DB HiTek CO (000990) Q2 2025 earnings summary

Executive summary

• Revenue reached KRW 337.4bn in Q2 2025, up 13% year-over-year and quarter-over-quarter, with operating profit at KRW 73.9bn, up 10% YoY and 41% QoQ, reflecting continued earnings improvement despite currency headwinds.

• Operates primarily in semiconductor manufacturing, focusing on foundry services and display driver ICs, with additional activities in real estate and golf course operations through subsidiaries.

• Maintains a global presence with manufacturing in Korea and sales/marketing subsidiaries in the US, China, Taiwan, and Japan.

• Growth was driven by sustained demand from US tariffs, China chip localization, and surges in automotive and IT sectors, with a recovery in subsidiary fabless sales to China.

• Recent strategic focus on analog & power semiconductors, specialty foundry, and expansion into high-growth areas like OLED and automotive.

Financial highlights

• Consolidated revenue for H1 2025 was KRW 634.8 billion, down from KRW 1,131.2 billion in H1 2024.

• Gross profit for Q2 2025 was KRW 125.4bn, up 9% YoY and 20% QoQ, with gross margin improving to 37% from 35% in Q1.

• EBITDA reached KRW 114.9bn, up 21% QoQ, with EBITDA margin at 34%.

• Net profit was KRW 60.1bn, up 31% QoQ and 6% YoY, with net margin at 18%.

• Cash and cash equivalents at period end were KRW 157.0 billion, down from KRW 297.1 billion at the end of 2024.

Outlook and guidance

• 8-inch foundry market utilization is expected to rise, with 2025 Q3 utilization projected at 79% and an average of 81.7% in 2026.

• Fabless segment expects full-year utilization at 95% and revenue growth of 15% YoY, with operating margin in the mid-20% range.

• Expects continued demand for analog & power semiconductors, with focus on expanding specialty foundry and automotive applications.

• Si Capacitor mass production remains on track for Q2 2026; GaN business is expanding following competitor suspension.

• LCD panel price declines may pressure DDI, while mobile OLED sales are expected to grow in H2 2025.