LG Innotek: Sales of KRW 3.07 trillion, operating profit of KRW 350 billion
Samsung Electro-Mechanics: Sales of KRW 2.4 trillion, Operating Profit of KRW 330 billion
Both companies' performance improved due to brisk camera module sales.


LG Innotek announced on the 29th that it recorded consolidated sales of KRW 3.07 trillion and operating profit of KRW 346.8 billion for the first quarter of 2021. Compared to the same period last year, sales increased 55.6% and operating profit increased 97.3%. Compared to the previous quarter, sales decreased 20.1% and operating profit increased 1.3%.

Despite seasonal weakness and increased uncertainty due to COVID-19, high-performance products such as triple cameras for smartphones and 3D sensing modules drove performance. Furthermore, semiconductors for 5G communications, substrates for mobile and display applications, and power components for electric vehicles (EVs) fueled the growth.

The Optical Solutions business recorded sales of KRW 2.2593 trillion, a 69% increase year-on-year. This represents a 26% decrease from the previous quarter. This was driven by continued sales of high-value-added products, such as triple cameras for smartphones and 3D sensing modules.

The substrate materials business recorded sales of KRW 358.5 billion, a 24% increase year-on-year and a 6% increase compared to the previous quarter. Growth was driven by increased sales of semiconductor substrates for 5G communications and expanded supply of chip-on-film (COF) for mobile and display applications.

The electric components business recorded sales of KRW 334.4 billion, up 18% year-on-year but down 2% quarter-on-quarter. Sales of EV power components, such as battery management systems (BMS) and DC-DC converters, increased, while autonomous driving components, such as ADAS cameras and communication modules, also showed consistent performance improvements.

Meanwhile, LG Innotek resolved on the 29th to establish an ESG Committee and an Internal Transactions Committee within its board of directors. The Internal Transactions Committee, aimed at enhancing corporate management transparency, will be established on July 1st.

Samsung Electro-Mechanics' operating profit in the first quarter of 2021 increased 99% year-on-year.

Samsung Electro-Mechanics announced on the 28th that it recorded consolidated sales of KRW 2.3719 trillion and operating profit of KRW 331.5 billion in the first quarter of 2021. Sales increased by 11% and operating profit by 99% compared to the same period last year, and sales increased by 14% and operating profit by 31% compared to the previous quarter.

Operating profit increased significantly due to increased sales of high-value-added products such as small and high-capacity MLCCs and semiconductor package substrates driven by increased non-face-to-face demand. Furthermore, the improved performance was driven by increased supply of MLCCs for automotive electronics and high-spec camera modules for strategic customers driven by the recovery in demand in the automotive market.

This year, demand for IT devices such as smartphones and PCs is expected to continue to recover, and the automotive market is also expected to improve. Samsung Electro-Mechanics plans to secure stable supply capacity to meet growing market demand for MLCCs and high-performance semiconductor package substrates, while also expanding sales of high-spec camera modules to sustain its earnings growth.

The component division achieved sales of KRW 1.0884 trillion, up 27% year-on-year and 13% quarter-on-quarter, driven by increased sales of IT-use MLCCs and increased product supply driven by recovering automotive demand. With demand in the IT and automotive electronics markets expected to remain strong in the second quarter, the company plans to address market demand by improving productivity, enhancing manufacturing efficiency, and expanding supply capacity.

Module division sales in the first quarter increased 49% quarter-on-quarter due to increased supply of camera modules to strategic customers, but decreased 6% year-on-year to KRW 841.3 billion due to the impact of advance module supply following the early launch of new flagship products. In the second quarter, a decrease in demand for camera modules is expected due to the seasonal off-season, but the company plans to diversify its customer base, including with China Huaxia, and expand the supply of camera modules for mid- to high-end smartphones.

First-quarter sales in the substrate division declined 21% quarter-on-quarter due to seasonal declines in demand for OLED RFPCBs. However, increased supply of package substrates for mobile APs and PC CPUs led to a 15% year-on-year increase, reaching KRW 442.2 billion. In the second quarter, demand for high-performance semiconductor package substrates is expected to increase due to increased 5G adoption and PC market growth. Samsung Electro-Mechanics plans to enhance profitability by expanding production capacity, focusing on high-value-added products.