KOSPIElectronic Components489790

Hanwha Vision

₩51,500▼ 1.53%2026-10-02 close

Market Cap

₩2.6T

Turnover

₩10.8B

Volume

210,000 shares

Shares out.

50.5M

PER

21.0×

PBR

2.6×

EPS

₩2,356

Dividend Yield

0.00%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close

Report overview

Security Cash Cow, HBM Tools: Two Engines on Trial

Video surveillance provides the stable earnings base while subsidiary Hanwha Semitech's back-end semiconductor tools drive the swings, and in Q2 2026 both engines improved at once, producing the largest quarterly revenue and operating profit since listing.

1
Q2 2026 consolidated revenue was KRW 542.2bn with operating profit of KRW 65.6bn, restoring a roughly 12.1% quarterly operating margin, while owners' net profit swung to a KRW 75.3bn gain.
2
The 2024 statements cover only September to December after the spin-off, so they are not directly comparable with 2025 (revenue KRW 1,790.9bn, operating profit KRW 162.3bn).
3
The Security division is overwhelmingly export-driven; the company reported record 2025 divisional revenue of KRW 1,335.1bn and operating profit of KRW 182.3bn.
4
Hanwha Semitech turned profitable in Q2 2026 on thermal-compression (TC) bonder deliveries and an SMT recovery, with FO-PLP tool revenue expected to start being recognized from Q3.
5
2025 operating cash flow was far below operating profit and the debt-to-equity ratio rose, so working capital and investment burdens in the growth phase need to be watched alongside earnings.

Business structure

Hanwha Vision was newly established on September 1, 2024 through a spin-off from Hanwha Aerospace, carving out the unit that manages stakes in and invests in businesses producing security products, chip mounters and semiconductor equipment.

It then merged with the former Hanwha Vision in January 2025, changed its name to Hanwha Vision, and became an operating holding company that runs the security business directly while supporting subsidiaries.

The business has two pillars: Security covers video surveillance solutions built on optical design, manufacturing and image-processing technology, while Industrial Equipment produces chip mounters, front- and back-end semiconductor tools and machine tools.

By mix, as of Q1 2026 Security accounted for 79% of revenue and industrial equipment including semiconductor tools for 21%. Security is far more export- than domestic-driven: on a 2025 consolidated adjusted basis, domestic sales were KRW 163.7bn (12%) versus exports of KRW 1,171.3bn (88%).

Industrial equipment sits with subsidiary Hanwha Semitech, which generated more than KRW 90bn of 2025 revenue from its SFM5 Expert TC bonder, with SK hynix as its main customer.

The competitive setting differs by segment: in video surveillance it faces global brands and Chinese vendors, and Omdia data placed it second in the UK security market share for 2024, while in back-end bonders the rivals are Hanmi Semiconductor, which has held over 70% global share and ASMPT. On ownership, as of March 31, 2026 the largest shareholder was Hanwha Corporation with 34.0%.

Earnings trend

Quarterly revenue · Operating profit

₩457.2B₩56.3B25Q2₩422.7B₩31.2B25Q3₩459.2B₩30.5B25Q4₩441.4B₩22.1B26Q1₩542.3B₩65.6B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩493.3B-₩100M2024₩1.8T₩162.3B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩457.2B	₩56.3B	12.3%
2025Q3	₩422.7B	₩31.2B	7.4%
2025Q4	₩459.2B	₩30.5B	6.7%
2026Q1	₩441.4B	₩22.1B	5.0%
2026Q2	₩542.3B	₩65.6B	12.1%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2024	₩493.3B	-₩100M	₩10.6B	0.0%	1.3%	92.9%
2025	₩1.8T	₩162.3B	₩45.6B	9.1%	5.3%	108.9%

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

Earnings analysis

On confirmed figures, 2025 consolidated revenue was KRW 1,790.9bn with operating profit of KRW 162.3bn (9.1% margin) and owners' net profit of KRW 45.6bn.

The 2024 numbers, KRW 493.3bn of revenue, essentially break-even operating profit (minus KRW 0.12bn) and KRW 10.6bn of owners' net profit, are small in absolute terms because 2024 results only aggregate September through December, so a simple year-on-year comparison with 2025 does not hold.

The quarterly path shows clear volatility: from Q2 2025 revenue of KRW 457.2bn and operating profit of KRW 56.3bn (about 12.3% margin), margins stepped down through Q3 (KRW 422.7bn, KRW 31.2bn, about 7.4%), Q4 (KRW 459.2bn, KRW 30.5bn, about 6.7%) and Q1 2026 (KRW 441.4bn, KRW 22.1bn, about 5.0%).

