PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩1,000 per share · Prices as of the 2026-10-02 close
The order backlog now exceeds last year's annual revenue, but quarterly results still swing sharply depending on equipment delivery timing.
Revenue jumped 356.7% to KRW515.8bn and operating profit surged 1,312.5% to KRW111.5bn in 2025, but first-half 2026 revenue shrank to KRW36.3bn with an operating loss.
The order backlog stood at KRW642.0bn at end-June 2026, above 2025 annual revenue, suggesting room for second-half revenue recognition.
The company won all four deposition tools for BOE's 8.6-generation OLED line (B16), and reports suggest it is likely to win LG Display's 6th-generation deposition equipment order as well.
The company holds over 80% share in the OLEDoS (micro-OLED) deposition equipment market, positioning it to benefit from growing XR/AR device demand.
In May 2026, the company was reclassified from KOSDAQ's mid-tier segment to its premium segment, formally confirming improved financial soundness.
Sunic System was founded in 1990 and listed on KOSDAQ in 2017 as a specialized maker of OLED deposition and encapsulation equipment.
Its core product is deposition equipment used in the OLED organic-material deposition process; deposition equipment accounted for 89.56% of the KRW62.4bn in revenue recorded in 2023, with the remaining 10.44% coming from other items such as consumables and maintenance.
Its customers include leading global display makers such as Samsung Display, LG Display, and BOE. The company established SUNIC SYSTEM (CHENGDU) in China and maintains the world's largest market share in small-size OLED deposition equipment.
Having commercialized 8.6-generation deposition equipment, it now offers a full lineup from R&D-scale tools to mass-production equipment. Only two companies worldwide, Japan's Canon Tokki and Sunic System, are capable of producing OLED deposition equipment, a key barrier to entry.
More recently, the company has secured over 80% share in the OLEDoS deposition equipment market, becoming the de facto industry standard.
It is also expanding into perovskite deposition equipment for solar cells, and has completed the establishment of a U.S. subsidiary to prepare for the ramp-up of perovskite mass production.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩190.1B | ₩40B | 21.0% |
| 2025Q3 | ₩88.8B | ₩19.8B | 22.3% |
| 2025Q4 | ₩221B | ₩53.6B | 24.2% |
| 2026Q1 | ₩16.1B | ₩1.5B | 9.2% |
| 2026Q2 | ₩20.2B | -₩10.1B | −50.1% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩74.1B | ₩4.4B | -₩3.2B | 6.0% | −4.1% | 57.5% |
| 2023 | ₩62.4B | -₩4.1B | -₩9.2B | −6.5% | −13.0% | 90.2% |
| 2024 | ₩112.9B | ₩7.9B | -₩28.1B | 7.0% | −60.5% | 552.5% |
| 2025 | ₩515.8B | ₩111.5B | ₩96.5B | 21.6% | 67.1% | 154.2% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-21
Starting from operating profit of KRW4.4bn (6.0% operating margin) in 2022, Sunic System posted revenue of KRW62.4bn with an operating loss of KRW4.1bn in 2023 and revenue of KRW112.9bn with a net loss of KRW28.1bn in 2024, extending a four-year streak of net losses.
In 2025, revenue grew 356.7% to KRW515.8bn and operating profit surged 1,312.5% to KRW111.5bn, lifting the operating margin from 7.0% to 21.6%, while net profit attributable to owners swung to a profit of KRW96.5bn.
By quarter, fourth-quarter 2025 revenue peaked at KRW221.0bn with operating profit of KRW53.6bn, driven by deliveries of large OLED deposition equipment.
However, first-quarter 2026 revenue fell to KRW16.1bn and operating profit was just KRW1.5bn, while the net loss attributable to owners widened to KRW19.6bn, creating a large gap between operating and net results.
The second quarter of 2026 also stayed in the red, with revenue of KRW20.2bn, an operating loss of KRW10.1bn, and a net loss of KRW8.0bn. The company disclosed on August 18 that first-half revenue came to KRW36.3bn with an operating loss of KRW8.7bn, consistent with the sum of the quarterly figures.
Management explained that deposition equipment is recognized as revenue only after passing through design, manufacturing, shipment, installation, and inspection stages following an order, causing quarterly revenue and earnings to fluctuate with project schedules.
First-half results were also affected, beyond revenue scale, by warranty-related provisions and allowances for doubtful accounts tied to receivables.
