KOSDAQSemiconductors052860

I&C Technology

₩7,690 0.00%2026-10-02 close

Market Cap

₩137.4B

Turnover

₩200M

Volume

30,000 shares

Shares out.

17.9M

PER

46.2×

PBR

2.8×

EPS

₩136

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

I&C Technology: Profit Turnaround Meets Earnings Volatility

I&C Technology posted sharply higher consolidated revenue and a swing to operating and net profit in 2025, but quarterly results continue to alternate between profit and loss.

1
2025 consolidated revenue reached KRW 36.88 billion, a sharp increase from the prior year, with operating profit turning positive at KRW 4.05 billion.
2
After an operating loss in 4Q2025, the company returned to profit in 1Q2026, though the operating margin narrowed again in 2Q2026.
3
KEPCO's AMI and AMIGO programs remain the core revenue driver for the Smart Energy segment, making results highly sensitive to public procurement timing.
4
A revision to Korea's electrical facility standard (KEC) expanding mandatory arc-fault breaker installation has emerged as a new growth opportunity.
5
The company does not currently pay dividends, and the stock trades at a notable premium to book value.

Business structure

I&C Technology (formerly I&C Technology Co., Ltd.) is a fabless system semiconductor design company founded in 1996 and listed on KOSDAQ in 2009.

The company operates four business segments—Smart Energy, Wireless, Multimedia, and AE—with Smart Energy accounting for the largest share of revenue and serving as the core earnings driver.

The Smart Energy segment centers on supplying communication semiconductors for KEPCO's Advanced Metering Infrastructure (AMI) program, having consistently delivered power-line communication (PLC) modems and data concentrator unit (DCU) chips since KEPCO's second-phase AMI rollout in 2016.

More recently, the company has applied second-generation IoT PLC chipsets to enhance communication performance and has expanded into the AMIGO smart-meter deployment program, reportedly participating in KEPCO's AMIGO project as of April 2026.

In the Wireless segment, the company states it holds what it describes as the only domestically developed Wi-Fi chipset capability, which it applies to strengthening IoT security.

Separately, the company is building out an arc-fault breaker business—a smart safety device that detects electrical arcing to prevent fires—supported by a third-generation ultra-compact product designed for easier installation and cost efficiency.

A significant portion of revenue is concentrated among public and power-infrastructure procurers such as KEPCO, making results highly sensitive to policy and tender timing, and key competitors in AMI communication-chip supply include CNU Global and Neopis. The company currently does not pay dividends.

Earnings trend

Quarterly revenue · Operating profit

₩14.4B₩3.5B25Q2₩8.2B₩2.3B25Q3₩4.9B-₩2.3B25Q4₩9B₩1B26Q1₩9B₩300M26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩39.4B₩2.4B2022₩64.3B₩1.4B2023₩23.4B-₩10.7B2024₩36.9B₩4.1B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩14.4B	₩3.5B	24.1%
2025Q3	₩8.2B	₩2.3B	27.8%
2025Q4	₩4.9B	-₩2.3B	−46.0%
2026Q1	₩9B	₩1B	11.4%
2026Q2	₩9B	₩300M	3.9%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩39.4B	₩2.4B	₩1B	6.2%	2.2%	47.5%
2023	₩64.3B	₩1.4B	-₩300M	2.2%	−0.7%	51.1%
2024	₩23.4B	-₩10.7B	-₩11.9B	−45.7%	−40.1%	68.3%
2025	₩36.9B	₩4.1B	₩4.6B	11.0%	12.9%	48.3%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-22

Earnings analysis

Consolidated revenue in 2025 reached KRW 36.88 billion, up sharply from KRW 23.37 billion in 2024.

The company attributed the improvement to a 57.8% revenue increase alongside a swing to operating and net profit, driven by expanded participation in KEPCO's AMI program, entry into the AMIGO smart-meter market, and gains in the arc-fault breaker business tied to the KEC revision.

Operating profit swung from a large loss of KRW -10.67 billion (operating margin of -45.7%) in 2024 to a profit of KRW 4.05 billion (margin of 11.0%) in 2025, while net income attributable to owners improved from KRW -11.94 billion to KRW 4.57 billion.

In terms of scale alone, 2023 revenue of KRW 64.29 billion was the highest of the past four years, yet operating margin was only 2.2% and net income attributable to owners was actually negative at KRW -297 million, showing that revenue scale and profitability do not always move in the same direction for this business.

Quarterly patterns show even sharper swings. In 2Q2025, revenue of KRW 14.36 billion and operating profit of KRW 3.46 billion (margin near 24%) marked a strong quarter, and in 3Q2025, despite revenue falling to KRW 8.20 billion, operating profit held at KRW 2.28 billion, preserving a high margin.

However, 4Q2025 revenue collapsed to KRW 4.91 billion, producing an operating loss of KRW -2.26 billion that offset much of the year's earlier profit gains.

