ISMEDIA has signed a supply contract worth 7.4 billion won with O-Film, a Chinese smartphone component manufacturer. The company will supply dual camera inspection equipment and handler, which is automation equipment.
According to industry sources on the 8th, ISMEDIA signed a contract with O-Film to supply CCM (Compact Camera Module) inspection equipment. The contract amount is 7.38 billion won. It is at the level of 9.4% of last year's sales (79 billion won). O-Film, which generates sales of 5 trillion won, is a parts maker that produces camera modules and displays. Major customers of O-Film are Chinese smartphone companies such as Huawei, Oppo, Vivo, and Xiaomi.
In the sales of ISMEDIA, exportation occupies a large share. The exports to China account for two-thirds of the company's total sales. Q-Tech is the biggest client of last year with sales of 1.30 trillion won. Last year, the company delivered 34 billion won worth of inspection equipment to Q-Tech. In the same year, the company exported 18 billion won worth of equipment to O-Film. Sales from both companies are 43.2% and 22.8%, respectively, of the total sales of the company, which add up to 66.0%.
When Vietnam sales are added, 89% of the sales of ISMEDIA is from exports. An official from ISMEDIA said, "China and Vietnam account for a large portion of our sales. We have been supplying inspection equipment to O-Film and Q-Tech steadily before going public (2017)." In addition to Q-Tech and O-Film, ISMEDIA supplies camera module inspection equipment to Truly in China.
ISMEDIA produces single and dual camera module inspection equipment and car camera module inspection equipment. The company also developed Active Alignment equipment, which handles the entire process of assembling and inspection of camera modules at once, by entering part of the front-end process market.
Chul-Hee Cho, a researcher at Korea Investment & Securities, expected, "In 2019, the demand for inspection equipment will be stable due to the continuous development by camera module makers." Last year, camera module inspection equipment accounted for 96.7% of the total sales of ISMEDIA.
Domestic customers include Partron, MCNex, IMTECH, and NAMUGA that supply camera modules for Samsung Electronics' smartphones. Its competitors are HyVision System, PamTek, and NEXTAS of China.
HyVision System also signed a supply agreement with O-Film for 17 billion won in March. Last year, HyVision System's sales grew 8.4% YoY to 183 billion won, while operating profit fell 28.5% YoY to 20 billion won. The sales structure of HyVision System is 70.9% for camera module inspection equipment, 26.0% for image evaluation equipment and 3.1% for 3D printers. Their camera module inspection equipment sales are 130 billion won.
Founded in 2002, ISMEDIA is headquartered in Anyang, Gyeonggi Province. It was listed on the KOSDAQ in 2017. Its Chinese subsidiary was established in 2015 and its US corporation was established last year. ISMEDIA's sales grew 48.3% YoY to 79.0 billion won while operating profit rose 71.0% YoY to 4.1 billion won.