Q2 2026 then rebounded to KRW 542.3bn of revenue and KRW 65.6bn of operating profit, lifting the margin back above 12%.

By division the company said Security revenue reached a quarterly record KRW 394.6bn, up 20.2% year on year and 10.2% quarter on quarter, with exports up 24.4% to KRW 358.8bn while domestic sales fell 10.8% to KRW 35.7bn, and it noted that price increases and partial tariff refunds helped margins, yet Security operating profit fell 12.4% to KRW 51.6bn from KRW 58.9bn a year earlier and its margin slipped from 17.9% to 13.1%.

In the same quarter the Semitech division posted KRW 147.7bn of revenue and KRW 14.0bn of operating profit, swinging from a KRW 0.2bn loss a year earlier, with revenue up 77.6% quarter on quarter, attributed to completed revenue recognition on TC bonders ordered early in the year and an SMT recovery, with SMT revenue of KRW 93.6bn, up 17.3% year on year.

The net income line is far less regular than operating profit: minus KRW 9.7bn in Q2 2025, minus KRW 6.0bn in Q3, plus KRW 63.7bn in Q4, minus KRW 13.9bn in Q1 2026 and plus KRW 75.3bn in Q2 2026, with non-operating items driving the outcome.

Cash flow and the balance sheet also matter: 2025 operating cash flow was only KRW 5.7bn against KRW 162.3bn of operating profit, and the debt-to-equity ratio rose from 92.9% in 2024 to 108.9% in 2025.

Industry analysis

The end markets split into two cycles of very different character.

Video surveillance is a steadier, slower-moving demand market: research houses projected the global network camera market excluding China to grow at a low-double-digit rate in 2026, led by data centers, smart cities and traffic control, and the company stresses mix improvement through a rising AI camera share.

Because Security is export-heavy, however, it is directly exposed to currency moves and US tariff policy, and the company said it minimized the impact of US import tariffs in 2025 through pre-emptive customer measures.

Back-end semiconductor equipment, by contrast, tracks the HBM investment cycle and swings sharply by quarter. SK hynix is investing in Cheongju M15X to expand advanced DRAM and HBM capacity while also building out multiple back-end (P&T) fabs, and TC bonders are installed in those back-end fabs.

Ordering runs on a multi-vendor structure: industry sources say SK hynix has been placing TC bonder orders with Hanmi Semiconductor and Hanwha Semitech at similar times and in similar sizes to stabilize its supply chain.

Market growth assumptions are high: per a June 2026 TechInsights forecast cited by the company in its earnings materials, the advanced die placement equipment market is expected to grow at a 42% compound annual rate from 2024 to 2029.

That said, Hanmi Semiconductor filed a TC bonder patent infringement suit against Hanwha Semitech in late 2024 and Hanwha Semitech countersued in October 2025, so competition is playing out in litigation as well as in technology and price.

Outlook

At its March 2026 annual general meeting the company guided that subsidiary Hanwha Semitech's revenue would grow more than 20% this year, with CEO Kim Ki-chul saying that solid HBM demand should bring further orders for tools such as TC bonders following last year.

At the same meeting, however, it declined to specify when Hanwha Semitech would turn profitable, so detailed numeric guidance is not the company's habit. There are two new product axes.

First, FO-PLP: tools ordered in Q1 are expected to be recognized as revenue from Q3, and SK Securities said in a May 2026 report that the structure appears to involve a US end user with delivery to an Asian OSAT, estimating roughly 10% of Semitech's annual revenue.

Second, hybrid bonding: the company announced in February 2026 that it had completed development of its second-generation hybrid bonder, SHB2 Nano, and would deliver it to a customer for performance testing in the first half.

On timing, KB Securities analyst Kang Da-hyun said in July 2026 that Hanwha Vision should launch a hybrid bonder in 2028 on the back of joint development with SK hynix.

On TC bonder volumes, Korea Investment & Securities analyst Nam Chae-min forecast in August 2026 that a major customer would place roughly 10 to 20 additional TC bonder orders in the second half and that order volumes would expand further with the 2027 completion of P&T7.

In Security, eight Wisenet 9 AI camera models were slated for launch in the first half of 2026 and the free after-sales service period was extended to five years, while on the tool side at Semicon Taiwan 2026 on September 2-4 the company showed four advanced packaging tools: the large-area FOPLP SFM5 Square, the 3D TC bonder SFM5 Expert, the 2.5D CoW bonder SFM5 TnR and the SHB2 Nano hybrid bonder.

What ultimately needs verification is how quickly these products convert into actual orders and recognized revenue.

