The operating profit for all the major tech companies is changing. The third quarter was sluggish for both LG and Samsung companies. There are many observations that LG Innotek’s performance that should have occurred in the 3rd quarter was carried over to the 4th quarter. The difference with Samsung Electro-Mechanics is that the recovery times vary.
There is a high possibility that LG Innotek will outperform Samsung Electro-Mechanics in operating profit again this year.
According to the industry on the 20th, LG Innotek will announce its financial results for the third quarter of 2023 on the 25th and Samsung Electro-Mechanics will announce its financial results for the third quarter of 2023 on the 26th. Details will be posted on the website after the announcement.
Official statements
Choi Bo-young, an analyst at Kyobo Securities, said, “The third quarter is usually the peak season for optical solutions, but shipments are delayed due to supply chain issues such as panels and image sensors installed in new models of customers, so a decline in profit margins is inevitable due to lower-than-expected shipments and the burden of fixed costs.” “For materials, sales will decline due to delays in launch and slump in smartphones due to sluggish demand,” he predicted.
Oh Kang-ho, an analyst at Shinhan Investment & Securities, said, “Despite the adjustment in performance estimates for the second half of 2023, the year-on-year growth based on annual sales is valid. In the case of optical solutions, we can also expect a recovery in volume due to price increases due to sales of high-end products from major customers and expectations of demand recovery.” “There is,” he judged.
Kwang-soo Kim, an analyst at eBest Investment & Securities, said, “The outlook for poor performance in the third quarter is due to the delay in the initial mass production schedule of the iPhone 15, and LG Innotek also experienced problems with the yield of parts and module assembly processes related to the folded zoom.” He added, “The effect of entering the peak season is “It was carried over from the 3rd quarter to the 4th quarter.”
Seungsoo Yang, an analyst at Meritz Securities, said, “MLCC sales volume appears to have increased in earnest starting in August, but the strength of orders from customers in the Greater China region appears to have been weak due to high parts inventory.” He added, “This is something that competitor Walsin also mentioned.”
Kim Un-ho, an analyst at IBK Investment & Securities, said, “We expected the third quarter performance to improve compared to the second quarter, but it will fall short of expectations due to the overall economic slump and sluggish IT demand. This is a common situation for IT-related companies, so it is not easy for demand for finished products to improve in the fourth quarter.” “There is a need to take a conservative approach.”