PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩230 per share · Prices as of the 2026-10-02 close
A front-end deposition equipment maker levered directly to leading-edge DRAM capex through LPCVD and plasma treatment tools, with quarterly revenue at record highs but operating margins still swinging widely with tool mix and shipment timing.
Second-quarter 2026 revenue of KRW 122.1bn was the highest among the disclosed quarters, and revenue has run near or above KRW 100bn for three straight quarters after the KRW 62.3bn trough in the third quarter of 2025.
On a full-year basis, 2025 revenue of KRW 350.3bn and operating profit of KRW 51.7bn meant top-line growth but an operating margin decline from 18.1% in 2024 to 14.7%.
Second-quarter 2026 net profit attributable to owners of KRW 65.2bn far exceeded the KRW 18.2bn operating profit for the same quarter, pointing to non-operating items whose nature needs checking in the interim report footnotes.
The end-market backdrop is expansionary: SK hynix has said 2026 capex will rise to the high-KRW 40tn range, while Samsung Electronics has been reported to be building Pyeongtaek P5 as a dedicated 1c DRAM line.
With customers concentrated among the three DRAM makers, any shift in a single fab's tool-in schedule feeds straight through to quarterly results.
Eugene Technology develops and manufactures front-end semiconductor deposition equipment that forms thin films on wafers.
Its core tools are low-pressure chemical vapor deposition (LPCVD) systems and plasma atomic layer deposition (ALD) systems; LPCVD offers superior thickness uniformity and step coverage at low pressure and high temperature, making it heavily used in leading-edge DRAM, and the company supplies Samsung Electronics, SK hynix and Micron.
In its disclosures the company highlights the BlueJay LPCVD platform and the Albatross plasma platform as flagship products. ALD is an area the company has been expanding since 2021, forming thinner films than CVD and drawing demand mainly from leading-edge processes.
The batch and furnace ALD segment was historically dominated by Japan's Kokusai Electric, so the company's entry into Samsung supply dovetailed with Korean chipmakers' push to dual-source. Because ALD tools carry higher unit prices than CVD, a rising ALD share changes both per-tool revenue and product mix.
Subsidiaries include Eugenus in the United States, which develops metal ALD tools, and a materials arm handling semiconductor precursors, giving the group a combined equipment-and-materials portfolio.
Historically LPCVD and treatment tools were the core lineup with little overlap with domestic rivals, but industry observers note that entry into ALD has increased points of competition with names such as Wonik IPS and Jusung Engineering.
Segment-level revenue splits should only be judged from verifiable disclosures; since confirmed figures were not available, this report describes the mix qualitatively.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩104.9B | ₩19.7B | 18.8% |
| 2025Q3 | ₩62.3B | ₩5.2B | 8.3% |
| 2025Q4 | ₩99.9B | ₩17.5B | 17.6% |
| 2026Q1 | ₩101.9B | ₩18.8B | 18.5% |
| 2026Q2 | ₩122.1B | ₩18.2B | 14.9% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩310.6B | ₩53.6B | ₩37.9B | 17.3% | 11.7% | 25.2% |
| 2023 | ₩276.5B | ₩24.3B | ₩24.4B | 8.8% | 7.1% | 18.6% |
| 2024 | ₩338.1B | ₩61.2B | ₩63.3B | 18.1% | 15.6% | 23.8% |
| 2025 | ₩350.3B | ₩51.7B | ₩42.5B | 14.7% | 9.2% | 18.2% |
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
On an annual basis, revenue of KRW 310.6bn with operating profit of KRW 53.6bn (17.3% margin) in 2022 contracted sharply to KRW 276.5bn and KRW 24.3bn (8.8%) in 2023, recovered to KRW 338.1bn and KRW 61.2bn (18.1%) in 2024, and then registered KRW 350.3bn and KRW 51.7bn (14.7%) in 2025.
In other words, 2025 combined higher revenue with lower operating profit, consistent with a shift in tool mix alongside rising fixed costs such as R&D and labor.
The quarterly series shows even greater amplitude: from KRW 104.9bn revenue and KRW 19.7bn operating profit (18.8%) in the second quarter of 2025 down to KRW 62.3bn and KRW 5.2bn (8.3%) in the third, then back to KRW 99.9bn and KRW 17.5bn (17.6%) in the fourth and KRW 101.9bn and KRW 18.8bn (18.5%) in the first quarter of 2026.
The second quarter of 2026 delivered the highest revenue in the period shown at KRW 122.1bn, yet operating profit slipped slightly to KRW 18.2bn (14.9%), showing that top-line growth did not translate directly into margin expansion.
Summing the four quarters from the third quarter of 2025 through the second quarter of 2026 gives roughly KRW 386.2bn of revenue and KRW 59.7bn of operating profit, above the 2025 full-year totals.
Notably, second-quarter 2026 net profit attributable to owners of KRW 65.2bn far exceeded that quarter's KRW 18.2bn operating profit, implying a large non-operating contribution whose repeatability requires separate verification.
