Jaeyeong Solutec, 1Q Operating Profit 3.5 Billion KRW Up 116% YoY... "Increase in High-Value OIS Proportion"

Jaeyoung Solutec, a company specializing in camera actuators, recorded strong first-quarter results, raising expectations for significant performance improvement this year.

Jaeyoung Solutec announced on the 13th that its consolidated sales for the first quarter reached 36.7 billion KRW, and operating profit was 3.5 billion KRW, representing increases of 29.5% and 116.3%, respectively, compared to the same period last year. Net profit for the same period also rose sharply by 451.9% to 3.1 billion KRW.

The substantial performance improvement in the first quarter was driven by growth in the core Nano-Optics Business Division. The Nano-Optics Division posted sales of 31.1 billion KRW and operating profit of 3.9 billion KRW, up 26% and 80%, respectively, year-on-year. This was due to expanded supply volumes of the highly profitable optical image stabilization (OIS) devices to Samsung Electronics and increased production efficiency from full operation of the encoder production line.

In particular, actuator supply volumes surged due to strong sales of the Samsung Electronics Galaxy S24 series launched earlier this year and the sequential global release of the Galaxy S23 FE model. Jaeyoung Solutec supplies encoders for the Galaxy S24 series and OIS for the Galaxy S23 FE.

A company representative said, “The Nano-Optics Division’s performance is expected to continue its strong momentum from the first quarter, achieving record-high results this year. Especially in the second quarter, the global launch of new mid-to-low-end lineup products with high sales volume, such as the Galaxy A55, will expand the proportion of high-value-added OIS within total sales, further boosting performance.”

They added, “We are strengthening our technological and quality competitiveness and accelerating the development of next-generation actuators to sustain continuous growth.”

Sales in the Mold Business Division for the first quarter increased by 56% year-on-year to 5.6 billion KRW. While the supply volume of pallets rose due to improved conditions in the upstream industry, a slight operating loss was recorded due to increased development costs for product diversification.

The profitability of the Mold Business Division is expected to improve from the second half of the year thanks to securing new clients and increased production efficiency. In particular, benefits are anticipated from expanded demand for logistics equipment following the establishment of large-scale domestic logistics centers by Chinese distributors such as AliExpress this year.