KOSDAQMachinery088130

Dongaeltekco

₩5,800▲ 2.84%2026-10-02 close

Market Cap

₩100.9B

Turnover

₩700M

Volume

120,000 shares

Shares out.

17.5M

PER

4.3×

PBR

0.5×

EPS

₩1,263

Dividend Yield

2.76%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩150 per share · Prices as of the 2026-10-02 close

Report overview

OLED Equipment Tailwind, Earnings Swing by Quarter

Dong-A Eltek posted sharply higher 2025 revenue and operating profit on the back of subsidiary Sunic System's expanding 8.6th-generation OLED deposition equipment orders from BOE, but quarterly results in the first half of 2026 have shown pronounced swings as order recognition gaps emerged.

1
2025 consolidated revenue reached KRW 582.4 billion and operating profit KRW 113.2 billion, both sharply higher year on year, with owner net income turning from loss to profit.
2
Revenue from subsidiary Sunic System's Phase-1 8.6th-generation OLED deposition equipment order from China's BOE was fully reflected in 2025 results, and a Phase-2 contract was signed in February 2026.
3
Revenue and operating profit fell sharply in the first and second quarters of 2026 versus the fourth quarter of 2025, and owner net income turned negative in the first quarter.
4
The business is built on three pillars — the parent's display inspection equipment, Sunic System's OLED deposition equipment, and a venture-capital-style new technology finance business — with heavy reliance on subsidiary performance.
5
The amount of BOE's Phase-2 8.6th-generation contract has not been disclosed, and the timing and scale of revenue recognition will need to be confirmed through future filings.

Business structure

Dong-A Eltek converted to a corporation in 1999 and listed on KOSDAQ in 2007 as a specialist in display inspection equipment. The parent company manufactures and sells LCD and OLED inspection equipment, while its subsidiary manufactures front-end OLED deposition equipment.

As of the most recent quarter-end, the company held four consolidated subsidiaries including Sunic System, which makes front-end OLED deposition equipment.

According to a brokerage report from August 2022, the 2021 product revenue mix consisted of inspection equipment at 68.3%, OLED manufacturing equipment at 26.6%, and new technology finance business at 5.0%.

Sunic System competes with Japan's Canon Tokki, which has long dominated the OLED deposition equipment market, and has secured consecutive orders from China's BOE in large-area 8.6th-generation deposition equipment.

Global competitors in the inspection equipment segment include Orbotech (Israel), Applied Materials (United States), and MJC (Japan), according to a 2020 technology analysis report.

Major customers include large panel makers such as LG Display and BOE, while the new technology finance segment runs a venture-capital-style investment business through subsidiaries including DA Value Investment.

Sunic System has also been expanding into OLEDoS (micro-OLED) deposition equipment for XR and AR wearable devices and next-generation perovskite solar cell deposition equipment.

Earnings trend

Quarterly revenue · Operating profit

₩210.5B₩40.5B25Q2₩106.4B₩21.1B25Q3₩239B₩54.9B25Q4₩40.9B₩4B26Q1₩55.5B₩1B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩213.8B₩13.2B2022₩165.1B₩2.2B2023₩178.4B₩14.7B2024₩582.4B₩113.2B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩210.5B	₩40.5B	19.2%
2025Q3	₩106.4B	₩21.1B	19.8%
2025Q4	₩239B	₩54.9B	22.9%
2026Q1	₩40.9B	₩4B	9.8%
2026Q2	₩55.5B	₩1B	1.8%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩213.8B	₩13.2B	₩1.5B	6.2%	0.9%	44.9%
2023	₩165.1B	₩2.2B	-₩6.5B	1.4%	−4.2%	54.9%
2024	₩178.4B	₩14.7B	-₩29.8B	8.3%	−24.2%	196.7%
2025	₩582.4B	₩113.2B	₩49.2B	19.4%	28.9%	107.8%

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 reached KRW 582.4 billion, up sharply from KRW 178.4 billion in 2024, while operating profit surged to KRW 113.2 billion from KRW 14.7 billion, lifting the operating margin from 8.3% to 19.4%.

Owner net income turned to a profit of KRW 49.2 billion in 2025, following consecutive losses of KRW -29.8 billion in 2024 and KRW -6.5 billion in 2023.

On a quarterly basis, the second quarter of 2025 posted revenue of KRW 210.5 billion, operating profit of KRW 40.5 billion, and owner net income of KRW 29.6 billion, while the fourth quarter recorded revenue of KRW 239.0 billion, operating profit of KRW 54.9 billion, and owner net income of KRW 17.8 billion, making the second half particularly strong.

