Samsung Electro-Mechanics recorded an operating profit of 20.05 billion won in the first quarter of the year (January to March), marking an increase of about 9% compared to the same period last year. The company noted that demand for AI server and automotive stacked ceramic capacitors (MLCC) continues to expand, and the profitability improved as the supply of MLCCs and camera modules increased due to the launch of new smartphone products by key clients.
On the 29th, Samsung Electro-Mechanics announced that it recorded sales of 27.386 billion won and an operating profit of 20.05 billion won. These figures represent increases of 4.8% and 9.2%, respectively, compared to the same period last year. It also met the operating profit consensus forecasted by the securities industry of 20.04 billion won.
A spokesperson for Samsung Electro-Mechanics said, "The effects of flagship smartphone launches and the expansion of MLCC and camera module supply for AI and automotive applications have increased," and stated, "In the second quarter, we plan to focus on expanding supplies of high-spec MLCCs for AI servers, package substrates, and automotive products for advanced driver-assistance systems (ADAS) and electric vehicles (EV)."
By institutional sector, sales in the components sector for the first quarter amounted to 1.2162 trillion won, an increase of 19% year-over-year and 12% compared to the previous quarter. Samsung Electro-Mechanics explained that sales increased due to an expanded supply of high-value products such as IT MLCCs and industrial and automotive MLCCs following the launch of smartphones by strategic business partners.
Samsung Electro-Mechanics forecasts that demand for industrial and automotive MLCCs will remain robust in the second quarter. The company plans to expand sales focused on high-value products such as high-temperature and high-pressure MLCCs for AI servers and ultra-high-capacity MLCCs for networks while responding promptly to market demand for automotive MLCCs.
The package solution sector recorded sales of 499.4 billion won in the first quarter, a 17% increase compared to the same period last year. Although there was an increase in supply of mobile application processors (AP) and memory BGA, sales decreased from the previous quarter due to seasonal demand weakness in certain applications such as PCs.
Samsung Electro-Mechanics anticipates an expansion of demand centered on ball grid arrays (BGA) for ARM processors and flip chip ball grid arrays (FC-BGA) for AI accelerators in the second quarter. Additionally, the company stated that it aims to achieve double-digit sales growth in FCBGA compared to last year through stabilization of mass production at the new factory that began full operation in Vietnam last year.
The optical solution sector's sales for the first quarter were 1.023 trillion won, a 12% decrease compared to the same period last year, but a 19% increase compared to the previous quarter. Samsung Electro-Mechanics reported that it expanded supply of high-resolution products and high-quality folded zoom camera modules for IT applications, as well as camera modules for global EV clients.
Samsung Electro-Mechanics indicated that demand for smartphone camera modules is expected to weaken in the second quarter. However, the company plans to strengthen its lineup of high-performance products, such as slim camera modules for IT, to meet the market's demand for camera differentiation. The company also plans to focus on expanding supply of all-weather camera modules and new mass production of hybrid lenses in line with advancements in autonomous driving.