PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩900 per share · Prices as of the 2026-10-02 close
A recovery in automotive and data-center leadframe demand combined with a turnaround in package substrate profitability has driven a clear improvement in Haesung DS quarterly results since the third quarter of 2025.
After a net loss in the second quarter of 2025, the company posted net profit for four consecutive quarters starting in the third quarter of 2025.
Leadframes account for the large majority of revenue (about 77% on a nine-month 2025 basis), with package substrates making up the remainder.
The new Changwon plant is currently operating only one of its three floors, with full operation targeted within the year to expand maximum annual capacity.
The operating margin, which reached 24.4% in 2022, fell to 7.1% in 2025 before showing signs of recovery in recent quarters.
Some brokerages have raised their target prices citing leadframe price hikes and expanding DDR5 package substrate volumes.
Haesung DS manufactures leadframes and package substrates (PKG Substrate) used in semiconductor packaging processes. As of the nine months ended September 2025, leadframes accounted for about 77% of revenue and package substrates about 23%.
The company is regarded as the world's second-largest leadframe supplier by market share, supplying primarily global OSAT (outsourced semiconductor assembly and test) firms and automotive semiconductor makers.
As of 2024, leadframe revenue was split 66% automotive and 34% IT and appliances, showing a heavy tilt toward the automotive end market.
Package substrates are supplied for commodity memory (DDR4 through DDR5) to global memory makers and OSAT customers, using a Reel-to-Reel process that the company says is unique in the industry and provides cost advantages versus peers.
In 2022 the company began a three-year, KRW 350 billion investment to expand a new plant at its Changwon site for leadframe and packaging substrate production, which has ramped up in stages since completion in 2024.
As a new growth area, the company is preparing thermal management packaging components that apply its existing leadframe technology to address the higher power and voltage trends in AI data centers.
Corporate governance-wise, Haesung DS sits within the Haesung Group, which also includes Haesung Industrial and Korea Paper affiliates.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩157.4B | ₩8.2B | 5.2% |
| 2025Q3 | ₩178.6B | ₩16.1B | 9.0% |
| 2025Q4 | ₩179.9B | ₩21.8B | 12.1% |
| 2026Q1 | ₩188.7B | ₩11B | 5.8% |
| 2026Q2 | ₩211.1B | ₩24.9B | 11.8% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩839.4B | ₩204.4B | ₩159.4B | 24.4% | 35.6% | 47.5% |
| 2023 | ₩672.2B | ₩102.5B | ₩84.4B | 15.2% | 16.4% | 33.7% |
| 2024 | ₩603B | ₩56.9B | ₩58.7B | 9.4% | 10.6% | 42.8% |
| 2025 | ₩653.4B | ₩46.5B | ₩23.8B | 7.1% | 4.2% | 56.0% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04
Full-year 2025 revenue came to KRW 653.4 billion, up from KRW 603.0 billion in 2024, but operating profit fell to KRW 46.5 billion (7.1% margin) from KRW 56.9 billion (9.4%) in 2024, and the margin decline is even starker against 2022's KRW 204.4 billion (24.4%).
Moving from 2023's revenue of KRW 672.2 billion and operating profit of KRW 102.5 billion (15.2%) through 2024 and 2025, rising raw material costs combined with lower package substrate utilization appear to have compressed margins step by step.
On a quarterly basis, the second quarter of 2025 produced revenue of KRW 157.4 billion and operating profit of KRW 8.2 billion, but the company posted a net loss of roughly KRW 0.4 billion.
Profitability then recovered, with third-quarter 2025 revenue of KRW 178.6 billion, operating profit of KRW 16.1 billion and net profit of KRW 14.1 billion, followed by fourth-quarter revenue of KRW 180.0 billion, operating profit of KRW 21.8 billion and net profit of KRW 9.6 billion.
