S&S Tech Corporation Overview
S&S Tech is Korea's only domestic maker of photomask blanks. These are the quartz plates, coated with thin films, that are patterned to become the photomasks used in semiconductor and flat-panel-display lithography. Founded in Daegu in 2001 to break Japan's near-monopoly in the material, the company grew from first sales in 2002 to KRW 243.7 billion of consolidated revenue in FY2025. About 70% of revenue now comes from exports, mainly to Chinese photomask makers serving display and mature-node semiconductor fabs. Its core franchise is binary and phase-shift blanks for DUV (i-line, KrF, ArF) semiconductor lithography and large-area blanks for LCD/OLED. Since 2017 it has invested heavily to enter extreme-ultraviolet (EUV) materials, specifically EUV mask blanks and EUV pellicles, culminating in a roughly KRW 100 billion dedicated EUV Center in Yongin. Samsung Electronics, which owns about 8% of the company, has been qualifying S&S Tech's EUV blanks to diversify away from Japan's HOYA and AGC. The investment case rests on the timing of that qualification.
What the company does. S&S Tech manufactures and sells blank masks, also called mask blanks: ultra-flat synthetic quartz substrates coated with light-shielding chromium-based films, phase-shift films (for example MoSi-based attenuated PSM) and resist. Photomask makers buy these blanks and write circuit patterns onto them with e-beam or laser writers. The finished photomask (reticle) is then used in steppers and scanners to print patterns onto wafers or display glass. A blank does not carry a circuit pattern. Its value lies in flatness, film uniformity, optical-density control and, above all, defect density.
The company's own description. In its 2026 investor materials, S&S Tech presents itself as a "global leader in mask blank and EUV nano-technology." Its business statement covers mask blanks for semiconductors and flat-panel displays. It describes mask blanks as the main raw material for photomasks and reticles across memory and non-memory semiconductors and TFT-LCD, OLED and LED displays. Its regulatory business description adds two smaller lines run through subsidiaries: new-technology venture finance and bio/scientific-technology services. It frames these as ways to secure new growth engines. It also positions the core business for AI-driven high-performance semiconductor demand.
Business and revenue model. Revenue is almost entirely product sales. In 9M FY2025 the blank mask segment generated about 97% of consolidated revenue, and the remainder came from venture-capital management income and laboratory services. There is no meaningful subscription, licensing or service revenue. Pricing is per plate and depends on substrate size (6-inch semiconductor blanks versus Gen-8-class display blanks), film stack complexity, and grade (defect specification). Hankyung reported in July 2026 that a DUV semiconductor blank sells for roughly KRW 3–4 million and an EUV blank for KRW 80–100 million.
Value-chain position. S&S Tech sits upstream of photomask makers. Quartz substrates come from glass suppliers, deposition and inspection tools from equipment vendors (Veeco ion-beam deposition and Lasertec actinic and optical inspection for EUV), and sputtering targets and chemicals from materials vendors. Its blanks go to photomask shops: captive mask shops at chipmakers such as Samsung Electronics and SK hynix, merchant mask makers, and Chinese domestic photomask producers. Those masks then serve memory, foundry/logic and display-panel fabs. In EUV, the company is also moving one step further downstream with pellicles, the membranes that shield a finished reticle from particles in the scanner.
Customer types. Customers are photomask manufacturers and chipmakers' captive mask operations. The company counts 30+ customers worldwide. Publicly named relationships include Samsung Electronics and SK hynix (DUV blanks) and LG Display (display blanks). Since 2024 Chinese photomask makers have been the largest growth source, serving mature-node foundries, fabless start-ups and OLED panel makers.
End markets. (1) Display: LCD and especially OLED panels. Display blanks made up an estimated 60–70% of revenue in 2022–2024, according to SK Securities and company commentary. S&S Tech is regarded as the global number one in display blanks. (2) Semiconductor: memory and logic DUV lithography, where it ranks about third worldwide behind the Japanese incumbents. (3) EUV logic and memory: a pre-revenue end-market in qualification at Samsung Electronics.
Independent characterisation. S&S Tech is a niche, high-margin materials franchise with three revenue drivers: (a) China-driven display and mature-node photomask demand, which has driven growth since 2023; (b) mix upgrading to higher-end ArF/PSM and OLED blanks, which lifted operating margin from 12.8% in FY2021 to 20.7% in FY2025; and (c) a binary EUV option whose value depends on one anchor customer, Samsung. The base business is profitable and cash-generative. The EUV business is capital-intensive, still produces no revenue and depreciates ahead of sales.
