SFA, Secondary Battery Performance Gains Momentum... Q1 Sales Up 14% YoY

[Asia Economy Reporter Donghyun Choi] The performance growth of SFA's secondary battery division, a smart factory solution company, is becoming visible.

According to the Financial Supervisory Service's electronic disclosure system on the 14th, SFA's standalone sales in the first quarter amounted to 208.9 billion KRW, a 14% increase compared to the same period last year. Operating profit for the same period also rose 22% to 22.8 billion KRW.

The increase in sales is a result of realizing sales from the order backlog (668.6 billion KRW) at the end of last year. In particular, the secondary battery division grew rapidly. First-quarter sales in the secondary battery division reached 104.4 billion KRW, accounting for 50% of total sales. This is a 190% surge compared to 36 billion KRW in the same period last year.

Operating profit increased by 22% compared to 18.6 billion KRW in the same period last year due to the fixed cost sharing effect from the expanded sales scale. The operating profit margin also improved by 0.8% year-on-year.

Order performance also improved. First-quarter orders reached 258.9 billion KRW, a 95% growth compared to 132.7 billion KRW in the same period last year, driven by increased orders in the display and secondary battery divisions. The display division recorded 88.6 billion KRW, a 260% increase compared to 24.6 billion KRW in the same period last year, due to expanded orders from overseas panel companies. The secondary battery division achieved 110.8 billion KRW, expanding 172% compared to 40.7 billion KRW in the same period last year, thanks to increased orders for overseas process equipment from domestic clients and orders for fuel cell logistics systems. Additionally, orders from overseas clients were partially reflected in the results. SFA expects continuous growth in orders from overseas clients going forward.

Consolidated sales rose 16% year-on-year to 410.8 billion KRW from 355.6 billion KRW, and operating profit increased 19% to 50.5 billion KRW. The consolidated performance improved thanks to the better results of SFA and its consolidated subsidiary, SFA Semiconductor.

An SFA official stated, "The first quarter is encouraging as not only sales but also the leading indicator of order backlog showed balanced growth across all business divisions, including display and non-display sectors," adding, "Based on a diversified business structure, we will realize full-scale growth and establish ourselves as a leader in smart factory solutions in domestic and international markets."