KOSDAQIT & Software054040

Korea Computer

₩4,430▲ 0.11%2026-10-02 close

Market Cap

₩71.2B

Turnover

₩46,687,695

Volume

10,000 shares

Shares out.

16.1M

PER

2.3×

PBR

0.3×

EPS

₩1,963

Dividend Yield

6.66%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩300 per share · Prices as of the 2026-10-02 close

Report overview

EMS Firm Tied to QD-OLED Cycle, Earnings Volatility Widens

Korea Computer is an EMS company centered on contract manufacturing of QD-OLED and OLED PBA modules for Samsung Display, posting KRW 417.8 billion in revenue and KRW 22.9 billion in operating profit in 2025—a recovery from the prior year's profit slump—though 2026 has shown pronounced quarter-to-quarter swings in utilization and earnings.

1
2025 consolidated revenue reached KRW 417.8 billion with operating profit of KRW 22.9 billion (5.5% margin), a marked recovery from 2024
2
Q1 2026 revenue of KRW 83.1 billion was composed of 45.2% QD-OLED PBA, 41.3% OLED PBA, and 11.8% industrial inverters
3
Average utilization across domestic and Vietnam plants was only 33% in Q1 2026, underlying the recent quarterly revenue and profit slowdown
4
Key customer Samsung Display's 8.6-generation IT OLED line (A6) is targeting mass production in 2026, a variable that could affect the mid-to-long-term order environment
5
The controlling shareholder is holding company Korea Computer Holdings, with a governance structure linked to affiliates such as Hannet and KCT

Business structure

Founded in 1994, Korea Computer is an Electronic Manufacturing Service (EMS) specialist focused on outsourced production for manufacturers seeking to reduce the burden of large-scale facility investment.

The company's core revenue comes from OLED-PBA (Printed Board Assembly) products, and as of Q1 2026 QD-OLED PBA for TVs and monitors accounted for 45.2% of revenue, OLED PBA for smartphones and tablet PCs for 41.3%, and industrial inverters for 11.8%.

Its largest customer is Samsung Display, to which it supplies QD-OLED PBA, while OLED PBA products are sold to Vietnam-based entities including Young Poong Electronics Vina, BH Flex Vina, and Samsung Display Vietnam.

The company maintains the systems and technical capability required for electronic product manufacturing, including Surface Mounting Technology (SMT), assembly lines, and various test equipment, and operates KCI VINA CO., LTD as a subsidiary.

Beyond its major domestic and overseas customers, it also provides manufacturing services in partnership with companies such as LS Electric.

The controlling shareholder is holding company Korea Computer Holdings, which oversees several KOSDAQ-listed affiliates including Hannet, KCT, and Logisys, placing the firm within a broader group governance structure.

Given the nature of the EMS industry, revenue and utilization are directly linked to demand fluctuations at specific customers and product lines.

Earnings trend

Quarterly revenue · Operating profit

₩103.1B₩2.7B25Q2₩127.8B₩8.9B25Q3₩119B₩10.3B25Q4₩83.1B₩5.1B26Q1₩77.8B₩1.2B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩423.7B₩18.8B2022₩371.7B₩23.8B2023₩421B₩12.2B2024₩417.8B₩22.9B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩103.1B	₩2.7B	2.6%
2025Q3	₩127.8B	₩8.9B	6.9%
2025Q4	₩119B	₩10.3B	8.6%
2026Q1	₩83.1B	₩5.1B	6.1%
2026Q2	₩77.8B	₩1.2B	1.5%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩423.7B	₩18.8B	₩16.8B	4.4%	13.2%	23.3%
2023	₩371.7B	₩23.8B	₩21.7B	6.4%	15.3%	22.1%
2024	₩421B	₩12.2B	₩13.6B	2.9%	9.0%	21.0%
2025	₩417.8B	₩22.9B	₩20.5B	5.5%	12.5%	80.6%

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 was KRW 417.77 billion, a slight decline from KRW 421.02 billion in 2024, while operating profit expanded sharply to KRW 22.86 billion from KRW 12.16 billion, lifting the operating margin from 2.9% to 5.5%.

Net profit attributable to owners also rose from KRW 13.59 billion in 2024 to KRW 20.55 billion in 2025.

Looking back at 2022-2024, revenue and profit moved in diverging directions repeatedly: 2022 revenue of KRW 423.66 billion with operating profit of KRW 18.82 billion gave way to 2023 revenue of KRW 371.74 billion but higher operating profit of KRW 23.80 billion, before 2024 revenue rebounded to KRW 421.02 billion even as operating profit fell sharply to KRW 12.16 billion.

