DB HiTek is a contract manufacturer (foundry) that takes orders from chip design houses (fabless firms) and actually prints their designs onto wafers. Rather than the most advanced fine-geometry processes, it focuses on 8-inch (200mm) specialty processes for power semiconductors and analog/mixed-signal chips used widely across consumer, automotive and industrial equipment, holding what is effectively a dominant position in Korea. Its Q1 preliminary results disclosed on May 6 showed double-digit growth in revenue and operating profit and a surge in net profit, and with strong power-semiconductor demand meeting near-full utilization, this is a phase in which rising revenue converts quickly into profit. The key takeaways: as long as utilization and the high-value product mix hold and the 22x P/E on last year's trough earnings falls toward the 17x range on this year's trajectory, the earnings-improvement story continues; but if 8-inch demand, power-semiconductor prices or downstream-industry conditions turn, utilization and profit can fall together in cyclical fashion, and with the stock already up 95% over six months, near-term volatility is high.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 23.5% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 26.0% higher than a year earlier.
- ROE is 11.9% (controlling-interest basis). It is above the sector average.
- Operating margin is 19.9%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder DB Inc. 19.52% (corporate)
Controlling bloc incl. related parties 27.88%
With the controlling bloc holding 28%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- DB HiTek is a contract-manufacturing (foundry) company that takes orders from fabless customers who only design chips and actually prints those designs onto wafers.
- It focuses, however, not on the most advanced fine-geometry processes (the 3-nanometer class over which Samsung Electronics and TSMC compete) but on specialty processes based on 8-inch (200mm) wafers used widely across consumer, automotive and industrial equipment.
- The core revenue pillars are power semiconductors (chips that handle electricity efficiently — SiC, GaN, high-voltage MOSFETs and the like) and analog/mixed-signal chips (BCDMOS and others), with camera image sensors (CIS) and RF/MEMS rounding out the portfolio.
- It runs production lines at two sites, Bucheon and Sangwoo (Eumseong), and because it makes many long-lived chips used in EVs, industrial equipment and home appliances rather than advanced chips for devices like smartphones, utilization swings widely with the economic cycle.
- The recent close was ₩116,700 and the market cap is ₩5.1 trillion.
- The price sits below both the 20-day line (₩143,405) and the 60-day line (₩153,152).
- Trading below both the short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a gauge that measures the strength of gains versus losses over the past 14 days on a 0-100 scale) is 36.8, a neutral reading.
- The one-month change is -24.1%, the three-month change is +32.9%, and the price sits -47.1% below its 52-week high.
- Relative strength versus the KOSPI is 69 (on a 1-99 scale, this converts return versus the index over the past year with more weight on recent periods; higher means stronger than the market).
- That places it in roughly the top 30% of all stocks by strength.
- Over the past three months it lagged the index by 0.4%.
- Charts are best read alongside trading volume and disclosure dates.
- On a 2025 consolidated basis it recorded revenue of ₩1,397.2 billion, operating profit of ₩277.3 billion and net profit of ₩256.1 billion.
- With an operating margin of 19.9% and a net margin of 18.3%, margins are thick for a manufacturer, and ROE (how much was earned in a year on equity) is 11.9%.
- On finances, the debt ratio (debt relative to equity) looks somewhat high at 139.7% as reported, but with a current ratio (assets convertible to cash relative to debt due within a year) of 2.48x and an interest coverage ratio (how many times operating profit covers interest) of 9.08x, actual repayment capacity is ample.
- The valuation multiples are a P/E ratio (how many times one year's earnings the price represents) of 19.83x and a P/B (how many times book equity the price represents) of 2.37x, but this P/E should be read bearing in mind that it fully reflects last year's trough earnings — a 'bygone earnings' basis.
- The dividend is ₩810 per share, a yield of about 0.6%.
- Over five years, this company's profit has swung widely with the semiconductor cycle.
- From a boom peak in 2022 (operating profit ₩768.7 billion) it fell to a trough in 2024 (₩190.8 billion), then rebounded in 2025 to operating profit of ₩277.3 billion (+45.3%).
- Revenue also reattached in 2025 at +23.5%, and the pace of growth is quickening.
- In particular, Q1 2026 showed revenue of ₩374.6 billion (+26.0%), operating profit of ₩63.7 billion (+21.4%) and net profit surging to ₩86.9 billion, up 89.3% year on year.
- The company reports that its Bucheon and Sangwoo lines are effectively at full utilization and expects to hold utilization above 98% this year, with the share of high-value power, automotive and industrial products rising.
- When utilization is low, fixed-cost burden compresses margins, but when it approaches full utilization as now, incremental revenue converts quickly into profit, so this year's earnings power should be markedly higher than last year's confirmed figures.
- On this year's earnings reflecting that trajectory, the 22x P/E mentioned above looks inflated relative to reality, and the forward multiple comes down to the 17x range.
- Recent disclosures cluster around results, treasury stock, dividends and capital structure.
- May 6 brought Q1 preliminary results (double-digit growth in revenue and operating profit, a surge in net profit); May 22 a treasury-stock purchase decision and a large-shareholding report; and May 11 a disclosure on the exercise of conversion rights tied to convertible bonds.
- A voluntary disclosure on other business matters and a large-conglomerate status disclosure followed on May 29, and dividend-related materials on June 1.
