DB HiTek CO (000990) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached KRW 374.7bn, up 11% QoQ and 30% YoY, with operating profit at KRW 80.6bn, up 9% QoQ and 71% YoY, maintaining strong earnings momentum.

• For 9M FY2025, revenue was KRW 1,009.4bn (down 10.8% YoY), net income at KRW 196.6bn (down 14.3% YoY), but operating margin improved to 20.5%.

• Subsidiary DBGC posted an operating loss of KRW 8.1bn, offsetting some group gains.

• The main business remains semiconductor foundry, with diversification into display ICs, real estate, and alloy iron.

• Significant investments were made in capacity expansion and new business combinations, including the acquisition of DB Metal and Comerand.

Financial highlights

• Gross profit in Q3 2025 was KRW 136.0bn (+8% QoQ, +37% YoY), with gross margin at 36%.

• EBITDA reached KRW 122.7bn (+7% QoQ), EBITDA margin at 33%.

• Net profit in Q3 2025 was KRW 90.7bn (+51% QoQ), net margin at 24%.

• Basic EPS for 9M FY2025: KRW 4,839 (down from KRW 5,520 YoY).

• Cash and cash equivalents at period end: KRW 221.1bn; total assets: KRW 2,860.1bn; equity: KRW 2,177.1bn.

Outlook and guidance

• Parent revenue expected to grow 20% YoY in 2025, with operating profit margin in the mid-20% range.

• Power semiconductor demand projected to tighten in Q4; annual utilization above 95% in 2025.

• Next-gen power semiconductor initial production set for 2026.

• Ongoing investments in capacity and technology, including cleanroom expansion and new process development.

• Dividend policy targets a payout ratio in the 10–20% range, with a focus on shareholder returns through both dividends and share buybacks.