On a quarterly basis, revenue of KRW 103.10 billion and operating profit of KRW 2.70 billion (margin of roughly 2.6%) in Q2 2025 improved substantially in the second half, with Q3 revenue of KRW 127.80 billion and operating profit of KRW 8.86 billion, and Q4 revenue of KRW 119.03 billion and operating profit of KRW 10.28 billion.

However, Q1 2026 revenue contracted to KRW 83.09 billion with operating profit of KRW 5.10 billion, and Q2 2026 saw revenue of KRW 77.76 billion with operating profit of just KRW 1.20 billion, pushing the margin down to about 1.6%—a clear slowdown versus the second half of 2025.

This aligns with the reported average utilization rate of only 33% across domestic and Vietnam plants in Q1 2026.

Over the trailing four quarters (Q3 2025 through Q2 2026), net profit attributable to owners totaled approximately KRW 25.94 billion, reflecting a recovered annual profit level, though the sizeable quarter-to-quarter variance makes it difficult to draw a trend from any single quarter.

Industry analysis

Korea Computer's performance is heavily tied to Samsung Display's investment and utilization cycle for QD-OLED and IT-use OLED.

Samsung Display invested KRW 4.1 trillion to build an 8.6-generation IT OLED line (A6) at its Asan campus in Chungcheongnam-do with monthly capacity of 15,000 sheets, targeting a shift to mass production in 2026.

According to market researcher Omdia, Samsung Display reportedly shipped 4.9 million notebook and monitor OLED panels in the first half of 2025, holding a 74% market share in the second quarter.

However, industry-wide, growth in the large display market overall is expected to slow in 2026 amid Middle East-related geopolitical risk and rising component prices, even as OLED continues to grow on its own.

Apple is reported to be applying OLED to the MacBook Pro for the first time, with initial volume likely to be exclusively supplied by Samsung Display.

In terms of competitive positioning, LG Display has concentrated its investment on supplementing existing 6th-generation lines rather than building 8.6-generation IT OLED capacity, leaving Samsung Display as the first mover in that segment.

As a contract manufacturing partner within this supply chain, Korea Computer is directly exposed to its customer's investment and mass-production schedule, carrying both upside participation and downside risk.

Outlook

Samsung Display's 8.6-generation IT OLED line (A6) has a stated target of transitioning to mass production in 2026, making a rise in that line's utilization a variable that could affect demand for Korea Computer's related components.

However, the fact that average utilization across domestic and Vietnam plants was only 33% in Q1 2026, and that the operating margin fell to 1.6% in Q2, suggests there may be a lag between the customer's mass-production timeline and its reflection in Korea Computer's results.

Industry observers expect large-panel OLED shipments to increase in 2026 versus the prior year, with Korean manufacturers projected to expand existing 8.5-generation capacity from TV panels toward monitor panels, driving growth in monitor and notebook PC OLED shipments.

OLED volume for the Apple MacBook Pro is reportedly slated for production on Samsung Display's 8.6-generation line, making the timing of that product launch and the pace of volume ramp-up a point to watch going forward.

No specific annual revenue or profit guidance from the company itself has been separately confirmed, and future quarterly filings will need to be monitored for changes in utilization and product-mix revenue share.

Changes in the revenue contribution of non-core product lines such as industrial inverters are also worth watching from a diversification standpoint.

Valuation

PER

2.3×

PBR

0.3×

ROE

16.4%

EPS

₩1,963

BPS

₩13,037

Dividend per share

₩300

Korea Computer's share price has fluctuated within a trading band established over recent years, and given the simultaneous presence of a recent quarterly earnings slowdown and annual profit recovery, valuation metrics can look different depending on which period's results are used as the reference.

The price-to-book ratio appears to trade at a discount to net asset value, suggesting the market is taking a conservative view relative to book value.

On the dividend side, the company has maintained cash dividends historically, though the continuity of future dividend policy is more relevant to watch than the yield level itself.

Taken together, the trailing four quarters show a recovered annual profit trend, but the widening quarter-to-quarter variance seen through 2026 is a point of caution when interpreting valuation.

Ultimately, valuation for this stock needs to be weighed alongside the earnings volatility characteristic of an EMS business with high dependence on a specific customer and product line.

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

Samsung Display's 8.6-Gen IT OLED Mass Production Shift

Samsung Display's 8.6-generation IT OLED line (A6) is set to shift to mass production in 2026, which could translate into expanded OLED volume for notebooks and tablets. There are also observations that Samsung Display could exclusively supply the initial volume of OLED for the Apple MacBook Pro.

As a contract manufacturing partner in this supply chain, Korea Computer has room for related component demand to grow alongside the customer's production expansion.

