KOSPIIT & Software094280

Hyosung Itx

₩11,900 0.00%2026-10-02 close

Market Cap

₩137.5B

Turnover

₩19,009,460

Volume

1,594 shares

Shares out.

11.6M

PER

10.0×

PBR

1.9×

EPS

₩1,200

Dividend Yield

6.24%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩750 per share · Prices as of the 2026-10-02 close

Report overview

AI Data Center Bet Atop a Contact Center Core

Hyosung ITX keeps contact center services as its core earnings engine while extending IT operations know-how into the Hyosung group's new AI data center business.

1
FY2025 revenue reached KRW 519.0bn with operating profit of KRW 19.0bn, a slight increase, while net income recovered to KRW 15.5bn.
2
The bulk of revenue comes from contact center services, with IT solutions, ITO, display solutions, IDC, and AI as diversifying business lines.
3
The Hyosung group opened the 'STT Seoul 1' AI data center in Gasan-dong, Seoul through a joint venture involving Hyosung Heavy Industries and STT GDC, with Hyosung ITX handling cloud, CDN, and security operations.
4
First-quarter 2026 revenue rose year-on-year, but operating profit and net income declined, reflecting continued margin pressure.
5
The debt ratio has fluctuated in a 130-170% range, making capital structure another metric worth monitoring.

Business structure

Hyosung ITX is the IT affiliate of the Hyosung group, operating contact center services, IT solutions and services, IT outsourcing (ITO), display solutions, IDC, and AI businesses.

According to the first-quarter 2026 segment disclosure, contact center services generated KRW 101.4bn, accounting for the bulk of total revenue and continuing to grow year-on-year. IT solutions and services rose to KRW 9.4bn and ITO to KRW 7.1bn, both posting double-digit growth.

In contrast, display solutions revenue fell to KRW 7.0bn, and both IDC and AI segment revenues declined year-on-year.

The contact center business spans consulting, outsourced operations, cloud- and mobile-based remote work solutions, and AI-driven agent support tools, built around the company's proprietary 'xtrmSolution' brand that incorporates speech-to-text and text analytics technology.

The display solutions business distributes projectors and digital cinema products from overseas manufacturers such as SHARP and NEC in the domestic market.

In smart factory operations, the company provides manufacturing automation solutions including PLC, MES, and ERP, and has recently signed a memorandum of understanding with Japan's Yokogawa Electric to combine operational technology with IT capabilities.

The contact center market features intense competition from call center operators affiliated with KT and LG Uplus as well as numerous specialized BPO firms, and Hyosung ITX has built a niche in quality-certified public and financial-sector outsourced operations, including a national welfare finance call center.

Earnings trend

Quarterly revenue · Operating profit

₩127.1B₩4.4B25Q2₩124.2B₩4.3B25Q3₩145.7B₩6.6B25Q4₩130.3B₩3.4B26Q1₩134B₩3.5B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩511.3B₩22.3B2022₩503.8B₩19.2B2023₩506.4B₩18.7B2024₩519B₩19B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩127.1B	₩4.4B	3.5%
2025Q3	₩124.2B	₩4.3B	3.5%
2025Q4	₩145.7B	₩6.6B	4.5%
2026Q1	₩130.3B	₩3.4B	2.6%
2026Q2	₩134B	₩3.5B	2.6%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩511.3B	₩22.3B	₩14.9B	4.4%	22.7%	168.9%
2023	₩503.8B	₩19.2B	₩14.6B	3.8%	20.8%	151.1%
2024	₩506.4B	₩18.7B	₩11.8B	3.7%	16.7%	135.6%
2025	₩519B	₩19B	₩15.5B	3.7%	20.6%	160.0%

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

Consolidated revenue in 2025 came to KRW 519.0bn, largely unchanged from KRW 506.4bn in 2024, KRW 503.8bn in 2023, and KRW 511.3bn in 2022, keeping the company's top line within a narrow low-to-mid KRW 500bn range.

Operating profit in 2025 was KRW 19.0bn, similar to KRW 18.7bn in 2024, but the operating margin has slipped from 4.4% in 2022 and 3.8% in 2023 to 3.7% in both 2024 and 2025.

Net income rose to KRW 15.5bn in 2025 from KRW 11.8bn in 2024, marking a clear recovery back toward the KRW 14.9bn and KRW 14.6bn levels posted in 2022 and 2023 respectively.