In the first quarter of 2026, revenue was KRW 188.7 billion and operating profit KRW 11.0 billion, a sequential decline in operating profit though net profit held steady at KRW 10.8 billion, while the second quarter of 2026 delivered revenue of KRW 211.1 billion, operating profit of KRW 24.9 billion and net profit of KRW 19.1 billion, the strongest of the last five quarters.
Summed over the most recent four quarters (Q3 2025 through Q2 2026), revenue totaled roughly KRW 758.3 billion, operating profit about KRW 73.8 billion and net profit about KRW 53.6 billion, all above the full-year 2025 figures.
Owners' equity rose from KRW 447.3 billion in 2022 to KRW 564.4 billion in 2025, while the debt ratio climbed from 33.7% in 2023 to 56.0% in 2025, reflecting balance sheet changes tied to new plant investment.
Operating cash flow declined from KRW 196.9 billion in 2022 to KRW 67.0 billion in 2025, a pattern consistent with lower earnings alongside an elevated investment period.
The leadframe industry appears to have entered a phase of rising European and Chinese automotive and data-center orders as automotive semiconductor inventory adjustments wind down.
According to S&P Global Mobility, the global automotive semiconductor market is projected to grow from roughly $90 billion in 2025 to $139 billion by 2031, with expanding autonomous driving and infotainment features underpinning long-term demand.
In package substrates, as competitors focus on high-value products such as FC-BGA and FC-CSP, a supply gap has emerged in lower-value capacity for commodity DRAM (DDR4/DDR5) substrates, and part of that gap is reportedly shifting to Haesung DS, which holds relatively ample mid- and low-tier capacity.
Memory demand tied to expanding AI data center investment is said to be keeping both DDR5 and DDR4 demand firm. As global leadframe competitors move to raise prices in succession, Haesung DS is seen as having room to implement its first price increase since the pandemic.
That said, some assessments note the package substrate business has lagged behind trends such as multilayer substrates, resulting in some loss of industry market share, so the competitive picture contains both favorable and unfavorable elements.
The company reportedly expects a phase of simultaneous top-line growth and margin recovery following price increases on key products effective April 1.
The leadframe segment has been reflecting the effects of a capacity expansion undertaken since March to meet rising demand, and while the new Changwon plant currently operates only one of its three floors, industry estimates suggest maximum annual capacity could rise from KRW 650 billion to KRW 720 billion once all three floors are operating within the year.
In the package substrate segment, expanded supply of the D1b Prime product starting in the third quarter and the start of D1c product mass production in early August are cited as grounds for a second-half recovery.
If the D1b Prime qualification test for a domestic customer is passed, additional supply is expected to begin sequentially at the domestic and Chinese plants, with expanding DDR5 exposure cited as a medium-term growth driver.
On the new product front, sample testing of a Copper-Clip product for AI servers is under way, and approval could open a supply opportunity tied to a North American GPU customer's new 800V server rack rollout, according to analyst commentary.
In the leadframe segment, the company is reportedly considering further price increases in line with moves by global competitors.
Haesung DS shares appear to trade in a range that mixes the valuation band formed during the profit boom around 2022 with the band that has emerged during the recent earnings recovery.
The stock's price-to-book level has moved between the upper and lower ends of its five-year average historically, and whether the recent earnings recovery continues is cited as a key point for any valuation reassessment.
Dividends have been paid annually, with the payout ratio varying year to year depending on net profit. Meritz Securities set a target price of KRW 75,000 in an April 2026 report, and DB Securities said in a June 2026 report that it was maintaining a Buy rating and a target price of KRW 110,000.
These target prices, however, are based on each brokerage's own earnings estimates and multiple assumptions and are subject to revision as subsequent results unfold.
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 2026-09-04
A trend of rising European and Chinese automotive and data-center leadframe orders has reportedly been detected, with order backlogs said to be secured through August.
Supported by price increases among global competitors, the company is also reported to be considering its first additional price hike since the pandemic. Since rising copper costs are linked to product pricing, some of the raw material cost burden may be offset.
The package substrate business is reported to have turned profitable after seven consecutive loss-making quarters, with expanding DDR5 revenue displacing older, lower-margin products.
