Seoul Semiconductor Q2 profits rise 22%
It expects Q3 sales of up to 310 billion won
Seoul Semiconductor has posted operating profits of 13.7 billion won and sales of 268 billion won for the second quarter of 2020, the company said on Wednesday.
It is rise of 22.7% and drop of 7%, respectively. It beat market consensus of 8.1 billion won and 263.4 billion won. It is also in line with sales of between 250 billion won and 270 billion won the company announced at its guidance earlier.
Seoul Semiconductor said its Wicop LED saw widened its applications to TV, monitor and notebooks. Wicop is the company’s LED that doesn’t require packaging. It conducts heat well and has a simple and small lens design. It has been used for head lamps and DRL of automobiles.
The company said it faced oversupply issue for its LED for lighting and the COVID-19 pandemic has caused demand for LED from Liquid Crystal Display (LCD) to fall. However, price drops of LED has slowed during the quarter, the company said, as it transitioned more production line to Vietnam to secure price competitiveness.
The LED maker said it expected sales between 290 billion won to 310 billion won for the third quarter, which exceeds the current market consensus of 283.5 billion won. Seoul Semiconductor expects demand for LED form automobiles to recover next year. More demand for microLED and miniLED was also expected, it said.
More customers wanted to diversify there supply line in light of COVID-19 pandemic and restructuring of some of its businesses were bearing fruit, a company spokesperson said.