Strategy
Stated strategic themes (2026 IR and management interviews)
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Steady growth in the core: sustain the five-year record of about 25% revenue CAGR and 41% operating profit CAGR.
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Mix maximisation: increase the share of high-end IC and FPD blanks to maximise margins, especially ArF PSM and OLED.
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Future-oriented structure: invest in facilities and equipment for next-generation chips, including high-volume EUV manufacturing at the Yongin EUV Center.
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Market exposure: expand share and customers in growing semiconductor and display markets, especially China, where export intensity will keep rising.
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Customer partnership: use existing customer relationships and credibility, above all Samsung, to win EUV qualification and broaden the customer base.
Initiatives in the last 24 months
Yongin EUV Center: Timing: Inaugurated October 2025; tooling complete December 2026; Scope and targets: About KRW 100 billion invested since 2021; capacity to double once main tools are installed
Lasertec EUV inspection: Timing: Ordered mid-2025, installed from October 2025; Scope and targets: More than KRW 40 billion of actinic and defect-inspection capability, required for the defect specifications EUV blanks need
Samsung EUV blank qualification: Timing: 2025–2026; Scope and targets: Final-stage evaluation on Samsung's line; Samsung initially targeted a Q2 2026 introduction; the chairman expected completion by roughly January 2027 and supply in 2027
EUV pellicle commercialisation: Timing: Ongoing; Scope and targets: Metal-based 400W pellicle; 600W development; CNT next-generation pellicle with aweXome Ray
China localisation: Timing: Announced July 2026; plant completion 2027; Scope and targets: USD 40 million into S&S Suzhou Corp. to serve Chinese display and semiconductor customers locally
Government R&D: Timing: 2026; Scope and targets: National projects on EUV phase-shift films, EUV hard-mask films and blister defects
Corporate venture capital: Timing: 2020 onward; Scope and targets: S&S Investment funds in materials, parts and equipment; aweXome Ray investment (October 2026)
Shareholder returns: Timing: 2024–2026; Scope and targets: KRW 4.7 billion buyback (2024); DPS raised to KRW 200 (FY2025); treasury-share cancellation (November 2026)
ESG commitments. No quantified emissions or sustainability targets have been published.
Medium-term ambitions. The chairman has said annual revenue could rise to as much as KRW 500 billion once EUV products are commercialised, roughly double FY2025 revenue. Sell-side analysts (DS Investment, October 2025) argue that company-wide operating margin could move from about 20% toward 40% over the medium term if EUV blanks, which they estimate carry 70%+ operating margins by analogy with HOYA, reach scale. No formal numeric guidance has been issued.
Products & Services
Blank Mask Segment — Semiconductor (DUV/optical)
| Product line | Description & key specifications | Target customer | Status / latest generation |
|---|---|---|---|
| Binary chrome blanks (i-line / KrF) | 6025 (6-inch, 0.25-inch thick) quartz with Cr-based absorber and anti-reflective layers; high-volume legacy-node product | Merchant and captive mask shops for mature nodes, power, analog, MCU | Mature, high volume; capacity running full in 2025 |
| ArF binary blanks (including thin-Cr / hard-mask types) | Thin absorber stacks and hard-mask layers to improve pattern fidelity at 1x–2x nm | Memory and logic mask shops | Mass production; mix rising |
| Attenuated phase-shift blanks (MoSi PSM, ArF/KrF) | Phase-shift layer with controlled transmittance (about 6%) and 180° phase shift for resolution enhancement | Advanced DUV memory and logic, multi-patterning layers | Mass production; the main mix-upgrade driver |
| Resist-coated blanks | Blanks supplied pre-coated with e-beam or laser resist | Mask shops that outsource coating | Mass production |
Customer demand for multi-patterning at mature nodes raises the number of masks per wafer layer and therefore blank consumption. Management cited this explicitly in June 2026.
