LED maker Wooree E&L is expected to post around one billion on in operating profits and 30 billion won in sales in the third quarter.
It will be double the operating profits of the previous quarter and 10% increase in sales quarter over quarter.
A rise in demand in liquid crystal displays (LCD), which uses LED as backlights, in the third quarter due to spread of COVID-19 pandemic is likely the main cause of the increased performance.
Wooree produces LED modules for LCD panels used in notebook PCs, monitors, automobile navigation screens and signage __ these products are either seeing increased demand due to the pandemic or are recovering from store openings thanks to ending of lock down measures in countries.
LG InnoTek’s exiting of its LED business also helped as Wooree became the replacement supplier of modules for LG Display. Wooree is supplying LED for use in notebook and tablet display panels made by LG Display.
Seoul Semiconductor also took over LG InnoTek’s LED supply for TVs to LG Electronics.
Wooree’s LED modules account for 60% of monitor LCD made by LG Display, while also accounting for 30% in notebooks. This is an increase from 40% and 20% of last year, respectively. The company accounts for 40% of LED used in LG Display’s signage.
Wooree’s LED is supplied to LG Display, which makes them into an LCD panel. It is then supplied to LG Electronics, Dell and Hewlett Packard.
The South Korean LED maker is expecting its fourth quarter earnings to improve as well thanks to rise in LCD panel prices. Fourth quarter is also the traditional on-season for LCD products thanks to events like Black Friday in the US.
Earlier this month, Wooree said it has made its Vietnam factory, Wooree Vina, and wholly owned subsidiary. It bought the 55% stake owned by parent company Wooree Bio. Wooree Vina in the past mostly produced flexible printed circuit boards for Wooree Bio but it is now making LED, light bar and displays for Wooree E&L, a Wooree E&L spokesperson said.
Meanwhile, Wooree E&L was also developing miniLED, which are being touted as being smaller and having superior contrast ratio compared to conventional LED modules.
LG Display suppliers like Wooree has been preparing to reorganize their businesses in reaction to LG InnoTek’s exiting of LED business. These suppliers went into LG Display’s review in the first half of 2020. Wooree E&L posted operating profits of 600 million won and sales of 55 billion won in the first half of 2020, a drop of 62% and 20%, respectively, year over year. LED demand was low in the first half due to the COVID-19 pandemic.