Nepes is not a company that designs or manufactures chips itself but a back-end firm that packages finished chips to protect them from shock, heat and moisture and creates their electrical connections; its core is bumping, which plants electrical bumps on the wafer, and fan-out packaging, and it has world-class mass-production experience in packaging power management chips (PMICs) for smartphones, with electronic materials and secondary batteries forming supporting pillars. First-quarter 2026 revenue of ₩134.0 billion and operating profit of ₩10.9 billion (+199% year on year) confirmed an operating recovery, last year's turn to profit was finalized, and ROE of 13.4% is above the industry average. The key point to note recently is that its rare-for-Korea fan-out mass-production experience and turn to profit give it a strength in a forward P/E of 29.5x below the industry median, but its debt-to-equity ratio of 563% and current ratio of 86% make its debt burden heavy, and first-quarter net profit did not keep pace with operating profit.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 563.3%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 86.2%).
- Revenue rose 12.3% year over year, and the pace is quickening (3-year trend: mixed).
- Net profit swung from a loss a year earlier back into the black (a turnaround).
- Most recent quarter (Q1 2026) revenue was 3.5% higher than a year earlier.
- ROE is 13.4% (controlling-interest basis). It is above the sector average.
- Operating margin is 4.6%.
- P/B is high versus peers, a stretch on an asset basis.
Ownership & governance As of 2025-12-31
Largest shareholder Lee Chang-woo 23.53% (individual)
Controlling bloc incl. related parties 27.29%
With the controlling bloc holding 27%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- Nepes is not a company that designs or manufactures semiconductors itself; it is a back-end firm that packages finished semiconductor chips to protect them from external shock, heat and moisture and creates their electrical connections.
- Its core is bumping, which plants tiny electrical bumps directly on the wafer (the semiconductor base plate), and fan-out packaging (FOWLP/FO-PLP), which packages chips all at once at the wafer or panel level; in particular it has world-class mass-production experience in packaging power management chips (PMICs) that go into smartphones.
- Revenue is centered on semiconductor packaging as its largest pillar, with electronic materials, which make functional materials for semiconductors, and secondary batteries, which make battery components (lead tabs), forming supporting pillars.
- Testing (Nepes Ark) and panel-level fan-out (Nepes Laweh) are separated into distinct subsidiaries, so Nepes' head office is an operating company that directly mass-produces bumping and wafer-level packaging.
- The recent close is ₩20,650 and the market cap is ₩476.2 billion.
- The price is below its 20-day line (₩27,949) and below its 60-day line (₩30,394).
- Sitting below both the short- and medium-term moving averages, the trend is on the depressed side.
- The RSI (an auxiliary indicator comparing upward and downward momentum over the past 14 days on a 0-100 scale) is 34.5, at a neutral level.
- The one-month change is -33.2%, the three-month change is -5.9%, and the position versus the 52-week high is -47.0%.
- Relative strength versus the KOSDAQ is 87 (on a 1-99 scale, converting the past year's return versus the index with more weight on recent periods; higher means stronger than the market), placing it in roughly the top 12% of all stocks by strength.
- Over the past three months it led the index by 24.3%.
- Chart interpretation is best done alongside trading volume and disclosure dates.
- Based on confirmed annual results (last year, FY2025), the P/E ratio (how many times a year's earnings the price represents) is 28.72x and the P/B (how many times the book net asset value the price represents) is 3.85x.
- That said, these figures are based on earnings from the first profitable year right after exiting losses, so at a company passing through an earnings inflection point they can overstate actual value.
- The forward P/B reflecting this year's expected earnings is 3.85x, lower than the trailing figure.
- In particular, the forward P/E is below the semiconductor industry median (35.3x), so if this year's earnings recovery continues, it is hard to view the current price as simply expensive.
- On profitability, ROE (how much is earned in a year on shareholders' equity) is 13.4%, above the industry average and sound, while the operating margin is 4.6%, still on the thin side given the nature of back-end work.
- The area most worth watching is the balance sheet.
- The debt-to-equity ratio (debt relative to equity) is 563%, meaning debt is more than five times equity, and the current ratio (assets that can be turned into cash immediately versus debt due within a year) is 86%, below 100%.
