BCNC, a Semiconductor Materials Firm, Sees Earnings Surge on Overseas Expansion

(Seoul=Yonhap Infomax) Hak Seong Kim – BCNC Co. [146320], a South Korean manufacturer of semiconductor materials and components, is rapidly improving its earnings as it expands its overseas business portfolio.

BCNC announced on the 25th that overseas sales accounted for 33.4% of its standalone revenue through the third quarter of this year.

In the third quarter alone, the overseas share reached 36.9%. The company projects that this figure could surpass 50% by the fourth quarter of next year.

Boosted by this trend, BCNC reported a record-high cumulative EBITDA (earnings before interest, taxes, depreciation, and amortization) of 10.4 billion won ($7.8 million) for the first three quarters, surpassing the previous annual high of 9.7 billion won ($7.3 million) in 2022.

BCNC specializes in consumable parts for semiconductor manufacturing processes, including synthetic quartz and natural quartz components.

The company began supplying its synthetic quartz product 'QD9+' to major North American integrated device manufacturers (IDMs) and foundries this year. Several other products have either completed or are in the final stages of customer quality testing (qualification tests).

BCNC noted that demand and positive response for domestically developed advanced materials are growing overseas. The company expects to strengthen its operating leverage from next year, driven by new overseas customers, an expanded product lineup, and increased usage of existing mass-production items.

BCNC counts leading semiconductor companies such as Samsung Electronics Co., Ltd., SK hynix Inc., DB HiTek Co., Ltd., TSMC, and Intel as its clients.

Kim Don Han, CEO of BCNC, said, "We are currently supplying products for mass production and conducting qualification tests with a diverse range of domestic and international customers. We expect profitability to improve rapidly."

Daol Investment & Securities, in a report published last month, analyzed that "the expansion of new product lines will clearly drive earnings growth for BCNC by 2026."

On a consolidated basis, BCNC posted cumulative sales of 63.7 billion won ($47.7 million) and operating profit of 2.9 billion won ($2.2 million) through the third quarter of this year.

hskim@yna.co.kr

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