PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close
Charm Engineering is a long-standing domestic leader in laser repair equipment for display panels, but shrinking revenue, consecutive net losses, and a high debt ratio have made balance-sheet repair the company's most pressing task.
Revenue has contracted for four straight years, falling from KRW 170.59 billion in 2022 to KRW 59.84 billion in 2025.
The operating loss narrowed from -KRW 35.84 billion in 2024 to -KRW 7.53 billion in 2025, while the net loss attributable to owners eased from -KRW 24.93 billion to -KRW 13.56 billion.
Quarterly results have swung sharply, with profits in 2Q25 and 1Q26 alternating with losses in the other recent quarters.
An 80% no-payment capital reduction in 2025 was followed by an early-2026 third-party rights issue, with HB Holdings Group consolidating its position as controlling shareholder.
Expanding 8.6-generation OLED investment by major panel makers such as Samsung Display, BOE, and LG Display is emerging as a key variable for downstream demand.
Charm Engineering's core business is laser repair equipment that fixes defects arising during display panel manufacturing. The company holds the leading market share in laser repair equipment for flat panel displays and currently supplies equipment to major global LCD and OLED panel makers.
Its product lineup includes laser normal repair equipment that cuts short-circuit defects on TFT circuits, laser CVD repair equipment that reconnects open-circuit defects using laser and chemical vapor deposition technology, and laser cell/module repair equipment that removes or restores defective cells and modules.
It also offers Air-SEM equipment, which can monitor micrometer-scale process defects at atmospheric pressure. The company has been reported to hold roughly a 70% share of the global display laser repair equipment market in the past.
Its main customers are large domestic and overseas LCD/OLED panel makers, meaning revenue is directly tied to new-line investment and utilization rates in the downstream industry.
On the ownership side, as of April 13, 2026, controlling shareholder HB Holdings Group and a related party together held a 60.82% stake, with HB Holdings Group holding 46.2% and related party HBC New Technology Investment Association No. 1 holding 14.62%.
The company has also been expanding its product portfolio toward repair equipment for next-generation displays such as micro LED and QD-OLED.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩18.4B | ₩8.7B | 47.2% |
| 2025Q3 | ₩18.2B | -₩6B | −32.9% |
| 2025Q4 | ₩13.2B | -₩1.5B | −11.0% |
| 2026Q1 | ₩22.6B | ₩5.4B | 23.9% |
| 2026Q2 | ₩33.8B | -₩2.5B | −7.3% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩170.6B | ₩1.3B | -₩2.3B | 0.8% | −2.9% | 759.0% |
| 2023 | ₩76.3B | -₩28.1B | -₩26B | −36.8% | −39.8% | 826.8% |
| 2024 | ₩64.9B | -₩35.8B | -₩24.9B | −55.2% | −40.3% | 852.4% |
| 2025 | ₩59.8B | -₩7.5B | -₩13.6B | −12.6% | −21.4% | 1154.4% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04
Annual revenue contracted for four consecutive years, from KRW 170.59 billion in 2022 to KRW 76.26 billion in 2023, KRW 64.90 billion in 2024, and KRW 59.84 billion in 2025.
Operating profit swung from a KRW 1.31 billion gain in 2022 to losses of -KRW 28.09 billion in 2023 and -KRW 35.84 billion in 2024, before the loss narrowed to -KRW 7.53 billion in 2025.
Net income attributable to owners followed a similar pattern, posting large losses of -KRW 2.27 billion in 2022, -KRW 25.96 billion in 2023, and -KRW 24.93 billion in 2024, before the loss eased to -KRW 13.56 billion in 2025.
The operating margin improved from -55.2% in 2024 to -12.6% in 2025, though losses relative to revenue persisted.
Quarterly volatility has been pronounced: after a profitable 2Q25 (revenue KRW 18.40 billion, operating profit KRW 8.69 billion, net income KRW 2.87 billion), the company posted consecutive operating losses in 3Q25 (-KRW 5.99 billion) and 4Q25 (-KRW 1.46 billion), swung back to profit in 1Q26 (revenue KRW 22.57 billion, operating profit KRW 5.38 billion, net income KRW 4.19 billion), then returned to loss in 2Q26 (revenue KRW 33.82 billion, operating profit -KRW 2.46 billion, net income -KRW 0.86 billion) despite a sharp revenue increase.