2025 Operating Margin Improvement and H2 Earnings Recovery

The 2025 annual operating margin improved sharply to 5.5% from 2.9% in 2024, with operating profit in Q3 and Q4 rising to KRW 8.86 billion and KRW 10.28 billion respectively, well above first-half levels. This illustrates that a rise in utilization during specific periods can translate into margin improvement. Operating cash flow also remained stable at KRW 25.63 billion in 2025.

OLED's Standalone Growth in the Large-Panel Display Market

Industry research indicates that while overall large-display shipments are expected to decline in 2026 versus the prior year, OLED continues to grow. There are also forecasts that Korean manufacturers will expand existing capacity from TVs toward monitors and notebooks, increasing related volume.

This dovetails with Korea Computer's business structure, which has a high revenue contribution from QD-OLED and OLED PBA products.

Bear factors

Low Utilization and Sharp Quarterly Earnings Slowdown

Average utilization across domestic and Vietnam plants was low at 33% in Q1 2026, and the operating margin fell to 1.6% by Q2. The profit recovery seen in the second half of 2025 was not repeated in the first half of 2026.

This illustrates the structural risk of an EMS business whose results swing significantly with fluctuations in demand from a specific customer or product line.

Dependence on a Single Key Customer

The bulk of QD-OLED PBA revenue is generated with Samsung Display as the counterparty, meaning changes in that customer's investment and production plans have a direct impact on results.

If the mass-production timing of the customer's 8.6-generation line is delayed or volume allocation is adjusted, related revenue could fluctuate. This degree of customer concentration can constrain the company's negotiating leverage and revenue diversification.

Recurring Mismatch Between Revenue and Profit Trends by Year

From 2022 through 2024, revenue and operating profit repeatedly moved in opposite directions across years. In 2023, revenue fell while profit rose; in 2024, revenue rose while profit fell sharply. This lack of correlation makes it difficult to predict earnings from revenue trends alone.

Risk factors

Customer Concentration Risk

A significant share of revenue is generated from supplying QD-OLED and OLED PBA products to Samsung Display, meaning changes in the customer's order volume or investment schedule directly affect results. For OLED PBA products, dependence on a handful of Vietnam-based customers is also relatively high.

This concentration on specific customers and product lines can limit the buffer available in the event of a demand shock.

Margin Risk from Utilization Fluctuation

As shown by the low average utilization rate of 33% in Q1 2026, the EMS business carries a fixed-cost component such that lower utilization can rapidly erode operating margin. The drop in the Q2 operating margin to 1.6% illustrates this sensitivity. Whether utilization recovers going forward will be a key variable determining margin trends.

Display Industry and Foreign Exchange Risk

Industry analysis suggests that overall large-display market shipments could stagnate or decline due to external factors such as geopolitical risk and rising component prices.

Given the company's Vietnam production subsidiary, cost and revenue exposure to Korean won/Vietnamese dong and won/dollar exchange rate movements also exists. Delays or adjustments to new investment cycles such as the 8.6-generation IT OLED ramp are also cited as a potential risk.

What to watch next

Mid-November 2026 (expected Q3 regular filing period)
Check Q3 2026 revenue, operating profit, and utilization figures to see whether the low margin seen in Q2 recovers or the slowdown persists.
Q4 2026 to early 2027
A point to check on the progress of Samsung Display's 8.6-generation IT OLED line (A6) transition to mass production, and how related volume is reflected in Korea Computer's product-mix revenue.
Early 2027 (2026 annual report filing)
Confirm on an annual basis whether 2026 full-year revenue and operating margin improve versus 2025, and whether the low first-half utilization is offset in the second half.
From H2 2026 onward
Continue monitoring the launch timing of OLED panels for the Apple MacBook Pro and the pace of initial volume ramp-up, and their effect on Samsung Display's 8.6-generation line utilization and, in turn, on Korea Computer's related revenue.

Overall view

Korea Computer is an EMS company with Samsung Display as its core customer; in 2025, despite a slight decline in revenue, operating margin improved from 2.9% to 5.5%, marking a profit recovery.

However, in the first half of 2026, quarterly variance widened, with Q1 utilization staying at just 33% and the Q2 operating margin falling to 1.6%.

This is interpreted as an illustration of the earnings volatility characteristic of an EMS business with high revenue concentration on a specific customer and product line.

Over the medium to long term, the transition of Samsung Display's 8.6-generation IT OLED line to mass production and the extent of OLED volume expansion for the Apple MacBook Pro are cited as key variables for related component demand.

At the same time, concerns over a broader slowdown in the large-display market, raw material and exchange rate fluctuations, and customer concentration risk should be weighed in balance.

Ahead of any investment decision, it is important to continuously verify the trend through upcoming quarterly results and utilization indicators.

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.