H&S High Tech posts earnings surprise as first-half net profit surges 217%

H&S High Tech, a specialist in display bonding materials and electronic components, posted a first-half earnings surprise this year, driven by strong growth in materials for mobile camera modules.

The company said Monday its consolidated net profit for the first half reached 5 billion won ($3.49 million), up 217 percent from 1.6 billion won in the same period last year.

Sales climbed 22 percent year-on-year to 45 billion won — a record for any half-year period in the company's history. Operating profit rose 43 percent to 5 billion won.

"Our materials segment, including ACF (anisotropic conductive film) for mobile camera modules — our flagship product — and our electronics segment, including crystal oscillators, both posted broad-based growth," a company official said.

The official added that sales of mid- to low-end handsets by global top-tier mobile manufacturers surged far beyond expectations in the first half, particularly in the materials business division, which in turn drove a significant increase in supply of the company's core products.

A favorable exchange rate also contributed to the results. The won-dollar rate climbed into the mid-1,500 won range during the first half, boosting won-denominated sales.

The company expects ACF supply to increase sharply in the second half as major smartphone makers launch new models en masse. If the upward trend continues through the second half, the company projects it will comfortably surpass the 100 billion won annual sales mark for the first time in its history.

CEO Kim Jeong-hee said the company has invested more than 25 billion won in research and development over the past five years. "We are concentrating all our capabilities with the conviction that developing cutting-edge technology that pushes the limits is the only way to secure a lead in the global market," Kim said.

Meanwhile, ACF — the company's flagship product — is an ultra-precision bonding material that precisely connects minute electronic components in devices such as displays and smartphone camera modules. H&S High Tech listed on the Kosdaq market in October 2024 and has continued to expand in both its ACF and crystal oscillator businesses.