LS Cable Asia Reports 7.3 Billion KRW Operating Profit in Q1, Up 21% YoY

"Quarterly Record High"

[Asia Economy Reporter Ki-min Lee] LS Cable Asia announced on the 10th that it recorded consolidated sales of 132.5 billion KRW and operating profit of 7.3 billion KRW in the first quarter of this year. Compared to the same period last year, sales increased by 8.35% and operating profit rose by 21%.

LS Cable Asia's operating profit in the first quarter of this year is the highest quarterly performance since entering Vietnam in 1996 and listing on the Korea Exchange in 2016. The company stated that the main factor was the increased profitability of its key business segment, distribution (medium and low voltage cables), compared to the previous year. However, due to rapid fluctuations in the foreign exchange market, foreign currency valuation losses increased compared to last year, resulting in a decrease in pre-tax profit, but this is temporary and the company's growth foundation remains solid.

An LS Cable Asia official said, "We have been continuously investing in facilities to prepare for the increasing power demand in Vietnam, and the effects of these investments have been ongoing since last year." He added, "The medium voltage cable expansion investment completed in February this year and the full-scale growth of the Myanmar production subsidiary, which started at the end of 2018, will be additional growth drivers this year."

The official also explained, "Although a difficult year is expected due to the prolonged COVID-19 pandemic, we will minimize the impact on performance caused by COVID-19 by conducting aggressive marketing based on stable production capacity in the Vietnamese power market, which is relatively less affected compared to the global market, to increase domestic and global customer acquisition."

LS Cable Asia is the holding company of two production subsidiaries in Vietnam and one in Myanmar, producing power cables, wire materials, and processed wires.

This content was produced with the assistance of AI translation services.