[Click e-Stock] "SEC Set for Stronger Performance in Second Half... Annual Profit Still Expected"

Hana Securities stated on August 11 that, regarding SEC, “Expectations for achieving an annual profit this year remain valid, supported by improved performance fundamentals in the second half.”

SEC’s consolidated revenue for the second quarter is expected to reach 12.11 billion KRW, representing a 59.9% increase compared to the previous quarter. However, the company is projected to post an operating loss of 2.18 billion KRW, indicating that it will remain in the red. Han Yugun, a researcher at Hana Securities, explained, “The main reason for the second-quarter loss is the recognition of one-off costs related to the company’s listing.”

Approximately 88.1% of the second-quarter revenue is expected to come from the semiconductor and battery equipment segments. Revenue from the semiconductor segment is projected to reach 8.5 billion KRW (accounting for 70.2% of total revenue), a 182% increase from the previous quarter, driven by the recognition of backlog orders for the HBM 8-layer inspection equipment model NF120, which was ordered by a North American company M and a Taiwanese company. The battery inspection equipment segment, mainly focused on pouch products, is expected to record 2.17 billion KRW (17.9% of total revenue).

Regarding this, Han noted, “Although the second-quarter loss is disappointing, the company is expected to recover to the break-even point in the third quarter and turn a profit in the fourth quarter.” He emphasized, “SEC is expanding new orders and backlog by building customer trust based on its technological prowess across various sectors, including semiconductors, defense, and batteries.”

The core drivers of improved performance in the second half are the defense and semiconductor segments. Han stated, “Due to global conflicts and the increase in arms exports, demand for inspection of key military supplies is rising.” He added, “Interest in SEC’s LINAC accelerator for missile inspection is growing, and the company is expected to expand from new overseas orders in the second half to the domestic market as well.” Revenue from the defense sector is projected to surge from 2.81 billion KRW in the first half to 12.98 billion KRW in the second half. He assessed, “This year’s defense segment revenue is expected to reach approximately 15.79 billion KRW, a 71.1% increase compared to the previous year, which will also contribute to margin improvement.”

For the semiconductor segment, annual revenue is projected at 25 billion KRW this year and 29 billion KRW next year, indicating continued stable growth. Han added, “Recognition of revenue from North American company M’s HBM 8-layer inspection equipment NF120 model has been proceeding smoothly in the first half, and additional orders of similar scale are expected in the second half. The 12-layer inspection equipment NF160 model is currently undergoing sample testing with domestic company S and others, with mass production expected in the second half of 2026.”