HM Nex earns money along two axes: on top of its long-standing core business of supplying automotive and lighting LED packages to customers such as Hyundai Mobis, a steady cash source, it has added a growth engine through subsidiary SMI, wholly acquired in 2025, which supplies LDS deposition-process equipment for semiconductors to SK Hynix. That acquisition shifted the company's identity toward a broader equipment maker; a March 2026 disclosure confirmed changes of +109% in revenue, +644% in operating profit and +98% in net profit, and top-line growth continued in Q1 with revenue up 203%. The notable point recently is that the stock is strong and its forward valuation also sits below peer equipment stocks when semiconductor equipment revenue settles into operating profit and SK Hynix demand continues; on the other hand, since the absolute size of core operating profit is still small, whether rapid top-line growth translates sufficiently into margin improvement is what determines the company's true weight class.
At-a-glance assessment financial health · growth · profitability · valuation
- Revenue rose 109.1% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 203.0% higher than a year earlier.
- ROE is 8.1% (controlling-interest basis). It is above the sector average.
- Operating margin is 7.5%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder HM Housing Management 33.28% (corporate)
Controlling bloc incl. related parties 37.11%
With the controlling bloc holding 37%, the ownership structure is stable.
🔎 In-depth analysis
- HM Nex earns money along two main axes.
- The first is its long-standing core business of automotive and lighting LED packages, making the LEDs that go into the electrical/electronic-equipment lighting of Hyundai and Kia vehicles and supplying them to Hyundai Mobis, Korea Alps, Mobase Electronics and others.
- As is typical of auto parts, once a supply relationship is established it tends to last, making it a steady cash source.
- The second is a newly built semiconductor-equipment business: SMI Co., whose 100% stake it acquired in 2025 and folded in as a subsidiary, supplies LDS (deposition compound supply system) equipment for deposition processes to SK Hynix.
- On top of that, its localized optical temperature sensor has passed Micron's quality test, so it is also attempting to enter overseas supply chains.
- In short, it is a structure that has laid a semiconductor-equipment growth engine on top of a foundation of proven automotive LED.
- The latest close is ₩2,895 and market capitalization is ₩177.7 billion.
- The price sits below the 20-day line (₩3,358) and below the 60-day line (₩5,315).
- Being under both its short- and medium-term moving averages, the trend is on the subdued side.
- The RSI (an auxiliary gauge that scores the strength of recent gains versus losses over the past 14 days on a 0-100 scale) is 32.3, a neutral level.
- The one-month change is -37.1%, the three-month change is -25.7%, and the position versus the 52-week high is -67.0%.
- Relative strength versus KOSDAQ is 98 (on a 1-99 scale, converting the past year's return versus the index with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 1% of all stocks by strength.
- Over the past three months it lagged the index by 18.0%.
- Charts are best read alongside trading volume and disclosure dates.
- The valuation metrics are a P/E ratio (how many times a year's profit the share price represents) of 16.21x and a P/B (how many times net asset value the share price is) of 1.32x.
- Against peers in the same semiconductor-equipment industry, whose P/Es generally run from the tens to the hundreds, this company's P/E clearly sits low.
- More importantly, the forward P/E on this year's expected earnings is almost the same as the P/E on last year's results.
- That is, if last year's profit had been temporarily inflated, the forward P/E would have to jump sharply, and the fact that it does not can be read as a signal that this year's earning power supports last year's level.
- And this forward P/E is lower than peer equipment stocks, so on an earnings basis it leans toward undervalued rather than expensive.
- Profitability is also above the peer average, with ROE (how much is earned in a year on equity) at 8.1% and a high net margin of 34.6%.
- The debt ratio (debt against equity) is at a normal 120.7%, and with a current ratio of 1,810% short-term cash headroom is very ample.
- Top-line growth is its clearest strength.
- Revenue rose from ₩14.5 billion in 2023 to ₩15.2 billion in 2024 to ₩31.7 billion in 2025, jumping +109% in a single year, and Q1 2026 revenue was ₩11.6 billion, up +203% from a year earlier.
