PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩15 per share · Prices as of the 2026-10-02 close
HYTC, long focused on ultra-precision parts for secondary battery equipment, is expanding into semiconductor process components, with the most recent four quarters showing both revenue recovery and a sharp swing in net income.
Despite a full-year 2025 operating loss of KRW 3.17 billion, net income came in at a positive KRW 3.45 billion, indicating non-operating items had a major impact on the bottom line.
2026 Q2 net income attributable to owners surged to KRW 17.17 billion, far exceeding the scale of quarterly revenue (KRW 10.3 billion) or operating income (–KRW 0.05 billion).
In April 2026 the company began sample testing for semiconductor process parts and requested quality testing from a major customer, though this remains an early stage with no confirmed orders or revenue yet.
The debt ratio has steadily improved, falling from 22.5% in 2022 to 16.6% in 2025.
2025 operating cash flow fell sharply to KRW 1.23 billion from KRW 6.54 billion in 2024, signaling weaker underlying cash generation.
HYTC mainly produces ultra-precision parts used in secondary battery manufacturing equipment and listed on KOSDAQ in 2022. Its core products include the PX-SHAFT, KNIFE UNIT, and insulation plate molds used in electrode-forming and assembly processes.
According to the company's own website, it supplies precision parts to more than 30 global OEM partners including LG Energy Solution, Samsung SDI, and SK On, tying its results closely to the capital expenditure cycles of domestic and overseas battery cell makers.
Overseas, the company has operations in Nanjing (China), Poland, Hungary, and the United States; it acquired and began operating an Indonesian subsidiary in 2024 and established a new U.S. entity in Georgia (HYTC SOG, LLC) in early 2025.
In October 2024 it won an order for a notching mold cutter system from an LG-Hyundai joint venture in the U.S., building a supply track record with automaker-battery joint ventures. The CEO changed from Bo-kyung Seong to Wook-hyun Kim in July 2025.
More recently, the company has been preparing to enter the semiconductor process parts market by leveraging its existing precision machining expertise, a move seen as a strategy to diversify away from its battery-centric revenue base.
Semiconductor process parts require tight tolerance control and advanced precision machining, an area with technical similarities to battery equipment parts; while entry barriers are high, the market is viewed as correspondingly profitable.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩6.1B | -₩2.2B | −36.2% |
| 2025Q3 | ₩8.2B | -₩600M | −7.1% |
| 2025Q4 | ₩9.2B | ₩36,274,581 | 0.4% |
| 2026Q1 | ₩8.3B | -₩1.2B | −14.0% |
| 2026Q2 | ₩10.3B | -₩53,735,448 | −0.5% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩34.2B | ₩2B | ₩2B | 5.8% | 3.6% | 22.5% |
| 2023 | ₩40.6B | ₩3.6B | ₩5.6B | 8.8% | 9.3% | 19.0% |
| 2024 | ₩32.3B | ₩400M | ₩2.6B | 1.3% | 4.2% | 17.1% |
| 2025 | ₩30.1B | -₩3.2B | ₩3.4B | −10.5% | 5.3% | 16.6% |
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
Annual revenue peaked at KRW 40.6 billion in 2023 after rising from KRW 34.2 billion in 2022, then declined for two consecutive years to KRW 32.3 billion in 2024 and KRW 30.1 billion in 2025.
The operating margin also fell sharply from 8.8% in 2023 to 1.3% in 2024, and turned negative at –10.5% in 2025 with an operating loss of KRW 3.17 billion, marking a clear deterioration in core profitability.
Even so, 2025 net income attributable to owners rose to KRW 3.45 billion from KRW 2.61 billion the prior year, showing a divergence between operating results and the bottom line.
On a quarterly basis, results bottomed in Q2 2025 with revenue of KRW 6.14 billion, an operating loss of KRW 2.22 billion, and a net loss of KRW 1.98 billion, before improving through Q3 2025 (revenue KRW 8.18 billion, operating loss KRW 0.58 billion, net income KRW 1.41 billion) and Q4 2025 (revenue KRW 9.17 billion, near-breakeven operating income of KRW 0.04 billion, net income KRW 3.82 billion).