- The treasury-stock purchase is favorable to shareholder value by reducing shares outstanding, while the exercise of conversion rights converts into new shares and can be a modest dilution factor — both worth watching together.
- The strong phase is clear.
- It holds what is effectively a dominant position in Korea with 8-inch specialty foundry as its mainstay, and with strong power-semiconductor demand meeting near-full utilization, this is a phase in which rising revenue converts quickly into profit.
- Margins and financial health are sound too.
- The 22x P/E on last year's figures reflects trough earnings, so on this year's earnings trajectory it comes down to the 17x range and the actual valuation burden is lower than it looks.
- Conversely, the caution is that this business is inherently sensitive to the semiconductor cycle.
- If 8-inch demand, power-semiconductor prices or downstream-industry (automotive, industrial equipment) conditions turn, utilization can fall again and profit shrink quickly, and the stock itself, already up 95% over six months, carries high near-term volatility.
- In sum, the earnings-improvement story continues as long as utilization and the high-value product mix hold, but when the semiconductor demand cycle changes direction that leverage works in reverse.
🔎 Valuation vs peers Fairly valued
Since there is no pure 8-inch specialty-foundry peer among listed domestic companies, large semiconductor stocks are offered only as cycle and profitability references; the real peer set is global specialty and 8-inch foundries not listed on the site.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Samsung Electronics | 36.72x | 3.83x | 10.43% |
| SK Hynix | 36.30x | 12.93x | 35.61% |
The Samsung Electronics and SK Hynix presented here are memory-centric and different in business character, so they are not direct peers, only references that ride the same semiconductor cycle. DB HiTek's 22.6x P/E on last year's figures has the limitation of being a 'bygone earnings' multiple reflecting a trough year. Factoring in the Q1 2026 net-profit surge of +89% year on year and a trajectory of near-full utilization, the multiple on this year's earnings falls to the 17x range, a lighter burden than the headline P/E. That said, because earnings swing heavily with the semiconductor demand cycle, the valuation judgment must be viewed together with whether the earnings improvement is sustained. Taken together, considering the earnings-improvement trajectory it is hard to call this an extreme overvaluation, and we judge it fairly valued.
Price history Close · MA20 · MA60
The latest close is ₩116,700 and the market capitalization is ₩5.1 trillion. The price sits below its 20-day moving average (₩143,405) and below its 60-day moving average (₩153,152). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 36.8, a neutral level. The one-month change is -24.1%, the three-month change is +32.9%, and the position relative to the 52-week high is -47.1%. Relative strength versus the KOSPI is 69 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 70% of all stocks. Over the past three months it lagged the index by 0.4%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -0.44% / 6M -3.69% / 12M +7.83%
Key metrics vs whole-market median
Valuation
The P/E of 19.83x is above the whole-market median (13.81x). The P/B of 2.37x is above the whole-market median (1.15x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 11.0%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.308x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 11.9%, above the whole-market average (5.0%). The operating margin is 19.9%. The debt ratio is 139.7%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $765.0M | $749.7M | $926.0M | +23.52% ↑ faster |
| Operating profit | $175.9M | $126.5M | $183.8M | +45.30% ↑ faster |
| Net profit | $175.1M | $152.1M | $169.7M | +11.59% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $805.1M | $1.1B | $765.0M | $749.7M | $926.0M |
| Operating profit | $264.5M | $509.5M | $175.9M | $126.5M | $183.8M |
| Net profit | $210.0M | $370.4M | $175.1M | $152.1M | $169.7M |
| Revenue CAGR | 4-yr avg 3.56% | ||||
Revenue rose 23.5% year over year (2023 ₩1.2 trillion → 2024 ₩1.1 trillion → 2025 ₩1.4 trillion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit rose 45.3% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 3.6%. The two-year revenue CAGR is 10.0%. In the most recent quarter (Q1 2026), revenue was 26.0% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- ROE of 11.9% points to solid profitability.
- Revenue grew 23.5% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-06EarningsQ1 2026 preliminary results: revenue ₩374.6 billion (+26.0%), operating profit ₩63.7 billion (+21.4%), net profit ₩86.9 billion (+89.3%)Higher utilization and an improved high-value product mix converting into profit. The net-profit surge in particular is grounds for raising this year's earnings power. Source
- 2026-05-22FilingDisclosure on treasury-stock purchase and large-shareholding reportThe treasury-stock purchase is favorable to shareholder value by shrinking shares outstanding. Source
- 2026-05-11FilingDisclosure on conversion of convertible bonds into new shares via exercise of conversion rightsA modest dilution factor from new-share conversion. An item to watch given the change in capital structure. Source
- 2026-06-01DividendDividend-related disclosure (cash dividend and the like)Maintains the ₩810-per-share dividend policy, a yield of about 0.6%. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-04OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-01Corporate governance report
- 2026-06-01PeriodicAnnual business report (amended)
- 2026-05-29Business suspension
- 2026-05-29Large-business-group status disclosure
- 2026-05-28OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-22OwnershipLargest-shareholder ownership change report
- 2026-05-22OwnershipOwnership-change filing
- 2026-05-21OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-15PeriodicQuarterly report
- 2026-05-14OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-11Disclosure
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.