Viatron to Shift from Display to Semiconductor Equipment: "Revenue to Ramp Up in 2027"

[Financial News]  An analysis suggests that Viatron is preparing to enter the semiconductor front-end and back-end equipment markets, moving away from a business structure centered on display equipment. By expanding its portfolio to include Epitaxial-CVD equipment for 3D DRAM, glass-substrate bonders and vacuum laminators for Ajinomoto Build-up Film (ABF), the company is expected to see a full-fledged shift in its business structure beginning in 2027.
On the 30th, Han Yu-geon, an analyst at Hana Securities, said, "Viatron is a specialist company in heat-treatment equipment for display TFT (thin-film transistor) backplane processes. Recently, it has been expanding its business into semiconductor front-end and back-end process and advanced packaging equipment, including Epitaxial-CVD, die/glass bonders, and LAB (Laser Assisted Bonder) equipment." However, no investment opinion or target price was provided. 
According to Hana Securities, Viatron's performance is being supported by its existing display business. Consolidated revenue in the second quarter of this year came to 25.7 billion won, up 14.3% from a year earlier and 65.0% from the previous quarter. Operating profit rose 20.4% year on year to 3.49 billion won, swinging to a profit from the previous quarter. The company benefited significantly from operating leverage driven by increased equipment orders from Chinese display customers.
The key growth driver going forward will be the semiconductor front-end process. Han said, "Viatron is currently developing laser Epitaxial-CVD equipment for applications such as 3D DRAM," adding, "Unlike the existing lamp-based method, it uses a laser as the heat source, improving thickness uniformity and productivity even as the number of stacked layers increases."
The company is currently conducting promotions targeting major memory manufacturers. It is expected to complete demo equipment in 2027 and pursue JDPs (Joint Development Programs) with customers. If customer evaluations lead to mass-production orders, Viatron's existing display-centered revenue structure is expected to begin changing.
In the back-end process, glass substrates and ABF are emerging as new growth pillars. Viatron has completed development of a die/glass bonder solution for 2.5D and 3D advanced packaging. As early as the end of this year, it is expected to conduct PQ (Product Qualification) with multiple customers.
Its subsidiary Viatron System has completed development of a vacuum laminator for ABF film buildup. Several domestic substrate manufacturers are currently evaluating the equipment, and orders are expected to become visible by the end of this year or early 2027.
Hana Securities projected Viatron's consolidated revenue for this year at 82.7 billion won, up 33% from the previous year. Operating profit was estimated at 5.2 billion won, with an operating margin of 6.3%. Han said, "Viatron is expected to achieve visible results in 2.5D and 3D packaging and glass substrates as it undergoes a structural transition into a 3D DRAM and back-end equipment company," adding, "With its price-to-book ratio (PBR) at only 0.5 times based on 12-month forward book value per share (BPS), the company has room for a re-rating."

[email protected] Kim Kyung-ah Reporter