KOSPIElectronic Components020760

Iljin Display

₩902 0.00%2026-10-02 close

Market Cap

₩55.5B

Turnover

₩0

Volume

0 shares

Shares out.

61.5M

PER

—

PBR

1.5×

EPS

-₩60

Dividend Yield

0.00%

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

Report overview

At a Crossroads Amid Trading Halt and Restructuring

Iljin Display has run its business on two pillars—touch screen panels and sapphire wafers—but a halt at its sapphire production line triggered a KRX listing eligibility review, leaving its shares suspended from trading while earnings remain stuck in a multi-year loss pattern.

1
2025 consolidated revenue fell sharply to KRW 57.8bn from KRW 89.2bn a year earlier, and operating profit swung to a loss of KRW 4.88bn from a prior-year profit.
2
Operating losses continued in both Q1 and Q2 2026, though the loss size has narrowed from the low point recorded in Q3 2025.
3
A production halt at the Eumseong sapphire line in September 2025 triggered a KRX listing eligibility review, and with an improvement period set to run through November 4, 2026, trading in the shares remains suspended.
4
Controlling shareholder Heo Jin-kyu and related parties expanded their combined stake to 52.44% as of April 2026 through convertible bond conversions.
5
The debt ratio rose again to 135.7% in 2025 from 123.9% in 2024, having spiked as high as 338.8% back in 2023.

Business structure

Iljin Display is a KOSPI-listed electronic components maker organized around two business lines—touch screen panels (TSP) and sapphire ingots/wafers—with its disclosed products and services listed as touch screen panels, sapphire, and wafers.

The TSP business is run through its Vietnamese subsidiary, operating as a DS division that supplies touch screen panels for notebooks, tablet PCs, smartphones, and automotive electronics.

Built on Samsung Electronics smartphone volumes, the company posted a record revenue of roughly KRW 660bn in 2013, but has since faced a prolonged decline as it failed to secure new growth drivers and came under pressure from low-cost Chinese competitors.

The sapphire segment produced LED-grade sapphire ingots and wafers at its Eumseong plant in Chungcheongbuk-do, continuing technology development aimed at next-generation optical component markets such as micro-LEDs.

However, in September 2025 the company halted operations at the Eumseong plant citing excess inventory and intensifying competition, and because that plant accounted for a substantial share of the Korean entity's standalone revenue, the shutdown subsequently triggered a listing eligibility issue.

In response to shrinking TSP demand as smartphone makers adopt on-cell touch integration, the company is pursuing customer and product diversification into notebooks, automotive electronics, and tablets.

The controlling shareholder is Chairman Heo Jin-kyu and related parties, whose combined stake expanded to 52.44% as of April 2026 through convertible bond conversions.

Competitively, the touch panel segment faces low-cost Chinese rivals while the sapphire segment competes against cost-efficient overseas wafer producers.

Earnings trend

Quarterly revenue · Operating profit

₩18.4B-₩1.1B25Q2₩13.8B-₩2.5B25Q3₩3.8B-₩600M25Q4₩11.8B-₩600M26Q1₩10.7B-₩700M26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩124.3B₩1.1B2022₩54.3B-₩8B2023₩89.2B₩1.4B2024₩57.8B-₩4.9B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩18.4B	-₩1.1B	−5.8%
2025Q3	₩13.8B	-₩2.5B	−18.0%
2025Q4	₩3.8B	-₩600M	−16.0%
2026Q1	₩11.8B	-₩600M	−5.2%
2026Q2	₩10.7B	-₩700M	−6.3%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩124.3B	₩1.1B	-₩3.3B	0.8%	−11.3%	305.5%
2023	₩54.3B	-₩8B	-₩14.9B	−14.7%	−58.5%	338.8%
2024	₩89.2B	₩1.4B	₩5.7B	1.6%	16.0%	123.9%
2025	₩57.8B	-₩4.9B	-₩6.3B	−8.4%	−22.0%	135.7%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23

Earnings analysis

2025 consolidated revenue came to KRW 57.847bn, down sharply from KRW 89.157bn in 2024. Over the same period, operating profit swung from a KRW 1.390bn gain in 2024 to a KRW 4.880bn loss in 2025, with the operating margin deteriorating to -8.4%.

