Hanyang Eng

Founded in 1988, Hanyang Eng is an engineering company specializing in semiconductor and display facility construction, with core competencies in ultra-high-purity (UHP) piping design and installation and manufacturing of central chemical supply systems (CCSS).

Its business is organized into three units: the Hi-Tech BU for semiconductor and display facilities, the EPC BU covering industrial plants, environment/energy, and aerospace, and the System BU for CCSS equipment.

Major customers include Samsung Electronics, SK Hynix, Samsung Display, and LG Display, for whom the company performs hook-up construction and CCSS installation tied to fab expansions and line conversions.

The company is currently involved in major projects including Samsung Electronics' P4 Phase 3, its advanced fab in Taylor, Texas, and SK Hynix's M15X and Yongin Fab 1. Key competitors bidding for cleanroom and facility work from the same customer base include Sebo E&C, Sungdo Engineering, KENS, and Shinsung Eng.

Hanyang Eng ranks among the top tier in the mechanical facility and gas installation construction capability evaluation.

More recently, the company has been extending the ultra-high-purity gas and cryogenic/high-pressure control technology accumulated in semiconductors into the aerospace field, participating in development of the Nuri rocket's launch pad system and umbilical, the equipment that supplies fuel, gas, and electricity to a launch vehicle.

In its industrial plant segment, the company also serves global gas companies such as Linde, Air Products, and Air Liquide as clients, and operates several overseas subsidiaries in Vietnam, Singapore, and elsewhere.

Looking at annual results, revenue reached KRW 1,026.2 billion in 2023 with operating profit of KRW 85.1 billion and owner net income of KRW 77.4 billion, marking a peak operating margin of 8.3%; in 2024, revenue rose slightly to KRW 1,186.3 billion, yet the operating margin slipped to 7.3%.

In 2025, revenue fell to KRW 1,118.2 billion, operating profit to KRW 53.7 billion, and owner net income to KRW 41.8 billion, with revenue, operating profit, and net income all declining sharply from the prior year and the operating margin dropping further to 4.8%.

On a quarterly basis, operating margin fell to 4.8% in Q3 2025 (revenue KRW 251.7 billion, operating profit KRW 12.1 billion, owner net income KRW 7.9 billion) and further to 3.2% in Q4 2025 (revenue KRW 307.4 billion, operating profit KRW 9.7 billion, net income KRW 8.4 billion), continuing the earnings slowdown.

However, in Q1 2026 revenue rose to KRW 341.4 billion and operating profit recovered to KRW 22.3 billion (operating margin 6.5%), with owner net income of KRW 26.0 billion exceeding operating profit, suggesting non-operating items also contributed.

In Q2 2026, revenue reached KRW 354.7 billion with operating profit of KRW 28.5 billion (operating margin 8.0%) and owner net income of KRW 21.6 billion, showing a joint improvement in revenue and margin.

As a result, the trailing four quarters (Q3 2025 through Q2 2026) combined owner net income totals roughly KRW 63.9 billion.

On the balance sheet side, the debt-to-equity ratio eased from 55.2% in 2023 to 48.0% in 2025, while operating cash flow swung widely, falling from KRW 148.6 billion in 2023 to just KRW 2.4 billion in 2025.

The domestic semiconductor cleanroom and facility construction industry is directly tied to the capital expenditure cycles of Samsung Electronics and SK Hynix.

According to recent semiconductor industry capex consensus, Samsung Electronics is expected to spend over KRW 60 trillion on its semiconductor division this year, up more than 20% year-on-year, with continued investment in advanced-node lines at the Pyeongtaek P4 plant, the start of P5 cleanroom construction, and ongoing investment at its Taylor, Texas foundry fab.

SK Hynix is also expected to spend over KRW 38 trillion this year, a roughly 52% increase from the prior year, concentrating investment in the Cheongju M15X facility, Yongin Fab 1, and an advanced packaging plant in Indiana, USA.

Notably, SK Hynix's Yongin Fab 1 is expanding its cleanroom count from four to six, which is expected to expand the scale of related utility construction orders.

Amid this trend, expectations have built for expanding order backlogs at cleanroom-related listed companies including Hanyang Eng, Sebo E&C, Sungdo Engineering, and KENS, with the Korea IR Service Council noting that these four companies' average annual revenue growth rate from 2021 to 2026 has significantly outpaced the average for semiconductor materials and parts companies.

Because the industry recognizes revenue based on construction progress rate, earnings tend to be relatively stable, though quarterly swings can widen depending on the ups and downs of the semiconductor investment cycle.

The cleanroom consumables and equipment market is projected to grow at roughly 4.0% annually from 2026 to 2034, with demand for related equipment continuing to expand as advanced-node process transitions raise cleanliness class requirements.

In a May 2026 report, the Korea IR Service Council's corporate research center forecast Hanyang Eng's full-year 2026 revenue at KRW 1,269.1 billion and operating profit at KRW 88.8 billion, up 13.5% and 65.4% year-on-year respectively, which would mark record highs.

This reflects the sequential recognition of hook-up and CCSS construction revenue tied to ongoing projects at Samsung Electronics' P4 Phase 3, its advanced fab in Taylor, Texas, and SK Hynix's M15X facility and Yongin Fab 1.

The improvement seen in both revenue and operating margin in Q1 and Q2 2026 is consistent with this outlook.

Beyond its core semiconductor and display business, the company is cultivating aerospace as a new growth pillar, expanding its involvement in launch vehicle infrastructure based on its experience with the Nuri rocket program.

That said, the aerospace business remains at an early stage and its revenue contribution appears limited so far.

The pace of Samsung Electronics' and SK Hynix's investment execution in the second half and beyond, particularly the progress of new fabs in the United States (Taylor and Indiana), stands out as a key variable affecting future order intake and the timing of revenue recognition.