On a quarterly basis, the fourth quarter of 2025 was the strongest period of the year, with revenue of KRW 145.7bn, operating profit of KRW 6.6bn, and net income of KRW 5.8bn, likely reflecting seasonal year-end project revenue recognition.

In the first quarter of 2026, revenue rose to KRW 130.3bn, but operating profit fell to KRW 3.4bn and net income to KRW 2.5bn, a sharp decline from the prior quarter.

The second quarter of 2026 showed a modest improvement with revenue of KRW 134.0bn, operating profit of KRW 3.5bn, and net income of KRW 3.1bn, though still well below the fourth-quarter 2025 level.

Combined net income over the most recent four quarters (third quarter of 2025 through second quarter of 2026) totaled roughly KRW 14.3bn, underscoring a recurring pattern where annual earnings are concentrated in the year's final quarter.

On the cash flow side, operating cash flow in 2025 was KRW 35.1bn, similar to KRW 35.1bn in 2024, indicating that the earnings recovery was not accompanied by a deterioration in cash generation.

Industry analysis

Domestic contact center and BPO markets face rising labor costs and continued competition for agent staffing, making efficiency gains through AI-based agent support solutions a shared industry priority.

At the same time, the Hyosung group has positioned AI data centers as a new growth pillar, with 'Hyosung-STT GDC,' a joint venture between Hyosung Heavy Industries and Singapore-based data center specialist STT GDC, recently opening and beginning full operation of the hyperscale AI data center 'STT Seoul 1' in Gasan-dong, Geumcheon-gu, Seoul.

Industry observers project the domestic data center market to grow to roughly KRW 20 trillion by 2030, and STT GDC itself operates more than 100 data centers across 12 countries in Asia and Europe with approximately 2.3 gigawatts of IT capacity.

Hyosung ITX applies its existing IT business know-how—cloud, content delivery network (CDN), and digital transformation solutions—to this data center operation, handling traffic optimization and security management system construction.

However, data center projects are inherently large-scale, long-payback infrastructure businesses, and some analysis suggests it will take time for early market positioning to translate into actual earnings.

Competitively, the domestic data center market also requires competing against the in-house infrastructure of major tech firms such as Naver and Kakao, with power availability and security posing key differentiators for attracting customers.

Outlook

Hyosung ITX's earnings trajectory going forward will likely depend on how much synergy emerges between the steady cash generation of its existing contact center and IT service businesses and its participation in data center operations, a newer growth area.

STT Seoul 1 is a 30-megawatt facility located in downtown Seoul, offering a locational advantage of minimized data transmission latency to major business districts such as Gangnam and Yeouido, and it has secured a Tier III TCDD design certification from the Uptime Institute to underscore operational stability.

Hyosung ITX's role covers traffic optimization and security management for the facility, meaning future customer acquisition and utilization trends at the data center will be key variables determining its revenue contribution.

In smart factory operations, the company is pursuing expanded business combining operational technology and IT capabilities through its memorandum of understanding with Japan's Yokogawa Electric, with a key point to watch being whether it can secure customers beyond group affiliates' manufacturing sites.

In the contact center business, renewal of public- and financial-sector outsourcing contracts and the expansion of AI-based agent support solutions to more clients are expected to influence revenue stability.

No specific quantitative revenue or profit guidance from the company has been confirmed publicly, so future performance will need to be tracked through sequential quarterly disclosures.

Valuation

PER

10.0×

PBR

1.9×

ROE

19.4%

EPS

₩1,200

BPS

₩6,298

Dividend per share

₩750

Hyosung ITX's net income recovered from a low in 2024 into 2025, but the renewed slowdown starting in the first quarter of 2026 highlights considerable quarter-to-quarter earnings volatility, a key premise for interpreting its valuation.

Over recent years, the stock's price-to-earnings ratio has generally traded around the 10-times mark, and the current level appears to sit within that historical band.

On a price-to-book basis, the shares tend to trade above net asset value, which can be interpreted as a premium the market has extended based on the company's consistent dividend-payment history and the cash-generating capacity of its contact center business.

On the dividend front, the company has a track record of sustained cash dividend payments, though the yield level changes daily alongside the share price and should be referenced from real-time on-screen figures.

Given that its participation in data center operations remains at an early stage, how the market values the stock going forward may shift once the new business's revenue contribution becomes more visible.

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

Entry into AI Data Center Business

Hyosung ITX has taken on the role of applying its cloud, CDN, and security management capabilities to the operation of 'STT Seoul 1,' the AI data center opened in Gasan-dong, Seoul by the joint venture between Hyosung Heavy Industries and STT GDC.

