businesskorea.co.kr, Jul. 29, 2020 –
2Q20 preview: Record-high OP of KRW70.5bn (+43.1% YoY)
DB HiTek is expected to have posted record-high earnings for 2Q20 with sales of KRW238.3bn (+5.5% QoQ, +11.3% YoY) and operating profit of KRW70.5bn (+8.9% QoQ, +43.1% YoY). Robust earnings were likely driven by strong foundry market conditions and favorable forex rates.
For full-year 2020, earnings should hit an all-time high with sales of KRW929.7bn (+15.1% YoY) and operating profit of KRW261.7bn (+44.4% YoY).
Foundry market to grow sharply on Intel's 7nm chip delay
We believe Intel's delays in the 7nm process will lead to a marked growth in demand for foundry services. The foundry market should expand sharply if Advanced Micro Devices (AMD), a key rival of Intel that relies on foundries like TSMC to produce its chips, succeeds in increasing market share or Intel decides to use foundry fabs instead of its own fabs.