DEEP RESEARCH · SOLiD (050890)

SOLiD (050890): A Deep-Tech Composite Built on Telecom, Defense and Fusion

DAS, Open RAN, ITER power supplies and Darwin Friction — the portfolio overhaul behind the 2026 turnaround thesis

Written: 2025-12-31 · Telecom equipment & defense conglomerate analysis · Naver blog source

0. Bottom line first

Interpretation: At a historical-trough ~0.6× PBR with active buyback/cancellation policy, the risk/reward favors medium-term growth over short-term noise.

1. PhD-engineer leadership and global footprint

Official fact: CEO Joon Jeong (Stanford EE PhD, KT, Hitachi), Co-CEO Seunghee Lee (Northwestern EE PhD, Samsung Advanced Institute of Technology), Director Daeyoung Kim (Stanford PhD, former Samsung Electronics EVP) anchor a rare "PhD-engineer" management team.

2. Telecom: DAS & Open RAN combo

2.1 DAS — structural growth

Official fact: DAS accounted for ~72.7% of 2024 revenue. ~80% of mobile data traffic is generated indoors. Global DAS market: ~USD 76 bn in 2026 → ~USD 615.7 bn in 2035 (CAGR 26.16%).

Interpretation: SOLiD competes with Comba, JMA Wireless and Corning but stands out in "neutral-host" deployments (one box, multiple carriers).

2.2 Open RAN — next-gen network gateway

Official fact: SOLiD's O-RU received Korea's first OTIC conformance certification in Apr 2024; US NTIA Wireless Supply Chain Innovation Fund grant of ~USD 27.68 m (~KRW 37 bn) marked official recognition as a non-Chinese trusted supplier. Global Open RAN market is projected at USD 4.7 bn (2025) → USD 20.9 bn (2030), CAGR 39.4%.

3. Defense & aerospace: SOLiD Wintec takes off

Official fact: SOLiD Wintec posted 2024 revenue of KRW 56.4 bn. It supplies HCTR (High-Capacity Tactical Radio) modules within TICN; experience from KSTAR power supplies enabled participation in ITER.

Official fact: June 2025 — SOLiD Wintec signed a 2nd-tranche power-supply contract with ITER for ~KRW 82 bn (EUR 52 m).

Interpretation: Defense delivers stable, budget-anchored cash flow; fusion provides long-dated optionality as the ultimate carbon-neutral energy source.

4. 3Q25 softness and the V-shaped 4Q

Official fact: 3Q25 cumulative revenue KRW 181.9 bn, operating profit KRW 7.2 bn — down YoY.

1. Korean carrier capex paused after 5G nationwide rollout; LTE maintenance / 6G prep gap.
2. North American and European operators deferring capex into H2 and 2026.
3. Defense revenue typically backloaded into 4Q.

Official fact: Hana Securities forecasts 4Q25 revenue KRW 104.1 bn (+15% YoY), operating profit KRW 12.1 bn (+2%).

5. M&A — Darwin Friction and new businesses

Official fact: Oct 30, 2025 — SOLiD acquired 50.001% of Darwin Friction (aircraft / helicopter / tank brake discs & wheels) for KRW 10 bn. Darwin Friction recorded 2024 revenue of KRW 23.2 bn and operating profit of KRW 2.35 bn (~10% OPM).

Official fact: Deal size is just ~3.1% of SOLiD's year-end 2024 equity (KRW 322.8 bn); cash on hand of ~KRW 89 bn (3Q25) means the funding burden is negligible.

Official fact: April 2025 — selected as lead organization for MSIT's LEO satellite communications program. Quantum-cryptography equipment is also under development.

Interpretation: SOLiD Wintec (electronics/comms defense) + Darwin Friction (mechanical/aviation defense) crystallizes a "total defense solutions" positioning.

6. Valuation & risks

6.1 Risks

• Upstream capex squeeze: Carrier budgets shifting to AI data centers — hedged by non-telecom (defense, aviation) growth.
• FX: >70% export ratio — KRW strength pressures margins.
• Overhang: Latent CB/BW supply — mitigated by buyback / >50% cancellation policy.

7. Conclusion: a prepared player ahead of the 2026 supercycle