DB Financial Investment noted in a May 2026 report that first-quarter revenue and operating profit beat consensus by 5% and 20% respectively, driven by increased LPCVD and related tool shipments as DRAM customers pursued node conversion and capacity additions.
The balance sheet showed equity of KRW 491.4bn against liabilities of KRW 89.2bn at end-2025, a debt-to-equity ratio of 18.2%, while operating cash flow of KRW 66.5bn exceeded 2024's KRW 61.5bn, keeping cash conversion intact.
The end market sits in a memory expansion phase tied to AI infrastructure investment. Counterpoint Research reported that global semiconductor equipment vendor revenue rose 12% year on year to USD 143bn in 2025 and projected roughly 11% further growth in 2026.
It flagged that packaging and test equipment should grow even faster alongside traditional front-end tools such as lithography, deposition and etch. Domestic chipmakers' plans also point upward.
SK hynix has said it will lift 2026 semiconductor capex into the high-KRW 40tn range, roughly 60% above the prior year, while pulling forward tool installation into unused space at the Cheongju M15X fab to expand DRAM capacity earlier.
Samsung Electronics has likewise been reported to be completing Pyeongtaek lines ahead of schedule, with P5 and P5 Fab2 set up as dedicated 1c DRAM lines for HBM4 and HBM4E.
Competitively, the global deposition market is dominated by large overseas vendors, and batch or furnace ALD was long led by Japanese suppliers, which frames the company's position.
Among domestic peers, ALD-focused Jusung Engineering narrowed losses after a slump caused by a gap in China orders, and new M15X orders from SK hynix have been cited as a second-half swing factor, illustrating how outcomes diverge with each vendor's customer mix.
The cycle therefore reads as early-to-mid expansion, yet realized results still hinge on fab-by-fab order and installation timing.
Based on verifiable facts, the primary driver of the earnings path is the pace of leading-edge DRAM conversion and new-fab tool orders.
DB Financial Investment said in a May 2026 report that DRAM makers at home and abroad are expanding 1c-centered node conversion and capacity additions, that large build-outs including Samsung's P4 and P5, SK hynix's M15X and Y1, and Micron's ID1 are expected from the second half of 2026 through 2028, and that the company's front-end tool shipments should rise accordingly.
The same report forecast 2026 revenue and operating profit of KRW 517.2bn and KRW 97.1bn, and 2027 figures of KRW 631.2bn and KRW 119.3bn, which are brokerage estimates rather than company guidance.
SK hynix has stated that the first fab at its Yongin cluster will open its cleanroom in the first quarter of 2027 and begin 1c DRAM line construction from the second quarter, a useful reference point for domestic front-end order timing.
On the product side, a rising ALD share and the revenue contribution from metal ALD and precursor subsidiaries remain the variables that will shape mix and margins. No official company-level annual guidance was verified, so the actual trajectory of quarterly revenue and operating margin is what needs testing.
In the other direction, a rollover in memory pricing or deferred customer capex could reproduce the pattern seen in the third quarter of 2025, when quarterly revenue dropped sharply.
The setup therefore features a tailwind from expanding customer capex alongside headwinds from customer concentration and installation-timing volatility.
The price-to-earnings multiple is calculated on profit from the four most recent quarters, and that profit includes a large apparently non-operating item from the second quarter of 2026, so the headline multiple may look lower than one based on operating results alone.
The current multiple sits above the earnings-multiple band at which this stock traded during past down-cycles, and the shares carry a sizable premium to net asset value.
For reference, Newspim's tally showed that as of May 2026 the six-month average brokerage target price was KRW 130,333, up 76.9% from KRW 73,667 in the preceding six months, and DB Financial Investment presented a target price of KRW 173,000 at that time; these are brokerage views, not this report's opinion.
Dividends continue at a modest cash level, and the yield tends to run below the market average as is typical for growth-oriented equipment names, so total return is dominated by earnings changes.
Ultimately, the justification for the current multiple depends on whether revenue growth and operating margin from the second half of 2026 return toward 2024 levels, and on how the quality of net profit, meaning the operating versus non-operating split, is confirmed.
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
LPCVD is widely used in leading-edge DRAM and is supplied to Samsung Electronics, SK hynix and Micron alike. In the past migration from 1z to 1a and 1b, the number of LPCVD process steps roughly doubled, and further increases in required tool counts were expected at 1c.
If node shrinks keep translating into more tools, order value can rise even for a given capex budget. The actual pass-through, however, depends on each customer's order schedule.
SK hynix has said 2026 capex will rise about 60% year on year into the high-KRW 40tn range, with tools moved into Cheongju M15X ahead of plan. As Pyeongtaek and Yongin completion dates were pulled forward, observers expected front-end equipment orders for advanced DRAM lines to expand first.
Front-end deposition tools are installed early in a line build, so schedule compression tends to reach them relatively soon. The timing and size of that impact still need confirmation via quarterly results and contract disclosures.
