KOSDAQSemiconductors265520

Advanced Process Systems

₩20,550▼ 0.24%2026-10-02 close

Market Cap

₩310B

Turnover

₩1.2B

Volume

60,000 shares

Shares out.

15.1M

PER

5.4×

PBR

0.7×

EPS

₩3,501

Dividend Yield

1.81%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩340 per share · Prices as of the 2026-10-02 close

Report overview

Dual Engines: OLED Recovery and Semiconductor Expansion

A recovery in OLED equipment sales combined with record-high new semiconductor orders suggests earnings have passed a trough marked in the second quarter of 2025.

1
Results swung from a net loss in Q2 2025 to the strongest quarter of the last five in Q1 2026.
2
New semiconductor orders reached a record 78.5 billion won in H1 2026, already exceeding the company's prior record annual semiconductor revenue of 65.2 billion won.
3
The company is benefiting from the large-panel OLED investment cycle as the sole ELA equipment supplier for Visionox's new 8.6G Hefei V5 line.
4
Annual revenue and operating margin declined for three straight years after peaking in 2022, before quarterly results turned upward.
5
New businesses such as glass-substrate TGV processing equipment remain at an early research stage, with commercialization expected around 2027-2028.

Business structure

Established in 1994, AP Systems is a display and semiconductor process equipment specialist built on laser application and heat-treatment technologies.

Its core business is excimer laser annealing (ELA) and laser lift-off (LLO) equipment used in OLED panel manufacturing, with a company official noting OLED equipment accounts for more than 80% of revenue.

Its main domestic customer is Samsung Display, and in China it signed a contract to be the sole ELA equipment supplier for Visionox's new 8.6G Hefei V5 production line.

In semiconductors, the company is expanding its product lineup around rapid thermal processing (RTP) equipment and automation systems to serve global chipmakers expanding their production facilities.

As of the third quarter of 2025, semiconductor equipment accounted for 15.6% of revenue, and the company has set a target of raising that to the 30% range by 2029.

New growth drivers include a backend semiconductor equipment lineup spanning laser dicing, laser ablation, and ion milling, while longer term the company has taken over glass-substrate through-glass-via (TGV) processing technology and research personnel from holding company APS.

That glass-substrate equipment effort remains at a basic research stage, with commercialization expected around 2027-2028.

On the capacity side, the company invested roughly 60 billion won in October 2025 to secure additional facilities capable of producing both OLED and semiconductor equipment, and in March of the same year it reshuffled leadership with a new CEO appointment aimed at strengthening the semiconductor business.

Earnings trend

Quarterly revenue · Operating profit

₩110.3B₩2.7B25Q2₩96.3B₩13.4B25Q3₩131.6B₩9.6B25Q4₩196.1B₩18B26Q1₩162.8B₩9.6B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩486.6B₩90.5B2022₩533.6B₩60.1B2023₩516.7B₩47.2B2024₩460.1B₩33.3B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩110.3B	₩2.7B	2.5%
2025Q3	₩96.3B	₩13.4B	13.9%
2025Q4	₩131.6B	₩9.6B	7.3%
2026Q1	₩196.1B	₩18B	9.2%
2026Q2	₩162.8B	₩9.6B	5.9%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩486.6B	₩90.5B	₩82.2B	18.6%	30.4%	102.9%
2023	₩533.6B	₩60.1B	₩60B	11.3%	18.7%	77.7%
2024	₩516.7B	₩47.2B	₩51.8B	9.1%	15.4%	78.2%
2025	₩460.1B	₩33.3B	₩23.8B	7.2%	6.5%	85.3%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-21

Earnings analysis

AP Systems' consolidated revenue peaked at 533.6 billion won in 2023 after rising from 486.6 billion won in 2022, then declined for two straight years to 516.7 billion won in 2024 and 460.1 billion won in 2025.

Operating margin also fell steadily, from 18.6% in 2022 to 11.3% in 2023, 9.1% in 2024, and 7.2% in 2025, reflecting sustained profitability pressure. Net income attributable to owners likewise shrank from 82.2 billion won in 2022 to 23.8 billion won in 2025, mirroring a lull in display equipment orders.

On a quarterly basis, Q2 2025 marked the low point, with revenue of 110.3 billion won, operating profit of only 2.7 billion won, and a net loss attributable to owners of 4.5 billion won.

The company then swung to profit in Q3 2025 with revenue of 96.3 billion won, operating profit of 13.4 billion won, and net income of 12.4 billion won, followed by continued recovery in Q4 with revenue of 131.6 billion won, operating profit of 9.6 billion won, and net income of 10.1 billion won.

