SFA Semicon is a semiconductor back-end (OSAT) specialist that packages finished chips and screens out defects through testing, with DRAM and NAND memory packaging as a large axis while expanding into non-memory, automotive chips and SiP, and with production bases in Korea and the Philippines. A February disclosure confirmed that 2025 was the trough, and the May quarterly report revealed that Q1 revenue rose 42.6% and net profit turned to a gain. The encouraging points are that, on top of recovering revenue and a swing to net profit, the P/B of 1.78x is lower than peers already on a profitable track, leaving room to read the recovery as not yet fully reflected. The cautions are that Q1 operating profit is still a loss and net profit contains non-operating items that make quarters volatile, so whether core operating profit settles into the black in the second half is the key.
At-a-glance assessment financial health · growth · profitability · valuation
- The most recent full-year net result was a loss.
- Revenue fell 8.3% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 42.6% higher than a year earlier.
- ROE is -4.0% (total-net basis). It is below the sector average.
- Operating margin is -5.3%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder SFA 54.95% (individual)
Controlling bloc incl. related parties 54.99%
With the controlling bloc holding 55%, control is very secure but the free float is thin.
🔎 In-depth analysis
- SFA Semicon is a semiconductor back-end specialist.
- Its core is so-called OSAT work, taking on the packaging of finished chips so they can be used in actual products and the testing that screens out defects.
- A large axis of revenue is packaging memory chips such as DRAM and NAND.
- To this it is expanding into non-memory (system) chips, automotive chips and SiP, which puts multiple chips into a single package.
- With production bases in Korea and the Philippines, it processes volumes contracted from the Samsung Electronics affiliate group and outside chip companies.
- Given this structure, the swings in results are large depending on customer order volumes and factory utilization.
- The latest close is ₩4,985 and market capitalization is ₩819.8 billion.
- The price sits below its 20-day line (₩6,154) and below its 60-day line (₩7,483).
- Being below both the short- and medium-term moving averages, the trend is on the pressured side.
- RSI (a gauge that scores upward versus downward force over the past 14 days on a 0-100 scale) is 32.4, a neutral level.
- The one-month change is -26.5%, the three-month change is -20.8%, and the position versus the 52-week high is -54.7%.
- Relative strength against the KOSDAQ is 80 (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).
- That places it in roughly the top 20% of all stocks by strength.
- Over the past three months it lagged the index by 0.7%.
- Chart reading is best done alongside trading volume and disclosure dates.
- 2025 was a loss-making year.
- On revenue of ₩367.4 billion the company posted an operating loss of about ₩19.6 billion and a net loss of about ₩19.1 billion.
- ROE (how much the company earns in a year on its equity) was -4.0% and the operating margin -5.3%, so profitability was negative.
- As a result the P/E ratio (how many times a year's profit the price represents) cannot be calculated for lack of earnings.
- Financial safety is on the sound side.
- The debt ratio (debt against equity) is 116%, not heavy, and the current ratio of 369% means ample short-term payment capacity.
- Net debt (total borrowings less cash) is small at about ₩10.1 billion, so the debt burden is not large.
- However, cash actually generated last year was negative (FCF yield of about -2.0%, cash generated relative to market cap), so cash-generating power has yet to recover.
- Because metrics on last year's earnings are a trough picture, in a recovery phase it is closer to substance to look at asset value (P/B) and quarterly trends together.
- Revenue peaked at ₩699.4 billion in 2022 and declined thereafter, to ₩416.7 billion in 2023, ₩400.5 billion in 2024 and ₩367.4 billion in 2025, falling for three straight years.
- Profit also fluctuated, from ₩42.9 billion net profit in 2022 to a loss in 2023, ₩20.5 billion net profit in 2024 (operating near breakeven), and back to a net loss in 2025.
- This is a classic downturn and trough phase of the back-end industry cycle.
- The inflection signal appeared in the most recent quarter.
- Q1 2026 revenue was about ₩107.3 billion, up 42.6% year on year.
- Net profit in the same quarter was about +₩1.2 billion, a gain.
- However, the operating result was still a loss of about -₩6.2 billion.
- The revenue recovery is clear, but a full swing to core-profitability black needs confirmation in the second half.
- Recent disclosures center on the earnings trend.
- February preliminary-results and profit-structure-change disclosures had the company confirm that 2025 was the trough.
- The May quarterly report then revealed the Q1 revenue surge and the swing to net profit.
- There was also a May disclosure deciding to lend money.
- Overall the disclosures trace a narrative of trough confirmation followed by revenue recovery.
- The point to watch is clear.
- This company is now passing the loss trough and entering an earnings inflection where revenue turns up.
- There are two strengths.
- First, Q1 revenue rose 42.6%, confirming the recovery numerically, and net profit also swung to a gain.
- Second, the P/B of 1.78x is markedly lower than peers already on a profitable track (Hana Micron, Nepes), leaving room to read that the recovery is not yet fully reflected in valuation.
- The cautions are equally clear.