- This is not a simple flash of growth but the result of subsidiary SMI's semiconductor-equipment revenue being consolidated in, which lifted the revenue base itself up a rung.
- As long as SK Hynix's deposition-process investment continues, equipment demand backs the structure, so there is a clear business rationale for the top-line expansion.
- Operating profit is also growing alongside, up +644% in 2025 and +27% in Q1.
- That the forward P/E on this year's expected earnings (17.26x) stays similar to last year's P/E means this year's earnings will come in strongly enough not to leave last year's good results as a one-off.
- That said, since the absolute size of core operating profit is still small, how much revenue growth carries over into operating-profit growth is the next stage to watch.
- The core of the recent flow is twofold.
- First, by acquiring 100% of semiconductor-equipment maker SMI Co. in 2025 and folding it in as a subsidiary, the company's identity shifted from 'LED maker' to 'a broader equipment maker doing both LED and semiconductor equipment.' This acquisition is the direct cause of the 2025 revenue surge and the shift to consolidated reporting in the business report.
- Second, a March 2026 disclosure on 'a change of 30% or more in revenue or profit-and-loss structure' officially confirmed changes of +109% in revenue, +644% in operating profit and +98% in net profit, with the company citing improved automotive-LED earnings, gains related to subsidiaries and associates, and non-operating interest income as the reasons.
- In the May 2026 Q1 report, top-line growth continued with revenue up +203%.
- Beyond that, at the March regular general meeting, routine governance procedures such as changes in outside directors were carried out.
- This is a stock with a relatively clear strength.
- It has laid a growth axis of SK Hynix-bound semiconductor deposition equipment on top of a stable base of proven automotive LED, and even as revenue grows rapidly, its valuation on this year's expected earnings sits below peer equipment stocks.
- That last year's P/E and this year's expected P/E are almost the same supports the possibility that last year's good profit will not end as a one-off.
- Liquidity is also ample, so the short-term financial burden is small.
- The point to watch together is that the absolute size of core operating profit is still not large.
- Since revenue is growing fast, whether this top-line growth carries through sufficiently into operating profit is what will determine the company's true weight class.
- In sum, it is strong when semiconductor-equipment revenue settles into operating profit and SK Hynix demand continues, and weak when revenue merely grows while core margin improvement lags.
- The valuation itself is not a spot carrying a heavy burden relative to earnings, but is rather priced low relative to its growth.
🔎 Valuation vs peers Inconclusive
As a hybrid small-cap doing both automotive LED and semiconductor deposition/process equipment, a fully like-for-like peer is rare. On the basis of business adjacency (front- and back-end semiconductor equipment), Jusung Engineering (deposition equipment), Park Systems (metrology/precision), TSE (test equipment) and Techwing (handlers) are used as reference comparables.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Jusung Engineering | 208.36x | 12.60x | 6.05% |
| Park Systems | 58.60x | 8.97x | 15.31% |
| TSE | 64.81x | 6.33x | 9.77% |
| Techwing | 155.50x | 6.80x | 4.37% |
The reference peer semiconductor-equipment stocks have very high P/Es of 50-277x, because their earnings are at a cyclical trough or because they have pre-priced future earnings on the memory-equipment theme. HM Nex's P/E of 21.8x is markedly lower, appearing on the surface to be a discount. However, this company's last-year net profit was inflated at the denominator not by the core business (operating profit ₩2.37 billion) but by non-operating income such as equity-method and consolidated subsidiary income and interest income. So the trailing P/E on last year's results can overstate core earning power, and it is hard to conclude it is 'cheap' versus peers. Conversely, revenue is genuinely growing fast, so on a top-line basis (P/S) it is not excessively expensive. Until it is confirmed whether core operating profit grows meaningfully and reliance on non-operating income falls, it is reasonable to withhold judgment rather than declare it undervalued or overvalued.
