Hanwha Vision posts record quarterly sales on AI CCTV surge; Hanwha Semitech hits all-time high

Hanwha Vision, a core affiliate of Hanwha Machinery & Services Holdings (Hanwha M&S), which launched this month, is proving to be a reliable cash cow for the newly formed group. Both its security division — which operates the closed-circuit television business — and its semiconductor equipment subsidiary Hanwha Semitech posted record-high sales in the second quarter of this year.

The security division recorded sales of 394.6 billion won ($277 million) in the second quarter, the highest quarterly figure in the company's history, up 20.1 percent from 328.4 billion won in the same period last year. Operating profit for the quarter came in at 51.6 billion won, down 12.4 percent from 58.9 billion won a year earlier but up 44.1 percent from 35.8 billion won in the previous quarter.

The security division had already set an annual record last year with sales of 1.34 trillion won. If the current momentum holds, the division is on track to break that record within a year.

Hanwha Semitech delivered its best-ever quarterly performance since Hanwha Vision's listing, with sales of 147.7 billion won and operating profit of 14 billion won in the second quarter. The subsidiary swung to a profit compared with the same period last year, while sales climbed 14.7 percent.

The security division's record sales were driven largely by AI-enabled CCTV cameras. AI CCTV accounted for 59 percent of total network camera sales in the second quarter, up 13 percentage points from 46 percent a year earlier. A price increase implemented in June in response to rising CCTV demand also contributed significantly to the record result.

Hanwha Semitech's strong performance was fueled by the delivery of six TC bonders ordered in January, all of which shipped in the second quarter. TC bonders are key pieces of equipment used in manufacturing high-bandwidth memory, or HBM, chips for AI semiconductors. A recovery in the market for surface mount technology equipment — another of the subsidiary's core product lines — also supported the earnings improvement.

The strong results from Hanwha Vision's security division and Hanwha Semitech come as welcome news for Hanwha M&S, which needs reliable cash-generating businesses to fund its growth ambitions.

Hanwha M&S, led by President Kim Dong-sun, counts Hanwha Vision, Hanwha Semitech, Hanwha Robotics, Hanwha Galleria, Hanwha Hotel and Ourhome among its affiliates. Of these, only three — Hanwha Vision, Hanwha Hotel and Ourhome — posted annual sales exceeding 1 trillion won last year.

Hanwha Semitech has drawn attention amid a semiconductor market boom, but its sales fell short of 500 billion won last year. Hanwha Robotics is pushing into the market with collaborative robots, but is seen as lacking the presence of rivals such as Denmark's Universal Robots, the global leader, and Doosan Robotics. That makes the continued outperformance of Hanwha Vision and its subsidiaries all the more critical for Hanwha M&S to scale up its revenue base.

Hanwha Vision plans to further strengthen its AI CCTV capabilities as it works to cement its role as a dependable cash cow. Chinese products that once dominated the global CCTV market have lost ground due to security concerns, driving up demand for high-value products built on advanced technologies such as AI.

Hanwha Vision aims to expand its market share on the strength of its AI CCTV lineup. According to market research firm Omdia, the company ranks among the top five players in the global CCTV market excluding China, with a 6 percent share.

Hanwha Semitech, meanwhile, is ramping up research and development investment to advance new technologies. Its semiconductor-related R&D spending rose more than 50 percent last year compared with the year before. The company is also broadening its high-value product lineup — in April, it unveiled a new high-performance chip mounter, a device that automatically places chip components onto printed circuit boards.