Korea Computer (054040) Q1 2025 earnings summary

Executive summary

• The company operates primarily in the EMS (Electronics Manufacturing Service) sector, producing QD-OLED PBA, OLED PBA, and industrial inverters, with major customers including Samsung Display and other electronics firms.

• Q1 2025 revenue was KRW 67.8 billion, with operating income of KRW 1.0 billion and net income of KRW 1.3 billion, reflecting a significant year-over-year decline in profitability.

• The company maintains a strong cash position and low leverage, with a debt ratio of 24.87% at quarter-end.

Financial highlights

• Revenue for Q1 2025 was KRW 67.8 billion, down from KRW 75.9 billion in Q1 2024.

• Operating income dropped to KRW 1.0 billion from KRW 12.2 billion year-over-year.

• Net income attributable to owners was KRW 1.3 billion, compared to KRW 13.6 billion in Q1 2024.

• Cash and cash equivalents at quarter-end were KRW 44.9 billion.

• Dividend of KRW 3.7 billion was paid in April 2025 for the previous fiscal year.

Outlook and guidance

• The EMS industry is expected to continue growing, driven by outsourcing trends and rapid product cycles in electronics and IT.

• The company aims to expand high-value product sales and invest in advanced manufacturing capabilities.