Price history Close · MA20 · MA60
The latest close is ₩2,895 and the market capitalization is ₩177.7 billion. The price sits below its 20-day moving average (₩3,358) and below its 60-day moving average (₩5,315). 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 32.3, a neutral level. The one-month change is -37.1%, the three-month change is -25.7%, and the position relative to the 52-week high is -67.0%. Relative strength versus the KOSDAQ is 98 (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 99% of all stocks. Over the past three months it lagged the index by 18.0%. 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 -17.98% / 6M +309.58% / 12M +205.44%
Key metrics vs sector median
Valuation
The P/E of 16.21x is below the sector median (27.09x). The P/B of 1.32x is below the sector median (2.10x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets. 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, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
The operating margin is 7.5%. The debt ratio is 120.7%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $9.6M | $10.0M | $21.0M | +109.11% ↑ faster |
| Operating profit | $9,555 | $210,831 | $1.6M | +644.14% ↓ slower |
| Net profit | $5.3M | $3.5M | $7.3M | +106.33% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $10.5M | $8.9M | $9.6M | $10.0M | $21.0M |
| Operating profit | $871,116 | -$712,239 | $9,555 | $210,831 | $1.6M |
| Net profit | $1.0M | $2.8M | $5.3M | $3.5M | $7.3M |
| Revenue CAGR | 4-yr avg 18.91% | ||||
Revenue rose 109.1% year over year (2023 ₩14.5 billion → 2024 ₩15.2 billion → 2025 ₩31.7 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 644.1% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 18.9%. The two-year revenue CAGR is 47.8%. In the most recent quarter (Q1 2026), revenue was 203.0% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- Revenue grew 109.1% year over year, a sign of growth.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-03-11Earnings2025 disclosure of a profit-and-loss structure change of +109% revenue, +644% operating profit and +98% net profit. The company cited improved automotive-LED earnings, gains related to subsidiaries and associates, and non-operating interest income as the reasons.Officially confirms the surge in top line and profit. But a large share of the net-profit increase is non-operating/investment income, so it must be interpreted separately from core profitability (medium term). Source
- 2026-03-19Filing2025 business report filed. Discloses consolidated results and business status including the automotive-LED division and the newly folded-in semiconductor-equipment subsidiary (SMI).Confirms the business structure shifted from LED-only to a 'LED + semiconductor equipment' mix. A diversification-in-progress stage (medium term). Source
- 2026-05-15EarningsQ1 2026 report. Quarterly revenue ₩11.6 billion (+203% YoY), operating profit ₩0.87 billion (+27%) and net profit ₩2.7 billion (+49%), continuing top-line growth.Confirms continued high revenue growth from the SMI consolidation effect. Operating profit also rose alongside, but its absolute size is still small (short term). Source
- 2026-03-27FilingRegular general meeting results and notification of outside-director changes. Routine governance procedures such as changes in board composition were carried out.A routine governance/oversight event rather than about the business itself (limited short-term impact). Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 revenue (consolidated) | ₩31.7 billion | ₩31.7 billion (+109.11%) | Confirmed | link |
| 2025 operating profit (consolidated) | ₩2.4 billion | ₩2.4 billion (+644.14%) | Confirmed | link |
| Q1 2026 revenue (consolidated) | ₩11.6 billion | approx. ₩11.6 billion | Confirmed | link |
| Composition of net profit (share of non-operating income) | net profit 110 = operating profit 23.7 approx. 4.6x | : | Confirmed | link |
Recent filings
- 2026-05-15PeriodicQuarterly report
- 2026-03-27Disclosure
- 2026-03-27Shareholders' meeting notice
- 2026-03-19PeriodicAnnual business report
- 2026-03-19Audit report
- 2026-03-11Disclosure
- 2026-03-11Shareholders' meeting notice
- 2026-03-11Shareholders' meeting notice
- 2026-03-11Shareholders' meeting notice
- 2026-03-11EarningsEarnings 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.