DB HiTek CO (000990) Q2 2026 earnings summary

Executive summary

• Consolidated Q2 FY2026 revenue reached KRW 414.5bn, up 15% QoQ and 23% YoY, with operating profit at KRW 105.2bn, up 57% QoQ and 43% YoY.

• Non-consolidated revenue was KRW 347.0bn (+6% QoQ, +16% YoY), with operating profit at KRW 104.6bn (+42% QoQ, +41% YoY), driven by full-capacity operations and post-COVID price hikes.

• Revenue for the first half of 2026 was KRW 774,050 million, down from KRW 1,357,169 million in the same period last year, reflecting a challenging market environment for semiconductors.

• Operating income for the half-year was KRW 172,142 million, a decrease from KRW 285,535 million year-over-year.

• Strong BCD demand and recovery in subsidiary earnings, especially in industrial and automotive segments, contributed to growth.

Financial highlights

• Gross profit (consolidated) was KRW 163.3bn (+27% QoQ, +30% YoY), with gross margin improving to 39%.

• Net profit (consolidated) reached KRW 115.6bn (+33% QoQ, +93% YoY), with net margin at 28%.

• Gross margin for the half-year was 37.7%, with gross profit of KRW 291,782 million.

• EBITDA (non-consolidated) was KRW 145.1bn (+28% QoQ, +27% YoY), with EBITDA margin at 42%.

• Basic EPS for the half-year was KRW 4,633, down from KRW 6,285 year-over-year.

Outlook and guidance

• Foundry market utilization rates for 8-inch mature nodes projected at 84% in 2026 and 91% in 2027, with global supply tightness and price hikes expected to continue.

• Additional price increases planned for H2 2026, especially in BCD and DDI products.

• The company is focusing on expanding its analog and power semiconductor foundry business, targeting both domestic and international strategic customers.

• New business initiatives include high-value real estate development and further expansion into specialty semiconductor products such as SiC and GaN.

• The company aims to maintain a shareholder return ratio in the 30% range through 2028, with a dividend payout ratio up to 20%.