[Click eStock] "DKT, Record-Breaking Performance Expected Next Year Thanks to Foldable Smartphones"

Despite Slowdown in Smartphone Shipments, 'Hero' Foldable Smartphones Show Strength

[Asia Economy Reporter Minwoo Lee] Smartphone component manufacturer DKTI is expected to achieve strong performance next year despite a slowdown in smartphone shipments. This is because demand for foldable smartphones, which account for about 30% of sales, remains robust.

On the 30th, NH Investment & Securities forecast that DKTI will record sales of 315.9 billion KRW and an operating profit of 17 billion KRW this year. Compared to the same period last year, sales are expected to decrease by 8.7%, while operating profit is projected to increase by 17.2%. Although the company experienced poor performance in the first half due to a slowdown in smartphone shipments from its clients, recovery began in the third quarter with increased volume driven by strong sales of foldable smartphones. Foldable smartphone shipments are also expected to remain steady in the fourth quarter, leading to favorable performance.

In particular, foldable smartphones are estimated to account for about 30% of total sales this year. This ratio is expected to increase to 37% next year. Since foldable smartphone flexible printed circuit assembly (FPCA) components are more profitable compared to those for other smartphone displays, they are anticipated to contribute to improved performance.

Against this backdrop, NH Investment & Securities expects DKTI to achieve record-high performance next year with sales of 358 billion KRW and an operating profit of 21.6 billion KRW.

Researcher Kyuhah Lee of NH Investment & Securities explained, "Despite sluggish smartphone shipments due to semiconductor supply shortages, DKTI will achieve solid performance this year thanks to increased volume from strong foldable smartphone sales. Next year, performance is expected to improve with expanded foldable smartphone shipments and a recovery in smartphone demand. Additionally, if new businesses such as automotive electronics become visible, further performance growth will be possible."

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