Samsung Electro-Mechanics Reports Q1 Operating Profit of 331.5 Billion KRW, Up 99% YoY (Update)

[Asia Economy Reporter Kim Heung-soon] Samsung Electro-Mechanics announced on the 28th that its consolidated operating profit for the first quarter of this year was preliminarily estimated at 331.5 billion KRW, a 99.4% increase compared to the same period last year. Sales reached 2.3719 trillion KRW, up 11.2% year-on-year. Net profit increased by 82.2% to 242.7 billion KRW.

Samsung Electro-Mechanics explained that the sharp increase in operating profit was due to increased sales of high-value-added products such as small, high-capacity IT multilayer ceramic capacitors (MLCC) and semiconductor package substrates, driven by the rise in non-face-to-face demand. They added that the recovery in demand from the automotive market, along with expanded supply of automotive MLCC and high-spec camera modules for strategic clients, supported the overall performance improvement.

This year, demand recovery for IT devices such as smartphones and PCs is expected to continue, and the automotive market is also anticipated to improve. Samsung Electro-Mechanics plans to secure stable supply capabilities to meet the growing market demand for MLCC and high-performance semiconductor package substrates, and to expand sales of high-spec camera modules to maintain its performance growth trend.

Performance and Outlook by Business Division

Looking at the performance by business division, the Components division achieved sales of 1.0884 trillion KRW, up 27% year-on-year and 13% quarter-on-quarter, due to expanded sales of IT MLCC and increased product supply following the recovery in automotive demand. The company plans to actively respond to market demand in the second quarter by improving productivity, manufacturing efficiency, and expanding supply capacity, as demand in IT and automotive markets is expected to continue.

The Modules division recorded first-quarter sales of 841.3 billion KRW, down 6% year-on-year but up 49% quarter-on-quarter, due to expanded supply of camera modules for strategic clients. However, early supply ahead of the flagship new product launch affected the year-on-year comparison. Samsung Electro-Mechanics explained that although a seasonal decline in camera module demand is expected in the second quarter, they plan to diversify clients including those in China and expand supply of mid- to high-spec camera modules for entry-level smartphones.

The Substrates division’s first-quarter sales were 442.2 billion KRW, up 15% year-on-year but down 21% quarter-on-quarter, due to seasonal demand decline for flexible printed circuit boards (RFPCB) for OLEDs. However, increased supply of package substrates for mobile applications processors (AP) and PC central processing units (CPU) contributed to the year-on-year growth. In the second quarter, the company plans to enhance profitability by expanding production capacity focused on high-value-added products.

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