MiCo

MiCo operates as a holding-type group spanning semiconductor equipment parts manufacturing, cleaning and coating services, an energy and environment segment covering SOFC, industrial boilers and CCUS, and a smaller AI-based IT solutions and contact center systems business.

The semiconductor segment has localized high-value specialty ceramic materials, with cleaning, coating and ceramic parts manufacturing serving major domestic and global chipmakers including Samsung Electronics and SK hynix as customers.

The cleaning, coating and ceramics business is run through separately listed subsidiary Comico (183300), of which MiCo is the largest shareholder.

The energy and environment segment comprises subsidiary MiCo Power's SOFC (solid oxide fuel cell) business along with Hyundai Heavy Industries Power Systems (HPS) and Plantec's LNG heat recovery steam generator (HRSG) EPC operations.

MiCo Power has internalized ceramic material technology across the entire SOFC production process and is expanding capacity through its new Pyeongtaek plant. More recently, the group has pursued the acquisition of Netherlands-based NEM Energy through HPS to build a global platform in LNG power generation equipment.

The group also runs a smaller AI-based IT solutions and contact center systems business. Overall, the semiconductor parts business (aftermarket plus ceramic materials) and the energy and environment business (SOFC plus HRSG) together account for most of group revenue and profit.

Consolidated revenue expanded sharply to KRW 977.0bn in 2025 from KRW 540.5bn in 2024, while operating margin declined from 17.5% to 10.3% over the same period.

Revenue in 2023 and 2022 stood at KRW 387.3bn and KRW 414.8bn respectively, with net income attributable to owners posting losses in both years (-KRW 27.26bn and -KRW 55.23bn), reflecting a shift from loss to profit over the recent three-year span.

On a quarterly basis, 2Q25 revenue of KRW 248.6bn came with a relatively high operating profit of KRW 30.2bn, but operating profit progressively narrowed through 3Q25 (KRW 22.4bn) and 4Q25 (KRW 13.1bn).

In 1Q26, revenue rose to KRW 322.0bn yet operating profit was only KRW 18.9bn, and net income attributable to owners swung to a loss of -KRW 11.48bn. In 2Q26, revenue reached KRW 349.2bn with operating profit of KRW 19.5bn, and net income attributable to owners returned to a profit of KRW 21.47bn.

This pattern reflects the simultaneous effect of revenue growth in the semiconductor segment and one-off integration costs and operating losses in the energy and environment segment.

Commentary on 1Q26 results noted that the semiconductor segment grew on expanded AI chip investment, HBM and advanced packaging demand, while operating profit declined due to operating losses and one-off cost increases in the energy and environment segment.

Over the trailing four quarters (3Q25 through 2Q26), cumulative net income attributable to owners totaled roughly KRW 16.15bn, lower on an annualized basis than the full-year 2025 figure of KRW 29.50bn.

The global semiconductor industry is projected to exceed USD 1 trillion in 2026 driven by expanded generative AI infrastructure investment, with new fab construction expected to support growing demand for cleaning, coating and ceramic parts.

This provides a favorable backdrop for MiCo's semiconductor segment (Comico plus MiCo Ceramics), where demand for ceramic components tied to HBM and advanced packaging has been driving recent growth.

On the energy side, the LNG power generation equipment market is forecast to grow from roughly KRW 42.4 trillion in 2025 to about KRW 61.6 trillion by 2030 at a 7.5% compound annual rate, positioning the HRSG (heat recovery steam generator) business run by HPS, Plantec and the newly acquired NEM Energy as an area with structural growth potential for the MiCo group.

NEM Energy was reported to have ranked first globally in new HRSG orders in 1Q26, surpassing US-based GE, Vogt and Nooter/Eriksen and Japan's Mitsubishi Power.

The SOFC (solid oxide fuel cell) field remains in an early commercialization stage globally, with only five companies worldwide holding proprietary cell-stack-system technology: Bloom Energy of the United States, Kyocera of Japan, Ceres Power of the United Kingdom, Solid Power of Italy, and MiCo Power, indicating high barriers to entry.

While the MiCo group has already secured a stable revenue base in semiconductor parts (Comico and MiCo Ceramics), the energy and environment segment (HPS, Plantec, NEM Energy and MiCo Power) remains at an earlier stage where business integration and profitability normalization are still in progress.

The company stated that HPS signed a stock purchase agreement to acquire 100% of Netherlands-based NEM Energy, with the transaction expected to be finalized within the third quarter of 2026 pending regulatory approval from relevant authorities.

Once completed, the company explained that the deal will create an integrated design-to-delivery HRSG platform combining HPS's manufacturing capability with NEM Energy's design and engineering technology.

MiCo Power has stated plans to expand SOFC production capacity to 30MW through its new Pyeongtaek plant by early 2026, with further expansion to 100MW planned thereafter. In addition to its already commercialized 2kW and 8kW building-use SOFC products, a 150kW power-generation system is reportedly under development.

In the semiconductor segment, industry observers expect continued demand for cleaning, coating and ceramic parts as AI chip, HBM and advanced packaging-related investment continues to expand.

The company has been building out its energy business as a new growth driver through successive acquisitions, having acquired HPS in 2024 followed by Plantec.

However, integration costs from newly acquired assets and regulatory approval procedures remain variables that could continue to affect results over the coming quarters.