Samsung Electro-Mechanics & SDI to grow together despite of Samsung smartphone result
[ Park Jung Il comja77@ ] | 2017-10-25 10:37:34
Samsung Electro-Mechanics and Samsung SDI are expected to continue their performance rebound despite sluggish performance of Samsung Electronics` smartphone business, its flagship affiliate. It is predicted that the trend will recover to the pre-2013 level, which was the boom period next year.
According to the electronics and securities industry on October 24, Samsung Electro-Mechanics and Samsung SDI are expected to record record-high earnings this year after receiving management inspections from the Samsung SDI control tower in 2014 and 2015, respectively.
SEMCO sales and operating profit came in at KRW 6.97 trillion and KRW 31.54 billion, respectively. Samsung SDI recorded sales of KRW 6.4 trillion and operating profit of KRW 28.9 billion. SEMCOE operating profit expanded 10 times, and Samsung SDI is expected to turn profitable for the first time since 2014 compared to last year.
Especially, it is expected that Samsung Electronics` earnings to continue to rise in the third quarter amid a decline in operating profit at its smartphone business. Samsung Electronics` 3Q operating profit for the IM (IT and mobile) division is expected to decrease by KRW 1 trillion from KRW 460 billion in the second quarter. Samsung SDI is forecast to increase operating profit by 59% and 375%, respectively, to KRW 111.2 billion and KRW 26.1 billion, respectively.
Kim Dong-won, KB Securities analyst, stated, "The profitability of multilayer ceramic capacitors (MLCCs), which account for 80% of total operating profit, is continuing to improve due to the expansion of new MLCC lines for electric fields and the shortage of MLCCs for IT.
As for Samsung SDI, So Hyun-cheol, an analyst at Shinhan Financial Investment, said, "IT shipments have increased 8.6% QoQ due to the new supply of Galaxy Note 8 battery and earnings are expected to continue to improve as related sales increase by 30%”. In the fourth quarter, automobile battery division sales increased 11.3% QoQ.
As a result, the two companies are expected to overcome the dark period of restructuring and continue to recover. Samsung Electro-Mechanics and Samsung SDI received management inspections from the Samsung Future Strategy Office in 2014 and 2015, respectively. Since then, Samsung Electro-Mechanics (LED) and hard disk (HDD) motor business have been listed. Samsung SDI has completed the plasma display panel (PDP) business in 2014. All of the companies have made major business restructuring.
An industry expert said, "The two companies are recovering fully in two years after the worst crisis caused by Samsung Electronics` sluggish performance in 2014." It is hard to say that Samsung Electronics has escaped reliance on Samsung Electronics yet. However, "It`s important that we get the power to make aggressive investments."
By Park Jung Il comja77@
[ copyright ⓒ The Digitaltimes ]
According to the electronics and securities industry on October 24, Samsung Electro-Mechanics and Samsung SDI are expected to record record-high earnings this year after receiving management inspections from the Samsung SDI control tower in 2014 and 2015, respectively.
SEMCO sales and operating profit came in at KRW 6.97 trillion and KRW 31.54 billion, respectively. Samsung SDI recorded sales of KRW 6.4 trillion and operating profit of KRW 28.9 billion. SEMCOE operating profit expanded 10 times, and Samsung SDI is expected to turn profitable for the first time since 2014 compared to last year.
Especially, it is expected that Samsung Electronics` earnings to continue to rise in the third quarter amid a decline in operating profit at its smartphone business. Samsung Electronics` 3Q operating profit for the IM (IT and mobile) division is expected to decrease by KRW 1 trillion from KRW 460 billion in the second quarter. Samsung SDI is forecast to increase operating profit by 59% and 375%, respectively, to KRW 111.2 billion and KRW 26.1 billion, respectively.
Kim Dong-won, KB Securities analyst, stated, "The profitability of multilayer ceramic capacitors (MLCCs), which account for 80% of total operating profit, is continuing to improve due to the expansion of new MLCC lines for electric fields and the shortage of MLCCs for IT.
As for Samsung SDI, So Hyun-cheol, an analyst at Shinhan Financial Investment, said, "IT shipments have increased 8.6% QoQ due to the new supply of Galaxy Note 8 battery and earnings are expected to continue to improve as related sales increase by 30%”. In the fourth quarter, automobile battery division sales increased 11.3% QoQ.
As a result, the two companies are expected to overcome the dark period of restructuring and continue to recover. Samsung Electro-Mechanics and Samsung SDI received management inspections from the Samsung Future Strategy Office in 2014 and 2015, respectively. Since then, Samsung Electro-Mechanics (LED) and hard disk (HDD) motor business have been listed. Samsung SDI has completed the plasma display panel (PDP) business in 2014. All of the companies have made major business restructuring.
An industry expert said, "The two companies are recovering fully in two years after the worst crisis caused by Samsung Electronics` sluggish performance in 2014." It is hard to say that Samsung Electronics has escaped reliance on Samsung Electronics yet. However, "It`s important that we get the power to make aggressive investments."
By Park Jung Il comja77@