The Codi

Founded in 1999, The Codi manufactures semiconductor and display equipment, producing front-end cleaning equipment and coating/developing equipment for semiconductors that it supplies to Semes, a Samsung Electronics affiliate, while its HP/CP equipment for flat panel display processes is supplied to Samsung Display.

The company also makes related bonding equipment, placing it inside a captive supply chain for its semiconductor and display end markets.

More recently, it has pursued business diversification into a bio platform, hygiene gloves, insulation materials, coil and transformer products, and automotive electronics parts to offset volatility in its core equipment business.

Among the new businesses, automotive parts and coil/transformer products are aimed at growing electric vehicle and solar-related demand, while the glove business appears to be seeking expanded export channels.

However, most of the new ventures remain in an early investment stage, so while they have contributed to revenue growth, the profitability impact so far appears limited.

Competitively, the semiconductor and display equipment segment competes with other small and mid-sized specialized cleaning and coating/developing equipment makers, and the business carries a structural reliance on captive customers.

The company has been listed on KOSDAQ since December 2015 and is classified under special-purpose machinery manufacturing.

The Codi's consolidated revenue was stagnant at KRW 20.11bn in 2022 and KRW 20.21bn in 2023, jumped 65.8% to KRW 33.52bn in 2024, then declined 24.6% to KRW 25.27bn in 2025.

Operating losses widened from KRW -9.02bn in 2022 to KRW -10.40bn in 2023 (an operating margin of -51.5%), before narrowing to KRW -3.71bn in 2024 and KRW -0.83bn in 2025.

Owner net profit, however, remained negative throughout at KRW -14.10bn (2022), KRW -7.98bn (2023) and KRW -3.48bn (2024) before swinging sharply to KRW 24.29bn in 2025 — and the quarterly breakdown shows that KRW 27.08bn of that full-year profit was booked in Q4 2025 alone, effectively determining the annual result.

Since the operating loss in that same quarter was KRW -0.93bn, the profit surge appears to be driven largely by one-off, non-operating items whose specific details require confirmation from further disclosures.

In Q2 2025, the company posted a rare operating profit of KRW 2.10bn, yet owner net profit for the same quarter was still a loss of KRW -1.66bn, illustrating a recurring gap between operating and net results.

Moving into 2026, the operating loss widened to KRW -3.91bn in Q1, the largest of the recent quarters, before moderating in Q2 to revenue of KRW 5.99bn, an operating loss of KRW -1.07bn, and an owner net loss of KRW -0.34bn.

On the cash flow front, operating cash outflow shrank from KRW -17.02bn in 2022 to KRW -3.68bn in 2025, but it stayed negative in all four years, indicating that a genuine improvement in cash generation is still a work in progress.

The debt-to-equity ratio also merits attention, having jumped from 146.6% in 2022 to 572.5% in 2025, reflecting a substantial increase in leverage relative to capital.

The Codi's core businesses—semiconductor front-end cleaning/coating-developing equipment and display FPD process equipment—are highly dependent on the capital expenditure cycles of large domestic customers such as Samsung Electronics and Samsung Display.

Semiconductor equipment demand fluctuates significantly based on whether memory and non-memory investment resumes, while display equipment demand is seen as having plateaued as OLED conversion investment enters its final stages.

As a result, smaller equipment makers with heavy reliance on captive customers tend to see large swings in revenue tied to their customers' investment timing.

The Codi's new automotive parts and coil/transformer businesses appear to be riding the broader industry trend of expanding electric vehicle and solar-related end demand, while its glove business appears aimed at the growing hygiene-product export market.

However, neither new segment has clearly disclosed its revenue contribution, and both remain in an early investment phase, making it premature to assess market positioning against established larger specialized competitors.

A plan to build an open-innovation drug development platform has also been mentioned, but amid a broader domestic pharma/biotech industry that is increasingly judged on clinical data and licensing outcomes, concrete progress on The Codi's specific pipeline has not yet been clearly confirmed.

The company carried out a third-party share placement in 2026, issuing 1,851,852 common shares at KRW 3,780 per share to raise approximately KRW 7.0bn, with the placement target confirmed as SOD Lab Special Purpose Investment Partnership No.1.

The proceeds are earmarked for the acquisition of securities in another company, with the company stating that the specific acquisition target and terms would be disclosed separately once finalized.

Upon completion of this placement, the largest shareholder was disclosed to change from the incumbent, Yiseok Industrial Development, to SOD Lab Special Purpose Investment Partnership No.1.

Separately, the company proceeded with the resale of KRW 3.5bn (face value) of its ninth-series convertible bonds, which it had acquired prior to maturity in 2024, as part of efforts to secure operating funds; the conversion request period for these bonds runs through April 30, 2027, meaning the potential for further share dilution should continue to be monitored.

The new automotive parts, coil/transformer, glove, and insulation material businesses have been cited as areas expected to contribute more to revenue, though specific order backlogs or capacity-expansion timelines have not yet been detailed.

The core semiconductor/display equipment business's performance trajectory is likely to hinge on whether large customers resume capital investment, a variable that is outside the company's direct control.