First-half operating profit reaches KRW 30.5 billion, surpassing full-year 2025 earnings of KRW 23.1 billion
Laser equipment share of sales revenue surges from 15.1% in 2023 to 87.1% in Q1
2025 P/E ratio stands at 9.07x, a 36.7% discount to semiconductor peers
Small Insight Research reported on the 16th that DIT (110990) has significantly bolstered its earnings power by shifting its strategic focus from automated optical inspection (AOI) systems to semiconductor laser processing equipment. The research firm also highlighted the potential for follow-on orders driven by SK hynix’s capital expenditure expansion, as well as the widening application of DIT's equipment in silicon carbide (SiC) power semiconductors.
For the first half of 2026, DIT posted consolidated sales revenue of KRW 90.1 billion and an operating profit of KRW 30.5 billion, representing year-on-year increases of 77.6% and 121.7%, respectively. First-half operating profit alone reached 132.4% of the full-year 2025 figure of KRW 23.1 billion. Operating margin expanded from 21.4% for the full year 2025 to 33.9% in the first half of 2026.
The primary driver behind this earnings surge is the structural transition toward laser solutions. Sales revenue from laser solutions climbed from KRW 16.1 billion in 2023 to KRW 72.6 billion in 2024, and reached KRW 65.4 billion in 2025. Its contribution to total sales revenue rose sharply from 15.1% in 2023 to 60.6% in 2025, reaching 87.1% in the first quarter of 2026. Conversely, legacy AOI sales revenue contracted from KRW 82.6 billion in 2023 to KRW 38.1 billion in 2025.
Profitability metrics also showed marked improvement. The cost of goods sold ratio declined by 6.7 percentage points, from 62.7% in the first half of 2025 to 56.0% in the first half of 2026, while the operating margin rose from 27.2% to 33.9% over the same period. In the second quarter of 2026, DIT logged sales revenue of KRW 41.6 billion and an operating profit of KRW 14.1 billion, sustaining a quarterly operating margin of approximately 33.9%.
Expanding deliveries to SK hynix remain a central catalyst. DIT initiated joint development of laser annealing equipment with the memory giant in 2019 and began delivering mass-production tools in 2023. Between January and March 2026, DIT disclosed three semiconductor equipment supply contracts with SK hynix valued at roughly KRW 68.8 billion in aggregate. Small Insight Research projected that further orders could materialize between the fourth quarter of 2026 and the first half of 2027, aligned with expansion schedules at SK hynix's Cheongju M15X and Yongin Y1 fabrication facilities.
Applications for DIT's systems are broadening beyond memory semiconductors into SiC power semiconductors. The company has been supplying laser annealing equipment for SiC power semiconductors since April 2024, supporting both 6-inch and 8-inch wafers. This year, DIT also registered new patents covering wafer dicing, alignment correction, and semiconductor package cleaning.
The company maintains a strong balance sheet. At the end of the first half of 2026, combined cash, cash equivalents, and other current financial assets stood at approximately KRW 195.2 billion, alongside a conservative debt-to-equity ratio of 15.3%. Operating cash flow for the first half totaled KRW 27.1 billion, underscoring stable cash generation.
Small Insight Research noted that DIT's market valuation remains depressed relative to its enhanced profitability profile. Based on 2025 earnings, DIT trades at a price-to-earnings (P/E) multiple of 9.07x, a 36.7% discount to the semiconductor sector average of 14.33x (based on FnGuide WI26). The valuation gap widens significantly against peer EO Technics, a competitor in laser annealing equipment that trades at a P/E multiple of 58.57x. While direct comparisons require caveats due to differing corporate scale, tool specifications, margin profiles, and customer bases, the research house argued that DIT's current earnings trajectory warrants meaningful valuation rerating.
"DIT's strategic pivot toward laser processing systems has elevated its underlying earnings scale, allowing first-half operating profit to exceed last year's annual result," said analyst Choi Sung-won. "Follow-on contract wins from SK hynix, expanded deliveries of SiC tools, and a potential recovery in the legacy AOI business will serve as pivotal indicators for the durability of its heightened margins and corporate rerating."
