KODENSHI KOREA is an electronic-components maker producing discrete semiconductors such as diodes and transistors, optical sensors, and LEDs, with its PKG segment — which packages chips and sells them — making up about 78.7% of revenue, so demand for discrete devices and sensors, exchange rates, and cost competitiveness heavily shape its results. In a disclosure on February 26 the company attributed a more than 60% drop in 2025 net profit, despite rising revenue, to 'the impact of exchange-rate movements,' and the May 15 Q1 report confirmed the latest results showing net profit recovering quickly — the key point being that its earnings power is better than last year's confirmed P/E suggests. The point to watch: if demand for discrete devices and sensors revives and the core operating margin rises alongside, the low P/B and the profit recovery mesh together for strength, whereas with the core operating margin still low in the low-1% range, much of the profit recovery leans on non-operating flows such as exchange rates.
At-a-glance assessment financial health · growth · profitability · valuation
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue rose 1.9% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 2.8% lower than a year earlier.
- ROE is 1.8% (controlling-interest basis). It is above the sector average.
- Operating margin is 0.9%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Nakajima Hirokazu 17.05% (individual)
Controlling bloc incl. related parties 53.14%
With the controlling bloc holding 53%, control is very secure but the free float is thin.
🔎 In-depth analysis
- KODENSHI KOREA is not a memory-chip company but an electronic-components maker producing discrete semiconductors — such as diodes and transistors that handle a circuit's basic functions — along with light-detecting optical sensors (photo sensors) and LEDs.
- By revenue, the PKG segment, which packages chips and sells them as finished form, is about 78.7%, and the FAB segment, which processes wafers directly, is about 21.1% (as of 2025), so PKG in effect accounts for most of the company's revenue.
- These components go into IT products such as mobile devices, cars, and digital home appliances as key parts, and in its business report the company states that it is pursuing next-generation semiconductor development aimed at the robotics and AI fields.
- Its business character is entirely different from that of large memory makers like SK Hynix, so demand for discrete devices and sensors, exchange rates, and cost competitiveness shape its results more than the memory cycle.
- The latest closing price is ₩5,640 and the market cap is ₩326.8 billion.
- The price sits below the 20-day line (₩7,476) and below the 60-day line (₩10,046).
- Trading below both the short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that compares upward and downward strength over the past 14 days on a 0-100 scale) is 36.2, a neutral level.
- The one-month change is -34.9%, the three-month change is -25.0%, and the position versus the 52-week high is -68.3%.
- Relative strength against the KOSPI is 95 (1-99, converting return versus the index over the past year with more weight on recent moves; higher means stronger than the market).
- That places it in roughly the top 4% of all stocks by strength.
- Over the past three months it lagged the index by 43.9%.
- Chart reading is best done alongside trading volume and disclosure dates.
- On a confirmed annual basis (2025), the P/E ratio (how many times a year's profit the price is) is 76.73x, higher than the industry median (32.25x).
- But reading that number straight as expensive is a misunderstanding.
- This P/E is on a trailing basis — 2025 net profit fell about 60% year on year due to the impact of exchange-rate movements, the figure of a year in which profit was temporarily depressed.
- Because the denominator profit was abnormally small, the multiple looks large; the earnings power itself is not that expensive.
- On the basis of this year, with profit back on a normal track, the P/E comes down to 49.47x, close to half of last year's.
- The P/B (how many times net assets the price is) is 1.36x, actually lower than the industry median (2.29x), so relative to net assets the burden is not large.
- On profitability, ROE (return earned on equity in a year) is 1.8% and the operating margin is 0.9%, still on the low side, but with a debt ratio (debt to equity) of 107.2% and a current ratio of 910%, financial stability and short-term paying ability are ample.
- For a stock at a profit inflection, the real value shows only when the picture of normalized profit is viewed together with last year's single-line P/E.
- Five-year revenue fell from ₩173.8 billion in 2021 to ₩132.7 billion in 2025, a five-year CAGR of -6.5%, but looking only at the last three years — ₩125.7 billion in 2023 → ₩130.2 billion in 2024 → ₩132.7 billion in 2025 — it is on a gently recovering path again.
- Operating profit also carried a surplus trend, from a loss in 2023 (-₩4.4 billion) to +₩1.5 billion in 2024 and +₩1.2 billion in 2025.
