1. Deconstructing the KRW 20.8 Billion Deal

On August 18, 2025, TES secured a KRW 20.8 billion contract with SK Hynix to supply semiconductor manufacturing equipment. This represents 8.68% of TES’s half-year revenue for 2025, with delivery expected by November 7, 2025. The contract focuses on TES’s core products, PECVD and Gas Phase Etch & Cleaning equipment, and reflects SK Hynix’s increasing investment in semiconductor production facilities.

2. Why It Matters: Unearthing the Investment Gems

This contract goes beyond short-term revenue growth; it strengthens TES’s long-term growth trajectory.

  • Solid Fundamentals Reaffirmed: With strong half-year 2025 results (KRW 166.6 billion in revenue and KRW 36.6 billion in operating profit), this contract further accelerates TES’s growth momentum.
  • Strengthened Key Client Relationship: This major deal with leading Korean semiconductor company SK Hynix validates TES’s technology and reliability, increasing the likelihood of future orders.
  • Capitalizing on Semiconductor Market Growth: The growing demand for semiconductors, driven by AI and big data, positions TES to benefit directly from this market expansion.

3. Investor Action Plan

This contract offers a glimpse into both the short-term and long-term growth potential of TES. Investors should consider the following points when formulating their investment strategies:

  • Monitor Earnings Improvements: Closely track how this contract impacts Q3 and Q4 2025 earnings.
  • Track New Orders and Client Diversification: Monitor TES’s efforts to secure contracts with other clients and diversify its customer base.
  • Focus on R&D Investment: Scrutinize TES’s R&D investment efficiency and its strategy for securing future growth drivers.