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Duk San Neolux The Leading Supplier of HTL Is Increasing Profitability
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Duk San Neolux the leading supplier of HTL (because of its relationship with Samsung), is expected to record Q221 operating profit of KRW57.3bn (+42.7% Y/Y) on sales of KRW188.7bn (+30.9% YoY) in 2021. Full-year earnings should continue on a steep growth track in 2022, reaching sales of KRW226bn (+19.8% YoY) and operating profit of KRW70.7bn (+23.5% Y/Y). Duk San Neolux supplies red host, red  prime, green prime in addition to HTL for the production of small/mid-size OLED panels used in smartphones, laptops, and tablet PCs. The company is also preparing to supply HTL for use in QD OLED TV panels. Global sales of OLED TVs jumped 90.6% YoY to 1.19mn units in 1Q21, driven by explosive demand in the premium TV segment. Samsung Display is gearing up to start mass production of QD OLED TV panels in 2H21. With the OLED panel capex cycle taking off at Samsung Display, Duk San Neolux stands to see significant growth in orders for OLED materials. In addition, supply of OLED materials to Chinese display makers is expected to continue on a steady uptrend going forward.