Net income attributable to owners also flipped from a KRW 5.654bn profit in 2024 to a KRW 6.277bn loss in 2025. On a quarterly basis, revenue fell sharply from KRW 18.440bn in Q2 2025 to KRW 13.766bn in Q3 and KRW 3.824bn in Q4, before recovering somewhat to KRW 11.789bn in Q1 2026 and KRW 10.680bn in Q2 2026.

The operating loss also narrowed from KRW 2.477bn in Q3 2025 to KRW 0.611bn in Q1 2026 and KRW 0.676bn in Q2 2026. Net income briefly turned positive at KRW 0.690bn in Q4 2025 before reverting to losses of KRW 0.580bn in Q1 2026 and KRW 0.771bn in Q2 2026.

On the balance sheet, owners' equity stood at KRW 28.569bn and total liabilities at KRW 38.771bn at end-2025, pushing the debt ratio up to 135.7%, higher than the 123.9% recorded in 2024, though still well below the 338.8% peak seen in 2023.

Operating cash flow turned marginally positive at KRW 0.105bn in 2025, a notable contrast to the large KRW 6.186bn outflow recorded in 2024.

Industry analysis

The end-market for smartphone touch screen panels is in a phase of slowing growth, market saturation, and lengthening replacement cycles, all of which are weighing on demand.

Structural pressure also comes from major smartphone makers increasingly adopting on-cell touch integration, which shrinks the addressable market for standalone TSPs. New applications such as notebooks and automotive electronics have emerged as alternatives, but their revenue contribution still appears limited.

In the sapphire wafer market, there is long-term hope tied to emerging applications like micro-LEDs, though commercialization timing remains uncertain, while demand for existing LED lighting and backlight unit (BLU) applications faces pricing pressure from oversupply among low-cost Chinese producers.

Against this backdrop, Iljin Display has halted sapphire production, citing excess inventory and intensified competition.

As a small-to-mid-cap KOSPI-listed component maker, the company faces constraints from a lack of scale economies and weakened capital strength, limiting its capacity for R&D and capital investment relative to competitors.

Outlook

The company was granted an improvement period under the KRX listing eligibility review, confirmed to run through November 4, 2026. Once that period ends, the KRX corporate review committee will assess the improvement plan and decide whether the listing will be maintained.

The company has cited raising the Korean entity's revenue share, outsourcing domestic sales of products made by its Vietnamese subsidiary, and preparing newly developed products as part of its remediation measures.

Even during this period, additional listings of new shares from convertible bond conversions proceeded as scheduled, though the trading suspension on the shares itself has continued. The timing of any resumption of sapphire production or entry into specific new application markets has not yet been disclosed.

In the near term, market attention is likely to center on the exchange's determination at the end of the improvement period and the pace of earnings improvement in subsequent quarterly results.

Valuation

PER

—

PBR

1.5×

ROE

-10.7%

EPS

-₩60

BPS

₩588

Dividend per share

₩0

The current price should be interpreted with the understanding that it has effectively formed while trading remains suspended, meaning the normal price-discovery function through ordinary market trading cannot be said to be fully operative.

From a price-to-book perspective, the shares trade in a range that carries a certain premium to net asset value, a level worth considering in the context of owners' equity having contracted over multiple years.

Dividends have not been confirmed as paid in recent years, suggesting dividend-related appeal runs below the industry average.

On the earnings side, only one of the four years from 2022 through 2025—2024—produced a profit, with the other three years recording losses, so a clear directional recovery signal has not yet been sufficiently established.

Any assessment of valuation should also weigh the uncertainty tied to the outcome of the ongoing listing eligibility review.

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 2026-08-23

Bull factors

Attempted Customer and Product Diversification

The company continues to run its DS division diversifying into notebooks, tablets, and automotive electronics to reduce smartphone dependence, and has stated it is preparing newly developed products.

While Q1 2026 revenue fell 37.4% year-on-year, the operating loss narrowed 45.3% and the net loss narrowed 54.5%, showing some signs of profit-and-loss improvement. Whether this trend persists will need to be confirmed through subsequent quarterly results.

Long-Term Sapphire and Micro-LED Optionality

The sapphire ingot and wafer business has reportedly built up high-quality wafer production capability, viewing growth in the micro-LED market as a new opportunity, since manufacturing micro-sized LED chips requires high-specification sapphire substrates.

