DB HiTek CO (000990) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 revenue reached KRW 297.4bn, with operating profit at KRW 52.5bn and net profit at KRW 45.9bn; YoY revenue grew 14% and operating profit 28%, but net income showed a YoY decline.

• Foundry sales grew 16% YoY with an operating margin of 21%, but consolidated results were limited by underperforming subsidiaries.

• The company maintains a strong position in the analog and power semiconductor foundry market, with diversified operations including display driver ICs and real estate development.

• Power semiconductor demand surged due to China's chip localization, revitalization policies, and US tariff pull-in effects.

• Research and development investment remains robust, focusing on high-growth areas such as automotive, OLED, and power management ICs.

Financial highlights

• Q1 FY2025 consolidated revenue: KRW 297.4bn; operating profit: KRW 52.5bn; net profit: KRW 45.5bn; gross profit: KRW 104.5bn; gross margin: 39%.

• EBITDA reached KRW 87.5bn, up 14% QoQ and 12% YoY, with an EBITDA margin of 29%.

• Basic and diluted EPS: KRW 1,132.

• Cash and cash equivalents at period end: KRW 162.8bn.

• Net profit margin was 15%.

Outlook and guidance

• Q2 FY2025 revenue expected to grow 15% YoY, with operating margin projected in the high 20% range.

• Utilization for Q2 FY2025 remains at 90%, with price adjustments reverting to pre-pandemic levels.

• Full-scale Si Capacitor production planned for Q4 FY2025; GaN sample production begins in April.

• Demand recovery anticipated in Q2 FY2025, especially for LCD and OLED segments.

• Ongoing investments in capacity expansion and R&D are planned to support future growth.