SFA Enjoying Strong Revenue Due to OLED Growth
August 07, 2017 SFA is expected to record the company’s biggest performance ever in 2017, as South Korean and Chinese businesses continue to make OLED facility investments. The company supplied its organic deposition devices to Chinese panel manufacturer’ Royole for mass-production and R&D purposes. Order backlog of SFA (CEO Kim Young-min) in this past first quarter was its company’s biggest order backlog ever at $935 million (1.049 trillion KRW) as it signed off on supply contracts for OLED distribution and automated equipment and deposition devices. It won Royole’s contract for Gen 5.5 organic deposition device worth $54.4 million (61.0 billion KRW) during second quarter and is expects its business to grow continuously over second half of this year and next year with distribution and deposition equipment for Chinese OLED panel manufacturers. Stock analysts are predicting that SFA’s performance in 2017 will exceed its performance in 2016 by large margin due to equipment orders from Samsung Display and Chinese panel manufacturers. SFA reported $1.18 billion (1.3197 trillion KRW) and $108 million (120.8 billion KRW) in sales and operating profit respectively in 2016. Stock analysts are estimating that SFA will record about $1.69 billion (1.9 trillion KRW) and $169 million (190 billion KRW) respectively in 2017. Although GVO’s (Visionox) contract for organic deposition device, which had drawn high expectations, was given to SFA’s competitor, it did not have negative impact on its overall performance, as SFA and its subsidiary called SNU Precision will supply organic deposition devices for mass-production and R&D to South Korean and Chinese markets. “We expect that there will be second stage of investment from GVO’s 6th generation line.” said a representative for SFA. “As we signed off on a supply contract for current 5.5th generation organic deposition devices, our goal is to make positive performance from second stage of investment from GVO’s 6th generation line.” |
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