Blank Mask Segment — Flat Panel Display
| Product line | Description & key specifications | Target customer | Status |
|---|---|---|---|
| Large-area LCD blanks | Large quartz substrates with Cr films for TFT array and color-filter photomasks | LCD panel photomask makers (Korea, China) | Mature; declining share |
| OLED blanks (including high-resolution and PSM-type display blanks) | High-uniformity films for fine-pitch OLED backplanes | Photomask makers serving Chinese and Korean OLED panel makers | Growth product; orders were fully booked into early 2026 |
| LED / other display blanks | Blanks for LED and other display applications | Display mask shops | Niche |
EUV Products (Blank Mask Segment, pre-revenue)
| Product | Description & key specifications | Target customer | Development status |
|---|---|---|---|
| EUV mask blank — binary (BIN) | Low-thermal-expansion substrate with 40+ Mo/Si multilayer reflector, capping layer and Ta-based absorber; four product types across BIN and PSM | Samsung Electronics (foundry 4nm-class lines and memory), potentially SK hynix | Structure confirmed 2020–2022; defect-control phase 2023–2024; Samsung line evaluation in 2026; defect target below about 10 per blank |
| EUV mask blank — phase-shift (PSM) | Phase-shifting absorber variants for better imaging at low k1 | Advanced logic and DRAM | Development; national R&D project on EUV phase-shift films in 2026 |
| EUV blank with hard-mask layer | Hard-mask film on top of the absorber to improve etch selectivity | Advanced mask shops | National R&D project in 2026 |
| High-NA EUV blank (research) | New multilayer and absorber structures, including high-k absorber, for ASML High-NA scanners | Future 2nm-and-below nodes | Research since 2021 |
| EUV pellicle — metal-based, 400W | Full-size pellicle with 90–92% EUV transmittance, rated for 400W scanner sources | EUV fabs (Samsung prioritised) | Developed 2021; pre-production 2023–2024; launch has repeatedly slipped |
| EUV pellicle — 600W class | Higher-power-tolerant pellicle | Next-generation scanners | In development |
| CNT EUV pellicle (with aweXome Ray) | Carbon-nanotube membrane (110 × 144 mm full size) for 94%+ transmittance and 800°C+ tolerance, suited to High-NA | Samsung and other EUV users | Full-size membrane achieved in 2025; aweXome Ray built a dedicated cleanroom line in Anyang in 2026 |
No list prices are published. Industry pricing is about KRW 80–100 million per EUV blank, versus KRW 3–4 million for a DUV blank. EUV pellicle pricing has not been made public.
Non-Core Services
| Offering | Entity | Description |
|---|---|---|
| Venture capital / new-technology finance | S&S Investment (CEO Jeong Si-jun) | Manages funds investing in semiconductor materials, parts and equipment start-ups, and in other sectors such as healthcare. In 2026 it was selected as sole GP for a Korea Fund of Funds youth-start-up allocation. |
| Bio / scientific services | S&S Lab | Laboratory services; small revenue contribution |
Financial Narrative
All figures are consolidated, in KRW millions unless stated, from the K-IFRS audited annual accounts (FY2021–FY2025). EBITDA is operating income plus depreciation and amortisation.
Income Statement
The FY2021–FY2025 revenue CAGR was 25.3%, and the operating income CAGR was about 41%.
The company's own rounded figures are revenue of KRW 99/124/150/176/243 billion and operating profit of KRW 13/16/25/29/50 billion for 2021–2025. Its preliminary FY2025 release gave revenue of KRW 243.5 billion and net profit of KRW 58.1 billion. FY2025 net income exceeded pre-tax income because of a tax benefit, largely investment-related tax credits tied to Yongin capex.
Commentary. Revenue growth went through three phases. FY2021 grew modestly (+13%). FY2022–FY2024 compounded at about 21% a year on Chinese photomask capacity build-outs and OLED adoption. FY2025 accelerated to +38% as exports overtook domestic sales, display orders were fully booked and DUV lines ran at capacity. Gross margin expanded every year, from 26.1% to 34.6%, as the mix shifted toward PSM, ArF and OLED blanks and selected price increases held in 2024. Operating leverage was strong: operating income rose 4.0x while revenue rose 2.5x. This happened even as R&D expense more than tripled, from KRW 4.3 billion to KRW 14.6 billion, mostly for EUV.
Quarterly Trajectory (most recent eight reported quarters)
The 4Q25 figures are FY2025 annual totals minus the first three quarters. Q3 FY2026 results were due by 16 November 2026.
