Dongjin Semichem is an electronic-materials company whose flagship product is the photoresist used in the photolithography step of semiconductor and display manufacturing. It was the first Korean firm to localize semiconductor photoresist back in 1989, and Samsung Electronics and SK Hynix are among its main customers, so chip output and the pace of the shift to finer process nodes drive its results. In March 2026 the company announced a value-up plan, and in April it decided to cancel treasury shares, strengthening shareholder returns; in May it reported first-quarter operating profit up 39% and net profit up 85%. What stands out lately is that in this business of essential materials, earnings are turning up off a trough, and with the value-up plan and treasury-share cancellation added on, last year's demanding P/E of 29x looks much lower against this year's earnings. On the other side, profit is heavily tied to customer utilization and advanced-node investment, and the jump in first-quarter net profit includes a one-off gain from selling a subsidiary stake, so the key question is whether core operating profit can keep this pace.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 7.3% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 13.2% higher than a year earlier.
- ROE is 9.1% (controlling-interest basis). It is above the sector average.
- Operating margin is 14.4%.
- P/B is high versus peers, a stretch on an asset basis.
Ownership & governance As of 2025-12-31
Largest shareholder Dongjin Holdings 32.49% (corporate)
Controlling bloc incl. related parties 38.62%
With the controlling bloc holding 39%, the ownership structure is stable.
🔎 In-depth analysis
- Dongjin Semichem is an electronic-materials company whose main product is photoresist, the light-sensitive material used in the photolithography step (imprinting patterns with light) when making semiconductors and displays; the material reacts to light to form the circuit pattern.
- The company was the first in Korea to localize semiconductor photoresist, in 1989, and its main customers are chipmakers such as Samsung Electronics and SK Hynix, along with display makers.
- Revenue splits broadly into semiconductor electronic materials, display chemicals, and the more recently growing battery materials (such as CNT conductive-additive slurry that improves cell performance), on top of a blowing-agent business used in building materials and automotive interiors.
- In short, it supplies materials that are indispensable for making chips and screens, so chip output and the pace of migration to finer process nodes drive its results.
- The latest close is ₩43,100 and the market cap is ₩2.2 trillion.
- The price sits below its 20-day line (₩55,528) and below its 60-day line (₩56,600).
- Trading below both the short- and medium-term moving averages, the trend looks subdued.
- The RSI (an auxiliary gauge that weighs upward against downward momentum over the past 14 days on a 0-100 scale) is 33.5, a neutral level.
- The one-month change is -17.4%, the three-month change is -3.7%, and the position versus the 52-week high is -34.7%.
- Relative strength against the KOSDAQ is 81 (1-99, computed from returns versus the index over the past year with recent performance weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 18% of all stocks by strength.
- Over the past three months it outpaced the index by 23.5%.
- Chart reading is best done alongside trading volume and disclosure dates.
- On a confirmed full-year (2025) basis, the P/E (how many times one year's earnings the price represents) is 22.17x, which looks pricey at first glance, but that figure rests on a depressed 2025 net profit of ₩99.1 billion, down 36% from the prior year (₩154.8 billion).
- For a stock whose earnings are rising off a trough, last year's P/E tends to overstate the true value.
- In fact, first-quarter 2026 operating profit was ₩66.6 billion, up 39% year on year, and if that trend continues the multiple on this year's earnings drops well below 30x rather than sitting near it.
- Profitability is solid, with an ROE (how much is earned in a year on equity) of 9.1% and an operating margin of 14.4%, and the balance sheet is stable, with a debt ratio (debt against equity) of 83%, a current ratio of 195%, and an interest-coverage ratio of 7.6x.
- The dividend yield is 1.15% and the payout ratio (the share of net profit paid out as dividends) is 34%.
- Revenue over five years has swung around the ₩1 trillion mark (a brief spike to ₩1.46 trillion in 2022 followed by a pullback), and the last two years have recovered to ₩1.19 trillion in 2025 (+7.3%).
- Earnings have been choppy along with the semiconductor and display cycle, and the 2025 net-profit decline was largely a trough shaped by a soft industry backdrop and non-recurring factors.
- The key point is the clear rebound in the first quarter of 2026: revenue up 13.2% and operating profit up 39.4%, with core profitability improving noticeably.
- This appears to reflect a combination of recovering chip output, a bigger share of high-value materials for advanced nodes (such as EUV lithography), and growth in battery-materials revenue.
- That said, the surge in first-quarter net profit (+85%) partly includes a one-off gain from selling a stake in a Chinese subsidiary, so the sustainable picture is better read through the core improvement of "operating profit +39%" than through the net-profit figure.
- This year's earnings are seen recovering substantially from last year's trough, and on that basis the forward multiple is well below last year's trailing P/E.
- In March 2026 the company filed a value-up plan (a voluntary disclosure), and in April it decided to terminate its treasury-share trust agreement and to cancel the treasury shares it had acquired (a share-cancellation resolution).
- Cancelling treasury shares reduces the number of shares outstanding, a representative shareholder-return measure that lifts per-share value.
- Combined with the dividend (a 34% payout ratio), this points to a strengthening return posture.
