Hansol Technics

Founded in 1966, Hansol Technics is an electrical and electronics parts specialist under the Hansol Group, centered on power supply modules (power boards).

TV and home-appliance power boards have long been the largest revenue segment, with performance closely tied to the TV and appliance sales strategy of its key customer, Samsung Electronics.

The second pillar is smartphone and tablet electronics manufacturing services (EMS); the company has manufactured entry-level Samsung Electronics smartphones on a contract basis since 2014.

In 2022 the company acquired Hansol IONS, marking its entry into semiconductor equipment parts and the start of business diversification. In 2025 it acquired stakes in S&I Materials and Hansol Oriontech, and this year it agreed to acquire an 83.37% stake in WILL Technology for KRW 177.2 billion.

WILL Technology designs and manufactures probe cards, a core component used in non-memory system semiconductor testing, and holds key domestic and overseas customers in probe cards for smartphone application processors and image sensors.

The automotive-electronics business has been centered on production subsidiaries in Thailand and China, and on May 26 the company announced the establishment of a new entity in Mexico dedicated to automotive electronics, extending its Thailand- and China-centered electronics production into North America.

As part of its production realignment, the Ho Chi Minh City subsidiary, which now makes only power boards after exiting the LCM business, is estimated to have an operating margin close to 10%, reflecting site-by-site specialization.

Hansol Technics' revenue dependence on Samsung Electronics stands at roughly 60-70%, lower than the roughly 80% level of the past but still substantial.

Consolidated revenue in 2025 was about KRW 1.2524 trillion, a modest increase from roughly KRW 1.1995 trillion in 2024, but operating profit fell to KRW 20.4 billion (a 1.6% margin) from KRW 33.4 billion (2.8%) in 2024.

The owner net result swung from a profit of KRW 6.7 billion in 2024 to a loss of KRW 13.7 billion in 2025, while total net income fell 97.4% to KRW 0.55 billion from KRW 23.2 billion, and the operating margin also declined from 2.8% to 1.6%, exposing weaker underlying fundamentals.

This profitability decline was compounded by a 12.6% contraction in the once cash-generative TV power-board business amid low-cost competition from Chinese makers, plus roughly KRW 15.8 billion of one-off after-sales costs and KRW 3.7 billion of restructuring costs booked in the fourth quarter alone.

On a quarterly basis, a solid run of KRW 12.8 billion (4.4% margin) in 2Q25 and KRW 17.7 billion (5.3%) in 3Q25 reversed sharply into a KRW 29.3 billion operating loss in 4Q25, with the owner net result also swinging to a large loss of KRW 36.5 billion.

Profitability then stabilized over two consecutive quarters, with operating profit of KRW 14.1 billion (4.5%) in 1Q26 and KRW 14.2 billion (4.2%) in 2Q26, suggesting the fourth-quarter one-off drag had cleared, while owner net income recovered to KRW 8.1 billion in each of the two quarters.

Cash generation weakened over the period, however, with operating cash flow shrinking to KRW 46.4 billion in 2025 from KRW 96.8 billion in 2024 and KRW 163.8 billion in 2023, largely reflecting an expanded working-capital burden (KRW 34.3 billion) tied to the semiconductor segment and capital expenditure more than doubling to KRW 34.4 billion from KRW 16.7 billion a year earlier.

Hansol Technics' end markets fall into three broad groups. The TV and appliance power-board market is mature, with low-cost competition from Chinese makers acting as the main source of earnings volatility.

Smartphone EMS is tied to Samsung Electronics' entry-level handset volumes and is exposed to a maturing smartphone market.

In semiconductors, probe cards—used to test the electrical characteristics and defects of chips—are becoming more important as process nodes advance, positioning WILL Technology's probe-card business to benefit from this trend.

However, nearly four years after the 2022 acquisition of Hansol IONS, clear synergies in revenue and profitability have yet to fully materialize, suggesting new businesses may need more time to mature.

The automotive-electronics segment is seen as an area with growth potential tied to automakers expanding North American production, and the company is responding by extending its Thailand- and China-centered production system into Mexico.

On the funding side, the company has resumed engagement with the public corporate bond market on the back of improved semiconductor-segment performance, even as observers note that it already meets rating agencies' credit-downgrade trigger criteria.

The biggest variable for the company is the consolidation impact of WILL Technology.

On June 17, Hansol Technics acquired 6,110,544 shares of WILL Technology for KRW 177.2 billion, securing an 83.37% stake and completing the subsidiary integration process, which is set to be reflected in consolidated results starting in the third quarter.

In a May 2026 report, Meritz Securities forecast Hansol Technics' 2026 revenue at KRW 1.3637 trillion (up 8.9% year on year) and operating profit at KRW 88.6 billion (up 334.2%), a figure it described as a conservative estimate that excludes the consolidation effect of WILL Technology.

Meritz Securities said the key to improving core-business profitability lies in operational efficiency at production subsidiaries, and that full-year contribution from Hansol Oriontech, whose acquisition was completed last year, is expected to drive substantial profit growth starting this year.

Consistent with this, BNK Investment & Securities noted in a September 2026 comment that Hansol Technics' second-quarter profitability improved, explaining that restructuring the business around profitability and adjusting the solar module business are improving its business quality.

In automotive electronics, expanding supply to North American automakers through the new Mexican subsidiary remains a medium-term task. The company has also pursued shareholder returns, deciding on July 24 to buy back and cancel treasury shares (76,300 common shares, worth about KRW 0.67 billion).