- How much this burden eases as earnings grow is the financial point to watch.
- Five-year revenue rose, with ups and downs, from ₩418.4 billion in 2021 to ₩521.4 billion in 2025, a five-year compound annual growth rate (CAGR) of about 5.7%, and most recently +12.3% year on year as the pace of increase quickened again.
- The change in earnings is even more distinct.
- Operating profit was just ₩3.4 billion in 2024, then jumped about 599% to ₩23.8 billion in 2025, and net profit turned from losses in the tens of billions of won in 2023-2024 to a profit of ₩16.6 billion in 2025.
- Because this is a turn from loss to profit, the breadth of the recovery is large.
- The forward P/E reflecting this year's expected earnings falling below the trailing figure (35.6x) means it embodies a picture in which this year's earnings grow further than last year.
- Behind this are the mainstay demand of smartphone power-management-chip packaging and fan-out volume, and the nature of back-end work in which utilization rises as it passes through a loss stretch.
- Indeed, first-quarter 2026 operating profit rose +199% year on year to ₩10.9 billion, showing the operating-level improvement first.
- However, net profit in the same quarter was ₩1.2 billion, down year on year, because burdens below the operating line such as financial costs remain, so the point that the pace of operating recovery and net-profit recovery diverges should be viewed together.
- Recent disclosures center on periodic reporting and stake-related matters.
- The May 2026 quarterly report (2026.03) disclosed confirmed first-quarter results, confirming an operating recovery with revenue of ₩134.0 billion and operating profit of ₩10.9 billion (+199% year on year), and the March business report (2025.12) finalized last year's turn to profit.
- At the March annual general meeting, governance matters such as the appointment of outside directors and a change of head-office location were handled, and in April a large-holdings report by a major shareholder and reports of stake changes by executives and major shareholders followed.
- Rather than major disclosures that change operations themselves, such as a single supply contract or capacity expansion, these are centered on confirmed results and stake changes, so the weight of the events rests on confirming whether the first profitable year's earnings carry through this year too.
- Nepes is a company whose earnings are growing quickly after crossing from a loss stretch into profit.
- Its strengths are fan-out packaging mass-production experience that is rare in Korea, last year's clear turn to profit, ROE of 13.4% above the industry average, and a forward P/E based on this year's expected earnings (29.5x) below the industry median.
- Judged on trailing multiples alone, having just exited losses, it looks expensive, but given that this is a company with growing earnings, there is reasonable grounds in the price.
- A point to watch together is the balance sheet.
- With a debt-to-equity ratio of 563% and a current ratio of 86%, the debt burden is heavy, and first-quarter net profit did not keep pace with operating profit.
- In sum, it is a structure that is strong when the operating profit trend carries through on an annual basis and the growing earnings ease the financial burden, and weak when the earnings recovery stalls or the financial-cost burden grows again.
- The breadth of the turn to profit and the appeal of the forward multiple are clear, so whether that trend carries through quarter to quarter is the point to watch.
🔎 Valuation vs peers Overvalued
Centered on back-end firms (OSAT / advanced packaging) that do not make semiconductors themselves but package and connect chips, selecting the stocks closest in business character; the on-site figures are the site's own calculated values (based on the current price).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hana Micron | 61.39x | 5.87x | 9.56% |
| LB Semicon | — | 0.86x | -56.72% |
| SFA Semicon | — | 1.73x | -4.05% |
(a) Against back-end peers of the same kind, Nepes is ahead on profitability with ROE of 13.4% and is in the black, while Hana Micron has a higher P/E and P/B but LB Semicon and SFA Semicon are loss-making, making a P/E comparison difficult. (b) Versus the industry median, both P/E and P/B are higher, placing it in a premium stretch, which can be read as pricing in the turn to profit and fan-out expectations in advance. (c) That said, this P/E is based on last year's confirmed (trailing) earnings, so it has limits at an earnings inflection point. If this year's earnings grow further, the forward multiple falls; with no official company outlook, approximating only from the seasonality of DART quarterly results puts this year's operating profit at roughly ₩71.0 billion, in which case the multiple burden eases somewhat. Rather than declaring it expensive or cheap, given that the financial burden of a 563% debt-to-equity ratio and earnings durability must be viewed together, we see the signals tilting toward "Overvalued" while allowing that room for forward improvement remains.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩143.3 billion | approx. ₩23.9 billion | — |
Price history Close · MA20 · MA60
The latest close is ₩20,650 and the market capitalization is ₩476.2 billion. The price sits below its 20-day moving average (₩27,949) and below its 60-day moving average (₩30,394). 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 34.5, a neutral level. The one-month change is -33.2%, the three-month change is -5.9%, and the position relative to the 52-week high is -47.0%. Relative strength versus the KOSDAQ is 87 (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 88% of all stocks. Over the past three months it outpaced the index by 24.3%. 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 +24.32% / 6M +43.71% / 12M +79.41%
Key metrics vs sector median
Valuation
The P/E of 28.72x is in line with the sector median (27.09x). The P/B of 3.85x is above 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.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 11.0%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis. A reference range that shifts materially with assumptions.
