Model Solution

Model Solution began in 1993 as Jeil Engineering, was incorporated in 2005, and listed on KOSDAQ in 2022 as a specialist in prototype manufacturing.

The company provides design and functional prototype manufacturing and low-volume production services across automotive, aerospace, IT/telecom, and medical device industries, built around CNC precision machining and rapid tooling (IMB), and since 2024 has expanded into contract manufacturing of finished products (TSB).

According to the company's website, it serves more than 500 global clients including Samsung Electronics, Tesla, Google, Amazon, and Hyundai Motor, with bases in Korea and Silicon Valley.

Reporting on 1Q26 standalone revenue indicated that injection molding and rapid tooling (IMB) accounted for 37.4% and contract manufacturing (TSB) accounted for 23.3%, pushing the mass-production-linked revenue share above 60%.

The controlling shareholder is Hankook & Company Group, which acquired a 75% stake in 2018 and folded the company into the group, after which its business was restructured with the backing of the group's capital and global network.

More recently, the company has supplied SpaceX with initial mock-ups and prototype samples for Starlink terminal and Wi-Fi router equipment and is undergoing production qualification testing, while also joining the K-Humanoid Consortium organized by the Ministry of Trade, Industry and Energy and the Korea Institute for Advancement of Technology to develop an actuator for humanoid robot joints.

In medical devices, the company is expanding co-development of next-generation drug delivery devices with European pharmaceutical companies based on ISO 13485 certification and cleanroom production lines.

In this way, the company is in a phase of moving beyond simple prototype fabrication toward becoming an integrated hardware solutions provider linking development and mass production.

In 2025, consolidated revenue rose to KRW 76.5 billion from KRW 68.0 billion in 2024, while operating profit improved sharply to KRW 8.07 billion from KRW 4.19 billion, lifting the operating margin from 6.2% to 10.6%. Net profit attributable to owners rose to KRW 6.83 billion from KRW 5.29 billion in 2024.

Compared with 2022-2023, when revenue fell from KRW 67.4 billion to KRW 64.7 billion and the operating margin dropped sharply from 11.7% to 3.4%, the 2024-2025 period marked a clear profit recovery phase.

On a quarterly basis, 3Q25 revenue reached KRW 20.52 billion with operating profit of KRW 3.31 billion, a quarterly record, and 4Q25 remained solid with revenue of KRW 21.15 billion and operating profit of KRW 2.61 billion.

However, 1Q26 revenue declined to KRW 18.71 billion, operating profit fell to KRW 0.75 billion, and net profit attributable to owners swung to a loss of KRW 1.97 billion. The fact that operating profit remained positive while net profit turned negative suggests a non-operating factor was at play.

Separately, a report citing preliminary standalone (non-consolidated) figures indicated 1Q26 net profit of KRW 1.97 billion, up year over year, but this is based on the standalone financial statement rather than the consolidated one and should be interpreted apart from the confirmed consolidated net loss.

In 2Q26, the company returned to a profitable trend with revenue of KRW 20.04 billion, operating profit of KRW 1.79 billion, and net profit attributable to owners of KRW 1.73 billion.

The prototype and low-volume manufacturing service business is directly tied to the new-product development cycles and R&D budgets of large global corporations.

Because order volume tends to rise when development projects across automotive, aerospace, IT/telecom, and medical device sectors run concurrently, a slowdown in client R&D activity during economic downturns has historically been flagged as a growth variable.

Few domestic listed companies operate the same business model spanning prototype fabrication through mass-production transition, making direct peer comparison difficult, while overseas, large electronics manufacturing services (EMS) companies such as Jabil and Flex cover parts of a similar space.

The company appears to have secured clients in high-value industry segments by leveraging rapid prototyping (quick-turn tooling) capabilities and quality certifications (ISO 9001, 14001, 13485) from its bases in Korea and Silicon Valley.

More recently, its expansion into robotics (humanoid actuators), aerospace (Starlink equipment), and medical device CDMO has increased its exposure to growth industries distinct from the traditional prototype service business.

However, these new business areas remain at an early sample and testing stage, so more time is needed to gauge the company's position within these industries.

Regarding 2025 results, the company said it had strengthened a 'development-to-mass-production model' that connects the development stage through to mass production, moving beyond its former prototype-centric structure, and reported that this drove revenue growth of 12.5% and operating profit growth of 92.8% year over year, with the operating margin improving to 10.6%.

The company explained that this outcome reflected not simple volume expansion but a combination of an improved product mix centered on higher-value-added projects and internal operational efficiency gains.

For 2026 and beyond, the company outlined plans to expand mass-production-linked projects, diversify its global customer base, and strengthen quality and manufacturing systems to build a sustainable growth structure.

In the medical device area, CEO Hyung-min Yoo said the company would strengthen its role as a partner supporting global medical device clients' development and production simultaneously, based on an integrated manufacturing solution spanning design, prototyping, and mass production.

Regarding SpaceX, the company has completed supplying initial mock-ups and prototype samples of Starlink terminal and router equipment and is now undergoing full production qualification testing, with reports indicating that, if it passes, it could be registered as an official supplier and lead to mass-production orders.

In robotics, the company was selected as a new participant in the K-Humanoid Consortium and is developing an actuator for humanoid robot joints integrating an AFPM motor, inductive encoder, GaN motor driver, and QDD reducer, as part of a government-backed consortium project aiming for humanoid robot technology self-sufficiency by 2030.

The CEO position has reportedly changed from Byung-il Woo to Hyung-min Yoo, and continuity of management succession and strategy will need to be confirmed through future disclosures and investor relations communications.