H1 FY2026 revenue was KRW 128.1 billion (+8% YoY) and operating income KRW 25.0 billion (about -1% YoY). Revenue growth has slowed sharply from FY2025's +38% because 2025 was a high base, DUV capacity is full, and Yongin depreciation started before any EUV revenue. Operating margin has settled around 19–20%. The 1Q26 margin of 18.5% was the lowest in five quarters.
Balance Sheet
The company carries no goodwill. Intangibles are minor (software and industrial property rights).
Commentary. The balance sheet stayed net-cash throughout. FY2025 was an inflection: total assets rose 32%, driven by PP&E (+KRW 54.7 billion, Yongin EUV tools) and receivables (+KRW 20.1 billion, as export sales carry longer collection terms). The company took its first long-term borrowing (KRW 26.0 billion) to co-fund EUV capex, so net cash fell from KRW 65.3 billion to KRW 45.5 billion. Equity rose 23% to KRW 304.3 billion, giving a debt-to-equity ratio of 0.15x.
Cash Flow
Commentary. Operating cash flow nearly quadrupled over the period, but FCF was negative in three of five years because of the two-phase EUV build (Daegu cleanroom and Yongin shell in 2021–2022; Yongin tools in 2025). Cumulative capex for FY2021–FY2025 was KRW 150.3 billion, against cumulative OCF of KRW 146.1 billion. Cash conversion of OCF to EBITDA rose from 58% in FY2021 to 72% in FY2025. More main-tool installation was scheduled through December 2026, so FY2026 capex is likely to stay elevated.
Ratios
FY2021 return ratios use year-end balances. Later years use averages of opening and closing balances.
Commentary. Returns rose steadily as margins widened and the large 2020 Samsung capital injection was put to work. FY2025 ROE of 21% is flattered by the tax benefit; on an operating basis ROIC reached about 17%. Liquidity is ample. Interest coverage fell in FY2025 only because of the new term loan, and it remains very high. The cash conversion cycle of about 120 days is long for a materials company. It reflects roughly 90 days of receivables from export customers and about 70 days of inventory, including costly quartz substrates.
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Segment Overview
| Segment | What it contains | Products / services | Approx. share of revenue |
|---|---|---|---|
Blank mask | Parent company manufacturing in Daegu and Yongin; planned Suzhou plant | Semiconductor blank masks (binary, attenuated PSM, KrF/ArF/i-line), FPD blank masks (LCD, OLED), EUV blank masks and EUV pellicles (pre-revenue) | About 97% (9M FY2025) |
New-technology finance | S&S Investment Co., Ltd. (100%) and its funds, including S&S Next Technology Fund No.1 (81.63%) | Venture investing in materials, parts and equipment; management fees and investment gains | Low single digits |
Bio / science & technology services | S&S Lab Co., Ltd. (80%) | Laboratory and scientific-technology services | Low single digits |
Revenue by Segment and Segment Margins & Growth (%)
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Consolidated revenue (KRW Mn) | 150,320 | 176,014 | 243,733 |
Consolidated revenue growth YoY (%) | 21.7 | 17.1 | 38.5 |
Consolidated operating income (KRW Mn) | 25,039 | 29,479 | 50,390 |
Consolidated operating margin (%) | 16.7 | 16.7 | 20.7 |
Group Entities
| Entity | Relationship | Stake (%) |
|---|---|---|
S&S Investment Co., Ltd. | Subsidiary (new-technology finance) | 100 |
S&S Lab Co., Ltd. | Subsidiary (bio/science services) | 80 |
S&S Next Technology Fund No.1 | Consolidated fund | 81.63 |
