KB News Desk
LG Innotek’s second-quarter operating profit surged more than twentyfold to 245.8 billion won ($167.6 million), crushing market expectations as strong camera-module and semiconductor-substrate sales defied a seasonal slowdown.
Revenue climbed 40.5 percent on-year to a record 5.53 trillion won for the April-June period, well above market expectations despite what is typically the seasonal slowdown for its mobile components business.
Net profit came to 169.7 billion won, swinging back into the black from a year ago.
The results comfortably beat analysts’ estimates. The consensus compiled by FnGuide had forecast an operating profit of 152.6 billion won on revenue of 4.87 trillion won.
The strong earnings were fueled by resilient demand for smartphone camera modules and robust sales of premium semiconductor substrates.
“Despite the seasonal slowdown, demand for mobile camera modules remained solid, while shipments of high-value semiconductor substrates, including RF-SiP, FC-CSP and FC-BGA, continued to increase,” an LG Innotek official said.
The optical solutions division, the company’s biggest business, generated 4.52 trillion won in revenue, up 48 percent from a year earlier. Revenue from the package solutions business rose 20 percent to 498.4 billion won, while the mobility solutions business grew 10 percent to 510.9 billion won on stronger sales of automotive lighting and communication modules.
For the first half of the year, revenue reached 11.06 trillion won, surpassing the 10 trillion won mark for the first time on a first-half basis.
The company also signaled further investment in its semiconductor substrate business as demand continues to recover.
“To meet rapidly growing demand amid the semiconductor upcycle, we have begun expanding our semiconductor substrate manufacturing facility in Vietnam and are also reviewing additional investment,” Chief Financial Officer Kyung Eun-kook said.
