[Click e-Stock] "Hanul Materials Science Expected to Benefit from Growing Demand for Optical Communications Infrastructure"

On April 30, independent research firm ValueFinder assessed Hanul Materials Science as a specialist in optical communications infrastructure, highlighting the need to pay attention to its mid- to long-term growth potential. The company has been supplying optical transmission equipment to major telecommunications providers such as KT and SK, and demand is expected to increase due to data center expansion and the rise in artificial intelligence (AI) traffic. ValueFinder added that the company’s growth drivers are expected to diversify further with the addition of its semiconductor materials business through its subsidiary, JKM (JK Materials).

Hanul Materials Science was founded in 2000 and listed on KOSDAQ in 2008. It has established its position in the telecommunications infrastructure market, focusing on optical transmission equipment. Currently, about 75% of its total revenue comes from the telecommunications business, and the company is reportedly working to secure additional revenue sources through expanded collaboration with new players such as LG Uplus. Based on its experience in building networks for public agencies such as the Ministry of National Defense and the National Police Agency, Hanul Materials Science has also earned recognition for its technological expertise and reliability in the public and special network markets.

In terms of products, Hanul Materials Science offers a wide range of optical transmission solutions, including POTN (Packet Optical Transport Network)-based equipment, PTN, MSPP, and NDCS. Its portfolio covers all areas of the network, from subscriber sections to high-capacity data transmission and line management. The POTN solution, in particular, is cited as a strength because it enables the construction of high-speed, high-quality communication networks by supporting multiple transmission methods on a single piece of equipment. Amid the recent increase in data centers and the expansion of AI traffic, demand for this type of transmission equipment is expected to continue rising.

In addition, the expansion of the semiconductor materials business through its subsidiary JKM is also drawing attention. JKM is consolidated with a 55.1% stake and, on April 16, its Sejong plant passed the chemical handling facility installation inspection, entering the mass production preparation stage. The main products are ultra-high purity solvents used in semiconductor etching and stripping processes, which require high purity to remove contaminants from wafer surfaces and ensure process uniformity.

Lee Choongheon, a researcher at ValueFinder, stated, "Amid renewed concerns over supply chain instability due to geopolitical risks in the Middle East, this materials business, with its domestic production base, stands to benefit meaningfully in terms of localization and supply chain diversification." He further predicted that, if JKM transitions to full-scale mass production, business diversification will accelerate from a telecommunications-centric structure to include semiconductor materials, likely establishing a new axis of growth.

The business structure is also evolving. The proportion of telecommunications business expanded from 65.2% in 2022 to 86.5% in 2024, then adjusted to 75.1% in 2025, while the share of the materials business rose rapidly from 2.6% to 17.1% over the same period. This indicates that the semiconductor materials business is emerging as a new growth pillar, built on a stable telecommunications business foundation.

Researcher Lee emphasized, "The importance of optical communications infrastructure is increasing amid structural changes such as rising AI traffic and data center expansion," adding, "The expansion of transmission equipment demand, underpinned by a variety of references, is highly anticipated, while at the same time, the momentum for localizing semiconductor materials through JKM is also at play." He concluded, "Whether the company can achieve simultaneous growth in both optical communications and semiconductor materials will be a key point to watch in the future."

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