Korea Stock Market Insights

Tag: Microdisplay

Raontec Selected for 4K LEDoS National Project: A Leap Forward in the XR Market?
The Future of AR/VR: 4K LEDoS Takes Center Stage
The XR market is booming, driven by the metaverse trend, and at its heart lies high-resolution display technology. Raontec’s selection for the 4K LEDoS panel development national project raises the question: could this be a game-changer? This article analyzes the significance of this selection, Raontec’s future prospects, and provides an action plan for investors.
Raontec Selected for 4K LEDoS National Project: What Does it Mean?

Raontec has been selected to lead the national project for ‘4K High-Resolution LEDoS Panel Development’ by the Ministry of Trade, Industry and Energy. They will receive 4.04 billion won in government funding for the 42-month research project, collaborating with prestigious institutions like Hanyang University. This recognition validates Raontec’s technological prowess.

Why is 4K LEDoS Important?

The key to immersive XR experiences lies in high-resolution displays. 4K LEDoS offers superior clarity and brightness compared to existing technologies, positioning it as a crucial catalyst for the mass adoption of next-generation XR devices like AR glasses.

National Project Selection: What’s Next for Raontec?
- Short-term: The project selection can act as a momentum for stock price increase. Securing R&D funding also alleviates financial burdens and accelerates development.
- Long-term: Acquiring 4K LEDoS technology strengthens competitiveness in the XR market and opens doors to new business ventures. Contributing to the AR device ecosystem can ultimately lead to increased sales and profitability.
Action Plan for Investors
- Positive aspects: XR market growth, enhanced technological competitiveness
- Points of caution: Uncertainties in technology development, financial risks
- Key checkpoints: Progress of technology development, changes in the competitive landscape
Frequently Asked Questions

What is LEDoS?

LEDoS (LED on Silicon) is a technology that integrates micro LEDs onto a silicon wafer. It offers higher brightness, resolution, and energy efficiency compared to existing displays, making it a promising next-generation display technology.

What does this national project selection mean for Raontec?

By securing the 4K high-resolution LEDoS panel development technology, Raontec can strengthen its competitiveness in the XR market and secure future growth engines. Government funding is also expected to alleviate financial burdens and accelerate technology development.

What are the key points to consider when investing?

Investors should consider risk factors such as uncertainties in technology development, the long development period, and intensifying market competition. It’s crucial to make investment decisions based on a comprehensive assessment of the company’s financial status and the XR market outlook.
09/11/2025
Raontec (418420) Stock Forecast: Analyzing the Implications of Daishin Securities’ Investment and XR Market Growth Momentum
Daishin Securities chooses Raontec: Is it emerging as a hidden champion in the XR market?

As the XR (eXtended Reality) market, a core technology of the metaverse, grows rapidly, interest in related companies is hot. Among them, Raontec (418420) is attracting attention as a key player in the XR market based on its microdisplay technology. Is the recent news of investment from Daishin Securities a signal that further solidifies Raontec’s growth potential? This article provides investors with clear insights by analyzing Raontec’s business status, the implications of Daishin Securities’ investment, and points to note when investing.
1. Raontec Returns to Profitability! Riding the Wings of XR Market Growth

Raontec achieved a turnaround in the first half of 2025, recording sales of KRW 4.945 billion and operating profit of KRW 303 million. In particular, sales in the microdisplay business segment surged 218% year-on-year, driving overall growth. This is a result of the synergy between the rapid growth of the XR market and Raontec’s technological competitiveness in LCoS, Micro-OLED, and Micro-LED. As Raontec’s technology is adopted in various fields such as AR/VR glasses and automotive HUDs, its future growth is expected to further accelerate.

2. Daishin Securities’ Investment: A Vote of Confidence in Raontec’s Growth Potential?

Daishin Securities acquired a 5.25% stake in Raontec in August 2024 by acquiring convertible bonds (CBs). Although stated as a simple investment, Daishin Securities’ investment is interpreted as reflecting the market’s positive assessment of Raontec’s future growth potential. Through this investment, Raontec is expected to secure funds for R&D and mass production investment and enhance market credibility.

3. Risk Factors to Consider Before Investing
- Financial soundness: The rising trend in debt ratio and net debt-to-equity ratio is a point to note when investing.
- High R&D costs: While continuous R&D investment is essential, efficient cost execution for profitability management is important.
- Intensifying market competition: As competition in the XR market intensifies, Raontec’s differentiated technology and customer acquisition strategy are crucial.
- CB conversion risk: The possibility of stock dilution due to an increase in the number of issued shares upon future CB conversion should be considered.
4. Action Plan for Investors

Raontec has high growth potential along with the growth of the XR market. However, before making an investment decision, it is important to carefully check the risk factors mentioned above and closely monitor the future mass production performance of the microdisplay business and the trend of profitability improvement.
What is Raontec’s core business?

Raontec’s core business is microdisplays. It possesses LCoS, Micro-OLED, and Micro-LED technologies used in AR/VR glasses, automotive HUDs, etc.

What is the significance of Daishin Securities’ investment in Raontec?

Daishin Securities’ investment is a case that shows the market’s positive evaluation of Raontec’s growth potential. Raontec is expected to expand R&D and mass production investments and enhance market credibility through the investment.

