DB HiTek CO (000990) Q1 2026 earnings summary

Executive summary

• Q1 FY2026 consolidated revenue reached KRW 374.6bn, up 26% YoY, with operating profit at KRW 63.7bn, up 21% YoY, and net profit surging 89% YoY to KRW 86.6bn.

• Non-consolidated revenue grew 21% YoY to KRW 328.9bn, with operating profit up 32% YoY to KRW 73.8bn.

• Net income attributable to owners was KRW 87.3bn, nearly doubling from the prior year quarter.

• Strong demand in power semiconductors (BCD) and industrial/auto segments drove growth.

• Cash and cash equivalents stood at KRW 205.8bn at quarter-end.

Financial highlights

• Consolidated gross margin was 34%, down 1%pt YoY; operating margin at 17%, down 1%pt YoY.

• Gross profit margin improved to 33.6% in Q1 2026 from 32.1% in Q1 2025.

• Non-consolidated EBITDA margin was 35%, flat YoY; net profit margin improved to 25%.

• Basic EPS for Q1 2026 was KRW 2,087, up from KRW 1,132 in Q1 2025.

• Q1 included a KRW 22.1bn one-time cost for employee welfare fund from treasury stock disposal.

Outlook and guidance

• 8" foundry market capacity expected to plateau, with supply contraction driving 5–20% ASP increases.

• Focus on high-value automotive and industrial segments, targeting 30% exposure by Q1 FY2026.

• Price hikes for BCD in China to start Q2; SiC and GaN production delayed to 2027.

• The company is expanding capacity with ongoing investments in clean room and utility enhancements.

• Q2 earnings expected to benefit from new DDI product launches.