The third quarter came in comparatively lower, with revenue of KRW 106.4 billion, operating profit of KRW 21.1 billion, and owner net income of KRW 4.9 billion.

In contrast, first-quarter 2026 revenue fell sharply to KRW 40.9 billion with operating profit of KRW 4.0 billion, and owner net income swung to a loss of KRW -7.6 billion.

Second-quarter 2026 remained at a low level, with revenue of KRW 55.5 billion and operating profit of KRW 1.0 billion, though owner net income returned to a profit of KRW 7.0 billion.

Such quarterly volatility appears to stem from an order-driven revenue structure in which large deposition equipment contracts are recognized in concentrated bursts within specific quarters.

Notably, 2024 posted an operating profit of KRW 14.7 billion yet a large owner net loss of KRW -29.8 billion, indicating that non-operating factors heavily influenced that year's bottom line.

Cumulative owner net income over the trailing four quarters (third quarter of 2025 through second quarter of 2026) stood at KRW 22.1 billion, a lower run-rate than the full-year 2025 figure.

Industry analysis

The OLED deposition equipment market has long been led by Japan's Canon Tokki, but in large-area 8.6th-generation lines, Sunic System has disrupted the competitive landscape by securing consecutive Phase-1 and Phase-2 orders from BOE.

BOE is building an 8.6th-generation (2290×2620mm glass substrate) OLED production line (B16) with monthly capacity of 32,000 sheets at its Chengdu high-tech zone, and signed a Phase-2 deposition equipment contract in February 2026 following its Phase-1 investment.

By contrast, Samsung Display is understood to have built its 8.6th-generation line using Canon Tokki equipment, resulting in a split supplier landscape among major panel makers.

On the demand side, Apple's push to expand OLED adoption in IT devices such as the iPad and MacBook is cited as a key driver behind panel makers' large-area 8.6th-generation investments.

In the inspection equipment segment, competition continues against global players such as Orbotech (Israel) and Applied Materials (United States).

In the OLEDoS (micro-OLED) market driven by wearable device proliferation, Sunic System is assessed as having secured a high market share, and this market is cited as a potential second growth pillar going forward.

Outlook

In February 2026, Sunic System signed a Phase-2 supply contract with BOE for mass-production OLED deposition equipment for the 8.6th-generation line, with a contract end date of December 21, 2027. The contract amount has not yet been disclosed at the customer's request to protect trade secrets.

Industry reports indicate BOE has ordered all four deposition tools needed for its 8.6th-generation line (B16) from Sunic System, with two units delivered by the end of 2025 to establish roughly 15,000 sheets per month of capacity, and the remaining units to be delivered in stages.

The company stated that this follow-on contract secures mid-to-long-term revenue visibility and emphasized a policy of pursuing earnings growth alongside shareholder returns on the back of a stable order base and solid financial structure.

The company is also continuing to expand into energy and next-generation display fields through the development of OLEDoS equipment for XR and AR applications and deposition equipment for perovskite solar cells.

However, the specific contract amount and timing of revenue recognition remain items to be confirmed through future disclosures.

Valuation

PER

4.3×

PBR

0.5×

ROE

12.9%

EPS

₩1,263

BPS

₩11,239

Dividend per share

₩150

Dong-A Eltek's shares continue to trade at a discount to net asset value even after 2025 earnings turned from loss to profit.

According to one market data aggregator, the five-year average price-to-earnings ratio has historically formed well above the 20-times band, meaning the stock now trades at a lower multiple following the earnings recovery.

The same aggregator shows a five-year average price-to-book ratio below 1x, indicating a persistent discount to asset value. The company paid a cash dividend based on 2025 full-year results, though its five-year average dividend yield is not notably high relative to the sector.

Given the widened quarterly earnings swings seen in the first half of 2026, valuation should be assessed with reference to the broader order-to-revenue recognition pattern rather than any single quarter's snapshot.

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

Direct Beneficiary of 8.6th-Generation OLED Investment Expansion

Sunic System secured consecutive orders from BOE — Phase 1 followed by a Phase-2 contract in February 2026 — for 8.6th-generation OLED deposition equipment, establishing a competitive position in a market long dominated by Canon Tokki.

It is reported to have secured all four deposition tools needed for BOE's 8.6th-generation line (B16), leaving open the possibility of staged revenue recognition through the line's completion. This illustrates the Dong-A Eltek group's technological standing within the large-area OLED investment cycle.

