Seoul semiconductor's two quarter results, strong growth in automotive lighting business

On the 27 day, Seoul Semiconductor, leader of LED market design and manufacture, disclosed the second quarter results in 2018. 2Q18, the company realized a combined income of 290 billion won (about 1 billion 721 million yuan), in line with the expected target (2800-3000 billion won), and realized operating income of 18 billion won (about RMB 107 million yuan, profit before tax and depreciation and amortization (EBITDA) 45 billion won (about RMB 267 million yuan).

In the second quarter, the TV sector's sales grew substantially year-on-year, and it is expected that the third quarter will continue to grow. The sales volume of the mobile sector is expected to increase significantly in the third and fourth quarters, prompting its IT sector to maintain its high growth rate since 2017.

Sales of automotive lighting in all regions also showed strong growth. The company's free Wicop products for automotive headlights have been further promoted, and foreign car manufacturers plan to use their technology in cars next year and 2021.

The operating profit margin in the second quarter was 6%. The company expects its new plant in Vietnam to be further stabilized, thereby improving its utilization in the third quarter to meet demand in the peak season and improve profitability.

Seoul semiconductor is expected to achieve sales of 3000-3200 billion won in the third quarter.

Sangbum Kim, chief financial officer, said that although the season was weak, the company's quarterly sales continued to grow at an annual rate of 9%. It is expected that this trend will continue for the rest of the year. Wicop and Acrich have increased utilization. Once established, Vietnamese factories will help improve utilization and challenge the record sales last year. (compile: LEDinside Nicole)

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