KMH Hi-Tech Posts Strong Q1 Performance Despite COVID-19 Impact... Operating Profit Up 352% YoY

Published 18 May.2020 07:00(KST)

[Asia Economy Reporter Eunmo Koo] KMH Hi-Tech recorded strong performance in the first quarter of this year despite the spread of the novel coronavirus disease (COVID-19). KMH Hi-Tech is a specialized company that produces and supplies components and materials used in semiconductor processes and items related to SSD, the next-generation storage device.

KMH Hi-Tech announced on the 18th through a public disclosure that its operating profit based on consolidated financial statements for the first quarter of this year reached 1.1656 billion KRW, marking a 351.6% growth compared to the same period last year. During the same period, sales increased by 27.5% to 15.66193 billion KRW, and net profit rose by 242.7% to 1.09686 billion KRW.

A KMH Hi-Tech official explained, “The increase in orders from overseas clients significantly contributed to sales growth, and the advancement of production technology enabled us to achieve markedly improved results compared to the same period last year.” He added, “The factory currently under construction at the Que Vo 2 Industrial Complex in Vietnam is progressing according to plan, so it is expected to contribute to sales growth and profit margin improvement starting from the third quarter of this year.”

Earlier, KMH Hi-Tech announced in January that it would invest 7.8 billion KRW to build a new factory in the Que Vo 2 Industrial Complex area in Bac Ninh, Vietnam. The strategy is to add a production site in Vietnam to the existing sites in China and the Philippines to facilitate business relations with large clients and improve the cost structure, including labor and transportation costs. The factory site in Vietnam covers 5,000 pyeong of land and 2,000 pyeong of building area.

Established in 1997, KMH Hi-Tech is a semiconductor packaging specialist and a major affiliate of KMH. Leveraging its technological and sales capabilities, KMH Hi-Tech has expanded into the global market and currently operates subsidiaries in five locations: Suzhou and Xi’an in China, Clark in the Philippines, and Hanoi in Vietnam.