[Click eStock] "GIS Rides the MLCC Supercycle... Order Backlog Expected to Surpass KRW 100 Billion"

There is an analysis suggesting that GIS is entering a period of significant earnings growth, fueled by a recovery in the multilayer ceramic capacitor (MLCC) market and increased capital expenditure by its key customer, Samsung Electro-Mechanics. GIS has secured a supply share of up to 60% within Samsung Electro-Mechanics through the localization of MLCC cutting equipment. With investment planned for a new plant in the Philippines, demand for GIS's equipment is expected to rise sharply.

GrowthResearch, an independent research firm, delivered this analysis in a GIS site visit report on August 27, 2026. GrowthResearch evaluated that GIS, which had previously relied heavily on Japanese equipment in the MLCC cutting equipment market, succeeded in localizing production and has now established itself as a core equipment supplier in the domestic market.

GIS’s greatest competitive strength lies in its partnership with Samsung Electro-Mechanics, spanning more than ten years. Currently, GIS holds around a 60% supply share of MLCC cutting equipment within Samsung Electro-Mechanics. In addition to expanded capital expenditure by Samsung Electro-Mechanics’ component division, up 342% year-on-year to KRW 721.9 billion, investment for a new plant in the Philippines scheduled to begin operation in 2027 further increases the likelihood of greater demand for GIS’s equipment.

To cope with rising order volumes, GIS has been expanding its MLCC equipment production capacity by utilizing idle space at its Gumi plant and other facilities. By securing additional production capacity worth roughly KRW 50 billion annually, the company aims to minimize the burden of large-scale capital investments while supporting revenue growth.

The earnings outlook is also showing signs of recovery. GIS, which struggled last year due to reduced investment from major customers, posted sales of KRW 47.89 billion in the first half of this year—an increase of 51.7% compared to the same period last year. During the same period, operating profit turned positive to reach KRW 1.17 billion.

The order backlog has also remained at KRW 60 billion to KRW 70 billion. GrowthResearch predicts that, as Samsung Electro-Mechanics’s investment ramps up in earnest, GIS’s order backlog will surpass KRW 100 billion around October or November.

The annual earnings outlook is also positive. GrowthResearch estimates GIS's annual sales this year to rise by 71.6% year-on-year to KRW 130 billion, with operating profit expected to reach KRW 10 billion. It also analyzed that, as the proportion of high-margin MLCC equipment sales increases, not only will GIS’s top-line grow, but profitability is also likely to improve.

However, securing sufficient working capital to meet large-scale orders remains a variable. Due to industry characteristics, an average of six months is required from order to delivery, so materials costs must be spent up front. It has been reported that GIS is considering raising funds amounting to KRW 30 billion to KRW 50 billion. Some point out that, if a paid-in capital increase is realized, the possibility of shareholder value dilution needs to be taken into account.

Dependence on major customers is also a challenge. Since GIS is currently highly reliant on Samsung Electro-Mechanics, some analysts suggest that if GIS achieves actual sales from new customers such as Daeduck Electronics and SK Hynix, it could diversify its customer portfolio and trigger a potential revaluation of the company.

Yonghee Han, a researcher at GrowthResearch, stated, "With the resumption of large-scale investment by Samsung Electro-Mechanics, the proportion of high-profit MLCC equipment sales—carrying an operating margin of about 15%—is growing at GIS." Han added, "The return to profitability in the first half of the year and the rising order backlog are clear signs of the company’s transformation."

He further commented, "If GIS proves its ability to secure stable working capital and diversify its customer base, it is highly likely that the stock market will assign a clear premium."

This content was produced with the assistance of AI translation services.