sales in the 10 billion KRW range, and other regions (Taiwan, Singapore, China) also showed strong performance.

In the case of the U.S. subsidiary, which was affected by the Texas Austin cold wave, sales in dollar terms increased by more than 5% year-on-year excluding exchange rate effects.

Kim Kyung-min, a researcher at Hana Financial Investment, said, "Considering the many competitors in the domestic cleaning and coating market, this is a remarkable performance," and added, "Last year, the overseas business settling at the 100 billion KRW level in sales will be a catalyst for firmly maintaining its position in the cleaning and coating market."

Comico’s sales for this year are projected at 250.2 billion KRW, with operating profit at 52.2 billion KRW. Reflecting the growth in performance of domestic and overseas subsidiaries and the increase in coating demand from semiconductor equipment suppliers, quarterly sales are estimated to continue rising compared to the previous quarter. Following 59.7 billion KRW in the first quarter, sales are expected to be 61.9 billion KRW in the second quarter, 62.6 billion KRW in the third quarter, and 66.1 billion KRW in the fourth quarter.

Regarding operating profit, the period when Comico recorded its highest annual operating profit was 2018 with 40.6 billion KRW, and the quarterly average at that time was 10 billion KRW. Since the first quarter of this year recorded 13.8 billion KRW, quarterly operating profit of around 12 to 13 billion KRW is expected. Researcher Kim said, "the reason why quarterly changes in operating profit are estimated to be minimal despite the stepwise increase in sales is due to stock-based compensation expenses," adding, "Compensation expenses arising from stock price increases amounted to 1.39 billion KRW in this first quarter as well. Since these costs are unrelated to production performance, quarterly sales remain the most important indicator when assessing Comico’s performance."

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