Shares of DAWON NEXVIEW, which produces back-end semiconductor equipment (packaging and testing) using laser-based ultra-precision micro joining (LSMB) technology, have surged recently. As the semiconductor market enters a super-boom phase and DAWON NEXVIEW's results continue to improve, the stock is also showing strength.
Investors are focused on the potential change in DAWON NEXVIEW's largest shareholder. The largest shareholder of DAWON NEXVIEW is Dawonsys, a railcar manufacturer. Despite winning a 1 trillion won supply contract from KORAIL and others, the company failed to properly perform the contract and Lee Jae-myung, the president, said that "government agencies seem to have been scammed." Dawonsys has entered corporate rehabilitation proceedings and faces delisting risk in the stock market.
On the 20th, according to the Korea Exchange (KRX), DAWON NEXVIEW's share price has risen 300% so far this year. The stock, which was around 5,000 won at the end of last year, recently topped 21,000 won. The surge reflects increased demand for back-end equipment as data centers expand with growth in the artificial intelligence (AI) industry and competition intensifies for advanced packaging centered on HBM.
From the early days, the company focused on "laser micro joining" and "micro machining," which perform soldering and bonding processes that combine and connect semiconductors and smartphone parts and other ultra-small products using lasers, and succeeded in commercializing LSMB-specialized technology. Based on this, it supplies equipment produced to major domestic and overseas semiconductor companies.
With steady gains in technological competitiveness and the arrival of a semiconductor super-boom, the company's results jumped. Company revenue, which was around 10 billion won in 2023, nearly reached 27 billion won last year, and it swung to a profit with 4 billion won in operating income last year.
The problem is that governance risks have grown. That is because the parent company Dawonsys is in severe management distress. Dawonsys, a railcar manufacturer, previously signed large-scale supply contracts with KORAIL and others, but as delivery disruptions deepened its liquidity crisis, it ultimately filed a petition with the court to commence rehabilitation proceedings. As it became subject to a substantive review of listing eligibility, trading in its shares has been suspended.
In 2014, Dawonsys acquired a 56.34% stake in DAWON NEXVIEW (then Nexview TX) for 500 million won. As of the end of March, the largest shareholder of DAWON NEXVIEW is Dawonsys, which holds 23.09% equity, and related parties including CEO Park Seon-sun, a sibling, and a son hold 5.03%. CEO Nam Gi-jung holds 11.86%.
When DAWON NEXVIEW went public in 2024, the largest shareholder pledged a three-year lockup on its holdings. Although the largest shareholder cannot immediately put its equity up for sale, there is speculation that the largest shareholder's stake could come to market given the unusual situation of the parent company entering court receivership. An industry official said, "Since Dawonsys is undergoing rehabilitation, the sale of its holdings could be discussed during the court's review or creditor talks."
Fortunately, DAWON NEXVIEW has maintained independent management even after being incorporated as a subsidiary of Dawonsys. That is because founder and chief technologist CEO Nam Gi-jung has continued to serve as representative director and make management decisions.
Inside and outside the company, the possibility of a name change is also being discussed along with a change in governance. DAWON NEXVIEW also recently relocated its headquarters. The company said, "We plan to hold an investor relations (IR) session soon to deliver messages about the company overall."