What are the points to note when investing in Raontec?

Considerations should be given to high R&D costs, financial soundness management, intensifying market competition, and the possibility of stock dilution due to CB conversion.
08/26/2025
Raontec (418420) Issues 15 Billion KRW Convertible Bonds: Impact on Stock Price & XR Market Growth
Raontec Issues 15 Billion KRW in Convertible Bonds: Fueling XR Growth or Financial Risk?

Raontec, a key player in the XR (Extended Reality) market, has announced a 15 billion KRW convertible bond (CB) issuance. Will this funding propel Raontec’s XR ambitions or become a financial burden? This article analyzes the CB issuance and provides key insights for investors.
1. Raontec’s CB Issuance: What Happened?

On August 20, 2025, Raontec announced the issuance of 15 billion KRW in convertible bonds. The conversion price is set at 4,906 KRW, with payment due on August 26th. The purpose of this CB issuance is to secure funding for Raontec’s XR business expansion.

2. Why the CB Issuance? Balancing Growth and Risk

Raontec designs and manufactures microdisplays and SoCs, key components in the XR market. Recent revenue growth and a shift to operating profit demonstrate its growth potential. However, high R&D costs and negative operating cash flow pose financial risks. This CB issuance can be interpreted as a strategic move to secure growth momentum and improve financial structure.

3. Impact on Stock Price: Short-Term vs. Long-Term
- Short-term impact: The gap between the conversion price and the current stock price may limit immediate stock price increases. Volatility is likely to increase following the announcement of specific business plans after securing the funds.
- Long-term impact: XR market growth and enhanced technological competitiveness could drive stock price momentum. Conversely, market slowdown or delays in technology development present downside risks.
4. Investor Action Plan: Key Checkpoints
- Review the company’s specific business plans and investment execution following the funding.
- Monitor XR market growth trends, competitor activity, new customer acquisition, and technology development progress.
- Continuously observe improvements in financial soundness and operating cash flow.
- Consider the conversion price (4,906 KRW) as a key support/resistance level.
Frequently Asked Questions

What are convertible bonds (CBs)?

Convertible bonds (CBs) are debt instruments that can be converted into a predetermined number of shares of the issuing company’s common stock under certain conditions.

Will Raontec’s CB issuance positively affect its stock price?

While XR market growth and enhanced technological competitiveness could have a positive impact, market slowdowns, increased competition, or delays in technology development could negatively affect the stock price.

What should investors consider when investing in Raontec?

Investors should consider the financial risks associated with high R&D costs and negative operating cash flow, and monitor XR market trends and competitive landscape changes.
08/21/2025
Raontech’s H1 2025 Earnings: XR Market Growth Fuels Profitability, Is it a Good Investment?
Raontech, a Rising Star in the XR Market, Achieves Profitability!

The XR market is experiencing rapid growth alongside the metaverse boom. Raontech, a company possessing key technologies at the heart of this growth, has finally announced its turnaround with its H1 2025 earnings report! Showing explosive sales growth and the potential for a turnaround, is Raontech a worthwhile investment? This article provides an in-depth analysis of Raontech’s H1 2025 report, examining the hidden investment opportunities and risks in detail. Discover Raontech’s future now!
1. Raontech Q2 2025 Performance: What Happened?

Raontech achieved profitability in Q2 2025, recording revenue of KRW 4.2 billion, operating profit of KRW 300 million, and net profit of KRW 100 million. Notably, driven by XR market growth, sales of microdisplay products surged by an impressive 218% year-over-year.

2. Reasons for the Turnaround: Why the Improvement?

The explosive growth of the XR market combined with Raontech’s core technological capabilities created synergy. Collaborations with global big tech companies also had a positive impact. However, a decline in service revenue limited overall sales growth to 11.8%.

3. The Bright and Dark Sides from an Investment Perspective: So, What Should You Do?
- Positive Factors: XR market growth, return to profitability, strengthening technological competitiveness
- Negative Factors: High R&D costs (94.23% of revenue), deteriorating financial health (debt-to-equity ratio of 93.6%), worsening operating cash flow
Raontech has high growth potential, but also faces the challenge of securing financial stability.

4. Action Plan for Investors:
- Short-term Investors: Focus on the XR market growth momentum and Q2 earnings improvements, but approach cautiously considering the high valuation and risks.
- Long-term Investors: Continuously monitor profitability improvement, strengthening of financial health, improvement in operating cash flow, technology commercialization and customer acquisition, and the impact of macroeconomic indicators.
Frequently Asked Questions

What is Raontech’s main business?

Raontech’s main business is the design and development of microdisplays and SoCs (System on Chip). They are particularly prominent in the microdisplay field, which is used in XR (Extended Reality) devices.

How was Raontech’s performance in Q2 2025?

Raontech achieved profitability in Q2 2025, recording revenue of KRW 4.2 billion, operating profit of KRW 300 million, and net profit of KRW 100 million. Microdisplay product sales increased by 218% year-over-year, driven by XR market growth.

What are the key points to consider when investing in Raontech?

High R&D costs, deteriorating financial health, and worsening operating cash flow are key points to consider when investing. While the growth potential of the XR market is positive, investment decisions should be made cautiously due to potential volatility in performance.
08/21/2025