KDB–S&S–UI Semiconductor MPE Open Innovation Fund | Fund investment | 12.47 |
Korea Omega–Redwood Global Healthcare Fund | Fund investment | 8.77 |
APCT Co., Ltd. | Equity investment | 6.29 |
Comes–S&S 2024 Fund | Fund investment | 3.75 |
NICE LMS Co., Ltd. | Equity investment | 0.99 |
S&S Advanced Materials Limited (2026) | Subsidiary; holding vehicle for China | 100 (effective) |
S&S Suzhou Corp. (2026) | China production subsidiary | Owned via S&S Advanced Materials |
Income Statement and Margin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Revenue (KRW Mn) | 98,843 | 123,507 | 150,320 | 176,014 | 243,733 |
Revenue growth YoY (%) | 13.1 | 25.0 | 21.7 | 17.1 | 38.5 |
Gross profit (KRW Mn) | 25,833 | 33,578 | 46,285 | 59,245 | 84,348 |
R&D expense (KRW Mn) | 4,318 | 6,218 | 9,318 | 13,814 | 14,587 |
SG&A expense (KRW Mn) | 7,274 | 9,868 | 10,440 | 14,154 | 16,691 |
Operating income (KRW Mn) | 12,611 | 16,013 | 25,039 | 29,479 | 50,390 |
Depreciation & amortisation (KRW Mn) | 9,044 | 10,147 | 12,435 | 13,434 | 14,847 |
EBITDA (KRW Mn) | 21,655 | 26,160 | 37,474 | 42,913 | 65,237 |
Pre-tax income (KRW Mn) | 11,870 | 16,538 | 27,749 | 34,499 | 51,400 |
Net income (KRW Mn) | 11,499 | 17,464 | 25,855 | 30,480 | 58,259 |
EPS basic (KRW) | 552 | 838 | 1,233 | 1,452 | 2,747 |
Dividend per share, fiscal-year basis (KRW) | 100 | 150 | 150 | 150 | 200 |
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View Subscription PlansMargin (%)
| Margin (%) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Gross margin (%) | 26.1 | 27.2 | 30.8 | 33.7 | 34.6 |
Operating margin (%) | 12.8 | 13.0 | 16.7 | 16.7 | 20.7 |
EBITDA margin (%) | 21.9 | 21.2 | 24.9 | 24.4 | 26.8 |
Net margin (%) | 11.6 | 14.1 | 17.2 | 17.3 | 23.9 |
Financial Analysis
| Metric | 1Q25 | 2Q25 | 3Q25 | 4Q25 | 1Q26 | 2Q26 |
|---|---|---|---|---|---|---|
Revenue (KRW Bn) | 57.9 | 60.7 | 61.5 | 63.6 | 61.7 | 66.4 |
Operating income (KRW Bn) | 11.9 | 13.3 | 11.9 | 13.3 | 11.4 | 13.6 |
Net income (KRW Bn) | 12.0 | 10.1 | 12.7 | 23.5 | 13.8 | 12.7 |
Operating margin (%) | 20.6 | 21.9 | 19.4 | 20.9 | 18.5 | 20.5 |
Balance Sheet and Per-Share Data
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total assets (KRW Mn) | 197,439 | 226,750 | 256,759 | 297,032 | 393,042 |
Cash & equivalents (KRW Mn) | 51,851 | 46,465 | 59,029 | 75,572 | 80,010 |
Short-term investments (KRW Mn) | 55 | 50 | 60 | 6,685 | 10,139 |
Short-term borrowings (KRW Mn) | 4,042 | 9,525 | 11,583 | 15,326 | 18,027 |
Long-term borrowings (KRW Mn) | 0 | 0 | 0 | 0 | 25,979 |
Lease liabilities (KRW Mn) | 271 | 679 | 456 | 1,599 | 640 |
Total debt (KRW Mn) | 4,314 | 10,204 | 12,040 | 16,924 | 44,645 |
Net debt (KRW Mn; negative = net cash) | -47,592 | -36,311 | -47,049 | -65,333 | -45,504 |
Total liabilities (KRW Mn) | 23,014 | 36,359 | 35,960 | 50,185 | 88,784 |
Shareholders' equity (KRW Mn) | 174,425 | 190,391 | 220,799 | 246,847 | 304,258 |
Intangible assets (KRW Mn) | 763 | 806 | 807 | 983 | 1,720 |
Net PP&E (KRW Mn) | 82,016 | 108,504 | 115,977 | 125,182 | 179,915 |
Inventory (KRW Mn) | 16,825 | 18,836 | 19,787 | 31,457 | 32,367 |
Trade receivables (KRW Mn) | 22,286 | 26,469 | 34,558 | 38,256 | 58,385 |
Working capital (KRW Mn) | 82,085 | 63,692 | 88,855 | 115,367 | 132,240 |
Book value per share (KRW) | 8,374 | 9,140 | 10,499 | 11,785 | 14,549 |
Cash Flow
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Operating cash flow (KRW Mn) | 12,644 | 24,922 | 25,558 | 36,048 | 46,882 |
Capital expenditure (KRW Mn) | 14,103 | 31,949 | 21,108 | 19,790 | 63,388 |
Free cash flow (KRW Mn) | -1,459 | -7,027 | 4,450 | 16,258 | -16,506 |
