1. FST H1 2025 Performance: Growth and Loss

FST recorded revenue of KRW 144.5 billion (a 43.2% YoY increase) and operating profit of KRW 4.5 billion (turning to profit) in H1 2025. However, net loss persisted at KRW -3.8 billion, presenting a mixed picture.

2. Drivers of Growth: AI and Advanced Semiconductors

The growth is driven by the expansion of the AI market and increasing demand for advanced semiconductors. Both the pellicle business (revenue KRW 78.8 billion, +54% YoY) and chiller business (revenue KRW 64.5 billion, +37% YoY) showed strong growth. Active R&D investment (10.52% of revenue), focusing on EUV pellicles, next-generation DUV pellicles, and cryogenic chillers, is a positive sign for future growth.

3. Profitability Improvements and Challenges: Why the Net Loss?

Despite achieving positive operating income, FST’s net loss continues due to non-operating expenses, including losses from investments in associates. This is a key point for investors to consider. While FST is working on improving profitability, tangible results are yet to be seen.

4. Investing in FST: Opportunities and Risks

FST is well-positioned to benefit from the growth of the AI market. However, the continued net loss, semiconductor market volatility, and intensifying competition are key risks to consider. Investors should focus on long-term growth potential and profitability improvement rather than short-term fluctuations.

5. Action Plan for Investors

  • Short-term investors: Closely monitor the timing of net income turning to profit and the management of non-operating expenses.
  • Long-term investors: Focus on analyzing the potential benefits from AI market growth, competitiveness in the pellicle and chiller markets, and new technology development achievements to formulate an investment strategy.