On the balance sheet, the debt ratio fell from 552.5% in 2024 to 154.2% in 2025, and operating cash flow swung from an outflow of KRW34.0bn in 2024 to an inflow of KRW97.3bn in 2025.
The OLED deposition equipment market has a high barrier to entry, with only Canon Tokki and Sunic System capable of producing large-scale mass-production equipment worldwide.
Industry demand is shifting from small-size OLED for smartphones toward large-size IT-use OLED for laptops and tablets, and major panel makers including Samsung Display, BOE, Visionox, and China Star Optoelectronics (CSOT) have formalized investment plans for 8th-generation IT-use OLED.
Within this trend, Sunic System won all four deposition tools needed for BOE's investment in its 8.6-generation (2290x2620mm) OLED panel production line (B16).
Given that rival Samsung Display built its 8.6-generation OLED panel line using Canon Tokki's deposition equipment, BOE's choice is seen as shaking up the established market order.
In May 2026, reports indicated that Sunic System is likely to supply LG Display's 6th-generation OLED deposition equipment, displacing Canon Tokki, and LG Display has decided on a new facility investment of KRW1.106 trillion for OLED technology through June 2028.
Demand for micro-OLED (OLEDoS) is also rising with the spread of XR/AR devices, and as big-tech companies such as Apple and Meta intensify competition in spatial computing, panel makers are expanding investment, positioning Sunic System favorably to expand its customer base.
On the back of these order wins, Sunic System was notified by the Korea Exchange in May 2026 of its promotion from KOSDAQ's mid-tier segment to its premium segment.
Sunic System announced on August 18 that first-half 2026 consolidated revenue was KRW36.3bn with an operating loss of KRW8.7bn, and that the order backlog stood at KRW642.0bn at end-June, above last year's annual revenue of KRW515.8bn.
The company stated that the secured backlog is expected to be recognized as revenue progressively from the second half as equipment ships and projects proceed, with resources concentrated on shipping and executing large-OLED and OLEDoS projects.
To expand capacity, it plans to complete Building A of its new Pyeongtaek Brain City fab in July and Building B in October, with the new fab intended for producing next-generation equipment including 8.6-generation OLED, OLEDoS, and perovskite tools. Sell-side views on the outlook diverge.
On June 29, IBK Investment & Securities projected second-quarter 2026 revenue of KRW15.0bn, down 92.1% year-on-year, and an operating loss of KRW3.5bn, falling short of market expectations, while estimating full-year revenue and operating profit of KRW406.3bn and KRW92.0bn, down 21.1% and 17.5% year-on-year respectively, and noting that the backlog reached a record KRW582.3bn at the end of the first quarter, supporting earnings visibility from the second half onward.
That report maintained a buy rating while lowering its target price from KRW163,000 to KRW141,000. By contrast, on April 21, DS Investment & Securities maintained a buy rating, projected 2026 revenue of KRW496.4bn and 2027 revenue of KRW648.5bn, and raised its target price from KRW77,000 to KRW167,000.
That firm assessed the weak first-quarter operating profit as a superficial gap caused by shipment delays to Greater China panel makers, calling it a potential buying opportunity, and expected revenue recognition from a perovskite pilot equipment order won last October during the second quarter, with a follow-on mass-production equipment order possible as early as the first quarter of 2027.
The current share price trades at a premium to net asset value, reflecting the 2025 swing to profit and the large order backlog. However, since first-half 2026 results reverted to a loss, whether this profit normalization proves durable or was a one-off rebound will shape how justified that premium is.
The price-to-earnings multiple lacks a clean historical benchmark given the company's history of alternating between losses and profits, so recent earnings volatility should be weighed alongside the multiple.
The dividend, paid for the first time following 2025's swing to net profit attributable to owners, could shrink or disappear again depending on future revenue-recognition timing, given the equipment business's project-based nature.
Sell-side target price revisions have also diverged recently, with some analysts lowering and others raising their targets, underscoring that views on valuation are not uniform.
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 2026-08-21
The order backlog stood at KRW642.0bn at end-June 2026, exceeding last year's annual revenue. The company expects this backlog to be recognized as revenue progressively over the second half as equipment ships and projects proceed.
With large-OLED and OLEDoS projects running concurrently, on-schedule shipments could form the basis for second-half improvement.
Sunic System won all four deposition tools needed for BOE's 8.6-generation OLED line (B16), breaking into a large-equipment market long dominated by Canon Tokki. In May 2026, reports emerged that LG Display is likely to adopt Sunic System's 6th-generation OLED deposition equipment instead of Canon Tokki's.