Earnings Turnaround and Improved Financial Structure

Consolidated 2025 revenue and operating profit expanded sharply year on year, with owner net income turning from loss to profit. The debt ratio also improved from 196.7% in 2024 to 107.8% in 2025, alongside stronger financial soundness.

Successful listings of investee companies under the new technology finance segment are also reported to have contributed to the return to profitability.

New Growth Pipeline in OLEDoS and Beyond

Sunic System is assessed as having secured a high share of the OLEDoS (micro-OLED) deposition equipment market for XR and AR wearable devices, and is cultivating this as a growth pillar alongside its large-area OLED business.

It is also pursuing diversification beyond displays through the development of deposition equipment for perovskite solar cells. This pipeline can be viewed as a factor that may reduce reliance on any single customer or generation of technology.

Bear factors

High Quarterly Volatility from Order-Driven Revenue

Revenue and operating profit fell sharply in the first and second quarters of 2026 compared with the fourth quarter of 2025, and owner net income turned negative in the first quarter.

Because large deposition equipment contracts are recognized as revenue at specific points in time, delays in follow-on orders and delivery schedules could reproduce earnings gaps. This makes it difficult to draw firm conclusions about business direction from any single quarter's results.

Uncertainty Around the Phase-2 Contract

The amount of the BOE Phase-2 deposition equipment contract signed in February 2026 has not been disclosed at the customer's request.

A time lag typically occurs between contract signing and actual revenue recognition due to delivery, installation, and inspection processes, leaving uncertainty around both the scale and timing. Specific details can only be confirmed through future disclosures.

Reliance on a Concentrated Customer and Subsidiary

A substantial portion of consolidated results is reported to depend on subsidiary Sunic System's sales to BOE, indicating relatively heavy reliance on a single customer or a specific generation's investment cycle.

Since competitor Canon Tokki already supplies equipment to other major panel makers such as Samsung Display, whether the customer base can be diversified further remains a point to watch.

Risk factors

Customer Concentration Risk

Sunic System's revenue is heavily concentrated on a single customer, BOE, meaning any change or delay in that customer's investment schedule could directly affect results.

Given the high proportion of business with a Chinese panel maker, changes in the trade and policy environment between the two countries are also cited as a potential variable. Securing additional customers is a key factor that could ease this concentration.

Non-Operating Earnings Volatility

In 2024, despite a positive operating profit, owner net income recorded a large loss, an example of non-operating factors significantly affecting the bottom line.

If volatility in non-operating items such as currency-related derivatives or equity-method gains and losses recurs, a gap between operating results and net income could reappear. Such items warrant close scrutiny when interpreting quarterly and annual results.

Intensifying Competition Risk

Japan's Canon Tokki remains a formidable competitor in the OLED deposition equipment market, and in the inspection equipment segment the company must also compete against large global players such as Orbotech and Applied Materials.

Whether early success in the 8.6th-generation market can be sustained in subsequent order competitions is a matter requiring ongoing confirmation.

What to watch next

November 2026
Check the third-quarter 2026 regulatory filing to see whether revenue recognition from BOE's Phase-2 order has begun and whether quarterly earnings volatility has eased.
Fourth quarter of 2026
Monitor disclosures on the delivery and installation progress of Sunic System's BOE Phase-2 8.6th-generation deposition equipment to gauge the timing of revenue recognition.
Second half of 2026
Watching for LG Display's investment decision on IT-oriented 8.6th-generation lines can help assess the potential for Sunic System to diversify follow-on orders.
February–March 2027
The 2026 full-year earnings and dividend decision filings will show the complete annual results picture and whether the shareholder return policy continues.

Overall view

Dong-A Eltek saw a marked improvement in 2025 results driven by expanded 8.6th-generation OLED deposition equipment orders through subsidiary Sunic System, but the first half of 2026 showed large quarterly swings due to timing gaps between order booking and revenue recognition.

A BOE Phase-2 contract was signed in February 2026, but its amount and revenue recognition timing remain undisclosed and require further confirmation.

The financial structure showed positive changes such as an improved debt ratio, and new business pipelines including OLEDoS and perovskite solar cell equipment are progressing.

However, since results are heavily influenced by a concentrated customer and a specific generation's investment cycle, customer diversification and the continuity of follow-on orders remain key variables for future earnings stability.

Any assessment should take a comprehensive view of the quarterly order-to-revenue recognition pattern together with upcoming disclosures.

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.