YEST, a specialist in thermal processing equipment for semiconductors and displays, has seen the conclusion of its first-instance patent lawsuit against competitor HPSP postponed to next year.
However, since the Patent Court and the Intellectual Property Trial & Appeal Board previously ruled in YEST's favor, the uncertainty has been resolved. The securities industry expects YEST to achieve revenue growth in the second half of the year, based on public disclosures regarding orders from Samsung.
According to financial investment industry sources on the 15th, YEST was scheduled to hold a hearing at the Seoul Central District Court that day for a civil judgment regarding patent infringement by HPSP. The hearing date was postponed to November after HPSP filed an application for an extension two days prior, which the court accepted. Consequently, the first-instance lawsuit, which appeared likely to conclude within the year, is expected to proceed until next year.
The core of the lawsuit concerns patent rights for HPA (High-Pressure Hydrogen Annealing) equipment. HPSP had previously monopolized the HPA market, but since the end of last year, YEST has entered the market, leading to a dispersion of market share. HPA is equipment used to improve surface defects in silicon oxide (SiO) on semiconductors and serves as a major revenue source for these companies. Given that the Intellectual Property Trial & Appeal Board and the Patent Court previously issued rulings with similar conclusions favoring YEST, it is widely predicted that this lawsuit will also reach the same conclusion.
The securities industry views YEST's second-half revenue growth positively. YEST relies on sales of display equipment and semiconductor equipment as its primary revenue sources. In the first half, display equipment sales reached 20.6 billion won. This exceeded the annual revenue earned in 2024 (12.27 billion won) and 2025 (13.47 billion won). Additionally, it is expected that semiconductor sales will provide momentum in the second half.
According to electronic disclosures from the Financial Supervisory Service, since June last year, YEST has secured three single sales and supply contracts solely from Samsung Electronics. These were contracts for semiconductor manufacturing equipment, totaling 51.8 billion won in orders: 12.4 billion won on June 1, 22.8 billion won on June 2, and 17.6 billion won on August 24.
An industry official stated, "Samsung Electronics had a need to diversify equipment suppliers beyond HPSP, and YEST is known to have met this demand." The official added, "As advanced semiconductor packaging technology evolves with P-RAM, C-RAM, and D-RAM, YEST may even monopolize D-RAM equipment. Currently, development of next-generation equipment such as HPO, inspection, and glass substrates is also underway."
Its stock price is in the 20,000 won range. On this day, YEST fell by 4,400 won (15.17%) from the previous day to 24,600 won. The stock plunged over the last two trading days, dropping from the 30,000 won range to the 20,000 won range. As debt issues among AI companies in the United States have come to the forefront, a crash has unfolded across the entire semiconductor sector, and YEST is also experiencing stock price stagnation.
Contrary to recent stock price movements, YEST's financials are stable. As of the end of June this year, YEST's retained earnings stood at 17 billion won, and cash and cash equivalents reached 25 billion won. First-half sales were 69.4 billion won, an increase of 20.5 billion won compared to the same period last year, and operating profit was 7.6 billion won, up by 2.5 billion won over the same period. Since the exercise price of convertible bonds is in the low 10,000 won range, investors have already largely succeeded in exiting (recovering their investment). It appears that the overhang volume affecting the stock price will not be significant.
A securities industry official said, "Looking at YEST's sales and cash holdings, it seems they can achieve stable profits without mezzanine financing or capital increases." The official added, "In a situation with no overhang issues, we are watching how much appeal YEST can highlight as a materials, components and equipment player in the semiconductor sector."
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