KOSDAQSemiconductors077360

Duksanhimetalco

₩14,130▲ 0.28%2026-10-02 close

Market Cap

₩638.4B

Turnover

₩11.1B

Volume

790,000 shares

Shares out.

45.4M

PER

—

PBR

2.0×

EPS

-₩1,936

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

AI Solder Ball Demand Rebounds Amid Subsidiary Risks

Duksan Hi-Metal's quarterly results have improved through 2026 on recovering AI-driven solder ball demand, but 2025 annual net income swung sharply into loss due to a large subsidiary-related impairment.

1
Q2 2026 revenue reached KRW 90.8bn with operating profit of KRW 10.1bn (operating margin around 11%), marking a sharp quarterly improvement.
2
2025 annual net income attributable to owners swung to a loss of KRW 115.7bn, mainly attributed to subsidiary underperformance and a goodwill impairment assessment.
3
The company expanded solder ball and core solder ball capacity by 30% and micro solder ball capacity by 10% year-on-year to meet growing AI accelerator, FC-BGA, and HBM demand.
4
Defense and navigation subsidiary Duksan Nepcore passed its KOSDAQ preliminary listing review and is targeting listing completion by end-September 2026.
5
A surge in copper and tin prices weighed on Q1 2026 profitability, but margins recovered from Q2 after a March price hike.

Business structure

Duksan Hi-Metal specializes in manufacturing joining materials used in semiconductor packaging, with core products including Solder Ball (SB), Micro Solder Ball (MSB), Core Solder Ball (CSB), and solder paste.

Solder balls are used in DRAM and NAND packaging, micro solder balls in FC-BGA and HDD interconnects, and core solder balls in mobile AP packaging.

Key customers include domestic memory IDMs and OSAT firms, along with substrate makers such as Samsung Electro-Mechanics and Unimicron, and in the high-performance micro solder ball segment the company forms a duopoly structure with Japan's Senju Metal.

Consolidated subsidiaries include Duksan Ethercity, a high-pressure gas vessel maker supplying semiconductor specialty gas and hydrogen gas containers, and Duksan Nepcore, a navigation and anti-jamming solutions provider for defense and aerospace acquired in 2021.

Duksan Nepcore produces satellite navigation devices, anti-jamming systems, and integrated navigation devices, and has partnered with major domestic defense firms such as Hanwha Aerospace, LIG Nex1, and Hyundai Rotem.

Separately, Duksan Neolux, an OLED materials maker spun off from the company in 2015, is now classified as an equity-method affiliate and is not part of the consolidated results.

In this way, the company is diversifying its portfolio beyond its core semiconductor joining materials business into defense and specialty gas areas.

Earnings trend

Quarterly revenue · Operating profit

₩57.4B₩2.6B25Q2₩61.5B₩1.6B25Q3₩73.4B₩57,607,79525Q4₩68.7B-₩700M26Q1₩90.8B₩10.1B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩171.5B-₩2.7B2022₩144.5B-₩11B2023₩235.9B₩18.6B2024₩236.4B₩2.8B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩57.4B	₩2.6B	4.5%
2025Q3	₩61.5B	₩1.6B	2.5%
2025Q4	₩73.4B	₩57,607,795	0.1%
2026Q1	₩68.7B	-₩700M	−1.0%
2026Q2	₩90.8B	₩10.1B	11.1%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩171.5B	-₩2.7B	₩6.1B	−1.6%	2.1%	19.5%
2023	₩144.5B	-₩11B	₩3.3B	−7.6%	1.1%	76.1%
2024	₩235.9B	₩18.6B	₩20.4B	7.9%	6.5%	79.9%
2025	₩236.4B	₩2.8B	-₩115.7B	1.2%	−56.0%	94.5%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04

Earnings analysis

Consolidated revenue fell 16% from KRW 171.5bn in 2022 to KRW 144.5bn in 2023, then surged 63% to KRW 235.9bn in 2024, before staying roughly flat at KRW 236.4bn in 2025 (+0.2%).

Operating profit posted losses of KRW -2.7bn in 2022 and KRW -11.0bn in 2023 for two consecutive years, turned positive at KRW 18.6bn (7.9% operating margin) in 2024, then contracted sharply to KRW 2.8bn (1.2% margin) in 2025.