In Q1 2026 the operating loss widened again to KRW 1.17 billion on revenue of KRW 8.35 billion, yet net income held at KRW 3.17 billion, and in Q2 2026 revenue reached KRW 10.33 billion—the highest in the recent five-quarter window—with the operating loss narrowing to KRW 0.05 billion, while net income jumped to KRW 17.17 billion.
This recurring pattern of net income far exceeding the scale of operating results suggests non-operating factors have continued to play a significant role, and cumulative net income attributable to owners over the most recent four quarters (Q3 2025 through Q2 2026) reached KRW 25.57 billion.
In contrast, 2025 operating cash flow of KRW 1.23 billion was far lower than KRW 3.22 billion in 2023 and KRW 6.54 billion in 2024, highlighting a gap between accounting net income improvement and actual cash generation worth monitoring.
HYTC's core secondary battery equipment parts business is directly tied to the capital expenditure cycles of battery cell makers such as LG Energy Solution, Samsung SDI, and SK On, and the revenue decline since 2023 appears linked to adjustments in the pace of investment across the battery industry.
Meanwhile, the semiconductor process parts market the company is now preparing to enter is at a different point in its cycle.
According to Counterpoint Research, the semiconductor manufacturing equipment industry is expected to maintain structurally solid growth, with an overall upcycle emerging in 2026 that could lift revenue by roughly 11%.
This is largely attributed to expanding demand for advanced logic, high-bandwidth memory (HBM), and advanced packaging equipment driven by AI infrastructure buildout.
However, semiconductor process parts—particularly those tied directly to yield—require extensive reliability verification, and the competitive landscape already includes numerous established precision machining and materials suppliers.
Before the company can establish a foothold, it must clear several stages including quality testing, mass-production approval, and securing initial volume, and it currently remains at the sample-testing stage.
As a result, the company's position can be viewed as transitional, straddling a mature secondary battery parts business and a semiconductor parts business that is only just attempting entry.
In April 2026 the company disclosed it was conducting sample performance testing on semiconductor process parts and had requested quality testing from a major customer.
A company representative explained that it is also considering introducing a cleaning process to supply semiconductor parts, since micro-contamination control has a direct impact on quality in semiconductor processes.
This move is seen as a strategy to expand the company's business scope based on its existing precision machining expertise while diversifying away from its battery-centric revenue structure.
On the existing business side, the company secured an order for a notching mold cutter system from an LG-Hyundai joint venture in the U.S. in October 2024, and has continued expanding overseas production bases, including establishing a Georgia, U.S. entity (HYTC SOG, LLC) in early 2025 and operating an Indonesian subsidiary acquired in 2024.
However, the semiconductor parts business remains at a pre-order, pre-revenue stage, so the outcome of qualification testing, mass-production approval, and the scale of initial volumes will be key variables determining whether this becomes a substantive business line.
In the core battery parts segment, quarterly revenue has shown a sequential increase since the second half of 2025, making the pace of capital expenditure resumption among downstream customers a factor worth continued observation.
Because recent net income was heavily inflated by a large non-operating item in the second quarter of 2026, valuation metrics based on this figure may understate what would be considered the company's normal earnings power, warranting caution in interpretation.
The share price trades at a discount to net asset value, a pattern consistent across both the self-calculated and official KRX-based measures.
The dividend yield, based on the per-share cash dividend, sits on the low side, suggesting that the diversification effort matters more to the investment case than income distribution.
Given that the annual operating margin has swung from low single-digit profitability to double-digit losses in past years, it is difficult to treat the recent surge in net income over the last four quarters as a sustainable earnings run rate.
Ultimately, the current low price multiple is a figure that can only be fully assessed once one-off factors clear and normalized earnings trends, along with the actual commercialization progress of the semiconductor parts business, become 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
Semiconductor process parts require tight tolerance control, an area with strong technical overlap with battery equipment parts. The company took its first step into this market by beginning sample testing in April 2026.
The semiconductor manufacturing equipment industry is expected to see an overall upcycle in 2026, and successful entry could serve as a catalyst for revenue diversification.
