Mecaro (241770), a company specializing in semiconductor materials and components, announced on the 15th that it recorded cumulative sales of 58.6 billion won, operating profit of 2.5 billion won, and net profit of 5.8 billion won in third quarter. Heater block division recorded 33.3 billion won in 3Q and continued a solid trend, and its precursor business recorded sales of 22.7 billion won.
In the product portfolio section, the strength of heater block 12-inch stood out. While the influence of FAB investment is on-going since the beginning of the year, 3Q sales recorded KRW 7.7 billion, surpassing the peak sales of 2Q once again. In precursor business, alongside with the generational transition of D-RAM, Cp-Zr and TiCl4 grew 50% and 100% YoY, respectively, recording a total of KRW 5.5 billion in sales. However, as some of export shipments to China were delayed due to recent logistics crisis, sales recognition was carried over to 4Q.
Operating profit increased 77% QoQ to KRW 2.1 billion, a significant improvement in terms of operating profit ratio. Mecaro signaled a tunnel out by succeeding in turnaround at 2Q from operating loss at 1Q, eventually improving profit margin in 3Q. The company plans to continue the current solid earnings growth to the end of this year.
On the other hand, regarding stock market concern on investor alert issue that has been rising since the beginning of the year, a company official said, "a planned solution is being carried out and advanced consultation of internal accounting management system will be completed by the end of this year.”
Mecaro recently announced a 10 billion won investment in new facilities, mostly on construction of a new factory for the development and commercialization of ceramic heater blocks and ESCs. Market interprets this as Mecaros strong will for aggressive investment, securing growth momentum while strengthening its business portfolio in the parts business.
At the end of third quarter extraordinary general meeting of shareholders, Park Young-soon was appointed as an inside director while Mecaro completed preparation for a major change including transition to co-CEO system and restructuring its organization. A key official at Mecaro noted, “We expect this change will serve as a foundation for our company in taking a leap to become a top-notch company.”