Dividends paid (KRW Mn) | 1,666 | 2,083 | 3,125 | 3,155 | 3,124 |
Share buybacks (KRW Mn) | 0 | 0 | 0 | 4,726 | 0 |
Equity issuance (KRW Mn) | 0 | 0 | 9,637 | 0 | 0 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
ROE (%) | 6.6 | 9.6 | 12.6 | 13.0 | 21.1 |
ROA (%) | 5.8 | 8.2 | 10.7 | 11.0 | 16.9 |
ROIC, after notional 15% tax (%) | 8.5 | 8.8 | 12.2 | 13.8 | 16.6 |
Current ratio (x) | 5.80 | 3.09 | 4.04 | 3.91 | 3.55 |
Debt / equity (x) | 0.02 | 0.05 | 0.05 | 0.07 | 0.15 |
Net debt / EBITDA (x) | -2.20 | -1.39 | -1.26 | -1.52 | -0.70 |
Interest coverage, EBIT / interest (x) | 276 | 275 | 338 | 302 | 88 |
Asset turnover (x) | 0.50 | 0.58 | 0.62 | 0.64 | 0.71 |
Cash conversion cycle (days) | 120 | 108 | 120 | 135 | 122 |
Geography Metric Details
| Geography metric | Latest data point |
|---|---|
Export share of revenue | About 70% (company IR, February 2026, reflecting FY2025) |
Domestic vs export crossover | Export sales overtook domestic sales in FY2025; domestic exceeded export through FY2024 |
Main export destination | China (photomask makers serving display and mature-node semiconductor customers) |
Other export markets | Taiwan, Japan and other Asian photomask makers (amounts not broken out) |
Domestic market | Korea: Samsung Electronics and SK hynix mask shops, LG Display ecosystem, Korean merchant mask makers |
Share Price & Returns
| Date | Close (KRW) | Context |
|---|---|---|
15 Jul 2021 | 35,300 | After the Yongin investment announcement |
8 Nov 2023 | 47,300 | After the July 2023 peak of KRW 63,900 |
21 Oct 2025 | 57,700 | Before the Yongin inauguration rally |
15 Apr 2026 | 102,100 | Near the cycle peak (52-week high KRW 108,400) |
14 May 2026 | 86,500 | Before Q1 FY2026 results |
12 Jun 2026 | 63,900 | Post-results de-rating |
14 Jul 2026 | 45,700 | After EUV timing reset |
22 Oct 2026 | 40,400 | Intraday |
6 Nov 2026 | 29,550 | Latest |
Valuation Multiples
| Multiple | S&S Tech | Korean semi-equipment/materials peer average (25 Oct 2026) |
|---|---|---|
P/E, trailing (x) | 10.0 | 27.2 |
P/B (x) | 2.1 | 4.4 |
EV/Sales, FY2025 (x) | 2.4 | — |
EV/EBITDA, FY2025 (x) | 9.0 | — |
P/Sales, trailing (x) | 2.5 | 5.9 |
Analyst Ratings & Targets
| Broker | Date | Rating | Target (KRW) |
|---|---|---|---|
DS Investment & Securities | 22 Oct 2025 | Buy | 76,000 |
Shinhan Investment | 2024 | Buy | 65,000 |
SK Securities | 30 Jul 2024 | Buy | 45,000 |
LS Securities | 19 May 2026 | Not Rated | — |
Per-Share Data and Returns & Leverage Ratios (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Dividend per share (KRW) | 100 | 150 | 150 | 150 | 200 |
Payout ratio (%) | 18.1 | 17.9 | 12.2 | 10.3 | 7.3 |
Capital Instruments
| Instrument | Amount (KRW Mn) | Maturity |
|---|---|---|
Short-term borrowings | 18,027 | Within 12 months |
Long-term borrowings | 25,979 | Beyond 12 months (bank term loan for EUV capex) |
Lease liabilities | 640 | Mixed |
Total | 44,645 | — |
Analyst Conclusions
Management guidance. There is no formal numerical guidance. Management has said: (1) the EUV blank qualification with a global memory maker, understood to be Samsung, is in its final stage and expected to finish within six months of July 2026; (2) main Yongin tool installation completes in December 2026, doubling capacity; (3) supply to Samsung is expected in 2027; (4) EUV commercialisation could take annual revenue toward KRW 500 billion; (5) the IC and FPD blank businesses will keep shifting toward high-end products to maximise margins, with export share continuing to rise.
