Korea Stock Market Insights

Tag: Advanced Packaging

  • LB Semicon (061970) H1 2025 Earnings Analysis: Impact of LB Lusem Merger?

    1. LB Semicon’s H1 2025 Results: Key Events

    Following the merger with LB Lusem in February 2025, LB Semicon entered the secondary battery materials market. However, the company reported an operating loss of ₩7.3 billion for the first half of 2025. Q2 2025 results were also below expectations, with revenue at ₩115.6 billion (-5% vs. guidance) and operating loss at ₩3.3 billion (-227% vs. guidance).

    2. Reasons for Underperformance: What Went Wrong?

    LB Semicon’s underperformance stems from a combination of factors, including a sluggish semiconductor market, low utilization rates in the secondary battery recycling segment, and increased merger-related expenses. High customer concentration (A: 32.13%, B: 42.70%) adds to earnings volatility.

    3. LB Semicon’s Future: Opportunities and Threats

    • Opportunities: Business diversification through the LB Lusem merger, growing demand for advanced packaging driven by AI and HBM markets.
    • Threats: Intense competition from global OSAT companies, high debt ratio, customer concentration, macroeconomic uncertainty.

    4. Investor Action Plan: What Should You Do?

    • Short-term: Closely monitor earnings recovery and progress in stabilizing financial structure.
    • Long-term: Focus on the growth potential of the secondary battery business and the company’s competitiveness in advanced packaging technology. Pay attention to new customer acquisition and overseas expansion strategies.

    Frequently Asked Questions

    How has the LB Lusem merger impacted LB Semicon?

    The LB Lusem merger diversified LB Semicon’s business by adding secondary battery materials. While positive for long-term growth and revenue stability, the merger led to increased expenses and weak performance in the secondary battery segment, negatively impacting short-term profitability.

    Who are LB Semicon’s main customers?

    LB Semicon’s main customers are Company A (32.13%) and Company B (42.70%). This high customer concentration makes LB Semicon’s performance vulnerable to fluctuations in demand from these specific customers.

    What is LB Semicon’s investment strategy?

    LB Semicon’s investment strategy focuses on improving profitability in its semiconductor post-processing business, growing its secondary battery business, acquiring new customers, strengthening its financial position, and maintaining leadership in advanced packaging technology.

  • Gigavis Q2 2025 Earnings: A Turnaround Story in the AI Semiconductor Market?

    Gigavis Q2 2025 Performance: What Happened?

    Gigavis reported a return to profitability in Q2 2025, with an operating profit of KRW 2 billion and net income of KRW 1.3 billion, despite a decrease in revenue compared to the same period last year. A strong order backlog of KRW 414.82 billion signals positive momentum for future growth.

    Why the Turnaround?

    The year-over-year revenue decline is attributed to a base effect. In fact, Q2 revenue showed a significant increase compared to Q1, indicating a recovery. The key drivers of the return to profitability are improved cost management and operational efficiency.

    • AI Semiconductor Market Growth: Increased demand for AI semiconductors directly translates to increased demand for Gigavis’s core business: semiconductor substrate inspection and repair equipment.
    • Advanced Packaging Technology: Expansion into new business areas like WLP, PLP, and Glass substrates is crucial for securing future growth.

    What’s Next for Gigavis?

    The growth of the AI semiconductor market and advancements in advanced packaging technology are expected to positively impact Gigavis. However, global economic slowdown and exchange rate volatility remain risk factors.

    Action Plan for Investors

    Gigavis appears to be currently undervalued, presenting a potential long-term investment opportunity. However, investors should carefully monitor future earnings releases, new business developments, and macroeconomic indicators before making investment decisions.

    How did Gigavis perform in Q2 2025?

    Gigavis returned to profitability in Q2 2025, with positive operating and net income, despite a decrease in revenue compared to the same period last year. A substantial order backlog suggests positive future growth.

    What is Gigavis’s main business?

    Gigavis specializes in developing and manufacturing semiconductor substrate inspection and repair equipment. The company is growing based on its technological competitiveness in AI semiconductors and advanced packaging.

    What should investors consider when evaluating Gigavis?

    Investors should be aware of potential risks such as the global economic slowdown, exchange rate fluctuations, and increased competition. Monitoring future earnings, new business developments, and macroeconomic indicators is crucial.