This alternating profit-loss pattern likely reflects an order-driven business in which equipment revenue recognition depends on specific customers' inspection and delivery schedules.
Over the trailing four quarters (3Q25-2Q26), cumulative net income attributable to owners stood at -KRW 5.87 billion, still in loss territory. Cash flow has also mostly been negative, with 2025 operating cash flow at -KRW 11.91 billion.
The display equipment sector is heavily dependent on panel makers' new-line investment cycles. Samsung Display led the way, and BOE, Visionox, and China Star Optoelectronics Technology (CSOT) have all formalized 8th-generation IT OLED investment plans.
China's BOE has sent executives to South Korea to place additional orders for 8.6-generation OLED equipment, and even as its first line is still being installed and the timing of a second line's arrival is being coordinated, it appears to be rushing to place orders for lines three and four as well.
LG Display has also begun mass production on its 8.6-generation (A6) IT OLED line this summer and is reported to have achieved three consecutive quarters of profitability, successfully improving its business mix around OLED.
In addition, LG Display is firming up plans for a pilot line for its next-generation OLED technology, FLiPP, discussing with partners how to introduce new equipment on its 8.5-generation large OLED line.
Such new-line investment and rising utilization could form a demand base for yield-improvement equipment like laser repair tools.
However, repair equipment tends to involve smaller investment amounts than large deposition or exposure equipment and is often ordered later in the cycle, so any recovery in Charm Engineering's revenue may not appear immediately after panel makers announce new-line investments.
On the competitive front, domestic and overseas display equipment makers are increasingly diversifying into adjacent areas such as semiconductors and batteries, putting pressure on companies still heavily reliant on traditional display equipment revenue to restructure their portfolios.
The company decided on an 80% no-payment capital reduction in March 2025 to offset accumulated deficits, and carried out a 5-for-1 share consolidation with a record date of April 10, 2026, reducing total shares outstanding from 21,885,074 to 4,377,014.
It subsequently decided at a board meeting on January 16, 2026 to conduct a KRW 5 billion third-party rights issue, issuing 4,911,591 common shares at KRW 1,018 per share to controlling shareholder HB Holdings Group, with the new shares scheduled to be listed on February 11.
The disclosure stated that the newly issued shares would be subject to a full one-year lock-up from the listing date. This series of capital restructuring actions can be interpreted as serving both to resolve accumulated deficits and to strengthen the controlling shareholder's position.
On the business side, no separate revenue guidance or large new order disclosures have been confirmed, so any future earnings recovery is likely to be tied to utilization rates on downstream panel makers' 8.6-generation OLED lines and subsequent investment announcements.
The company's past efforts to broaden its product lineup into inspection equipment and repair tools for next-generation displays such as micro LED and QD-OLED can be viewed as a mid- to long-term revenue diversification attempt, though the specific revenue contribution of these new products has not yet been confirmed.
The price-to-book ratio trades at a discount to net asset value, a pattern that appears linked to the company's still-small equity base relative to revenue and its elevated debt ratio.
Because net income has remained in loss territory even on a trailing four-quarter basis, an earnings-based valuation multiple cannot currently be calculated. There is no recent dividend payment history, limiting the investment appeal from a yield perspective.
That said, the annual operating loss narrowed from 2024 to 2025, leaving room for the market's assessment to shift depending on the pace of any future earnings recovery.
Because recent capital restructuring (the capital reduction and rights issue) has recently reset the baseline for per-share metrics, direct comparison with historical valuation bands warrants caution.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04
The company is reported to hold the leading market share in laser repair equipment for flat panel displays. It has both a broad repair equipment product lineup and precision measurement technology such as Air-SEM, giving it a technical foundation to address panel yield-improvement demand.
It continues to develop equipment for next-generation displays such as micro LED and QD-OLED, leaving room for expansion into new applications.
Major panel makers including Samsung Display, BOE, and LG Display are expanding 8.6-generation IT OLED investment, and LG Display began mass production on a related line this summer.
New-line investment and rising utilization could, over the medium to long term, form a base of demand for yield-improvement equipment like laser repair tools. BOE also appears to be rushing additional orders for 8.6-generation lines, suggesting the downstream investment cycle may continue.
The operating loss narrowed from -KRW 35.84 billion in 2024 to -KRW 7.53 billion in 2025, while the net loss attributable to owners eased from -KRW 24.93 billion to -KRW 13.56 billion.
