Park Systems' AFMs drive robust Q1 25 performance

Park Systems Corp. has posted a strong Q1 25, with nearly 100% growth in total revenues. Results were driven by high demand in Manufacturing and sales of advanced metrology equipment, particularly Atomic Force Microscopes (AFMs). Further, the company has fueled growth through opportunistic acquisitions.

Park Systems Corp. was established in 1997 and is headquartered in South Korea. It is a leading manufacturer of atomic force microscopes (AFMs). Operating in the Scientific and Technical Instruments sector, the company offers a diverse portfolio of high-precision equipment tailored for research, industrial, and bio applications. Key product lines include the Park NX and XE series for research, NX-Hivac, HDM, PTR, and Wafer series for industrial use, and specialized bio-AFMs such as the NX-Bio and SICM systems.

Park Systems serves both domestic and international markets, with a strong global footprint. In FY 24, its revenue distribution was led by Greater China (48%), followed by Europe (17%), the US (14%), South Korea (14%), and Other Foreign Markets (7%). The company employs approximately 365 professionals and maintains a focused operational structure under a single business segment.

Robust Q1 25 performance

Park Systems posted a total revenue of KRW50.9bn (about €32m) in Q1 25, reflecting a 98.4% y/y increase, propelled by high demand in manufacturing and the growing adoption of advanced metrology products, particularly AFMs. As a result, EBITDA rose sharply to KRW14.9bn from KRW1.8bn and margins improved from 7.2% to 29.3%, due to high utilization of capacity and increased sales of higher-margin AFM products. Net income also rose significantly, rising from KRW2.7bn in Q1 24 to KRW14.9bn, with margins expanding from 10.6% to 29.4% over the same period.

Global outreach and acquisition

Park Systems has recently elevated its presence in the global nanotechnology sector by engaging a diverse international audience through a multilingual showcase of its Park FX AFM solutions. Building on this momentum, Park Systems announced the expansion of its acclaimed FX Large Sample AFM lineup, unveiled at SEMICON Korea 2025, which now includes the advanced Park FX300 for 300 mm wafer analysis, and the FX200 IR and FX300 IR spectroscopy. These instruments set new standards for both research and industrial applications, with automation, precision, and new inspection capabilities tailored for the next generation of semiconductor and materials innovation.

Further strengthening its technology portfolio, Park Systems has acquired Lyncée Tec SA, an established name in 3D holographic microscopy. This acquisition is expected to augment Park Systems’ product offerings and accelerate the integration of complementary nanometrology technologies for enhanced industrial and academic solutions.

Strong revenue growth

Park Systems demonstrated a strong top-line trajectory from FY 21-24, delivering a revenue CAGR of 27.1%, reaching KRW175bn, driven by strong overseas performance and high sales volumes of industrial AFMs, crucial tools in the semiconductor and materials sectors. EBITDA rose at a CAGR of 29.2% to KRW44.9bn, with margins expanding by 122bp to 25.7%. Net income advanced at 67.6% CAGR over the same period, reaching KRW42.8bn in FY 24.

Cash flow from operations rose from KRW10.8bn at end-FY 21 to KRW34.7bn at end-FY 24, supported by strong earnings. This resulted in cash and cash equivalent to rose from CNY40bn to CNY93.4bn. The ROE doubled from 12.7% at end-FY 21 to 25.8% at end-FY 24.

In comparison, MLOptic Corp., a global competitor, has reported a lower total revenue CAGR of 14.9% over the past three years, reaching CNY503m in FY 24. EBITDA remained stable at CNY70.2m in FY 24, with margins contracted from 20.2% to 14%. Net income dropped at a CAGR of minus 9% to CNY35.5m.

Positive views from analysts

Over the last 12 months, Park Systems delivered return of approximately 54.1%, reflecting robust earnings growth. In contrast, MLOptic Corp. experienced higher returns of about 316.7% over the same period.

Park Systems is currently trading at a P/E of 34.6x, based on the FY 25 estimated EPS of KRW7,703, which is lower than its three-year historical average of 37.3x and MLOptic Corp.’s 287x. Likewise, in terms of EV/EBITDA the company is trading at 26.9x, based on the FY 25 estimated EBITDA of KRW65.9bn, which is lower than its historical average of 29.3x and MLOptic Corp.’s 147x.

The company is monitored by 8 analysts, with all having ‘Buy’ ratings, for an average target price of KRW320,250, implying a potential upside of 20.2%. Furthermore, analyst projections are underpinned by an expected EBITDA CAGR of 35.9% over FY 24-27, reaching KRW112.8b, with margins expanding from 25.7% to 33.6% in FY 27. In addition, net income is forecasted to grow at a CAGR of 24.7%, reaching KRW83b, with a margin of 24.7% in FY 27. EPS is projected to rise to KRW9,868 in FY 27 from KRW6,156 in FY 24. In comparison, MLOptic Corp. is expected to achieve a net income CAGR of 36.8%.

In conclusion, Park Systems Corp. delivered strong financial performance in FY 2024, with revenue rising 20.6% year-over-year to KRW175.1b, driven by robust demand in semiconductor and advanced materials sectors and supported by high production utilization rates across both research and industrial equipment lines.

However, Park Systems faces key risks including foreign exchange volatility, interest rate fluctuations, rising raw material costs, and customer concentration and potential challenges in successfully integrating newly acquired entities.