The debt ratio has steadily declined from 22.5% in 2022 to 16.6% in 2025, reflecting improved financial stability. Total equity also grew every year, from KRW 55.1 billion in 2022 to KRW 64.7 billion in 2025. This financial flexibility provides a foundation for investment in new business lines or capacity expansion.
Revenue, which fell to KRW 6.14 billion in Q2 2025, rose over five consecutive quarters to KRW 8.18 billion, KRW 9.17 billion, and eventually KRW 10.33 billion by Q2 2026.
Over the same period, net income turned from loss to profit and has remained positive since, which could be interpreted as a signal of recovering demand from downstream customers.
The full-year 2025 operating margin was negative at –10.5%, and the company posted an operating loss of KRW 1.17 billion again in Q1 2026. Net income has depended heavily on non-operating factors, and the underlying business has yet to generate stable profit on its own. While the Q2 operating loss narrowed slightly, it still did not cross into positive territory.
Annual revenue peaked at KRW 40.6 billion in 2023 before declining for two straight years to KRW 30.1 billion in 2025. This reflects a structural vulnerability tied directly to the pace of capital spending by key customers such as LG Energy Solution, Samsung SDI, and SK On.
Until the semiconductor parts business gains meaningful traction, results will remain exposed to the battery industry's investment cycle.
As of April 2026, the semiconductor process parts business remains at the sample-testing stage, with no confirmed orders or revenue recognition yet.
Considerable time and uncertainty remain before qualification testing is passed and mass-production approval is granted, and additional investment such as a cleaning process is still under review. If the plan does not proceed as intended, expectations for diversification could be delayed or scaled back.
The company's revenue is understood to rely heavily on a small number of global battery cell makers, including LG Energy Solution, Samsung SDI, and SK On. Any change in these customers' capital expenditure plans or order reductions could directly affect the company's revenue. This exposure is likely to persist as long as customer diversification remains limited.
The company's entry into semiconductor process parts is still at the sample-testing and quality-verification stage, and it remains uncertain whether this will lead to actual mass-production approval and secured volumes.
Even with technical similarities to battery parts, the company must meet the semiconductor industry's own reliability standards and verification procedures. If entry fails or is delayed, invested costs may not translate into results.
Over several recent quarters, operating results and net income have repeatedly diverged in direction, with non-operating factors continuing to influence reported earnings. 2025 operating cash flow fell sharply to KRW 1.23 billion from KRW 6.54 billion in 2024, revealing a gap between accounting-based profit improvement and actual cash generation. This volatility makes it harder to project the direction of future results.
This is around the time of the (preliminary) Q3 2026 earnings disclosure; watch whether the narrowing operating loss trend continues and whether revenue growth persists.
Watch for additional disclosures on the outcome of semiconductor process parts qualification testing, mass-production approval, or initial orders, as this is a key indicator of whether the new business becomes commercially viable.
Watch for signals of resumed battery equipment capital spending from major customers such as LG Energy Solution, Samsung SDI, and SK On, as this will determine whether the recovery in core business revenue is sustained.
This is around the time of the FY2026 annual business report (confirmed full-year results); check whether the recent surge in net income proves to be one-off and clears, and what a normalized earnings level looks like.
HYTC is a company centered on ultra-precision parts for secondary battery equipment, and after peaking in 2023, its revenue and operating margin weakened, culminating in a full-year operating loss in 2025.
Even so, net income remained positive across several quarters thanks to non-operating factors, and in Q2 2026 in particular, net income surged to a level far exceeding the scale of revenue and operating results.
On the financial structure side, stability has improved with a steadily declining debt ratio and rising total equity each year, though 2025 operating cash flow fell sharply from the prior year, warranting a closer look at cash generation.
The company has been conducting sample testing since April 2026 to enter the semiconductor process parts market, a move interpreted as a diversification attempt leveraging its existing precision machining expertise, though it remains at an early, pre-order stage.
Ultimately, understanding this company requires watching whether the core battery parts business sustains its revenue recovery, how the semiconductor parts venture progresses toward actual commercialization, and how the non-operating factors behind the recent net income surge normalize going forward.
Before drawing any investment conclusions, it is worth continuing to track upcoming quarterly disclosures and follow-up announcements related to the new business.
Report written 2026-09-05 · Data as of 2026-09-04
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