The operating margin also improved from -55.2% to -12.6%, suggesting some effect from cost-structure efficiency gains or a shift in revenue mix. Both operating profit and net income turned positive on a quarterly basis in 2Q25 and 1Q26.
Revenue fell to roughly one-third of its level over four years, from KRW 170.59 billion in 2022 to KRW 59.84 billion in 2025. Revenue declined for three consecutive years from 2023 to 2025, a period marked by continuous operating and net losses. A shrinking business scale can raise the burden of fixed costs, making profitability recovery more difficult.
The debt ratio rose sharply from 759.0% in 2022 to 1,154.4% in 2025, while equity attributable to owners fell from KRW 76.94 billion to KRW 63.33 billion over the same period. Operating cash flow was negative in every year except 2022, suggesting rising reliance on external financing.
Indeed, an 80% capital reduction in 2025 and a rights issue in early 2026 have followed one after another, reflecting repeated capital restructuring.
Quarterly results have swung significantly, from a profit in 2Q25, to consecutive losses in 3Q25 and 4Q25, a profit in 1Q26, and back to a loss in 2Q26.
Even in 2Q26, when revenue rose sharply to KRW 33.82 billion, operating profit remained negative at -KRW 2.46 billion, showing that higher revenue does not automatically translate into improved profitability.
Combined with the order-driven nature of the business, in which results depend on equipment delivery and inspection schedules, this raises the uncertainty of future earnings estimates.
The debt ratio has risen above 1,000%, and consecutive net losses have continued to erode equity. Repeated capital reductions to offset deficits and third-party rights issues raise the possibility of dilution for existing shareholders. If additional external financing is required, further dilution or worsening borrowing terms could recur.
Because revenue is heavily dependent on the new-line investment and utilization rates of large domestic and overseas panel makers, any delay or reduction in panel makers' investment timing could push back order intake and revenue recognition.
Relative to large deposition equipment, repair equipment involves smaller investment amounts and may be deprioritized. As 8.6-generation OLED investment is concentrated among a small number of customers, revenue volatility from customer concentration also remains a risk.
Controlling shareholder status has changed in recent years to HB Holdings Group, and capital policy actions such as capital reductions and rights issues have been carried out repeatedly within a short span.
Since the third-party rights issue was allocated to a party related to the controlling shareholder, continued monitoring of future ownership changes and related-party transaction disclosures is warranted.
Each capital policy change resets the baseline for per-share metrics, which can create confusion when investors compare valuations over time.
Timing of the 3Q26 (July-September 2026) earnings disclosure, when it will be worth checking whether the pattern of rising revenue alongside an operating loss seen in 2Q26 repeats, or whether profitability recovers.
Worth checking whether major panel makers such as BOE, Samsung Display, and LG Display disclose follow-on investment or orders for 8.6-generation OLED lines. Whether downstream investment translates into actual equipment orders could be linked to any order recovery at Charm Engineering.
DART disclosures should be monitored for any ownership changes involving controlling shareholder HB Holdings Group, or for further capital policy actions such as additional rights issues or capital reductions.
Timing of the preliminary announcement of full-year 2026 results, when it will be worth confirming whether the narrowing trend in operating and net losses seen relative to 2025 continues on an annual basis.
Charm Engineering has a long track record and technical capability in display laser repair equipment, but persistent revenue declines since 2022 and four consecutive years of net losses have placed considerable strain on its financial structure.
In 2025, both the operating loss and net loss narrowed from the prior year, and the company posted profits in certain quarters, but the direction of earnings remains unclear, as 2Q26 reverted to a loss despite higher revenue.
With the debt ratio rising above 1,000%, the company carried out a capital reduction in 2025 and a rights issue in early 2026 to restructure its capital base, and HB Holdings Group has consolidated its position as controlling shareholder.
On the industry side, expanding 8.6-generation OLED investment by major panel makers such as Samsung Display, BOE, and LG Display suggests some room for improvement in downstream demand conditions, though the timing and scale of any resulting repair equipment orders remain unconfirmed.
Investors will want to track whether quarterly profits and losses continue to alternate, how the debt ratio and equity base evolve, and whether panel makers disclose new investment and order announcements.
Report written 2026-09-05 · Data as of 2026-09-04
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