1. What Happened at LOT Vacuum?

LOT Vacuum recorded sales of KRW 63.2 billion, operating profit of KRW 3.3 billion, and net profit of KRW 2.3 billion in Q2 2025, marking a successful return to profitability. This significantly exceeded market expectations. The most notable aspect is the company’s emergence from a period of losses that began in Q3 2024.

2. Why the Turnaround?

Several factors contributed to this turnaround:

  • ① Increased capital expenditure due to the global semiconductor market recovery
  • ② Successful market diversification strategy beyond China
  • ③ Enhanced technological competitiveness through continuous R&D investment
  • ④ Improved management efficiency through subsidiary mergers

3. What’s Next for LOT Vacuum?

LOT Vacuum’s surprise performance in Q2 is expected to provide positive momentum for its stock price. However, investors should consider factors such as semiconductor market volatility, dependence on the Chinese market, and geopolitical risks. It’s crucial to pay attention to LOT Vacuum’s efforts to secure long-term growth drivers, including continuous R&D investment, new market development, and strengthening financial soundness.

4. What Should Investors Do?

The investment recommendation for LOT Vacuum is ‘Buy.’ However, it’s important to make informed investment decisions by carefully monitoring factors such as the sustainability of the semiconductor market recovery, performance in markets outside of China, and new technology development and order intake. Continuous attention should also be paid to changes in the macroeconomic environment and financial soundness trends.