Q1 2026 was the strongest of the last five quarters, with revenue of 196.1 billion won, operating profit of 18.0 billion won, and net income of 19.7 billion won, while Q2 2026 remained solid at revenue of 162.8 billion won, operating profit of 9.6 billion won, and net income of 9.5 billion won.

The company's reported H1 2026 cumulative results showed revenue of 359 billion won and operating profit of 27.6 billion won, up 54.6% and 166.5% year-on-year respectively, driven by roughly 99% growth in OLED equipment sales.

New semiconductor orders reached a record 78.5 billion won, already surpassing the company's prior record annual semiconductor revenue of 65.2 billion won.

Industry analysis

The global display industry has entered a phase of broadening investment from smartphone-centric small OLED panels to large IT-device OLED for notebooks, tablets, and monitors.

China's three major panel makers illustrate this: BOE is executing roughly 11 trillion won of 8.6G IT OLED investment through 2026, while Visionox is pursuing a similarly sized program through 2027.

CSOT has also announced plans for an 8.6G inkjet-printing OLED production line worth about 5.8 trillion won, intensifying capex competition among large panel makers.

Amid this, AP Systems secured early demand from the 8G investment wave by signing a contract as the sole ELA equipment supplier for Visionox's new Hefei V5 line.

In semiconductor equipment, as processes become increasingly miniaturized, the precision of temperature control is gaining importance, and AP Systems is expanding its RTP portfolio to meet rising demand from global chipmakers.

The glass substrate market, seen as a next-generation semiconductor packaging material, is projected to grow from about $7.1 billion in 2023 to about $8.4 billion in 2028, and domestic conglomerates such as Samsung Electro-Mechanics are at an early stage, running a pilot line at its Sejong facility.

In terms of cycle position, the display equipment segment is in an upcycle driven by expanding OLED IT investment, while the semiconductor equipment segment is at an early stage of expanding its new product lineup.

Outlook

At the 'K-Display 2026' exhibition in July 2026, the company unveiled 8.6G ELA and solid-state laser annealing (SLA) equipment for large substrates, saying the equipment was designed to raise throughput and maintenance efficiency to support faster production speed and process efficiency.

In October 2025, it invested about 60 billion won to secure additional production facilities, expanding capacity for both OLED and semiconductor equipment to better respond to future demand.

In semiconductors, a key point to watch is whether the record 78.5 billion won of new orders booked in H1 2026 is followed by further order intake in the second half, as the company continues broadening its product range with RTP and lab automation equipment.

Longer term, the company has set a goal of raising the semiconductor revenue share to the 30% range by 2029, with progress in commercializing new backend equipment such as laser dicing, laser ablation, and ion milling seen as key to achieving that target.

Its glass-substrate TGV processing equipment is still in basic research, using technology and personnel transferred from holding company APS, with commercialization expected around 2027-2028 as a mid-to-long-term project.

Given that domestic conglomerates such as Samsung Electro-Mechanics are already running a pilot glass-substrate line at their Sejong facility, there is speculation that this could eventually translate into equipment demand for AP Systems.

Valuation

PER

5.4×

PBR

0.7×

ROE

14.8%

EPS

₩3,501

BPS

₩25,172

Dividend per share

₩340

The current share price stands below the company's book value per share. Given that net income has shrunk considerably compared with the profit boom years of 2022-2023, the extent to which the market has priced in the quarterly earnings recovery since the Q2 2025 trough varies across different metrics.

Following the October 2025 capacity expansion and the ongoing structural shift toward semiconductor order growth, the display cycle still exerts a heavy influence on the overall valuation picture, since the semiconductor segment's revenue share remains below 20%.

On the dividend side, a yield can be calculated from the disclosed cash dividend per share relative to the current price, but where that level stands relative to industry peers is best checked via the real-time figures shown on screen.

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

Bull factors

Structural Expansion of the Semiconductor Equipment Business

New semiconductor orders reached a record 78.5 billion won in H1 2026, already surpassing the company's prior record annual semiconductor revenue of 65.2 billion won. The company is broadening its product range with RTP and lab automation equipment to meet expanding production investment from global chipmakers.

Longer term, it has set a goal of raising the semiconductor revenue share to the 30% range by 2029, signaling a clear intent to reduce reliance on the display business.

Beneficiary of the OLED IT Panel Investment Supercycle

BOE is executing roughly 11 trillion won of 8.6G IT OLED investment through 2026, Visionox is pursuing a similarly sized program through 2027, and CSOT has also announced plans for a new line worth about 5.8 trillion won.

AP Systems secured early demand by signing a contract as the sole ELA equipment supplier for Visionox's new Hefei V5 line. At the K-Display exhibition in July 2026, it also unveiled large-substrate 8.6G ELA and SLA equipment, positioning itself to respond to related investment schedules.