With the domestic data center market projected to grow to roughly KRW 20 trillion by 2030, the group-wide combination of power equipment, construction, and IT capabilities offers a growth path distinct from the existing contact center business. That said, it may take time before the new business meaningfully contributes to actual profit and loss.

Net Income Recovery Trend

Annual net income, which had fallen to KRW 11.8bn in 2024, rebounded to KRW 15.5bn in 2025. Operating cash flow also remained stable in the KRW 35bn range across both 2024 and 2025, supporting the quality of the reported earnings.

If quarters like the strong fourth quarter of 2025 recur, this could serve as an upside factor for annual results.

Diversified Business Portfolio

While contact center services form the core, the company's business is spread across IT solutions, ITO, smart factory, and display solutions, which limits the impact of any single segment's weakness on overall results.

It maintains a stable customer base, including quality-certified outsourced call center operations in the public and financial sectors. New partnership attempts to expand the business, such as the collaboration with Japan's Yokogawa Electric, continue to move forward.

Bear factors

Revenue Decline in Certain Segments

First-quarter 2026 segment data showed double-digit year-on-year declines in display solutions, IDC, and AI segment revenues. If these declines continue, the company could face a growing structural burden of relying on the single contact center services segment for a disproportionate share of overall revenue growth.

Thin Margins and Quarterly Volatility

The operating margin has narrowed from 4.4% in 2022 to 3.7% in both 2024 and 2025, and first- and second-quarter 2026 operating profit of KRW 3.4bn and KRW 3.5bn, respectively, fell sharply from KRW 6.6bn in the fourth quarter of 2025.

Given the labor-intensive nature of the contact center business, margins can be sensitive to cost factors such as minimum wage increases.

Small-Cap Characteristics and New-Business Execution Risk

Given its relatively small market capitalization, the stock may face limited trading liquidity.

The data center business is an infrastructure project requiring large upfront investment and a long payback period, and analysts note that translating early market positioning into actual profit will require considerable time and successful customer acquisition.

Risk factors

Affiliate Dependence and Related-Party Transactions

As a Hyosung group affiliate, Hyosung ITX may depend in part on intra-group volume for smart factory and IT infrastructure projects. A shift in group-level strategy or weakness at affiliated companies could affect related revenue.

Labor and Cost Inflation

The labor-intensive contact center business could face rising cost burdens from minimum wage increases or intensifying competition for agent staffing. This could add further pressure to an operating margin that has already narrowed into the high-3% range.

New-Business Execution and Capital Recovery Risk

Participation in data center operations is heavily front-loaded with initial investment, and if customer acquisition and utilization take longer than expected, the timing of returns on investment could be delayed.

The domestic data center market also has the structural feature of requiring competition against major tech firms' in-house infrastructure.

What to watch next

Early November 2026
The provisional third-quarter 2026 (July-September) earnings disclosure is expected around this time, warranting a check on contact center revenue trends and whether data center-related revenue begins to appear.
During the Fourth Quarter of 2026
Additional news on customer acquisition and utilization at the STT Seoul 1 data center may emerge, making it worth monitoring whether Hyosung ITX's operational role expands.
During the Second Half of 2026
It will be worth checking whether the smart factory collaboration with Yokogawa Electric translates into concrete orders or revenue.
Early 2027
This marks the timing for confirmed fourth-quarter and full-year 2026 results, when it will be important to re-check whether the seasonally strong fourth quarter pattern repeats and to review the annual net income trend.

Overall view

Hyosung ITX showed a net income recovery in 2025 built on the stable core of its contact center services business, but quarterly volatility remains significant, with both operating profit and net income slowing again in the first half of 2026.

Revenue declines in certain segments such as display solutions, IDC, and AI have increased the company's reliance on contact center services.

At the same time, its assigned role in cloud and security management operations for the Hyosung group's AI data center project (STT Seoul 1) can be viewed as a new growth path distinct from the existing business, though it will take time and successful customer acquisition before this new venture meaningfully contributes to revenue and profit.

The operating margin has narrowed from the 4% range into the high-3% range, and given the cost sensitivity inherent to the labor-intensive contact center business, this trend warrants continued attention.

On valuation, the shares appear to be trading within their historical band, at a premium relative to net asset value. Investors will want to track upcoming quarterly disclosures alongside concrete progress on the data center business before forming a view.

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.