The company also holds over 80% share in the OLEDoS deposition equipment market, positioning it to benefit directly from growing XR/AR device demand.
The debt ratio fell from 552.5% in 2024 to 154.2% in 2025, and operating cash flow swung to a surplus. Building on this improved financial strength, Sunic System was notified by the Korea Exchange in May 2026 of its promotion from the mid-tier segment to the premium segment of KOSDAQ.
This marked a return after four years, having been demoted in 2022, indicating it met combined criteria for scale, profitability, and financial stability.
Because revenue is recognized based on equipment delivery timing, operating profit swung sharply from KRW53.6bn in the fourth quarter of 2025 to KRW1.5bn in the first quarter of 2026 and an operating loss of KRW10.1bn in the second quarter.
The company itself has explained that quarterly revenue and earnings fluctuate depending on project schedules. This makes it difficult to judge business direction from a single quarter's results.
A large share of the company's large-OLED revenue is concentrated in a structure where it books revenue approaching trillions of won from a single customer, BOE, meaning that customer's investment pace or policy changes can directly affect results.
Order geography also skews heavily toward Chinese panel makers, exposing the company to China's display industry conditions and policy variables.
The company has stated it plans to pursue supply deals with other Chinese display makers such as China Star Optoelectronics (CSOT), but clear results from such diversification have not yet been confirmed.
In the first quarter of 2026, despite an operating profit of KRW1.5bn, the net loss attributable to owners reached KRW19.6bn, suggesting non-operating factors had a substantial impact on results. In the second quarter, the net loss of KRW8.0bn, while smaller than the operating loss of KRW10.1bn, remained sizable. If this gap between operating and net results recurs, interpreting earnings will require caution.
Because equipment revenue is recognized only after design and manufacturing followed by shipment, installation, and inspection, revenue recognition can be delayed into a specific quarter depending on customer fab schedules or logistics.
Indeed, the second quarter of 2026 saw a temporary earnings gap caused by shipment delays to Greater China panel makers. Even with a large backlog, the actual timing of revenue conversion may differ from the company's plans.
Most revenue is concentrated among Chinese panel makers, including a single customer, BOE, meaning results are tied to the investment cycle of specific customers and a specific country.
Competition between the United States and China over technology, or changes in Chinese government display-industry policy, could affect order timing. Customer diversification is underway, but revenue from new large customers remains limited for now.
The debt ratio has swung sharply year to year, rising from 57.5% in 2022 to 552.5% in 2024 before falling back to 154.2% in 2025. In the first half of 2026, the deterioration in net results outpaced that of operating results, a pattern in which non-operating factors are difficult to predict has recurred. Such non-operating volatility could continue to add uncertainty to earnings forecasts going forward.
Check whether Building B of the new Pyeongtaek Brain City fab is completed as planned. On-schedule completion would make the expansion of production capacity for 8.6-generation OLED, OLEDoS, and perovskite equipment more concrete.
Check the pace at which the backlog converts into revenue in the second half, along with third-quarter results. As these figures have not yet been formally disclosed, they should be treated with caution until the official release.
Check whether a formal contract disclosure follows on the LG Display 6th-generation OLED deposition equipment order. As of the May 2026 report, this was only described as likely, not yet confirmed.
Check for additional revenue recognition and new orders tied to BOE's 8.6-generation Phase 2 line, as well as whether a new order for perovskite mass-production equipment materializes.
Sunic System broke a four-year streak of net losses in 2025, with revenue up 356.7% and operating profit up 1,312.5%, but first-half 2026 results reverted to a contraction, with revenue of KRW36.3bn and an operating loss of KRW8.7bn, underscoring how much earnings still swing with equipment delivery timing.
The order backlog stood at KRW642.0bn at end-June 2026, above last year's annual revenue, laying a foundation for second-half revenue conversion.
Winning the full set of deposition tools for BOE's 8.6-generation OLED line, reports pointing to a likely LG Display 6th-generation order, and an over-80% share of the OLEDoS market all point to the company's technological competitiveness.
That said, revenue remains concentrated with specific customers and the Chinese market, and periods where operating and net results diverge sharply, as seen in the first half of 2026, have recurred.
Completion of the new Pyeongtaek Brain City fab, second-half equipment shipment performance, and whether the LG Display order is formally confirmed are likely to be key variables shaping future earnings.
This report does not include a buy or sell recommendation, and investment decisions and related responsibility rest with the individual investor.
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.