Valuation

PER

21.0×

PBR

2.6×

ROE

13.6%

EPS

₩2,356

BPS

₩18,761

Dividend per share

₩0

Valuation here carries two structural limitations. First, after the September 2024 relisting and the January 2025 merger, only one full annual reporting year, 2025, effectively exists, so there has been little time for a historical multiple band to build.

Second, non-operating items are large enough that quarterly net income alternates between profit and loss, meaning earnings multiples calculated on the most recent four quarters can shift materially with each report.

The shares trade at a premium to net assets, which is commonly read as reflecting growth expectations for the semiconductor equipment arm rather than the steady Security earnings.

Indeed, SK Securities valued the company in a February 2026 report using a sum-of-the-parts approach that appraised Security and Semitech separately.

On distributions, no cash dividend per share is confirmed in DART filings, so the dividend yield is effectively nil, a condition below the average for dividend-paying electronics and components peers.

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

Bull factors

Security's earnings base and export momentum

The company reported record 2025 Security division revenue of KRW 1,335.1bn and operating profit of KRW 182.3bn, up 10% and 52% respectively year on year. In Q2 2026 as well, Security revenue hit a quarterly record KRW 394.6bn with exports up 24.4% to KRW 358.8bn.

Mix improvement toward AI cameras is the lever management repeatedly cites as leaving room for better pricing and margins. The recurrence of several hundred billion won of quarterly revenue regardless of the equipment cycle narrows the downside dispersion of group results.

A seat in the multi-vendor TC bonder structure

Industry sources say SK hynix places TC bonder orders with Hanmi Semiconductor and Hanwha Semitech at similar times and in similar sizes to stabilize its supply chain.

The order record has continued: in January 2026 SK hynix ordered HBM TC bonders simultaneously from Hanmi Semiconductor (disclosed at KRW 9.6bn) and Hanwha Semitech at a similar size, totaling about KRW 20bn, and in June 2026 Hanwha Semitech was reported to be set to supply HBM4 TC bonders to SK hynix.

Semitech's swing to profit in Q2 2026 came from recognizing those volumes as revenue. Single-customer dependence is a weakness, but a confirmed reference win is the starting point of the bullish case.

Portfolio expansion: FO-PLP and hybrid bonders

The company is pursuing a strategy of diversifying its advanced packaging growth axis by adding FO-PLP tools to TC bonders, with tools ordered in Q1 expected to be recognized as revenue from Q3.

It is also developing bonders for next-generation HBM and logic chips, hybrid bonders and next-generation mobile DRAM bonding tools. For the hybrid bonder, disclosed specifications put alignment accuracy at plus or minus 100 nanometers, the same level as the latest tool from market leader Besi.

A broader portfolio could reduce revenue dependence on the single TC bonder product line, which is the point both the company and the market are watching.

Bear factors

Quarterly swings driven by tool revenue timing

Even on confirmed quarterly numbers, operating profit shrank from KRW 56.3bn in Q2 2025 to KRW 22.1bn in Q1 2026 before rebounding sharply to KRW 65.6bn in Q2 2026.

Much of that amplitude stems from tool revenue timing: SK hynix ran below-expectation TC bonder investment in the second half of 2025, opting to lift capacity through modifying existing tools and improving yields rather than aggressive capex.

For new tools, revenue recognition timing can shift with customer qualification and mass-production adoption. In short, a strong quarter does not automatically extend into the next.

Security margin pressure, tariffs and cost inputs

In Q2 2026 Security posted record revenue but operating profit fell 12.4% to KRW 51.6bn from KRW 58.9bn a year earlier and the margin dropped 4.8 percentage points from 17.9% to 13.1%.

Domestic revenue declined 10.8% to KRW 35.7bn, and margin support included one-off-flavored items such as price increases and partial tariff refunds.

On the cost side, SK Securities noted in May 2026 that memory accounts for only around 5% of Security costs but that rising prices for non-memory items such as ICs and sensors have some effect. Once tariff refunds or price-increase effects fade, defending margins becomes a different task.

Cash flow, leverage and the absence of dividends

2025 operating cash flow was KRW 5.7bn, far below the same year's KRW 162.3bn of operating profit and even below 2024's KRW 56.8bn. The debt-to-equity ratio rose from 92.9% in 2024 to 108.9% in 2025, with equity of KRW 866.2bn against liabilities of KRW 943.2bn.

In a phase of equipment business expansion, inventories and receivables tend to build so that cash collection lags reported earnings. No cash dividend per share is confirmed in DART filings, so shareholder returns currently offer limited offset to that volatility.

