Kostecsys (355150) Q1 2025 earnings summary

Executive summary

• Specializes in high thermal conductivity, low thermal expansion materials for semiconductor packaging, focusing on SiC and GaN WBG semiconductors for power electronics and RF communications.

• Main products include RF communication packages, laser diode packages, and power semiconductor spacers, with a strong export orientation (about 90% of sales overseas).

• Significant R&D investment, with multiple patents and proprietary technologies, including KCMC high thermal conductivity material and double-sided cooling spacers for EV power modules.

• Major customers are global firms such as NXP, with ongoing supply contracts and new product launches targeting 5G and EV markets.

Financial highlights

• Q1 2025 revenue: KRW 3.31 billion, down from KRW 3.93 billion in Q1 2024.

• Q1 2025 operating loss: KRW -385 million, compared to operating profit of KRW 192 million in Q1 2024.

• Net loss for Q1 2025: KRW -353 million, versus net profit of KRW 254 million in Q1 2024.

• Cash and cash equivalents at Q1 2025 end: KRW 549 million, down from KRW 1.12 billion at 2024 year-end.

• Overseas sales accounted for 91% of Q1 2025 revenue.

Outlook and guidance

• Focus on expanding global market share in high thermal conductivity materials for 5G and EV applications.

• Plans to leverage proprietary KCMC material and double-sided cooling spacers to capture growing demand in EV and renewable energy sectors.

• Continued R&D investment in next-generation packaging and current sensor technologies.