GuruFocus –
- Q4 Revenue: KRW2,492.3 billion, 5% decrease QoQ, 8% increase YoY.
- Q4 Operating Profit: KRW115 billion, 49% decrease QoQ, 1% increase YoY.
- Pretax Profit: KRW198.2 billion.
- Net Profit: KRW208.4 billion.
- Total (EPA:) Assets: KRW12,792.4 billion, 1% increase QoQ.
- Liability-to-Equity Ratio: 42%, decreased from previous quarter.
- Debt-to-Equity Ratio: 17%, decreased from 23% in Q3.
- Equity Ratio: Approximately 70%, slight increase QoQ.
- Component Division Revenue: KRW1,081.8 billion, 10% decrease QoQ, 11% increase YoY.
- Package Solution Division Revenue: KRW549.3 billion, 2% decrease QoQ, 24% increase YoY.
- Optics Solution Division Revenue: KRW861.2 billion, 0.1% increase QoQ, 2% decrease YoY.
Release Date: January 24, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Samsung (KS:) Electro-Mechanics Co Ltd (XKRX:009150) reported an 8% year-over-year increase in Q4 revenue, indicating strong annual growth.
- The company achieved a 24% year-over-year increase in revenue for the Package Solution Division, driven by high-end substrate demand.
- Automotive revenue continued to grow, supported by increased demand for electric vehicles (EVs) and advanced driver-assistance systems (ADAS).
- The company is expanding its high-end product lineup, including high-temperature, high-capacitance products for AI servers and EV powertrains.
- Samsung Electro-Mechanics Co Ltd (XKRX:009150) is actively pursuing new opportunities in the automotive camera module market, leveraging advances in autonomous driving technology.
Negative Points
- Q4 revenue decreased by 5% quarter-over-quarter, reflecting some short-term challenges.
- Operating profit in Q4 saw a significant 49% decrease quarter-over-quarter, indicating pressure on profitability.
- The Component Division experienced a 10% quarter-over-quarter revenue decline due to seasonality and inventory adjustments.
- Demand for IT and industrial MLCC decreased due to stagnant demand in applications such as smartphones and PCs.
- The Optics Solution Division reported a 2% year-over-year revenue decrease, highlighting challenges in the camera module market.
Q & A Highlights Q: Can you share some data points on your fourth quarter MLCC shipment inventory and ASP, and your first quarter outlook for MLCC?
A: In Q4, automotive MLCC shipment increased by high single digits QoQ, but overall MLCC shipment decreased due to year-end inventory adjustments. Inventory slightly increased, and blended ASP rose due to a higher portion of automotive MLCC business. For Q1, shipment is expected to increase QoQ, driven by a new smartphone launch, AI server growth, and solid automotive MLCC demand.
Q: What is the update on SEMCO’s AI accelerator substrate business and outlook?
A: Global cloud service providers are adopting proprietary AI chips, increasing demand for AI accelerator substrates. SEMCO has a strong record in server CPU substrates and is expanding sales. We are participating in new AI accelerator substrate projects with major customers and expect significant revenue growth this year.
Q: How did your automotive MLCC business perform so well last year, and what is your outlook for this year?
A: In 2024, we expanded our product lineup, including high-capacitance MLCC for ADAS, leading to double-digit YoY growth. In 2025, demand for MLCCs in autonomous driving and EVs is expected to grow, and we are ready to capture this opportunity with new high-temperature, high-voltage MLCCs for EV powertrains.
Q: What is your outlook for the automotive camera module business this year?
A: In 2024, revenue increased due to timely supply to global EV customers and new mass production. In 2025, demand is expected to grow with advances in autonomous driving and regulations requiring driver monitoring systems. We will focus on new design-ins with major customers using differentiated technology.
Q: Can you provide your 2025 outlook and strategy for the MLCC business?
A: In 2025, MLCC market growth is expected across applications. For IT MLCC, growth will be driven by China’s demand stimulation policy and Windows OS replacement demand. For industrial MLCC, growth will focus on AI servers. Automotive MLCC will see the strongest growth, and we aim for above-market revenue growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
