Unitrontech Improves Profits Due to Growing Demand for Automotive Semiconductors

[Asia Economy Reporter Hyungsoo Park] Unitrontech achieved strong performance in the third quarter.

According to the Financial Supervisory Service's electronic disclosure system on the 12th, Unitrontech recorded sales of 146.7 billion KRW and operating profit of 9.8 billion KRW in the third quarter. This represents an increase of 56.3% and 302.8%, respectively, compared to the same period last year. Operating profit on a cumulative basis for the third quarter reached 19.8 billion KRW, up 163.5% year-on-year.

Unitrontech purchases semiconductor and display products from overseas companies such as Micron, AUO, and Microchip, and distributes them to domestic IT companies. The sales composition ratio is 61.6% memory semiconductors and 35.9% displays.

Jung Hongsik, a researcher at Ebest Investment & Securities, explained, "Unitrontech's memory semiconductor and display products are mainly supplied for automotive applications in the upstream industry," adding, "They have a high correlation with automotive semiconductors trends and the autonomous driving-related industry."

He continued, "This year's performance improvement is estimated to be due to steady demand from the upstream industry," and added, "Since all purchasing and sales processes are settled in dollars, unlike general companies with a high import ratio, Unitrontech benefits from the rise in exchange rates."

Researcher Jung emphasized, "It is also estimated that the third quarter results partially reflected improved profitability due to the rise in exchange rates."

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