Quarterly Earnings Have Passed a Trough

After a net loss attributable to owners of 4.5 billion won in Q2 2025, the company swung to profit in Q3, continued recovering in Q4, and posted its strongest quarter of the last five in Q1 2026. On a cumulative H1 2026 basis, revenue grew 54.6% and operating profit 166.5% year-on-year.

OLED equipment sales, up about 99%, led the recovery, while parts revenue also grew 25%, showing follow-on sales after equipment delivery are growing in tandem.

Bear factors

A Multi-Year Decline in Profit Margins

Operating margin fell for three straight years, from 18.6% in 2022 to 11.3% in 2023, 9.1% in 2024, and 7.2% in 2025. Revenue also declined for two consecutive years after peaking at 533.6 billion won in 2023.

While recent quarters show a recovery trend, it is still premature to say profitability has fully returned to 2022-2023 levels.

Dependence on Display Orders and Revenue Concentration

OLED equipment accounts for more than 80% of revenue, meaning results are heavily tied to the pace at which Chinese panel makers execute their 8.6G investment plans.

Because equipment revenue is recognized around contract and delivery timing, quarterly results are volatile, and the company indeed posted a net loss in Q2 2025.

While new businesses such as semiconductors and glass substrates are growing, they still represent a small share of overall revenue, making it hard in the short term to fully offset a lull in display orders.

Early-Stage New Businesses with Commercialization Uncertainty

The glass-substrate TGV processing equipment effort is at a basic research stage, using technology and personnel transferred from the holding company, with detailed processes and specifications not yet finalized.

Commercialization is expected around 2027-2028, meaning it will take considerable time before it contributes to earnings. Other new equipment areas such as SiC are also at an early development stage, leaving the timing of any technological edge over competitors uncertain.

Risk factors

Demand and Cycle Risk

The company's results depend heavily on the execution timeline of 8.6G OLED investment by Chinese panel makers such as BOE, Visionox, and CSOT. Large investment projects can be delayed or resized depending on customers' financial conditions or demand outlook. If that happens, equipment order and delivery timing could be pushed back, increasing earnings volatility.

Earnings Volatility Risk

Equipment revenue recognition can vary significantly by quarter across the contracting, manufacturing, delivery, and acceptance process. As shown by the net loss in Q2 2025, revenue and profit can contract simultaneously in a given quarter.

The 78.5 billion won in new semiconductor orders is also backlog that has not yet converted to revenue, and how it flows into actual results will depend on the timing and pace of future revenue recognition.

Competitive and Technology Execution Risk

The company faces ongoing competition from domestic and global rivals in core equipment areas such as RTP and laser annealing. New backend lineups (laser dicing, ablation, ion milling) and glass-substrate TGV equipment remain pre-commercial, requiring further technology development and customer validation.

If the 2029 target of a 30% semiconductor revenue share is missed or delayed, dependence on the display business could persist longer than planned.

What to watch next

Around October 15, 2026
This marks the end of the contract period for the Visionox Hefei V5 line ELA equipment supply agreement; it is worth checking whether delivery is completed and whether follow-on orders materialize.
Around November 2026
When Q3 2026 results (based on preliminary disclosure) are released, it will be worth checking whether the semiconductor revenue mix continues to shift and whether OLED equipment margins hold up.
During the second half of 2026
It will be important to track the pace of 8.6G IT OLED capital expenditure execution by Chinese panel makers such as BOE and CSOT, and the resulting equipment order flow.
Q4 2026 through early 2027
This is a point to check whether annual new semiconductor orders sustain or exceed the H1 pace of 78.5 billion won, and whether progress continues toward the 2029 target of a 30% semiconductor revenue share.

Overall view

AP Systems has shown a clear quarterly improvement since its Q2 2025 trough, driven by a recovery in OLED equipment sales and record new semiconductor orders. On an annual basis, however, both revenue and operating margin have yet to fully reverse a three-year decline since peaking in 2022.

Because OLED equipment accounts for more than 80% of revenue, the pace at which Chinese panel makers execute their 8.6G investment plans continues to heavily influence results.

The semiconductor segment is growing quickly around RTP and automation equipment toward a 2029 target of a 30% revenue share, but it remains at an early stage with a contribution still below 20%.

Next-generation businesses such as glass-substrate TGV equipment are longer-term projects with commercialization expected around 2027-2028, limiting their near-term earnings impact.

Overall, the company is navigating a phase combining display-cycle recovery with semiconductor business diversification, and the pace and durability of future orders and revenue recognition will be the key items to watch.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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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.