However, with the Eumseong plant currently idled, any realization of this option would first require confirmation that production resumes.

Expanded Controlling Shareholder Stake

Controlling shareholder Chairman Heo Jin-kyu and related parties raised their combined stake to 52.44% as of April 2026 through convertible bond conversions.

This can be read as an intent by the controlling shareholder group to maintain and reinforce control over the company, which may reduce uncertainty related to management control.

That said, this stake expansion is occurring alongside an increase in new shares from convertible bond issuance, which warrants consideration alongside the stake increase.

Bear factors

Ongoing Listing Eligibility Review and Trading Suspension

A production halt at the Eumseong plant in September 2025 made the company subject to a KRX listing eligibility review and suspended trading in its shares. An improvement period was granted through November 4, 2026, after which the corporate review committee will decide whether the listing will be maintained.

During this period, additional listings from convertible bond conversions proceeded as planned, but the trading suspension itself has continued.

Long-Term Revenue Contraction and Recurring Losses

Consolidated revenue shrank from KRW 124.3bn in 2022 to KRW 57.8bn in 2025, less than half its earlier level. Of the four years from 2022 through 2025, three years other than 2024 recorded operating or net losses.

In 2025, the operating loss widened from the prior year alongside declining revenue, pushing the operating margin down to -8.4%.

Balance-Sheet Strain and Potential Share Dilution

The debt ratio rose again to 135.7% in 2025 from 123.9% in 2024, having spiked as high as 338.8% in 2023. Repeated convertible bond conversions keep expanding the total share count, creating a persistent risk of dilution for existing shareholders. Operating cash flow turned marginally positive in 2025, but 2024 saw a large cash outflow.

Risk factors

Delisting Risk

The possibility that the corporate review committee could decide on delisting after the improvement period expires on November 4, 2026 cannot be ruled out. Even if the listing is maintained, the timing and manner of any resumption of trading remain uncertain. A prolonged trading suspension would also continue to limit shareholders' ability to trade the shares.

Business Competitiveness Risk

The touch panel segment continues to face competition from low-cost Chinese producers, and the spread of on-cell touch integration in smartphones is a structural factor shrinking the TSP demand base.

The sapphire segment has also halted production citing excess inventory and intensified competition, with the timing of any resumption uncertain.

Financial and Governance Risk

Frequent convertible bond issuances and conversions keep altering the capital structure, and accumulated deficits limit dividend capacity. The impact of the controlling shareholder's expanding stake on alignment of interests with minority shareholders is also worth monitoring.

What to watch next

November 4, 2026
This marks the expiration of the improvement period under the listing eligibility review, so it is necessary to check whether the corporate review committee decides to maintain the listing or move toward delisting.
Mid-to-late November 2026 (Q3 report filing)
The Q3 2026 earnings filing should be checked to gauge the pace of revenue and profit recovery.
Q4 2026
Disclosures on any remaining convertible bond conversions and changes in the controlling shareholder's stake should be checked for further shifts in ownership structure.
Around March 2027 (expected FY2026 annual report filing)
The FY2026 annual report should be checked for whether the sapphire segment resumes operations and how the annual debt ratio and total equity have evolved.

Overall view

Iljin Display operates on two business pillars—touch screen panels and sapphire wafers—but finds itself in an unusual position, having entered a KRX listing eligibility review with its shares suspended from trading after a 2025 shutdown of its sapphire production line.

On the earnings front, only 2024 was profitable among the four years from 2022 through 2025, and in 2025 both revenue and operating profit deteriorated sharply. Loss sizes narrowed somewhat in Q1 and Q2 2026, but the company has yet to escape a loss-making pattern.

The debt ratio turned higher again in 2025, and share dilution from convertible bond conversions is proceeding alongside an expansion of the controlling shareholder's stake.

The company's future path will hinge heavily on the exchange's determination at the end of the improvement period scheduled for November 4, 2026, which will decide whether the listing is maintained and when trading might resume.

With bullish factors such as business diversification and potential entry into new applications coexisting alongside bearish factors like delisting uncertainty and structural demand contraction, subsequent disclosures and the review outcome warrant balanced monitoring.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

Show 18 more articles and sources

Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.