GnBS eco

GnBS eco is an environmental process equipment company whose core product is the scrubber, a pollution-control system that treats harmful gases generated during semiconductor, display, and solar manufacturing processes.

Scrubbers account for more than half of total revenue, with scrubber sales reaching KRW 27.6 billion in the first quarter of 2026.

Semiconductor and solar are the two core end markets, with semiconductor revenue of KRW 17.9 billion and solar revenue of KRW 14.8 billion together making up about 78% of first-quarter revenue.

Major customers include large domestic semiconductor makers such as SK hynix as well as large solar manufacturers in India and China, and the company has established itself as one of SK hynix's key vendors.

By region, first-half 2026 revenue was split 44% Korea, 31% China, and 21% India, meaning overseas markets account for more than half of sales.

Export exposure exceeds 60% of total revenue, and the company has recently set up local subsidiaries in Wuxi, China and in the United States to strengthen its global response system.

The China subsidiary handles local customer support and services, while the US subsidiary is intended as a hub for equipment installation and after-sales service.

In the solar segment, the company is reported to hold a high market share in the China and India scrubber markets, and it is developing a DeNOx (nitrogen oxide treatment) system through a new green business division ahead of planned commercialization.

GnBS eco's consolidated revenue rose from KRW 65.6 billion in 2022 to KRW 89.3 billion in 2023, fell 20.8% to KRW 70.8 billion in 2024, then rebounded 29.9% to KRW 91.9 billion in 2025, showing considerable volatility.

Operating margin declined from 22.4% in 2022 and 20.5% in 2023 to 16.5% in 2024, then fell further to 8.4% in 2025 even as revenue grew, causing net income to nearly halve from KRW 12.5 billion to KRW 6.3 billion.

This illustrates how project-level profitability swings can significantly move overall margins despite top-line growth. Operating cash flow, however, improved markedly to KRW 8.9 billion in 2025 from KRW 3.3 billion in 2024 and negative KRW 3.6 billion in 2023, indicating stronger cash generation.

On a quarterly basis, the company posted revenue of KRW 25.5 billion and operating profit of KRW 2.3 billion in the second quarter of 2025 but still recorded a net loss attributable to owners of KRW 1.3 billion; from the third quarter of 2025 the company turned profitable, with owner net income of KRW 2.2 billion, followed by KRW 4.2 billion in the fourth quarter, KRW 10.1 billion in the first quarter of 2026, and KRW 5.1 billion in the second quarter of 2026, marking a clear recovery trend.

The first quarter of 2026 in particular delivered record quarterly results with revenue of KRW 41.8 billion and operating profit of KRW 9.0 billion, and the second quarter sustained revenue of KRW 36.7 billion and operating profit of KRW 5.1 billion, extending the improvement across the most recent four quarters.

For the full first half of 2026, the company recorded revenue of KRW 78.4 billion and operating profit of KRW 14.1 billion, up 77% and 442% year on year respectively, driven by combined growth in the semiconductor and solar businesses.

GnBS eco's performance is heavily influenced by the solar investment cycle; the 2022-2023 period benefited from a China solar investment boom, while 2024-2025 was affected by capex cuts stemming from oversupply.

From 2026, the industry is seen entering a phase where semiconductor and solar investment cycles overlap, with SK hynix moving forward with domestic M15X DRAM investment and reportedly planning NAND investment at its Dalian 2 plant in China in the second half, with GnBS eco supplying scrubbers to the customer's domestic and overseas sites.

In solar, India is reported to be planning a substantial increase in new installation capacity, and the company is said to hold a high share of the India solar scrubber market.

At the same time, a US decision to impose tariffs of up to 126% on solar products suspected of Chinese origin from India, Indonesia, and Laos could introduce variables into the broader solar supply chain's trade environment.

On the competitive front, the semiconductor scrubber market involves multiple vendors, and a company representative has noted that while GnBS eco is not the sole vendor for SK hynix, it has sufficient capability to secure a meaningful share of orders.

Overall, the current cycle is viewed as one where both semiconductor capex expansion and solar market diversification are improving simultaneously, broadening the demand base compared to prior cycles.

The company has stated its policy of achieving meaningful earnings growth this year as its semiconductor and solar businesses grow in tandem, and it reports currently running all production lines at full capacity to meet expanded order volumes.

In India, the company has been pursuing a joint venture with local agents and partners and has said it expects around KRW 30 billion in revenue from the India market alone this year.

In the US, negotiations are reportedly underway with a large customer considering direct solar cell production, alongside a growing pipeline of orders and additional projects from mid-sized customers.

The company has said that US subsidiary revenue was not reflected in first-quarter 2026 results and is expected to be partially reflected from the second half of the year.

As a new business initiative, the company has completed development of a DeNOx system for nitrogen oxide treatment through its green business division and plans to begin full commercialization next year.

Sell-side estimates for full-year results have varied: as reported in June 2026, NH Investment & Securities projected revenue of KRW 150 billion and operating profit of KRW 27 billion, while Kiwoom Securities projected revenue of KRW 131.2 billion and operating profit of KRW 21.6 billion. These figures are brokerage estimates only and may change with subsequent quarterly disclosures.