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​AP Systems Shows Effect Display Industry of Capex Slowdown but Manages to Increase Profits
March 18, 2019
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AP Systems Corporation, which is aleader in ELA (Excimer Laser Annealing), LLO (Laser Lift-Off), and OLED Encapsulation, reported financial results for the fiscal year 2018. Consolidated revenue and operating profit came in KRW 714 billion Y/Y (-26%) and KRW 458 billion (Y/Y 75%), respectively. The operating profit margin increased, despite substantially lower revenues, due to:

  • Elimination of one-off cost factors related with providing new equipment in 2017
  • Diversification of product portfolio and customers
  • Cost-cut by process improvement
 
DSCC showed OLED equipment spending down 7% in 2018 but forecasted it to be down 59% in 2019, a negative omen for AP Systems.
 
Figure 1: Display Technology Equipment Spending

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Source: DSCC
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​AP Systems is focused on domestic customers through the development of new equipment and has continued to expand overseas markets. Recently the company has successfully developed Thin Film Encapsulation) equipment for foldable panels as well as 3 kinds of backend equipment.
 
​Table 1: AP Systems Selected Consolidated Financials
Source: Company
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