KEF Posts Q2 Operating Profit of 4.8 Billion Won with Operating Margin at 7.4% This Year
KEF, a specialist company in wipers and Surface Mount Technology (SMT), continued its strong performance in the second quarter of this year by expanding profitability, primarily in its wiper division.
On August 18, KEF announced that its consolidated sales for the second quarter of this year reached 65.3 billion won, with an operating profit of 4.8 billion won. Operating profit increased by 10.5% year-on-year, while the operating margin rose by 1.5 percentage points from 5.9% in the same period last year to 7.4%.
The operating margin increase in the second quarter of this year is attributable to a higher proportion of high-value-added products and cost reduction through production efficiency improvements. The sales proportion of high unit price items such as flat and hybrid wipers continues to grow. Notably, flat wipers now account for approximately 50% of total wiper sales, indicating significant growth in their share.
KEF is also seeing results in diversifying its sales across regions. In addition to its main market of North America, the company has added new customers primarily in Europe. Once full-fledged sales commence in the second half of this year, the company expects to further diversify its sales structure and improve its results.
The SMT division is investing in equipment to establish a production system at its subsidiary in Vietnam. KEF plans to focus on rapid construction of the production line and stabilizing its operations.
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A KEF representative stated, "The increase in high-value-added product sales and the expansion of our global customer base are sustaining a stable trend of profitability improvement. In the second half of this year, we will continue to strengthen product competitiveness and our global customer base in the wiper division, while ensuring the establishment of the production system at our Vietnam subsidiary proceeds without delay."
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