Wizit, Semiconductor and OLED Boom Drive Strong First Half Performance

Wizit announced on the 16th that it recorded sales of 18.4 billion KRW and operating profit of 1.2 billion KRW on a separate basis in the first half of the year. Compared to the same period last year, sales and operating profit increased by 16% and 43%, respectively.

On a consolidated basis, sales reached 137.6 billion KRW and operating profit 7.7 billion KRW, achieving record-high performance following the first quarter.

Wizit produces consumable parts applied to key processes in semiconductor and display manufacturing equipment. Based on industry-leading know-how and technology, it supplies products to prominent semiconductor and display manufacturers such as LG Display, Samsung Display, Samsung Electronics, and SK Hynix.

A company representative stated, “In the first half, the existing display business division maintained solid order performance,” adding, “Global sales of new items such as semiconductor shower heads have begun in earnest, enabling steady growth.”

They continued, “Profitability has also greatly improved due to enhanced process and facility operation efficiency resulting from the simultaneous growth of both business divisions.”

Recently, display industry experts have forecasted entry into an OLED big cycle due to the rapid increase in organic light-emitting diode (OLED) demand not only in IT devices such as smartphones but also in the automotive and large TV markets.

In preparation for this market rebound, Samsung Display has confirmed an investment of 4.1 trillion KRW in a new 8.7-generation OLED production line, actively expanding its facilities. LG Display is also expected to accelerate the establishment of an 8.6-generation IT OLED line as the sale of its Guangzhou LCD TV factory in China gains momentum.

Additionally, the semiconductor market is experiencing a continued upturn as demand recovery and price increases for memory semiconductors driven by artificial intelligence (AI) expansion have led both Samsung Electronics and SK Hynix to record earnings surprises in the second quarter.

Wizit’s subsidiary Powernet, acquired in 2017 for business diversification purposes, has been newly included as a consolidated subsidiary under accounting standards starting this year. As a result, Powernet’s performance is reflected in the consolidated financial statements, sustaining high external growth.

Through paid-in capital increases of 3 billion KRW and 2 billion KRW in December last year and July this year, respectively, Wizit expanded its stake in Powernet to 38.9%.

A Wizit official emphasized, “With the global recovery of the semiconductor and display markets, continuous benefits to the materials, parts, and equipment (SoBuJang) industry are expected, so the favorable performance trend is likely to continue,” adding, “The stock price is undervalued compared to the strengthened fundamentals, so we will focus on maximizing corporate value based on a stable financial structure accompanied by external growth going forward.”