- In May the company disclosed preliminary first-quarter results (operating profit +39%, net profit +85%) via a fair disclosure, and it held investor briefings (IR) twice, in April and May, to explain results and strategy directly.
- These disclosures matter because both pillars, an earnings rebound and stronger shareholder returns, are confirmed in official materials.
- The strong case is clear.
- In the essential-materials business of semiconductors and displays, first-quarter 2026 operating profit rose 39%, so earnings are climbing off a trough, and the balance sheet is stable.
- Last year's P/E of 29x looks inflated because of depressed earnings; measured against this year's profit the multiple falls sharply, so the apparent burden is overstated once the earnings rebound is factored in.
- The value-up plan and treasury-share cancellation strengthening shareholder returns are positives.
- On the cautious side, this company's earnings are closely tied to customers' (chip and display makers') utilization and advanced-node investment, so when the cycle turns, profit swings widely.
- The jump in first-quarter net profit also includes a one-off gain from a subsidiary sale, so from here the key is whether core operating profit can hold this pace.
- Since the shares have risen sharply over six months, further upside depends on results in the second half proving the rebound is durable.
🔎 Valuation vs peers Fairly valued
Domestic materials firms that supply process materials for semiconductors and displays.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Soulbrain | 29.03x | 2.17x | 7.49% |
| Wonik Materials | 8.84x | 0.82x | 9.27% |
Last year's confirmed P/E of 29x is mid-range compared with a materials peer (Soulbrain at 33x), but it is inflated by a 2025 net profit that hit a trough (down 36% year on year). For a stock whose earnings are rebounding, the limits of last year's trailing P/E are large. First-quarter 2026 operating profit rose 39%, and on the assumption that this improvement continues, the multiple on this year's earnings falls clearly below last year's, putting valuation at a "Fairly valued" level that is not heavy relative to earnings. That said, first-quarter net profit includes a one-off gain, so whether core operating profit is sustained will decide the valuation.
Price history Close · MA20 · MA60
The latest close is ₩43,100 and the market capitalization is ₩2.2 trillion. The price sits below its 20-day moving average (₩55,528) and below its 60-day moving average (₩56,600). 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 33.5, a neutral level. The one-month change is -17.4%, the three-month change is -3.7%, and the position relative to the 52-week high is -34.7%. Relative strength versus the KOSDAQ is 81 (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 82% of all stocks. Over the past three months it outpaced the index by 23.5%. 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 +23.51% / 6M +26.26% / 12M +30.50%
Key metrics vs sector median
Valuation
The P/E of 22.17x is above the sector median (14.79x). The P/B of 2.03x is above the sector median (0.97x). 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 9.8%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.816x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 9.1%, above the sector average (4.0%). The operating margin is 14.4%. The debt ratio is 83.5%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $669.2M | $737.5M | $791.4M | +7.31% ↓ slower |
| Operating profit | $98.6M | $116.3M | $114.3M | -1.69% ↓ slower |
| Net profit | $84.4M | $102.6M | $65.7M | -35.99% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $769.7M | $965.8M | $669.2M | $737.5M | $791.4M |
| Operating profit | $87.4M | $143.4M | $98.6M | $116.3M | $114.3M |
| Net profit | $68.4M | $105.7M | $84.4M | $102.6M | $65.7M |
| Revenue CAGR | 4-yr avg 0.70% | ||||
Revenue rose 7.3% year over year (2023 ₩1.0 trillion → 2024 ₩1.1 trillion → 2025 ₩1.2 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit fell 1.7% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 0.7%. The two-year revenue CAGR is 8.8%. In the most recent quarter (Q1 2026), revenue was 13.2% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue rose 7.3% year over year, and the pace is slowing (3-year trend: rising).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-03-27FilingValue-up plan (voluntary disclosure) - laying out the direction for enhancing shareholder valueSupports expectations of better shareholder returns and capital efficiency over the medium term. Execution is the key question. Source
- 2026-04-22FilingShare-cancellation resolution - reducing shares outstanding by cancelling treasury stockPositive for shareholder returns in the short to medium term through its effect of lifting per-share value. Source
- 2026-05-07EarningsQ1 2026 preliminary results (fair disclosure) - revenue ₩328.1 billion (+13.2%), operating profit ₩66.6 billion (+39.4%), net profit ₩66.9 billion (+85.2%)The core operating-profit rebound is the key point. The surge in net profit partly includes a one-off factor. Source
- 2026-05-21IRInvestor briefing (IR) held - explaining Q1 results and strategyThe company explains the backdrop to the earnings rebound and its business strategy directly (medium-term trust). Source
- 2026-04-13UpdateDecision to terminate treasury-share acquisition trust agreement - linked to cancelling the acquired sharesA shareholder-return step that connects to the subsequent share cancellation. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-08OwnershipOwnership-change filing
- 2026-05-29OwnershipOwnership-change filing
- 2026-05-21Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-07EarningsFair-disclosure notice
- 2026-05-04OwnershipOwnership-change filing
- 2026-04-22Disclosure
- 2026-04-16Disclosure
- 2026-04-13TreasuryMaterial-fact report
- 2026-04-02Disclosure
- 2026-04-01OwnershipOwnership-change filing
- 2026-03-27Disclosure
📖 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.