Risk factors

Customer concentration and order risk

Semiconductor equipment revenue is effectively tied to SK hynix's HBM back-end investment schedule. SK hynix is the main customer, and there is already a precedent in which a temporary halt in that customer's tool orders in the second half of 2025 created a revenue recognition gap and prolonged operating losses.

Any change in the customer's capex plan or deferral of order timing can translate straight into a hole in quarterly results. If orders follow an allocation pattern concentrated in the second half, the annual earnings skew toward the second half also widens.

Intellectual property litigation

Hanmi Semiconductor filed a TC bonder patent infringement suit against Hanwha Semitech in late 2024, and Hanwha Semitech filed its own suit over core TC bonder technology patents in October 2025. Depending on outcomes, costs such as design changes, damages or supply schedule delays cannot be ruled out.

While the dispute continued, SK hynix ordered seven sets of HBM4 TC bonding tools from ASMPT in October 2025, and some in the industry read this as volume shifting to a third source amid prolonged litigation. The concern is that the dispute itself can serve as justification for customer sourcing diversification.

External variables: tariffs, currency and overseas demand

Security derives 88% of revenue from exports as of 2025, leaving it directly exposed to currency and trade policy shifts. The partial tariff refunds that supported Q2 2026 margins are an item whose persistence depends on policy and administrative process.

Should Europe- and Americas-centered B2B demand slow, sustaining record quarterly revenue would become harder. The new hybrid bonder also relies on a structure in which a Dutch partner builds the unit locally before it is brought into Korea, adding overseas supply chain, logistics and qualification variables.

What to watch next

Late October to early November 2026
Q3 2026 results. The key items are whether and how much of the FO-PLP tools ordered in Q1 is recognized as Q3 revenue, and whether the Semitech division's Q2 profitability and the group's low-teens operating margin prove repeatable.
September to December 2026
Watch for disclosures or reports on additional second-half TC bonder orders. Korea Investment & Securities analyst Nam Chae-min forecast in August 2026 that a major customer would place roughly 10 to 20 additional TC bonder orders in the second half. Note that as an unlisted entity Hanwha Semitech has at times not filed separate disclosures, which can limit verification channels.
Q4 2026
Hybrid bonder progress. The focus is qualification test results and any follow-on orders for the SHB2 Nano, which was slated for customer delivery and performance testing in the first half of 2026; since KB Securities in July 2026 projected a 2028 launch, any new information on commercialization timing matters.
Late January to February 2027
Full-year 2026 results with annual Security and Semitech divisional figures, plus any decision on dividend policy. This is the point at which the company's March 2026 AGM guidance for Semitech revenue growth of more than 20% year on year can be checked against outcomes.
During 2027
Customer back-end expansion timelines. The view that TC bonder order volumes will exceed 2026 levels once P&T7 is completed in 2027 (Korea Investment & Securities, August 2026) and the progress of SK hynix's Cheongju M15X capex and multiple back-end fab build-outs are the preconditions for medium-term volumes. The status of the patent litigation with Hanmi Semiconductor should be tracked in parallel.

Overall view

Hanwha Vision is structured as an operating holding company that, following the January 2025 merger, runs the Security business directly while owning industrial equipment subsidiaries covering chip mounters and semiconductor tools.

On confirmed figures it posted 2025 revenue of KRW 1,790.9bn and operating profit of KRW 162.3bn (9.1% margin), while 2024 reflects only a partial post-spin-off period and is not directly comparable.

Quarterly results dipped to KRW 22.1bn of operating profit in Q1 2026 before rebounding to KRW 542.3bn of revenue and KRW 65.6bn of operating profit in Q2 2026, which the company attributed to record quarterly Security revenue of KRW 394.6bn and the Semitech division's swing to profit on KRW 147.7bn of revenue and KRW 14.0bn of operating profit.

The bullish factors are the recurring earnings power of export-led Security, entry into the multi-vendor TC bonder structure, and portfolio expansion into FO-PLP and hybrid bonders.

The bearish factors are the amplitude of quarterly results driven by tool revenue timing, the year-on-year decline in Security's operating margin, 2025 operating cash flow far below operating profit alongside higher leverage, and the patent dispute with Hanmi Semiconductor.

Net income alternates between profit and loss by quarter because non-operating items weigh heavily, so earnings multiples require care in interpretation.

In sum, what needs verification is whether additional second-half TC bonder orders and FO-PLP revenue recognition show up in reported numbers, and where Security margins settle amid tariff and cost variables.

This report is for information purposes and does not include a buy or sell opinion or a price target as a basis for investment decisions.

Sources

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

Show 18 more articles and sources

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.