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
Youngwoo DSP returned to profit in 2025 after three years of losses, but a Q2 2026 slowdown means the durability of the earnings recovery now awaits confirmation in coming quarters.
2025 consolidated revenue of KRW 80.5bn and operating profit of KRW 5.9bn marked a turnaround after three straight years of losses (2022-2024)
Operating margin exceeded 10% in Q1 2026 before both revenue and profit slowed sharply in Q2 2026
Continued supply contracts with major customers including Samsung Display underpinned an order backlog of roughly KRW 41.9bn as of end-H1 2026
New business diversification is underway, including domestic testing of the 'VEGA S-1000' wafer bump 3D inspection tool for semiconductors, but revenue contribution remains at an early stage
Executives disclosed open-market treasury share purchases in July 2026, while operating cash flow has stayed negative even after the swing to profitability
Youngwoo DSP was founded in 2004 and listed on KOSDAQ in 2014 as a specialist in display inspection equipment. Its core products are AVI, ACA, MVI, and AOT inspection systems that detect defective pixels at the cell and module stages of OLED and LCD panels.
Its largest customer is Samsung Display (both the domestic entity and its Vietnam subsidiary), and recent large supply contracts have continued to center on this customer.
The company has in the past pursued customer diversification, including OLED equipment exports through a trading affiliate of the Toyota Group in Japan. The vast majority of revenue comes from display inspection equipment sales, making it effectively a single-segment business.
The company has developed the 'VEGA S-1000,' a wafer bump 3D inspection tool for semiconductor back-end (OSAT) customers, which is currently undergoing domestic testing, alongside new ventures in secondary battery inspection equipment, service robots, and smart healthcare.
In terms of competitive positioning, companies such as HB Technology, NextEye, APS Innovation, Donga ELTEC, and AI Bit are cited as comparable peers, in a display inspection equipment market shared among a small number of players. The diversification effort remains at an early stage, with limited revenue contribution to date.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩18.5B | -₩100M | −0.7% |
| 2025Q3 | ₩19.4B | ₩1.1B | 5.5% |
| 2025Q4 | ₩34.5B | ₩5.2B | 14.9% |
| 2026Q1 | ₩23.3B | ₩3.5B | 15.2% |
| 2026Q2 | ₩16.6B | ₩100M | 0.8% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩49.5B | -₩16.4B | -₩25.7B | −33.1% | −63.0% | 104.0% |
| 2023 | ₩47.8B | -₩11.1B | -₩12.9B | −23.2% | −44.1% | 147.9% |
| 2024 | ₩59.1B | -₩5B | -₩3.9B | −8.4% | −15.6% | 176.6% |
| 2025 | ₩80.5B | ₩5.9B | ₩5.6B | 7.3% | 18.1% | 127.3% |
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
2025 consolidated revenue reached KRW 80.5bn, up from KRW 59.1bn in 2024, and operating profit came in at KRW 5.9bn, marking a return to profit after three consecutive years of losses from 2022 to 2024.
Net income attributable to owners also turned positive at KRW 5.6bn, ending a loss streak that ran from a loss of KRW 25.7bn in 2022 to KRW 12.9bn in 2023 and KRW 3.9bn in 2024.
On a quarterly basis, Q2 2025 revenue was KRW 18.5bn with an operating loss of KRW 0.1bn, before Q3 swung to an operating profit of KRW 1.1bn on revenue of KRW 19.4bn, and Q4 expanded sharply to revenue of KRW 34.5bn and operating profit of KRW 5.2bn.
This momentum carried into Q1 2026, with revenue of KRW 23.3bn, operating profit of KRW 3.5bn, and owners' net income of KRW 4.2bn, pushing the operating margin above 10%.
However, Q2 2026 revenue fell to KRW 16.6bn and operating profit slipped to just KRW 0.1bn, a sharp deceleration in profitability versus the prior quarter, reflecting the timing volatility typical of order-based recognition in the equipment business.
Operating cash flow remained negative at KRW -1.7bn in 2025 and KRW -1.5bn in 2024, indicating that the conversion of accounting profit into cash has not yet fully caught up with the earnings improvement.
The debt ratio rose from 104.0% in 2022 to 147.9% in 2023 and 176.6% in 2024, before falling back to 127.3% in 2025, pointing to some improvement in the balance sheet.
The display equipment industry is a classic order-driven business whose results hinge on panel makers' capital investment cycles.
Industry observers note that display end-market conditions have entered a gradual recovery phase, with continued expansion of new investment centered on IT-use and automotive OLED expected to keep benefiting equipment suppliers.
Investment by domestic and overseas panel makers in foldable and flexible displays is also cited as a factor supporting demand for inspection equipment.
However, given the structural reliance on Samsung Display as the dominant domestic panel maker, that customer's capital expenditure cycle remains the key variable determining the direction of results.
The semiconductor inspection equipment market has a number of established incumbents, and Youngwoo DSP is still at an early stage of localization and market entry.
Peers cited for comparison, including HB Technology, NextEye, APS Innovation, Donga ELTEC, and AI Bit, compete in similar inspection and measurement equipment segments, sustaining ongoing competition for market share.
In August 2025, the company signed a KRW 17.9bn supply contract with Samsung Display's Vietnam subsidiary, equivalent to 30.3% of the prior year's revenue. In September, it added a KRW 9.6bn contract with Samsung Display, which the company said brought the cumulative order backlog to KRW 58.5bn at that time.
