1. LTC’s 2025 Half-Year Performance: Turnaround Achieved, But Q2 Slowdown Signals Caution
LTC reported a return to profitability in the first half of 2025, with consolidated revenue of KRW 137.2 billion and operating profit of KRW 14.3 billion. Growth in the display and semiconductor materials/equipment business, particularly the expansion of LSE’s wafer cleaning equipment business, drove revenue growth. However, preliminary Q2 results (revenue of KRW 61.3 billion and operating profit of KRW 4.9 billion) indicate a slowdown compared to Q1, warranting close monitoring of future performance.
2. Segment Performance: Focus on Semiconductor Equipment Growth
The semiconductor equipment manufacturing segment significantly contributed to LTC’s improved performance, recording revenue of KRW 96.7 billion and operating profit of KRW 10.7 billion in the first half of 2025. Strong performance of LSE’s wafer cleaning equipment and the development of new process equipment played a key role, with a solid order backlog of KRW 34.9 billion. The chemical product manufacturing segment also maintained stable growth.
3. Investment Perspective: Short-Term Uncertainty Amid Mid-to-Long-Term Growth Potential
The Q2 earnings slowdown may negatively impact short-term investor sentiment. However, the steady growth of the semiconductor equipment segment and investments in new growth drivers, such as OLED PR development and SOFC electrolyte and separator plate development, suggest mid-to-long-term growth potential.
4. Action Plan for Investors: Careful Investment Decisions Based on Thorough Analysis
Investors considering LTC should carefully analyze the reasons behind the Q2 slowdown and future earnings outlook. A prudent investment decision should be made after considering various factors, including detailed segment performance, R&D investment strategies, and macroeconomic variables.