Techwing (089030) — After earnings recovery, investment costs and payment collection come next
Analysis date
Published
MW GOBLIN · AI company research
A cautious assessment as of 2026-09-30. The recovery in the core business and decline in borrowings are positive, but considering cash outflows after first-half investment and delays in collecting delivery payments, it is difficult to be confident in additional growth value at KRW 51,700.
Toss Securities
Quote September 30, 2026 at 11:03 KST
Retrieved September 30, 2026 at 11:03 KST
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Earnings recovery must translate into returns on capacity expansion
Recovery in the core business is confirmed, but the HBM contribution should be distinguished. In the first half of 2026, consolidated revenue increased 30.8% year over year and operating profit increased 172.7%. The semiannual report does not separately disclose Cube revenue or margins. On July 30, the Financial Services Commission announced approval of KRW 50 billion in low-interest loans to support the KRW 91.6 billion total investment plan for the Cheonan plant. This is neither an amount spent nor an order value; profits from actual deliveries must cover additional depreciation and interest. [1][3]
Completing delivery and collecting cash are different
Subtracting KRW 31.30 billion in purchases of tangible and intangible assets from KRW 17.96 billion in operating cash flow in the first half of 2026 gives -KRW 13.35 billion using the won-level calculation. According to the amended disclosure on September 29, the KRW 22.86 billion contract with Micron Malaysia was delivered on September 4, but payment was delayed due to delayed delivery, and the end date was changed from October 2 to November 6. The uncollected balance has not been disclosed, so the impact on additional borrowing is not stated definitively. [1][2]
8.8 times first-half book value; cash returns need verification
KRW 51,700 is 8.8 times the per-share book value of KRW 5,879, calculated by dividing controlling equity of KRW 210.10 billion at the end of June by 35,740,474 shares excluding treasury shares. With a first-half controlling net loss of KRW 960 million, book value, which reflects debt, was used as a reference instead of PER. This comparison uses the share count at that time and is not the current market capitalization. The appropriate multiple depends on Cube revenue and margins and the cash return after the KRW 91.6 billion investment. The possibility that treasury shares may be released upon exchange of the exchangeable bonds also exists, so a target price is withheld. [1][3]
What could change the thesis
- The assessment would be raised if recurring Cube orders turn into recognized revenue, and margins reflecting expansion-related depreciation and cash flow after investment improve.
- Confirm fulfillment of the contract end date scheduled for 2026-11-06 and collection of payment. If a further extension of the collection schedule coincides with an increase in net debt, the growth value assessment would be lowered.
Sources and Evidence
- Techwing 2026 Semiannual Report ↗2026-08-14 · III.2 consolidated financial statements; Note 17; EPS and share count
- Techwing Amended Supply Contract Disclosure ↗2026-09-29 · Reason for correction, contract duration and payment terms
- Financial Services Commission — Support for Expanding HBM Inspection Equipment Production Facilities ↗2026-07-30 · Section 3: support for Techwing factory expansion
This AI-generated report is for information. Check the analysis date and primary sources. Terms