[Edaily Reporter Shin Ha-yeon ] SFA Engineering Corporation(056190)(SFA) announced on the 12th that it recorded standalone revenue of 192.3 billion won and operating profit of 26.6 billion won for the third quarter of this year. These figures represent decreases of 2.1% and 3.2%, respectively, compared to the same period last year. However, the operating profit margin stood at 13.8%, continuing the upward trend seen in the first quarter (11.5%) and second quarter (12.8%) of this year.

Cumulative standalone revenue through the third quarter of this year totaled 571.9 billion won, a 7.5% decrease compared to the same period last year (618.1 billion won). Operating profit for the same period also fell by 7.0%, from 78.4 billion won to 72.9 billion won. Although both revenue and operating profit declined, gross profit for the third quarter rose 15.2% year-over-year to 41.8 billion won from 36.3 billion won. The gross profit margin also rose by 3.2 percentage points, from 18.5% to 21.7%.

The gross profit margin improved from 18.8% in the first quarter of this year to 21.4% in the second quarter and 21.7% in the third quarter. The company explained that expanding the share of high-value-added products utilizing artificial intelligence (AI) robotics technology and strengthening cost competitiveness contributed to the improvement in profitability.

An SFA Engineering Corporation official stated, “The results of our efforts to expand high-value-added products based on AI robotics technology and strengthen cost competitiveness are materializing as an improvement in the gross profit margin, which serves as the foundation of our profitability metrics.”

Changes are also evident in the composition of orders, particularly in semiconductor equipment. Cumulative orders through the third quarter of this year totaled 643.5 billion won, including those from overseas subsidiaries. Orders in the first half of the year amounted to 507.9 billion won, while third-quarter orders totaled 135.6 billion won.

In particular, orders related to the semiconductor industry in the third quarter totaled 77.2 billion won, accounting for 56.9% of total quarterly orders. This represents an increase of 43.3 percentage points compared to the 13.6% share the semiconductor sector held in total orders during the first half of the year.

The company explained that the growth foundation for its semiconductor equipment business is expanding as it secures large-scale orders from semiconductor back-end assembly and test specialists (OSATs) and customers in the semiconductor packaging sector.

However, some orders have not yet been officially confirmed via purchase orders (POs) and were therefore not included in the third-quarter order figures. The company maintains that the total value of confirmed orders, including these volumes, significantly exceeds the announced figure of 135.6 billion won.

Based on the expansion of semiconductor equipment orders and the order trend in the distribution and general manufacturing sectors, SFA Engineering Corporation is maintaining its annual order target of 1.3 trillion won for this year. This represents an increase of approximately 77% compared to the previous year.

The company expects that once orders for high-value-added equipment begin to be reflected in revenue starting in the fourth quarter, it will see both revenue growth and improved profitability. It also anticipates that the effect of spreading fixed costs across a larger revenue base will contribute to an improvement in the operating profit margin.

Meanwhile, third-quarter revenue on a consolidated basis was 430.2 billion won, a 9.2% increase compared to the same period last year. Operating profit was 22.1 billion won, which was similar to the average quarterly figure of 22.2 billion won recorded in the first half of the year.

SFA Semicon Co., Ltd., a consolidated subsidiary, is working to improve its performance through the launch of a new production line. SFA Nexel, a subsidiary specializing in rechargeable batteries, also expects to expand its order intake in the future, particularly in the European market.

An SFA Engineering Corporation official stated, “We are working to achieve our annual order target based on expanded orders in the semiconductor sector and a steady flow of orders in the distribution and general manufacturing sectors,” adding, “As high-value-added orders are reflected in revenue, we expect future revenue growth and profitability improvements to gain momentum.”