- Q1 operating profit is still a loss, and net profit contains non-operating items that make it swing quarter to quarter.
- Because results depend heavily on customer orders and factory utilization, the pace of recovery may be uneven.
- In short, the revenue recovery and low asset multiple are positive observational factors.
- But core operating profitability settling into the black in the second half is the precondition for a re-valuation.
🔎 Valuation vs peers Inconclusive
As a semiconductor back-end (OSAT) specialist, comparison with listed Korean peers in the same packaging-and-testing business is appropriate.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hana Micron | 61.39x | 5.87x | 9.56% |
| Nepes | 28.72x | 3.85x | 13.42% |
| LB Semicon | 0.00x | 0.86x | -56.72% |
SFA Semicon posted a loss in 2025, so the P/E ratio (how many times a year's profit the price represents) cannot be calculated. In that case, metrics on last year's earnings alone are a poor basis for declaring the stock expensive or cheap. Instead we look at the P/B (how many times book equity the price represents) of 1.73x. This is markedly lower than peers whose results have recovered and settled into profit (Hana Micron 7.08x, Nepes 4.11x), leaving room to read that the market has not yet fully reflected SFA Semicon's earnings recovery. That said, Q1 operating profit is still a loss. Whether core profitability stably holds in the black in the second half is the condition for a re-valuation. The more the recovery is confirmed, the more the low P/B versus peers can be read as undervalued; conversely, if the recovery is delayed, even the current multiple is hard to justify. Being at an earnings inflection, we hold judgment.
Price history Close · MA20 · MA60
The latest close is ₩4,985 and the market capitalization is ₩819.8 billion. The price sits below its 20-day moving average (₩6,154) and below its 60-day moving average (₩7,483). 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 32.4, a neutral level. The one-month change is -26.5%, the three-month change is -20.8%, and the position relative to the 52-week high is -54.7%. Relative strength versus the KOSDAQ is 80 (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 80% of all stocks. Over the past three months it lagged the index by 0.7%. 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 -0.69% / 6M +6.61% / 12M +52.79%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 1.73x is below the sector median (2.10x).
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 -5.3%. The debt ratio is 116.2%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $276.2M | $265.4M | $243.5M | -8.26% ↓ slower |
| Operating profit | -$8.8M | -$20,549 | -$13.0M | — |
| Net profit | -$9.3M | $13.6M | -$12.7M | -193.51% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $424.9M | $463.6M | $276.2M | $265.4M | $243.5M |
| Operating profit | $44.1M | $41.7M | -$8.8M | -$20,549 | -$13.0M |
| Net profit | $35.0M | $28.4M | -$9.3M | $13.6M | -$12.7M |
| Revenue CAGR | 4-yr avg -12.99% | ||||
Revenue fell 8.3% year over year (2023 ₩416.7 billion → 2024 ₩400.5 billion → 2025 ₩367.4 billion), and the three-year trend is 'falling'. The rate of decline widened from the prior year. Operating results are in the red, so a swing back to profit matters more than the growth rate here. Over the 5 years on record, revenue compound annual growth (CAGR) is -13.0%. The two-year revenue CAGR is -6.1%. In the most recent quarter (Q1 2026), revenue was 42.6% 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.
Points to watch
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 8.3% year over year (3-year trend: falling).
Recent news & events searched · sourced
- 2026-05-15EarningsFiled the Q1 2026 quarterly report. Quarterly revenue of about ₩107.3 billion, up 42.6% year on year; the operating result was still a loss of about -₩6.2 billion, but net income was a gain of about +₩1.2 billion.The revenue surge and swing to net profit signal an industry recovery and rising utilization. However, operating profit is still a loss, so a full recovery of core profitability needs confirmation in the second half. Source
- 2026-02-11EarningsMade a fair disclosure of preliminary full-year 2025 consolidated results. Annual revenue of about ₩367.4 billion (down year on year) with both operating and net results in the red, confirming that 2025 was the earnings trough.A reference point that clearly marks the trough. Comparing later quarterly trends against it gauges the extent of recovery. Source
- 2026-02-11FilingSeparately disclosed a change of more than 30% in revenue or profit structure. The company officially confirmed that the profit structure shifted sharply versus the prior year.Institutionally shows this is a company with large swings in profit. When reading results, it is appropriate to consider quarterly trends alongside a single full year. Source
- 2026-05-12FilingA disclosure deciding to lend money. The company decided to lend funds to a specific counterparty.An item showing cash-flow and fund-deployment direction; the effect on finances varies with the size and counterparty. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-26OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-15PeriodicQuarterly report
- 2026-05-12Disclosure
- 2026-04-30Disclosure
- 2026-03-31Shareholders' meeting notice
- 2026-03-23PeriodicAnnual business report
- 2026-03-20Audit report
- 2026-03-16Disclosure
- 2026-03-16Shareholders' meeting notice
- 2026-03-16Shareholders' meeting notice
- 2026-02-11EarningsEarnings filing
- 2026-02-11EarningsFair-disclosure notice
📖 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.