SEOUL, KOREA - Interflex achieved an earnings surprise in the second quarter of this year, with the performances of FPCB (flexible printed circuit board) makers drawing a sharp attention from the stock market. FPCB is a main component used for smartphones and tablet computers.
However, there are concerns about stiffer competition and price competition as an increasing number of FPCB makers, including Daeduck GDS, BHE, and Flexcom are rushing to ramp up their production capacities.
Interflex announced on July 11 that it posted sales of 250.3 billion won for the second quarter, up 98.4 percent year on year, with its operating income making a turnaround to a 21.1-billion-won profit. These figures are higher than market expectations. Since it announced its second-quarter results, its stock price rose by 11.07 percent during the next two trading days.
Market analysts, however, presented a mixed outlook for the second-half performance of FPCB companies. The Galaxy Note 3 and new Apple products are slated to be released in the second half of this year. Despite this positive factor, it is not certain if FPCB makers can achieve strong results in the second half due to the potential for an oversupply resulting from the growing competition to increase production capacity.
