Kostecsys (355150) Q3 2024 earnings summary

Executive summary

• Specializes in high thermal conductivity, low-expansion semiconductor packaging for RF, power, and laser applications, with a focus on SiC and GaN materials for next-gen electronics.

• Achieved significant R&D milestones, including proprietary CMC/KCMC heat sink materials and vertical current sensor technology.

• Major customers include global leaders in telecom and automotive sectors, with 90% of sales from exports.

Financial highlights

• 2024 Q3 revenue: ₩10.3B, up from ₩7.6B year-over-year; Q3 net loss: ₩777M, improved from ₩11.5B loss prior year.

• Gross margin improved to 8.5% (₩879M gross profit) from 6.4% (₩485M) year-over-year.

• Cash and equivalents at Q3: ₩2.1B, up from ₩389M at prior year-end.

• Equity ratio: 66.6%; capital adequacy remains strong.

Outlook and guidance

• Targeting global leadership in high thermal conductivity materials for power electronics and 5G/6G telecom.

• Anticipates continued growth in SiC/GaN-based power module demand, especially for EV and 5G infrastructure.