Organic Light Emitting Diode (OLED) material company EM&I announced on the 14th that its consolidated operating profit and net profit for the third quarter recorded 200 million KRW and 100 million KRW respectively, achieving a turnaround to profitability. Sales for the same period amounted to 7.2 billion KRW.
On a cumulative basis, sales reached 23.4 billion KRW and operating profit 1 billion KRW, increasing by 26.7% and 730.1% respectively compared to the same period last year. Net profit for the period was 1.2 billion KRW, up 105.3% year-on-year.
The company explained that although sales growth was somewhat sluggish due to Apple iPad Pro, the first device to apply OLED, falling short of expectations, profitability improved following the liquidation of its Chinese Huizhou subsidiary. With the expanding adoption of OLED displays, as well as the visibility of deuterated materials and Indian battery cell supply businesses, future performance growth is expected to gain momentum.
A company representative stated, “Since we conduct dollar transactions with global company D, which accounts for the majority of our sales, foreign exchange risk is minimized, and there is a profit expansion effect due to exchange rate increases. Supported by a favorable market environment, such as major domestic display companies increasing small- and medium-sized OLED production by 10% next year, we will strive to enhance corporate value.”
He added, “It is regrettable that there have been attempts to trigger management disputes, including recent demands to convene an extraordinary shareholders' meeting. The existing management team, composed of OLED experts, will do their best to achieve various results in both existing and new businesses.”
Meanwhile, CEO Ko Chang-hoon of EM&I has been steadily purchasing company shares, judging that the stock price is undervalued. This year, CEO Ko has bought 267,000 shares, increasing his holdings to 517,000 shares (2.42%).
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