[Edaily Reporter Park Jung-Soo ] APACT Co., Ltd.(200470), a company specializing in semiconductor back-end processes, announced on the 19th via a regulatory filing that it forecasts annual revenue of 211.23 billion won and operating profit of 14.24 billion won for this year.
APACT Co., Ltd. expects performance growth to be driven by an expansion in outsourced volumes of DDR5 and LPDDR5 from major integrated device manufacturers (IDMs) and the full-scale launch of mass production for SOCAMM2 module testing. In particular, the company anticipates that revenue growth in the packaging and testing segments will gain momentum in the second half of the year as outsourced volumes from customers increase.
Expanded production capacity is also expected to contribute to earnings growth. APACT Co., Ltd. is currently expanding its production capacity by approximately 1.7 times through capital expenditures totaling 103.2 billion won this year. Once the related investments are completed in the third quarter, the company expects the revenue growth resulting from the expanded capacity to become fully evident starting in the fourth quarter.
The company also anticipates improved profitability driven by rising revenue. It explained that as production volume increases due to expanded outsourcing volumes and the operation of new facilities, the burden of fixed costs will be alleviated, and the operating leverage effect resulting from increased contribution margin will take full effect starting in the second half of the year.
APACT Co., Ltd. stated, “The expansion of outsourced production volumes for DDR5 and LPDDR5, as well as the mass production of SOCAMM2 module testing, is now in full swing,” adding, “Based on our expanded production capacity, we plan to meet customer demand and continue to drive revenue growth and profitability improvements.”