Samsung Electronics Q2 PAT jumps six-fold to nearly $7.1 B, operating profit soars over 15x

Samsung Electronics on Wednesday reported an upbeat set of earnings for its second quarter following which its shares surged over 2% on the Korea Exchange.

The firm reported a 472% year-over-year (YoY) rise in its net profit during the second quarter at KRW 9.84 trillion (approximately $7.1 billion). Operating profit rose a whopping 1,458% YoY to KRW 10.44 trillion (approximately $7.6 billion) while sales rose 23.43% YoY to KRW 74.07 trillion (approximately $54 billion).

The firm attributed the rise in earnings to increased supply of System-on-Chip (SoCs), image sensors, and display driver ICs (DDIs) for major customer’s flagship products, which drove the first half revenue to grow 50% YoY and set a new all-time high for the period.

The company stated that it achieved sequential earnings growth thanks to a demand recovery for major applications. “We doubled our customer base of artificial intelligence (AI) and high performace computing (HPC) customers compared to last year thanks to new orders for sub-5nm technology. With development and distribution of the 2nm gate-all-around (GAA) process development kit, or PDK, we will support our customers to move forward with product designs as a part of our preparations to mass produce 2nm technology in 2025,” the firm stated.

For the second half of the year, Samsung expects the overall Foundry market to grow, with particular growth from advanced technologies, thanks to rebounding mobile demand and surging AI/HPC demand.

For 2024, the firm expects its revenue growth to outpace the market level led by full-scale mass production of second-generation 3nm GAA technology in sub-5nm advanced technology. “We will expand our order intake for AI and HPC applications, targeting a fourfold increase in our customer base and a ninefold increase in sales by 2028 from the levels in 2023,” the company said.

As far as the display segment is concerned, the firm said strong flagship demand from major customers, timely supply of new products, and increased sales of rigid panels helped improve performance. Samsung said that although it expects sales to improve because of launches of new smartphone models by major customers and replacement demand sparked by AI smartphones, competition among panel manufacturers is likely to intensify.

Shares of the firm have gained nearly 4% since the beginning of the year. The stock has risen over 18% in the last one year.