Samsung Electro-Mechanics Co., the electronic parts making unit of Samsung Group, reported stellar earnings for the second quarter thanks to solid sales of Samsung Electronics Co.’s flagship smartphone Galaxy S8 series and growing demand for its dual cameras from Chinese smartphone makers.

The company said in a regulatory filing Friday that its operating profit for the second quarter ended June came at 70.7 billion won ($63 million) on a consolidated basis, up a whopping 365.6 percent from the year-ago period. It is the second largest quarterly earnings after the historic high of 101.5 billion won in the third quarter of 2015. Sales also increased 5.8 percent on year to 1.7 trillion won.

The company benefitted largely from strong sales of the Galaxy S8 series of Samsung Electronics that is its biggest customer. Samsung Electro-Mechanic supplies camera modules, smartphone main high density interconnection (HDI) boards and high-performance multi-layer ceramic capacitors (MLCCs) to the Galaxy S8 models.

It expects bigger figures in the second half when Samsung Electronics releases the big-screen Galaxy Note8.

Sales of its camera module to Chinese smartphone makers have also increased significantly over the same period. The company plans to expand its production of dual cameras and high-reliability MLCCs that would generate higher profit to meet growing demand for high-end smartphones in the world’s biggest smartphone market.

In the third quarter, it will also embark on the mass production of the initial-stage fan-out panel level packaging (FO-PLP) and later include application processors and other parts to the packaging, said the company.

As of 1:11 p.m., shares of Samsung Electro-Mechanics stood at 104,000 won, up 2,000 won or 1.96 percent from the previous session.

By Lee Dong-in

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