New product milestones are proceeding sequentially, including expanded D1b Prime supply from the third quarter and the start of D1c mass production in early August.
A supply gap in low-value commodity DRAM substrates created as competitors focus on high-value products is also reportedly shifting in part toward Haesung DS.
The company is preparing thermal management packaging components to address higher power and voltage trends in AI data centers, with end customers presumed to be CSPs and major technology firms.
Sample testing of a Copper-Clip product for AI servers is also under way, with approval cited as a potential supply opportunity tied to a North American GPU customer. These new businesses have not yet contributed meaningfully to revenue but are mentioned as medium- to long-term growth drivers.
The operating margin fell from 24.4% in 2022 to 7.1% in 2025, and despite recent quarterly recovery it remains below past double-digit profitability levels. A combination of raw material price swings and lower utilization could again weigh on margins. Some reports have assessed that a return to double-digit profitability within the year would not be easy.
There are assessments that the package substrate business has lagged behind current trends such as multilayer substrates, resulting in some loss of industry market share. Automotive semiconductor substrates, which make up a significant share of revenue, remain sensitive to customer inventory issues.
Because results depend heavily on new customer entry and qualification test outcomes, there is a risk of schedule delays.
The debt ratio rose from 33.7% in 2023 to 56.0% in 2025, while operating cash flow declined from KRW 196.9 billion in 2022 to KRW 67.0 billion in 2025. With capital expenditure for the new plant continuing, a slower pace of earnings recovery could add to financial burden.
The timing of investment payback and the speed of utilization normalization could influence the balance sheet going forward.
If rising prices for key raw materials such as copper are not fully passed through to product pricing, cost pressure could result. Currency fluctuations remain a variable affecting results given the export-related revenue mix. Sharp short-term swings in raw material prices could widen quarterly profitability variance.
A recurrence of inventory adjustment cycles among automotive semiconductor or memory customers could reduce order volumes again. The revenue structure's reliance on specific customers and end markets makes it sensitive to shifts in individual customer demand. If new customer onboarding is delayed relative to expectations, growth momentum could slow.
Competition for market share with Taiwanese and Chinese leadframe makers continues, and changes in competitors' pricing policies could affect the company's own pricing power.
In package substrates, if high-value substrate makers re-enter the low-value segment, the spillover benefit currently flowing to Haesung DS could diminish. Shifts in the competitive landscape add uncertainty to earnings estimates.
This is the expected timing of the third-quarter 2026 earnings release, a point to check whether package substrate utilization has risen above breakeven toward 70% and how much of the leadframe pricing benefit has been reflected.
It will be worth checking whether all three floors of the new Changwon plant have begun full operation and the progress of the associated increase in maximum annual capacity from KRW 650 billion to KRW 720 billion.
Whether Haesung DS follows global competitors' pricing moves with an additional leadframe price increase will be a key point to watch for margin trends.
This is a point to check whether the Copper-Clip AI server product sample testing gains approval and whether supply to a North American GPU customer becomes feasible.
Since posting a net loss in the second quarter of 2025, Haesung DS has recorded net profit for four consecutive quarters, continuing an earnings recovery trend.
The leadframe segment is growing on the back of recovering automotive and data-center demand combined with price increases, while the package substrate segment has turned profitable after seven consecutive loss-making quarters as DDR5 exposure expands.
However, the operating margin, which reached 24.4% in 2022, fell to 7.1% in 2025 and has not yet fully recovered, and balance sheet changes such as a rising debt ratio and slower cash flow have also emerged.
The timing of full operation at the new Changwon plant, the pace of package substrate utilization normalization, and whether new businesses such as thermal management components and Copper-Clip products contribute to revenue are cited as key variables that will shape the future earnings trajectory.
While some brokerage reports have raised target prices, other views point to profitability that remains below past levels and a weakened competitive position in package substrates.
This report presents no investment opinion or target price and is intended for informational purposes only, not as a basis for buy or sell decisions.
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.