Net income attributable to owners swung from a KRW 20.4bn profit in 2024 to a KRW 115.7bn loss in 2025, a reversal attributed to subsidiary underperformance and a goodwill impairment assessment.

On a quarterly basis, owner net income was KRW -120.8bn in Q4 2025, concentrating most of the annual loss in that period, while Q2 and Q3 2025 posted profits of KRW 0.7bn and KRW 5.3bn respectively.

In Q1 2026, revenue was KRW 68.7bn with a slight operating loss of KRW -0.7bn, yet owner net income remained positive at KRW 5.5bn, and Q2 2026 showed clear improvement with revenue of KRW 90.8bn, operating profit of KRW 10.1bn (around 11% margin), and owner net income of KRW 12.4bn.

This pattern reflects how rising copper and tin prices temporarily hurt profitability in the first quarter, with a price hike carried out in March expected to improve results from the second quarter.

The gradual easing of inventory-related provisions and goodwill amortization burdens at the consolidated subsidiary that had weighed heavily on 2025 results is also cited as a factor behind the net income improvement in the first half of 2026.

Industry analysis

The proliferation of AI accelerators and high-performance server chips is sharply increasing solder ball usage per package, a key structural trend across the industry.

As FC-BGA packages grow larger with more pins while substrate area remains constrained, solder ball miniaturization and uniformity are directly tied to semiconductor yield, structurally expanding demand for high-value-added materials.

In the high-performance micro solder ball segment, Japan's Senju Metal holds a global oligopoly position, positioning Duksan Hi-Metal as the leading domestic player driving localization and supply expansion in this market.

The memory semiconductor cycle also appears favorable: Western Digital said in its Q2 2026 earnings release that 2026 volumes were already sold out and long-term agreements had been signed with its top seven customers, and in its Q3 2026 earnings release noted that long-term agreements had been extended to 2028 and 2029.

Rising HDD storage capacity is also cited as a factor supporting micro solder ball demand. Market participants are focused on the possibility that the FC-BGA upcycle driven by AI semiconductor market expansion could continue through 2027.

Nonetheless, volatility in raw material prices such as copper and tin remains a risk factor affecting margins across the industry.

Outlook

To meet growing demand, the company expanded solder ball and core solder ball capacity by about 30% year-on-year starting in April, and also increased micro solder ball capacity by roughly 10% through production efficiency improvements.

Market observers expect micro solder ball to drive company-wide earnings growth in the second half as major FC-BGA customer utilization rates reach effectively 100%. For core solder ball, there is anticipation that supply to new customers could become visible going forward.

Duksan Ethercity, the consolidated subsidiary that severely hurt 2025 results, posted a large operating loss driven by declining sales of specialty gas containers for Chinese solar panels and inventory-related provisions, with the possibility that provision reversals and reduced goodwill-related amortization could ease losses going forward.

Defense and navigation subsidiary Duksan Nepcore, having passed its KOSDAQ preliminary listing review, is aiming to complete its KOSDAQ listing by end-September after filing a securities registration statement, though the timeline could be adjusted depending on regulatory review requests.

Hana Securities projected in an April 2026 report standalone revenue of KRW 211.5bn (+67% year-on-year) and operating profit of KRW 26.3bn (+69% year-on-year), expecting a sharp profitability improvement from the second quarter.

However, these are brokerage estimates and may change depending on raw material prices and end-demand conditions.

Valuation

PER

—

PBR

2.0×

ROE

-36.4%

EPS

-₩1,936

BPS

₩4,998

Dividend per share

₩0

Following a large net loss in 2025, the company's quarterly results have been gradually recovering through 2026, placing it in a range where conventional profit-based valuation metrics are difficult to apply cleanly.

The stock trades at a certain premium to net asset value, which can be interpreted as partly reflecting market expectations for earnings normalization ahead. The company currently pays no dividend, making dividend-based valuation metrics difficult to apply.

Non-operating factors such as the progress of the defense subsidiary's listing or potential reversal of impairment losses at consolidated subsidiaries could add further volatility to net asset and earnings metrics going forward, which should also be considered when interpreting valuation.

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 2026-09-04

Bull factors

Expanding AI Semiconductor Packaging Demand

The spread of AI accelerators and high-performance server chips is increasing solder ball usage per package, with micro solder ball's importance in FC-BGA advanced packaging structurally growing.