ALD is an area the company has expanded since 2021, forming thinner films than CVD and drawing strong leading-edge demand. Industry sources have described ALD furnace tools as carrying higher unit prices than conventional CVD systems.
The group also owns a United States metal ALD subsidiary and a precursor materials arm, giving it revenue routes in both equipment and materials. Subsidiary-level revenue and profit contributions should be checked only against verifiable disclosures.
Revenue fell more than 40% in a single quarter, from KRW 104.9bn in the second quarter of 2025 to KRW 62.3bn in the third, with operating profit shrinking from KRW 19.7bn to KRW 5.2bn. Because revenue recognition follows tool installation timing, one strong quarter cannot be read as a trend.
In the second quarter of 2026 revenue hit a high while the operating margin slipped from the prior quarter. That quarterly volatility remains a constant in the valuation debate.
The operating margin fell from 18.1% in 2024 to 14.7% in 2025, as revenue rose from KRW 338.1bn to KRW 350.3bn while operating profit dropped from KRW 61.2bn to KRW 51.7bn. When fixed costs such as R&D and headcount are added ahead of demand, higher revenue does not automatically lift profit.
In 2023, revenue of KRW 276.5bn and operating profit of KRW 24.3bn took the margin down to 8.8%. Whether the margin recovers is the central question for earnings.
Second-quarter 2026 net profit attributable to owners of KRW 65.2bn was more than triple the KRW 18.2bn operating profit for the quarter, suggesting a large non-operating contribution. Such items may not repeat, so headline profit metrics cannot simply be projected forward.
On competition, industry observers note that entering ALD increased overlap with domestic rivals, while rivalry with Japanese suppliers continues in global batch ALD. The effect of technology and price competition on margins bears ongoing monitoring.
Key customers are concentrated among memory makers such as Samsung Electronics, SK hynix and Micron. A change in a few customers' capex plans or a delay in one fab's tool installation flows straight into quarterly revenue. The sharp revenue drop in the third quarter of 2025 illustrates that sensitivity. Progress on diversification can be tracked through changes in the customer mix in annual filings.
The equipment market is expected to be in an upcycle in 2026, yet China-related regulation and the complexity of technology transitions were flagged as key risks. If memory prices roll over, chipmakers can defer capex and equipment orders shrink with a lag.
The 2023 earnings contraction shows how a capex downturn feeds through to profit. The practical way to track the cycle is via chipmakers' quarterly capital spending disclosures.
Export controls and geopolitical shifts are external variables that can affect sales regions and customer mix. Industry sources have noted that tools for new processes typically require four to five years of development and customer approval.
So if new products are adopted late for mass production, the benefit can arrive later even during a capex upturn. Progress at the United States subsidiary and the materials arm likewise requires time to verify.
Third-quarter 2026 results. Watch whether revenue holds near the KRW 122.1bn level of the second quarter and whether the operating margin recovers from the 14-15% area toward 2024 levels.
Check the interim and third-quarter report footnotes for the nature and repeatability of the large non-operating items behind second-quarter 2026 net profit. This is the key material for judging earnings quality.
Order flow tied to Samsung's Pyeongtaek P5 and SK hynix's Cheongju M15X, and any single supply contract disclosures. Front-end deposition tools are installed early in a line build, making them a leading indicator of order recognition.
Whether SK hynix executes its stated schedule of opening the first Yongin cluster cleanroom in the first quarter of 2027 and starting 1c DRAM line construction in the second. This is the event that gauges the durability of the domestic front-end order cycle.
Full-year 2026 results and the annual report. This is when annual revenue and operating margin, the cash dividend decision, and the revenue contribution from newer areas such as ALD and precursors become visible in disclosures.
Eugene Technology is a front-end equipment maker levered directly to leading-edge DRAM investment through LPCVD and plasma treatment tools, and it has broadened into ALD and materials via subsidiaries.
Confirmed results show 2025 revenue of KRW 350.3bn and operating profit of KRW 51.7bn, with revenue above 2024 but the operating margin down from 18.1% to 14.7%.
Quarterly revenue troughed at KRW 62.3bn in the third quarter of 2025 before recovering to KRW 99.9bn in the fourth, KRW 101.9bn in the first quarter of 2026 and KRW 122.1bn in the second, so the last four quarters sum to roughly KRW 386.2bn, above the 2025 full-year figure.
That said, second-quarter 2026 net profit attributable to owners of KRW 65.2bn far exceeded that quarter's KRW 18.2bn operating profit, so earnings quality needs verification first.
On the demand side, expansion signals continue, including SK hynix's plan to enlarge 2026 capex and Samsung's approach of building Pyeongtaek P5 as a dedicated 1c DRAM line, while customer concentration, installation-driven quarterly swings and the possibility of a memory cycle reversal sit on the other side.
The shares trade above the earnings-multiple band seen in past down-cycles and at a premium to net asset value, so the pace of earnings normalization determines how much the multiple can be explained. This report is for information only and contains no buy or sell recommendation or target price.
Report written 2026-09-05 · Data as of 2026-09-04
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