A Jusung Engineering constructing

Jusung Engineering, a number one home tools producer, introduced its plan to concurrently pursue each the spin-off and split-off of its semiconductor, photo voltaic, and show operations. The core semiconductor enterprise will bear a spin-off to keep away from undermining shareholder worth, whereas the photo voltaic and show operations will probably be break up off to keep up sturdy management. The firm cites “operational efficiency and the globalization of corporate value” as the explanations behind this strategic restructuring.

On May 2, Jusung Engineering disclosed its intention to concurrently proceed with the spin-off and split-off. The semiconductor enterprise will probably be separated into a brand new entity, tentatively named Jusung Engineering, focusing solely on semiconductor expertise growth and manufacturing. The show and photo voltaic operations will probably be break up off into a completely owned subsidiary, tentatively named Jusung SD. The current company will probably be renamed to both Jusung or Jusung Holdings, assuming a job as a holding firm accountable for funding and administration of associates and associated corporations. It will proceed to be listed on the KOSDAQ.

This transfer goals to assist the semiconductor division emerge as a world chief, breaking away from its function in offsetting losses from different enterprise items. Historically, Jusung Engineering has used income from its semiconductor division to cowl deficits and funding prices within the show and photo voltaic sectors. According to the 2023 enterprise report, final yr’s semiconductor tools gross sales amounted to 214.8 billion received (US$157.1 million), accounting for 75.4% of the overall income of 284.7 billion received. The spin-off is perceived as a response to the market’s undervaluation of the semiconductor enterprise, which possesses cutting-edge applied sciences like “next-generation ALD equipment.”

Furthermore, Jusung Engineering revealed its first-quarter monetary efficiency at present. Sales have decreased by 18% to 56.6 billion received in comparison with the identical interval final yr, whereas web revenue elevated by 55% to 16.1 billion received.

An organization official said, “The first-quarter performance reflects the market situation where next-generation semiconductor equipment has yet to translate into revenue.” He added, “We plan to strengthen the competitiveness of our semiconductor ALD equipment and diversify our clientele to build a foundation for sustained growth.”

Established in 1993, Jusung Engineering was the primary in South Korea to develop semiconductor front-end tools in 1995 and has since been acknowledged as a pioneering enterprise firm within the semiconductor, show, and photo voltaic tools trade. Since its KOSDAQ itemizing in 1999, it has persistently represented the nation’s supplies, elements, and tools sector.

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