- The key is the profit inflection.
- 2025 net profit fell temporarily by nearly 60% due to exchange rates, but in Q1 2026 net profit of ₩4.13 billion grew 75.8% year on year, recovering to a normal level right away.
- In just one quarter it earned profit rivaling last year's full-year net profit (₩4.26 billion).
- On the foundation of a core business turning over steadily without losses, this is a phase where profit is finding its footing as the exchange-rate headwind that weighed on last year lifts, and this year's P/E of 54.34x reflects this normalized earnings power.
- Setting aside last year's temporary weakness, the profit flow is closer to recovery than retreat.
- Recent disclosures weigh toward core-business recovery, shareholder return, and explanations behind the results movement.
- In a March 27, 2026 'value-up plan,' the company said it would secure a stable profit base through improved production efficiency and cost competitiveness and would keep paying dividends (no specific revenue or profit targets were stated).
- In a February 26 disclosure of a profit-and-loss structure change, it directly attributed a more than 60% drop in net profit, despite 2025 revenue rising 1.9%, to 'the impact of exchange-rate movements,' explaining for itself that last year's profit decline was a temporary factor rather than core-business weakness.
- On March 12 it decided a cash dividend of ₩50 per share (record date 2025-12-31, total payout about ₩2.5 billion), and the May 15 Q1 report confirmed the latest results showing net profit recovering quickly.
- This summary is based on disclosures and reports as primary sources rather than general news.
- The strengths are clear.
- A distinct core business in discrete devices, optical sensors, and LEDs has been recovering revenue for a third year without losses; a low debt ratio and ample liquidity make the finances solid; and a value-up plan to keep paying dividends steadily is confirmed by disclosure.
- Above all, as the exchange-rate headwind that weighed on last year lifted, profit recovered to a normal level right away in Q1, so the key point is that its earnings power is far better than last year's confirmed P/E suggests.
- That the P/B is lower than the industry median also indicates the burden relative to net assets is not large.
- Points to weigh alongside: the core operating margin is still low in the low-1% range, so much of the profit recovery leans on non-operating flows such as exchange rates, and this year's P/E of 49.47x is still above the industry median, so expectations for the profit recovery are already partly priced in.
- In sum, if demand for discrete devices and sensors revives and the core operating margin rises alongside, the low P/B and the profit recovery mesh together for strength, whereas if the core margin marks time and profit leans only on non-operating factors, the strength weakens.
🔎 Valuation vs peers Overvalued
The peer set comprises stocks whose core business is discrete devices, optical devices, and semiconductor packaging rather than memory; KEC is the most similar in business with discrete devices and power semiconductors like diodes and transistors, SFA Semicon overlaps with the packaging business that makes up 78% of KODENSHI KOREA's revenue, and Hana Materials is a supplementary sample of semiconductor materials for industry-condition comparison.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| KEC | — | 0.38x | -8.15% |
| SFA Semicon | — | 1.73x | -4.05% |
| Hana Materials | 26.13x | 2.16x | 8.28% |
(a) Position versus peers: KEC, most similar in its discrete core business, has a P/B of 0.49x and SFA Semicon, overlapping in packaging, has a P/B of 2.4x, while KODENSHI KOREA at a P/B of 1.54x is on a net-asset basis similar to or even lower than peers. On the other hand, its P/E of 87.07x is far higher than even Hana Materials (34.9x), which has a healthier profit flow. (b) Premium/discount: on a net-asset (P/B) basis it is not so much a discount as roughly on par with peers, but on a profit (P/E) basis it looks like a large premium. (c) That said, much of this P/E premium stems from the optical illusion of 2025 net profit temporarily plunging on exchange rates, and because the company has not provided an official profit forecast, a forward approximation of operating and net profit is impossible (only a seasonality-based revenue approximation is possible). Therefore, until the core profit normalizes it is hard to call it expensive on last year's P/E alone, and at the same time, given the low core margin, hard to call it cheap, so it is marked Overvalued but not as a definitive conclusion.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩36.3 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩5,640 and the market capitalization is ₩326.8 billion. The price sits below its 20-day moving average (₩7,476) and below its 60-day moving average (₩10,046). 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 36.2, a neutral level. The one-month change is -34.9%, the three-month change is -25.0%, and the position relative to the 52-week high is -68.3%. Relative strength versus the KOSPI is 95 (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 96% of all stocks. Over the past three months it lagged the index by 43.9%. 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 -43.93% / 6M +94.46% / 12M +19.03%
Key metrics vs sector median
Valuation
The P/E of 76.73x is above the sector median (27.09x). The P/B of 1.36x is below the sector median (2.10x). 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.
