South Korea’s Seoul Semiconductor Co., which has delivered strong earnings in the second quarter, is poised to report record profits and sales for full 2017 on an expected rise in the prices of light-emitting diode (LED) chips and packages and successful new launches.

The firm on Monday reported that it posted an operating profit of 24.1 billion won ($21.3 million) on a consolidated basis for the April-June period, up a whopping 145 percent from a year ago. Sales jumped 14.9 percent to 267 billion won.

The company attributed its stellar performance to a surge in LED sales for cars and IT devices along with recovery in demand for LED lights. In particular, the addition of new customers for its LED products for IT devices has helped it more than offset an adverse effect for its exports from the strengthening Korean won against the U.S. dollar.

Cheered by strong earnings for two consecutive quarters this year, the company surprised its shareholders with a hike in dividend payouts. Throughout the quarter ended June, the company’s stock price has gained 27.7 percent. As of 10:25 a.m., shares of Seoul Semiconductor were down 2.58 percent to 20,800 won.

Market analysts remain upbeat about Seoul Semiconductor’s earnings for the rest of the year, anticipating it would report all-time high results for full 2017 thanks to the company’s new releases this year and eased concerns over an oversupply of LED chips and packages.

Established in 1987, Seoul Semiconductor is one of the world’s top five LED companies. It holds over 10,000 patents, trademarks and design rights at home and abroad thanks to years of heavy investment in research and development.

In June, the company drew global attention with SunLike, a new LED lighting technology that produces light close to solar spectrum. Other patented technologies include Acriche, a lighting source that runs on high-voltage in households, and Wicop, the world’s first package-less LED. Another innovative new product is set for release in the second half of the year, said Kim Sang-bum, executive vice president of Seoul Semiconductor.

The Korean LED manufacturer would also benefit from overall price increases in LED chips and packages amid eased oversupply concerns after the Chinese government stopped subsidy support for Chinese LED players as of last year. Its Chinese rivals, which had grown on the back of government subsidies, have been raising prices in LED chips and packages, and LED industry experts forecast a 5 to 15 percent price hike this year.

By Park Yun-gu

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