Profitability & financials
The operating margin is 4.6%. The debt ratio is 563.3%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $310.8M | $307.7M | $345.6M | +12.30% ↑ faster |
| Operating profit | $6.7M | $2.3M | $15.7M | +598.49% ↑ faster |
| Net profit | -$65.3M | -$41.2M | $11.0M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $277.3M | $389.7M | $310.8M | $307.7M | $345.6M |
| Operating profit | -$10.9M | -$4.4M | $6.7M | $2.3M | $15.7M |
| Net profit | -$26.3M | $51.4M | -$65.3M | -$41.2M | $11.0M |
| Revenue CAGR | 4-yr avg 5.66% | ||||
Revenue rose 12.3% year over year (2023 ₩469.0 billion → 2024 ₩464.3 billion → 2025 ₩521.4 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit rose 598.5% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 5.7%. The two-year revenue CAGR is 5.4%. In the most recent quarter (Q1 2026), revenue was 3.5% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- ROE of 13.4% points to solid profitability.
- Revenue grew 12.3% year over year, a sign of growth.
Points to watch
- Debt far exceeds equity (debt ratio 563.3%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 86.2%).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-15EarningsDisclosure of the quarterly report (2026.03) — first-quarter 2026 revenue of ₩134.0 billion and operating profit of ₩10.9 billion (+199% year on year), with net profit of ₩1.2 billion, down year on yearShort term: the operating-level recovery is confirmed, but with the net-profit slowdown the quality of the recovery must be weighed. Medium term: whether the first-quarter operating trend carries through on an annual basis is the core basis for the valuation. Source
- 2026-03-18EarningsDisclosure of the business report (2025.12) — 2025 operating profit of ₩23.8 billion in a turn to profit, and net profit of ₩16.6 billion, confirming a turnaround from last year's lossShort term: the turn to profit is confirmed in the accounts, raising reliability. Medium term: as the first profitable year, whether earnings persist is the next point to watch. Source
- 2026-03-26FilingDisclosure of AGM results — resolutions on governance and operating matters such as the appointment of outside directors and a change of head-office locationShort term: limited direct impact on operations. Medium term: board composition and the head-office change relate to governance and the operating base, useful as background information. Source
- 2026-04-08FilingDisclosure of a large-holdings report (general) and a report on ownership of specific securities by executives and major shareholders — reporting of major-shareholder stake changesShort term: stake changes are reference information for supply and demand. Medium term: they do not change the business itself, but serve as material for checking the holding trends of controlling and major shareholders. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 operating profit (annual, confirmed) | ₩23.8 billion | ₩23.8 billion | Confirmed | link |
| First-quarter 2026 operating profit | ₩10.9 billion | ₩10.9 billion | Confirmed | link |
| Confirmed annual P/E (trailing) | 43.9x | — | Unverified | link |
| 2026 operating profit for the year (seasonality approximation) | ₩71.0 billion | — | Unverified | link |
Recent filings
- 2026-06-08OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-15PeriodicQuarterly report
- 2026-04-08OwnershipOwnership-change filing
- 2026-04-08OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-26Disclosure
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-23OwnershipOwnership-change filing
- 2026-03-18PeriodicAnnual business report
- 2026-03-18Audit report
- 2026-03-12Amended filing
- 2026-03-11Disclosure
📖 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.