The CEO of production equipment maker SFA said on Tuesday that the acquisition of CMOS image sensor maker CIS will allow it to offer turn-key deals in the battery sector.
SFA CEO Kim Young-min said during its earnings call for 2022 that the company is planning to maximize its synergy with CIS going forward.
Kim said the two companies will combine their sales network to diversify their customer portfolio.
Last year, SFA recorded 1.68 trillion won in revenue and 160.9 billion won in operating income.
Operating profit declined by 15% from 2021 but SFA claimed that this was due to some of the profits being recognized late on the books.
But on the upside, its businesses outside of display panel, its main profit generator in the past, had accounted for 87% of its revenue.
The company expects more revenue growth from lithium-ion batteries, chips, and distribution sectors going forward.
As of the end of 2022, the company had 964.6 billion won in remaining orders, with 542.9 billion won coming from batteries.
Kim stressed that SFA handles assembly, formation, and inspection equipment, while CIS handles electrode equipment, so it can now offer turn-key solutions for customers.
Both companies also have various customers abroad, so they will expand their shares through cross-selling, the CEO added.
Meanwhile, subsidiary SFA Semiconductor recorded a 9.1% increase in revenue in 2022 from the prior year. The CEO said the Korean business will expand its wafer-level package production capacity while its Philippines business will react to the demand for DDR5.