The company responded by expanding solder ball and core solder ball capacity by 30% and micro solder ball capacity by 10% year-on-year. Some market observers expect capacity expansion effects to become fully visible as major FC-BGA customer utilization approaches 100% in the second half.

Quarterly Earnings Recovery in 2026

After absorbing raw material cost pressure in Q1 2026, Q2 showed clear improvement with revenue of KRW 90.8bn, operating profit of KRW 10.1bn, and owner net income of KRW 12.4bn. This is interpreted as margin recovery following the full reflection of the March price hike. Whether this trend continues into the second half remains a key point to watch.

Value Highlighted from Defense Subsidiary Portfolio

Defense and navigation subsidiary Duksan Nepcore has passed its KOSDAQ preliminary listing review and is proceeding toward a targeted end-September listing. If the listing is completed, it could provide an opportunity for the subsidiary's value to be separately assessed by the market.

In addition, inventory-related provisions at Duksan Ethercity, which hurt 2025 results, could gradually be worked through, potentially narrowing losses.

Bear factors

Raw Material Price Volatility

A surge in key raw material prices such as copper and tin directly hurt profitability in Q1 2026. While partly offset by a price hike, margin pressure could recur if raw material prices rise again. The cost structure's high sensitivity to raw material prices warrants ongoing monitoring.

Subsidiary Performance and Impairment Risk

The large swing to a net loss attributable to owners in 2025 stemmed from subsidiary underperformance and a goodwill impairment assessment. Consolidated subsidiary Duksan Ethercity struggled due to declining sales of specialty gas containers for Chinese solar panels. If subsidiary performance remains weak going forward, further impairment recognition cannot be ruled out.

Governance Issues from Subsidiary Listing

Duksan Nepcore's KOSDAQ listing is the first case of exceptional approval under the dual-listing restriction framework, having gone through a shareholder meeting approval process to protect the parent company's minority shareholders.

Nonetheless, concerns about equity value dilution or market re-rating following the subsidiary listing have not been fully resolved. There is also a possibility that the listing schedule could be delayed depending on regulatory review requests.

Risk factors

Raw Material Prices

Fluctuations in the prices of key raw materials for solder products, such as copper and tin, directly affect the cost ratio. Since a sharp rise in raw material prices pushed operating profit into loss in Q1 2026, margin volatility could increase if similar conditions recur. While price hikes can offset this, there is a time lag in implementation.

Consolidated Subsidiary Performance

Consolidated subsidiaries such as Duksan Ethercity and Duksan Nepcore have a significant impact on overall net income. In 2025, subsidiary underperformance and goodwill impairment led to a large annual loss. If subsidiary business conditions deteriorate again, similar risks could recur.

End-Market Semiconductor Demand Cycle

Company performance is closely tied to memory semiconductor and FC-BGA packaging demand. If AI server investment expansion does not continue or the memory cycle slows faster than expected, growth in solder ball demand could weaken.

High revenue dependence on specific customers could also make the company more exposed to changes in those customers' demand.

What to watch next

End of September 2026
This is the target timeline for Duksan Nepcore's KOSDAQ listing completion; it is worth checking whether the listing occurs, the IPO pricing, and any change in the parent company's equity value post-listing.
November 2026
This is when Q3 2026 earnings are typically released, offering a chance to check how rising FC-BGA customer utilization and raw material price stability have been reflected in margins.
Q4 2026
This is a point to check whether Duksan Ethercity sees a reversal of inventory-related provisions and whether the narrowing of consolidated subsidiary losses continues.
2027
It will be worth checking whether core solder ball supply to new customers becomes visible and whether the FC-BGA upcycle continues.

Overall view

Duksan Hi-Metal is riding the structural tailwind of expanding AI semiconductor packaging demand for solder balls and micro solder balls, with quarterly results gradually recovering through 2026.

However, in 2025 the company posted a large net loss due to subsidiary underperformance and a goodwill impairment assessment, illustrating how consolidated results can be significantly affected by factors outside the core business.

Raw material price movements, the pace of subsidiary earnings recovery, and the progress of defense subsidiary Duksan Nepcore's listing are all variables that could influence future results and metrics.

Capacity expansion and price hike effects were reflected in the Q2 2026 improvement, but whether this trend continues into the second half requires further confirmation. Overall, this appears to be a period where structural growth opportunities in the core business coexist with risks tied to consolidated subsidiaries.

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.