Korea Computer (054040) Q4 2025 earnings summary

Executive summary

• The company operates primarily in the EMS (Electronics Manufacturing Service) sector, producing OLED PBA, QD-OLED PBA, and industrial inverters, with a significant presence in both Korea and Vietnam.

• 2025 revenue was KRW 417.8 billion, a slight decrease of 0.8% year-over-year, but operating income rose 88% to KRW 22.9 billion, and net income increased 51% to KRW 20.5 billion.

• Major investments included the acquisition of investment property in Seoul for KRW 117.5 billion, funded by new borrowings.

Financial highlights

• Revenue: KRW 417.8 billion (down 0.8% YoY); Operating income: KRW 22.9 billion (up 88% YoY); Net income: KRW 20.5 billion (up 51% YoY).

• Gross margin improved due to increased sales of high-margin OLED PBA products.

• Cash and cash equivalents at year-end: KRW 36.2 billion (down from KRW 47.8 billion YoY).

• Total assets increased to KRW 297.1 billion, mainly due to investment property acquisition.

• Total liabilities rose to KRW 132.6 billion, reflecting new borrowings for property acquisition.

Outlook and guidance

• 2026 revenue is expected to grow slightly, driven by increased orders for Tablet-PC OLED PBA and industrial inverters.

• Profitability may be pressured by rising raw material and labor costs and ongoing customer price reduction demands.

• The company plans to focus on automation, productivity improvements, and new product orders to offset cost pressures.