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Duk San Neolux Benefited From Brisk Sales of iPhone 12 Panels
 
The second quarter is typically a weak season as display makers prepare to produce OLED panels for new smartphone models, but Duk San Neolux partially reversed that trend, with operating profit of KRW12bn (+3.4% sequentially, +54.0% Y/Y) on sales of KRW40bn (-6.3 sequentially, +41.3% Y/Y).  For Q321, the company is likely to secure sales of KRW55.1bn (+37.8% sequentially, +35.7% Y/Y) and operating profit of KRW17.4bn (+44.6% sequentially, +56.3% Y/Y), backed by increased production of OLED panels for the iPhone 13, foldable Samsung devices, and laptops. We forecast full-year sales at KRW192.1bn (+33.3% Y/Y) and operating profit at KRW58.3bn (+45.4% Y/Y).
 
Duk San should also benefit from Samsung Display’s mass production of large QD OLED panels in 2H21. The display maker is also considering investment in new small/mid-size OLED lines, with Apple highly likely to adopt OLED displays for iPad and MacBook in order to increase its market shares. Going forward, they expect a steep growth in OLED panel adoption on laptops, which should prompt Chinese display makers like BOE to invest more in small/mid-size OLED.