Entering 2026, 1Q revenue recovered to KRW 8.99 billion with operating profit of KRW 1.02 billion (margin near 11.4%), and 2Q revenue held at a similar KRW 8.98 billion, but operating profit fell back to KRW 349 million (margin near 3.9%), reaffirming that margins can compress even when revenue holds steady.

On the cash flow side, 2025 operating cash flow of KRW 8.44 billion exceeded net income, and the debt ratio improved from 68.3% in 2024 to 48.3% in 2025, indicating a parallel strengthening of the balance sheet.

Industry analysis

The market for power-infrastructure communication semiconductors and smart safety devices in which I&C Technology operates is heavily shaped by government policy and public procurement schedules.

Officials at the Ministry of Trade, Industry and Energy and KEPCO reportedly share a view that AMI policy focus needs to shift from expanding deployment toward utilizing the data the infrastructure generates.

This suggests the AMI market, once centered on hardware supply, is maturing and that competitive emphasis may gradually shift from pure component orders toward services and data utilization.

AMI communication-chip supply is contested through a regional tender structure involving multiple vendors besides I&C Technology, including CNU Global and Neopis, and the company has previously reported winning about 40-45% of KEPCO's total AMI phase 5-1 region K-DCU chip volume in a contract worth roughly KRW 15.2 billion, indicating it has maintained a meaningful market position in this niche.

The arc-fault breaker market remains at a comparatively early stage, entering a new demand phase after the government announced in late 2025 a rule mandating arc-fault breaker installation in newly built or renovated logistics warehouses and traditional markets.

However, other domestic smart distribution equipment makers have also said they plan to aggressively expand sales efforts in response to tightening safety standards, meaning I&C Technology does not have exclusive access to this emerging market.

In the Wi-Fi chipset segment, the company describes itself as holding the only domestically developed capability of its kind, though its revenue contribution appears comparatively limited relative to the Smart Energy segment.

Outlook

The company's future results depend heavily on the pace of KEPCO-related procurement and the speed at which its new arc-fault breaker business scales.

In the Smart Energy segment, the company reportedly participated in KEPCO's AMIGO program as of April 2026, a move interpreted as extending its existing AMI communication-chip supply into the smart-meter space.

In the arc-fault breaker business, its ultra-compact device reportedly received disaster-safety product certification in December 2025, and in July of that year the company signed a memorandum of understanding with a non-life insurer on fire-prevention and joint marketing, signaling efforts to diversify sales channels.

On the policy front, a rule mandating arc-fault breaker installation in newly built or renovated logistics warehouses and traditional markets was announced in late 2025, creating conditions for a broader long-term demand base.

However, how much and when this policy tailwind translates into actual revenue has not yet been confirmed through specific contract disclosures and remains a point to monitor.

On the KEPCO AMI side, as policy shifts from deployment toward utilization, maintenance and reinforcement-material-type revenue may become relatively more prominent than large new tenders.

The company has not disclosed specific public revenue or profit guidance, and results could remain volatile depending on quarterly order and delivery schedules.

Valuation

PER

46.2×

PBR

2.8×

ROE

6.3%

EPS

₩136

BPS

₩2,248

Dividend per share

₩0

Despite the swing to profit in 2025, the absolute scale of earnings remains modest, and the stock trades at a fairly high multiple relative to recently confirmed profit.

The shares also carry a premium to net asset value, a pattern consistent with two possible readings: that the market is pricing in some future growth from the AMI and arc-fault breaker businesses, or that the valuation carries limited safety margin given the business's earnings volatility.

Looking at the most recent four quarters (3Q2025 through 2Q2026), the inclusion of the 4Q2025 operating loss reduces cumulative profit relative to what full-year figures alone would suggest.

The company currently pays no dividend, suggesting resources are being prioritized toward reinvestment and balance-sheet improvement, such as the decline in the debt ratio, rather than shareholder returns.

As a result, interpreting valuation metrics requires looking at the trend across multiple quarters rather than any single quarter's swing into profit or loss.

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 2026-08-22

Bull factors

2025 Profit Turnaround and Balance-Sheet Improvement

Consolidated operating profit turned positive at KRW 4.05 billion and net income attributable to owners at KRW 4.57 billion in 2025. Operating cash flow of KRW 8.44 billion over the same period exceeded net income, supporting the quality of earnings.

The debt ratio also improved from 68.3% in 2024 to 48.3% in 2025, indicating a parallel strengthening of financial health. That said, this improvement has not been uniform across every quarter, which should be considered alongside the positive turn.

New Demand from the KEC Revision on Arc-Fault Breakers

The government announced in late 2025 a rule mandating arc-fault breaker installation in newly built or renovated logistics warehouses and traditional markets.

I&C Technology is addressing this market with a third-generation ultra-compact device and disaster-safety product certification, while also pursuing channel expansion through a joint-marketing agreement with a non-life insurer.

If policy implementation accelerates, this could become a growth axis separate from existing AMI revenue. However, this has not yet been confirmed through disclosed large-scale contracts.