Profitability & financials
The operating margin is 0.9%. The debt ratio is 107.2%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $83.3M | $86.3M | $87.9M | +1.92% ↓ slower |
| Operating profit | -$2.9M | $976,294 | $798,446 | -18.22% |
| Net profit | -$635,764 | $7.0M | $2.8M | -59.65% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $115.2M | $100.9M | $83.3M | $86.3M | $87.9M |
| Operating profit | $4.6M | $3.9M | -$2.9M | $976,294 | $798,446 |
| Net profit | $7.3M | $9.2M | -$635,764 | $7.0M | $2.8M |
| Revenue CAGR | 4-yr avg -6.52% | ||||
Revenue rose 1.9% year over year (2023 ₩125.7 billion → 2024 ₩130.2 billion → 2025 ₩132.7 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit fell 18.2% year over year. Over the 5 years on record, revenue compound annual growth (CAGR) is -6.5%. The two-year revenue CAGR is 2.7%. In the most recent quarter (Q1 2026), revenue was 2.8% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- Revenue rose 1.9% 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) filed — securing a stable profit base through improved production efficiency and cost competitiveness, with dividend continuity and stability as goals (no specific revenue or profit targets stated)Officially formalized the direction of shareholder return over the mid term, but with no quantitative targets included, whether it leads to earnings improvement needs confirmation from subsequent quarterly results. Source
- 2026-02-26EarningsProfit-and-loss structure change disclosure — 2025 revenue of ₩132.685 billion (+1.9%), operating profit of ₩1.205 billion (-18.2%), net profit of about ₩4.23 billion (-60.2%). The company specified 'the impact of exchange-rate movements' as the cause of the net-profit declineIn the short term, the core business (revenue) grew slightly but net profit plunged on exchange rates, the backdrop to why the P/E on last year's confirmed results looks higher than the actual earnings power. Source
- 2026-03-12DividendCash dividend decision — ₩50 per common share, total payout about ₩2.518 billion, record date 2025-12-31, payment scheduled 2026-04-07 (payout ratio about 59.2%)Confirms shareholder-return intent over the mid term. That said, with a high payout ratio relative to the scale of profit, dividend capacity could come under pressure if profit falls further. Source
- 2026-05-15FilingQuarterly report (2026.03) filed — Q1 revenue of ₩34.472 billion (-2.8%), operating profit of ₩0.675 billion (-63.8%), net profit of ₩4.130 billion (+75.8%). Net profit rose on non-operating factors amid a soft core businessIn the short term, it shows both core-margin weakness and reliance on non-operating profit, implying that the quality of profit must be examined. Source
- 2026-03-19Filing2025 business report (42nd term) filed — segments of PKG 78.68%, FAB 21.10%, other 0.22%, with core products confirmed as discrete semiconductors, optical sensors, and LEDsA primary source over the mid term that fixes the revenue mix and core-business identity, clarifying that it is a discrete- and optical-device business, not memory. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 operating-profit change rate | operating profit ₩1.2 billion, -18.2% | operating profit 1,204,703, 1,473,042, -18.2% | Confirmed | link |
| 2025 revenue change rate | revenue ₩132.7 billion, +1.9% | revenue 132,685,278, 130,189,190, +1.9% | Confirmed | link |
| Dividend per share / dividend yield on record-date price | ₩50,x 59.2% | ₩50, 2.77%, ₩2,518,188,150 | Confirmed | link |
| 2026 annual revenue (approximation) | approx. ₩136.9 billion | — | Unverified | link |
Recent filings
- 2026-05-29Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-03-27Disclosure
- 2026-03-27Shareholders' meeting notice
- 2026-03-19PeriodicAnnual business report
- 2026-03-19Audit report
- 2026-03-12Shareholders' meeting notice
- 2026-03-12Shareholders' meeting notice
- 2026-03-12DividendCash/stock dividend decision
- 2026-03-12Shareholders' meeting notice
- 2026-02-26EarningsEarnings filing
📖 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.