Consensus expectations. Coverage is thin. Investing.com showed a Q3 FY2026 revenue estimate of about KRW 75.6 billion, which would be a record quarter. H1 FY2026 run-rates imply FY2026 revenue of about KRW 260–275 billion (+7–13%) and operating profit of KRW 50–55 billion, before any EUV contribution.
Bull case
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Qualification converts: Samsung approval in late 2026 or early 2027 brings EUV blank revenue in 2027. Analysts' earlier estimates of KRW 15–20 billion in year one at 70%+ margins would lift group operating margin by several points.
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The core is under-appreciated: the base business still grew revenue 9.5% in Q2 FY2026 at a record KRW 66.4 billion, with about 20% operating margins. At about 10x trailing earnings, the market is pricing a no-growth materials business with a net-cash balance sheet.
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Optionality stacks: SK hynix as a second EUV customer, CNT pellicles for High-NA through an exclusive membrane supplier, and a Suzhou plant from 2027 each offer upside not in current numbers.
Bear case
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EUV keeps slipping: the start date has moved from 2024 to 2025, 2026 and 2027. Samsung has a ready alternative in AGC, and HOYA can defend share on price, so S&S Tech could end up as a low-volume second source.
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China concentration: about 70% of revenue comes from exports, mostly China-linked. A demand normalisation after DUV stockpiling, or tighter export controls, would hit the profit engine while Yongin and Suzhou capex continue.
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Margin squeeze: Yongin depreciation plus slowing core growth (H1 FY2026 OP about -1% YoY) could compress operating margin below 18%. Further negative free cash flow would follow, as in FY2025 (-KRW 16.5 billion).
Key catalysts and monitorables (next 12 months):
Q3 FY2026 results: Expected timing: By 16 Nov 2026; Why it matters: Tests whether record revenue (~KRW 75 billion expected) arrives with margin recovery
Yongin main-tool installation complete: Expected timing: Dec 2026; Why it matters: Capacity doubling; depreciation step-up
Samsung EUV blank final approval / first PO: Expected timing: Late 2026 – 1H 2027; Why it matters: The single largest value driver
FY2026 results and dividend: Expected timing: Jan–Mar 2027; Why it matters: Payout and capital-allocation signals
EUV pellicle customer adoption (metal or CNT): Expected timing: 2027; Why it matters: Second EUV revenue stream
Suzhou plant progress: Expected timing: 2027; Why it matters: China growth capacity versus geopolitical exposure
SK hynix engagement on EUV blanks: Expected timing: 2027+; Why it matters: Second anchor customer
US/China export-control changes: Expected timing: Ongoing; Why it matters: Risk to about 70% export base
Analyst verdict. S&S Tech is two businesses in one share price. The first is a proven, cash-generative Korean champion in DUV and display photomask blanks. It compounded revenue at 25% a year from FY2021 to FY2025, lifted operating margin from 13% to 21%, and kept a net-cash balance sheet while building a KRW 100 billion EUV plant. On its own, at about KRW 50 billion of operating profit and roughly KRW 585 billion of enterprise value, it trades near 9x EV/EBITDA and 10x earnings. That is undemanding for a materials franchise with these returns, though its slowdown to high-single-digit growth in 2026 and its dependence on China justify some discount to the peer group.
The second business is the EUV option, which the market valued at well over KRW 1 trillion in early 2026 and now values at close to nothing. The facts behind it have not deteriorated as much as the price suggests. Samsung's evaluation reached production-line testing on 4nm in April 2026. The Lasertec and Veeco toolsets are in place. Capacity doubles in December 2026. The chairman has publicly set a 2027 supply date. What has changed is credibility. After four successive slips, investors need a purchase order rather than a timeline.
The balance of evidence makes S&S Tech an asymmetric but binary situation over the next 12 months. If Samsung confirms qualification, a re-rating toward mid-teens or higher earnings multiples on rising EUV-margin earnings is plausible. That would be supported by a core business that does not need EUV to stay profitable. If qualification fails or slips beyond 2027, downside is cushioned by the cash-generative base, net cash and modest valuation. Even then, sustained China-related weakness and capex-driven negative free cash flow could push earnings and the multiple lower together. The most important near-term watch-points are Q3 FY2026 margins, the December 2026 tooling milestone, and any Samsung purchase-order disclosure.