Sustained Partnership in KEPCO's AMI Program

I&C Technology has repeatedly been selected as a communication-chip supplier across KEPCO's AMI program, from the second phase in 2016 through the most recent phase and into the AMIGO program.

In the 5-1 phase, it reportedly won K-DCU chip volume equal to 40-45% of the total region, worth about KRW 15.2 billion, showing it has secured a meaningful share in certain tender rounds. This pattern of repeated selection reflects accumulated technical capability and supply track record.

However, the win rate and contract size have varied across phases, so a similar share is not guaranteed in future tenders.

Bear factors

Significant Quarter-to-Quarter Earnings Volatility

Operating margin reached about 24% in 2Q2025, but by 4Q2025, revenue had fallen to KRW 4.91 billion and the company posted an operating loss of KRW -2.26 billion. Profit returned in 1Q2026, but in 2Q2026, despite revenue holding at a similar level, operating margin fell back to about 3.9%.

This shows a business structure where margins swing significantly based on order and delivery timing and product mix rather than revenue scale alone. A strong quarter does not reliably predict the next quarter's results.

Revenue Concentration Tied to a Narrow Set of Buyers

Smart Energy segment revenue is heavily dependent on the procurement schedule of a single major buyer, KEPCO. In 2024, consolidated revenue fell to KRW 23.37 billion and the company posted an operating loss of KRW -10.67 billion, illustrating how a gap in orders can sharply worsen results.

Without sufficient diversification of buyers, changes in public procurement timing can directly affect earnings. It remains uncertain how quickly new businesses such as arc-fault breakers can offset this concentration.

Intensifying Competition in the Arc-Fault Breaker Market

The expansion of mandatory installation under the revised KEC opens an opportunity for multiple competitors, not just I&C Technology.

Indeed, another domestic smart distribution equipment maker has stated it plans to aggressively expand related sales efforts starting this year in response to tightening safety standards.

This means new demand could be spread across several vendors, making it difficult for I&C Technology to secure a dominant position in this market. The possibility of intensifying price competition or a race for certifications and reference projects cannot be ruled out.

Risk factors

Policy and Procurement Timing Risk

A significant portion of revenue is tied to public policy and procurement schedules, such as KEPCO's AMI/AMIGO programs and the government's KEC regulation. Delays or reductions in orders could reproduce a revenue and profit decline similar to that seen in 2024.

The time lag between policy implementation and actual revenue recognition also complicates earnings forecasting.

Earnings Volatility and Margin Risk

Quarterly operating margin has ranged widely, from around 24% to an operating loss, and margins have repeatedly swung sharply even when revenue held steady. Earnings stability has not been fully validated even after the turn to profit, making it difficult to extrapolate an annual trend from any single quarter. With no dividend currently paid, there is limited cushioning against earnings volatility.

Competitive and New-Business Execution Risk

AMI communication-chip supply is contested through regional tenders shared among multiple vendors, and other competitors are also aggressively entering the arc-fault breaker market. How much and when new businesses will scale into actual revenue has not yet been validated through specific contract disclosures.

Competitive dynamics could also shift due to external factors such as technology changes or revised certification standards.

What to watch next

Mid-November 2026
Preliminary 3Q2026 results are expected around this time; watch whether revenue recovery continues and whether operating margin improves again.
Early 2027
Confirmed 4Q2026 and full-year 2026 results are due around this time; check whether the sharp revenue decline and operating loss pattern seen in 4Q2025 recurs.
4Q2026 through 2027
Watch for follow-up announcements from the relevant ministry on detailed implementation timing and scope for the mandatory arc-fault breaker installation rule, to gauge visibility on when this new business could translate into revenue.
Second half of 2026
Check for disclosures on KEPCO's next AMI or AMIGO-related tenders and contract awards, to assess whether the Smart Energy segment secures its next revenue driver.

Overall view

I&C Technology showed a clear earnings improvement in 2025, with a sharp revenue increase and a swing to operating and net profit, alongside a strengthened balance sheet reflected in a lower debt ratio.

However, the sustainability of this improvement remains unconfirmed, as quarterly results alternated between high margins in 2Q-3Q2025, an operating loss in 4Q2025, a return to profit in 1Q2026, and a renewed margin decline in 2Q2026.

The core earnings driver, KEPCO's AMI and AMIGO programs, remains highly dependent on public procurement timing, and while the arc-fault breaker business being cultivated as a new growth axis benefits from a policy-favorable KEC revision, competitors are simultaneously entering the same market aggressively.

The stock trades at a notable premium relative to recently confirmed profit and book value, and the company currently pays no dividend.

Investors may find it useful to track the multi-quarter trend in revenue and margin, along with concrete progress on follow-on AMI orders and KEC policy implementation, rather than relying on any single quarter's profit or loss.

This report is intended for informational purposes only and does not include a buy or sell recommendation or a target price.

Sources

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

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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.