In June 2026, the company disclosed a further KRW 9.9bn contract covering display inspection equipment and a smart robot transfer system. As of end-H1 2026, the order backlog stood at roughly KRW 41.9bn, according to an August 19, 2026 report by independent research firm ARIS.
In the semiconductor inspection equipment segment, the 'VEGA S-1000' wafer bump 3D inspection tool is undergoing testing with a domestic OSAT customer, and the company has said related revenue could become visible from the second half of 2026 onward.
In August 2026, ARIS assessed that if this testing leads to follow-on orders, it could expand semiconductor segment revenue and support a re-rating of enterprise value.
It should be noted, however, that these timelines and revenue contribution estimates reflect company plans and external research views rather than confirmed figures.
Reflecting the 2025 return to profit and the Q1 2026 earnings improvement, earnings over the most recent four quarters have increased substantially, making price-to-earnings calculations more meaningful than during the earlier loss-making years when such a metric carried little information value.
The stock trades at a level above its net asset value, suggesting the market places some degree of confidence in the durability of the earnings recovery.
That said, given the sharp deceleration in Q2 2026 results relative to the prior quarter, whether the recently compressed multiple can be sustained will require confirmation from subsequent quarterly results.
The company currently pays no dividend, limiting the appeal of shareholder returns through dividends, so valuation is driven more by earnings momentum than by income yield.
As a small-cap KOSDAQ equipment stock, individual order announcements can materially affect how these metrics should be read, making it important to view them alongside quarter-to-quarter earnings variability.
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
Consolidated operating profit reached KRW 5.9bn and owners' net income KRW 5.6bn in 2025, ending three consecutive years of losses from 2022 to 2024. Operating margin climbed into double digits in Q4 2025 and Q1 2026, extending the improvement trend.
This is attributed to a combination of expanded display inspection equipment orders and resumed customer investment.
In August-September 2025, the company signed consecutive contracts worth KRW 17.9bn and KRW 9.6bn with Samsung Display and its Vietnam subsidiary. In June 2026, an additional KRW 9.9bn contract for inspection equipment and a robot transfer system was added. The order backlog stood at roughly KRW 41.9bn at the end of H1 2026, forming a base for future results.
The company has developed the 'VEGA S-1000' wafer bump 3D inspection tool and is running domestic tests with an OSAT customer. It also continues efforts to expand into secondary battery inspection equipment, service robots, and smart healthcare.
The direction of reducing reliance on a single display business can be viewed as a factor for medium-to-long-term business diversification.
Operating margin exceeded 15% in Q1 2026, but Q2 saw a sharp deceleration to revenue of KRW 16.6bn and operating profit of just KRW 0.1bn. Timing differences in order recognition typical of the equipment business are cited as a cause, but the wide quarterly swings also make results harder to predict.
Recent major contracts have been concentrated with Samsung Display and its Vietnam subsidiary, meaning changes in that customer's investment schedule can directly affect results. Some customer diversification has occurred, but revenue concentration among a small number of customers remains high.
The company itself has stated that Q1 results were achieved solely through the core display inspection equipment business, with semiconductor and secondary battery new business revenue not yet meaningfully reflected.
The semiconductor segment is still at the testing stage, and converting it into revenue may take additional time.
A significant portion of revenue is tied to the investment schedules of a small number of large customers such as Samsung Display. If those customers delay or scale back investment, the pace at which the order backlog converts into revenue could slow. The possibility that the display market recovery proceeds more slowly than expected cannot be ruled out.
While the company returned to profit on a P&L basis in 2025, operating cash flow was negative in both 2024 and 2025. This may suggest that working capital items such as receivables or inventory have not kept pace with the improvement in reported profit.
The 'VEGA S-1000' semiconductor inspection tool remains at the domestic customer testing stage, and it is not yet confirmed whether it will pass certification and lead to follow-on orders.
Other new ventures in secondary batteries, robotics, and healthcare also remain at an early stage requiring further R&D and time before commercialization.
Check the Q3 2026 quarterly report filing to assess whether the Q2 slowdown was a temporary factor or whether growth resumes in subsequent quarters.
Watch for disclosure of the domestic testing results for the 'VEGA S-1000' semiconductor inspection tool and any resulting follow-on orders.
Monitor new supply contract disclosures with major customers such as Samsung Display for changes to the order backlog, which stood at roughly KRW 41.9bn at end-H1 2026.
Track whether executives continue open-market treasury share purchases and monitor stake disclosures from major shareholders such as BlackPearl Asset Management.
Youngwoo DSP ended three consecutive years of losses with a return to profit in 2025, and this trend continued into Q1 2026 with operating margin reaching double digits.
However, both revenue and profit slowed sharply in Q2 2026 relative to the prior quarter, meaning further confirmation is still needed on whether the earnings recovery can be sustained on a stable quarterly basis.
The order backlog (roughly KRW 41.9bn at end-H1 2026) and continued contract wins with major customers such as Samsung Display provide a foundation for future results, though a structural feature of high concentration with specific customers also exists.
New ventures in semiconductors, secondary batteries, and robotics represent a diversification direction, but their revenue contribution remains at an early stage. The fact that operating cash flow has stayed negative despite the P&L improvement is also worth monitoring.
On balance, this stock appears to be in the early phase of an earnings turnaround, at a point where further confirmation of upcoming quarterly results and new business progress is warranted.
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.