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View Subscription PlansExecutive Leadership
Executive Leadership Team
| Name | Title | Tenure / background | FY2025 compensation |
|---|---|---|---|
Jeong Soo-hong (정수홍) | Chairman & CEO; largest shareholder | Founder (2001); leads strategy and the Samsung/EUV relationship | KRW 740 million total (business report) |
Seung Byung-hoon (승병훈) | Executive Vice President (전무) | Senior technical executive presenting the EUV blank and pellicle roadmap at industry conferences | Below the KRW 500 million individual disclosure threshold |
Nam Kee-soo (남기수) | Former CEO (around 2010); technologist | Named inventor on S&S Tech's mask blank and EUV pellicle patents (for example US 9,389,500) | — |
Jeong Si-jun (정시준) | CEO, S&S Investment (subsidiary) | Son of the chairman; holds 0.89% of S&S Tech | — |
Kim Yoon-hee (김윤희) | Founding CEO, S&S Investment (2020) | Former DGB Daegu Bank deputy president (treasury) | — |
Governance Overview
| Feature | Detail |
|---|---|
Chair / CEO | Combined; Jeong Soo-hong is both chairman and CEO |
Outside directors | 3 (all attended the 27 October 2026 board meeting) |
Registered directors and auditors | 7 (FY2025 remuneration disclosure) |
Audit function | Statutory auditor structure typical of KOSDAQ mid-caps |
Controlling family | Jeong Soo-hong and two sons together hold 21.89% |
Strategic shareholder | Samsung Electronics, 8.0%, a passive stake since 2020 |
Major Shareholders
| Holder | Stake (%) |
|---|---|
Jeong Soo-hong (largest shareholder) | 20.06 |
Jeong Seong-hoon (related party, son) | 0.94 |
Jeong Si-jun (related party, son) | 0.89 |
Largest shareholder and related parties, total | 21.89 |
Samsung Electronics | 8.00 |
Minority shareholders (34,420 holders) | 58.94 |
Competitive Landscape
Competitors by Segment
| Segment | Competitor | Country | Positioning versus S&S Tech |
|---|---|---|---|
EUV blanks | HOYA Corporation | Japan | Dominant EUV blank supplier (estimated 70%+ share; effectively sole source at 3–4nm); leader in DUV semiconductor blanks |
EUV blanks | AGC Inc. | Japan | Number two in EUV blanks; only maker producing both glass and coating; capacity raised about 30% by 2025; Samsung's fallback supplier |
DUV semiconductor blanks | Shin-Etsu Chemical | Japan | Major DUV blank and synthetic quartz supplier; also EUV blank and pellicle activity |
DUV / display blanks | ULCOAT (ULVAC Coating) | Japan | Blank mask supplier, notably for display and mature nodes |
DUV blanks | SKC (SK Group) | Korea | Built a KRW 43 billion blank mask plant around 2019–2020 to internalise supply for SK |
EUV pellicles | Mitsui Chemicals | Japan | Main ASML-licensed EUV pellicle supplier; acquired Asahi Kasei's pellicle business in 2023; developing CNT pellicles |
EUV pellicles | FST (Fine Semitech) | Korea | Leading domestic pellicle maker; CNT pellicle partnership with Canatu; 2025 revenue KRW 280.3 billion, slight operating loss |
CNT pellicle materials | Canatu | Finland | CNT membrane supplier; partner of FST |
EUV pellicles (captive) | TSMC | Taiwan | In-house EUV pellicle (about 85% transmittance, 400W) for own use |
Display / photomask blanks (China) | Emerging Chinese blank and substrate suppliers | China | State-backed localisation could eventually substitute imports |
Peer Comparison FY2025
| Metric | S&S Tech (FY2025, Dec YE) | HOYA – Information Technology segment (FY to Mar 2026) | FST (FY2025, Dec YE) |
|---|---|---|---|
Revenue | KRW 243.7 billion | JPY 354.8 billion (segment) | KRW 280.3 billion |
Revenue growth | +38.5% | Double-digit, driven by mask blanks and imaging | +18.1% |
Operating margin | 20.7% | About 53% | About -0.2% |
R&D intensity | 6.0% | Group-level only | — |
