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Duk San Neolux Reports Q320 Y/Y Revenue and Operating Earnings Up 44% and 102% Respectively
Duk San Neolux, which is a major supplier of HTL material to Samsung delivered an earnings surprise for Q320. Operating profit came in at KRW11.1bn (+42.6% sequentially, +102.0% Y/Y) on sales of KRW40.6bn (+43.5% sequentially, +44.0% Y/Y), topping the KRW10.1bn market consensus. Sharp earnings improvement was attributable to: 1) strong sales of Galaxy Note 20 and low/mid-range smartphone models at Samsung Electronics; 2) increased sales of OLED materials to Chinese clients; and 3) launch of iPhone 12 models at Apple. The results in terms of growth were similar to UDC’s Q320 earning’s report
For Q420, operating profit is expected to reach KRW12.1bn (+8.7% sequentially, +32.1% Y/Y) on sales of KRW43.2bn (+6.4% sequentially, +56.0% YoY), exceeding the consensus estimate of KRW9.8bn. Sales will get a boost from the release of the iPhone 12 in October.
Samsung Display is set to start the mass production of large-size QD OLED TV panels in Q321 and Duk San Neolux will likely to supply HTL for the new panel production. Other OLED materials could be added to the supply list going forward. Demand for 5G smartphones is forecast to jump 144.4% YoY to 667mn units in 2021, vs. 273mn units in 2020, which should drive demand for smartphone-use OLED panels by 46.2% Y/Y to 750mn units next year. Note: Compares to 535m by TrendForce, when replacement and order smoothing is included). In particular, they expect sharp growth in OLED panel demand from China with the ramp-up of BOE Technology Group’s B12 line. In 2021, Duk San Neolux earnings improvement is expected to reach sales of KRW176.5bn (+22.7% Y/Y) and operating profit of KRW48.2bn (+27.2% Y/Y).
Duk San Neolux, which is a major supplier of HTL material to Samsung delivered an earnings surprise for Q320. Operating profit came in at KRW11.1bn (+42.6% sequentially, +102.0% Y/Y) on sales of KRW40.6bn (+43.5% sequentially, +44.0% Y/Y), topping the KRW10.1bn market consensus. Sharp earnings improvement was attributable to: 1) strong sales of Galaxy Note 20 and low/mid-range smartphone models at Samsung Electronics; 2) increased sales of OLED materials to Chinese clients; and 3) launch of iPhone 12 models at Apple. The results in terms of growth were similar to UDC’s Q320 earning’s report
For Q420, operating profit is expected to reach KRW12.1bn (+8.7% sequentially, +32.1% Y/Y) on sales of KRW43.2bn (+6.4% sequentially, +56.0% YoY), exceeding the consensus estimate of KRW9.8bn. Sales will get a boost from the release of the iPhone 12 in October.
Samsung Display is set to start the mass production of large-size QD OLED TV panels in Q321 and Duk San Neolux will likely to supply HTL for the new panel production. Other OLED materials could be added to the supply list going forward. Demand for 5G smartphones is forecast to jump 144.4% YoY to 667mn units in 2021, vs. 273mn units in 2020, which should drive demand for smartphone-use OLED panels by 46.2% Y/Y to 750mn units next year. Note: Compares to 535m by TrendForce, when replacement and order smoothing is included). In particular, they expect sharp growth in OLED panel demand from China with the ramp-up of BOE Technology Group’s B12 line. In 2021, Duk San Neolux earnings improvement is expected to reach sales of KRW176.5bn (+22.7% Y/Y) and operating profit of KRW48.2bn (+27.2% Y/Y).
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