LX Semicon posted second-quarter earnings that exceeded market expectations this year.
LX Semicon (108320) said in a regulatory filing on the 24th that its second-quarter consolidated operating profit was preliminarily tallied at 22.006 billion won. This represents a 115.1% increase from 10.229 billion won in the same period last year. Compared with the previous quarter's 20.6 billion won in the first quarter, it rose 6.9%.
Second-quarter revenue was 401.153 billion won, up 6.0% from 378.6 billion won in the same period last year. It increased 3.2% from 388.8 billion won in the previous quarter. The operating margin was 5.5%, up 2.8 percentage points from 2.7% a year earlier, showing improved profitability.
The results exceeded market forecasts. Hyundai Motor Securities had projected LX Semicon's second-quarter revenue at 384 billion won and operating profit at 19 billion won. The actual results surpassed both figures.
By application, mobile accounted for the largest share of revenue at 39%. It was followed by TV at 28%, information technology (IT) at 27%, and others at 6%. Compared with the previous quarter, the TV revenue share rose from 27% to 28%, and IT increased from 25% to 27%. The mobile share fell 3 percentage points from 42% to 39%.
By product, large display driver ICs (Large DDI) accounted for 45% of total revenue. Small DDI made up 39%, and other products 16%. The Large DDI share was unchanged from 45% in the previous quarter but was 5 percentage points lower than 50% a year earlier. The Small DDI share fell 3 percentage points from 42% in the previous quarter, while the share of other products rose from 13% to 16%.
First-half cumulative results showed a decline from a year earlier. Cumulative first-half revenue was 789.923 billion won, down 7.6% year-on-year. Cumulative operating profit was 42.6 billion won, down 39.1%.
LX Semicon relies on DDIs for TVs, IT, and mobile devices for most of its revenue. Its business structure makes earnings sensitive to smartphone and display panel shipments, as well as customers' inventory adjustments.
