STI's mainstay is 'CCSS' infrastructure that supplies high-purity chemicals at precise concentrations to semiconductor and display fabs, and it is a back-end equipment maker that also supplies solder-reflow, wet-cleaning and dispenser equipment, so its revenue moves largely with customers' new-investment (capacity-expansion) cycles. On April 13, 2026 a single sale and supply contract disclosure secured new orders; because equipment and CCSS are recognized as revenue several months to a year after signing, this becomes a recovery clue for second-half and next-year results, a treasury-share disposal result report also appeared in March, and it carries solid financials with a debt-to-equity ratio of 27.6% and a current ratio of 326%. What stands out recently is that if the investment cycle revives and the fourth-quarter revenue concentration works as in normal years, the forward P/E of about 4.8x, well below trailing and below peer equipment names, is highlighted as undervaluation; on the other hand, if the resumption of expansion is delayed or the conversion of orders into revenue lags, the recovery can be pushed back.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 1.8% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 12.2% lower than a year earlier.
- ROE is 5.4% (controlling-interest basis). It is above the sector average.
- Operating margin is 6.0%.
Ownership & governance As of 2025-12-31
Largest shareholder Sungdo ENG 20.64% (individual)
Controlling bloc incl. related parties 27.64%
With the controlling bloc holding 28%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- The core of where STI actually earns its money is equipment called 'CCSS' (central chemical supply system).
- Semiconductor and display fabs must send high-purity chemicals such as sulfuric acid and hydrogen peroxide to hundreds of process tools continuously and at precise concentrations, and designing, building and delivering this chemical-supply infrastructure as a whole is the company's mainstay business.
- On top of this it supplies solder-reflow (heating furnace) equipment used to bond chips to substrates, wet equipment that cleans and etches wafers with chemical solutions, and dispenser equipment that sprays materials by inkjet method.
- In other words, it is not a company that sells finished chips but a back-end equipment maker that delivers the 'process infrastructure and equipment' that go inside when semiconductor, display and battery fabs are newly built or lines are added.
- Because its revenue moves with customers' (large semiconductor and display firms') new-investment (capacity-expansion) cycles, the difference between years of active investment and years of pause is distinct.
- The latest close is ₩24,000 and the market cap is ₩372.2 billion.
- The price sits below the 20-day line (₩28,322) and below the 60-day line (₩31,306).
- Trading beneath both its short- and mid-term moving averages, the trend is on the subdued side.
- The RSI (a supplementary gauge that measures the balance of upward and downward force over the past 14 days on a 0-100 scale) is 40.1, a neutral level.
- The one-month change is -11.3%, the three-month change is -17.9%, and the position versus the 52-week high is -41.2%.
- Relative strength versus the KOSDAQ is 75 (on a 1-99 scale, converted from returns against 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 24% by strength among all stocks.
- Over the past three months it outpaced the index by 5.1%.
- Chart reading is best done alongside trading volume and the dates on which disclosures occurred.
- On a confirmed annual (2025) basis, the P/E ratio (how many times one year's earnings the share price represents) is 24.14x and the P/B (how many times per-share net assets the share price represents) is 1.30x.
- The reason the P/E looks high here is not that the company is expensive but that 2025 earnings in the denominator were small.
- 2025 was a year in which customers' investment cycle paused and net profit fell for the year, so at the same share price a smaller earnings figure automatically makes the trailing P/E look large.
- The forward P/E, reflecting the flow of earnings returning to a normal track, is about 4.8x, markedly low compared with peer equipment names (KC Tech 28.7x, GST 20.1x, Hanyang ENG 11.8x).
- The forward P/B also comes down to 1.1x from trailing (1.44x).
- In other words, judged only by last year's number the P/E looks burdensome, but for an earnings-inflection stock the forward is the real picture, and on that basis the signal of undervaluation is clear.
- The financials are also robust, with a debt-to-equity ratio (debt relative to equity) of just 27.6%, a current ratio of 326%, and interest coverage of 7.1x, so the debt burden is small.
- ROE (how much was earned in a year on shareholders' equity) is 5.4%, around the industry median (5.0%), and this should be read together with the fact that it is measured in a year of reduced earnings.
- Five-year revenue ran ₩319.5 billion in 2021 → ₩422.4 billion in 2022 → ₩319.5 billion in 2023 → ₩334.0 billion in 2024 → ₩328.1 billion in 2025, peaking in 2022 when customer investment was concentrated and holding in the ₩320-330 billion range since.
- Profit fell from operating profit of ₩27.3 billion and net profit of ₩27.1 billion in 2024 to ₩19.7 billion and ₩15.4 billion in 2025, which is closer to the result of the investment cycle typical of back-end equipment names taking a breather than to the business breaking down.
- The company's results show distinct seasonality with revenue and profit heavily concentrated in the fourth quarter (over the past three years the fourth quarter averaged 31% of annual revenue and 51% of operating profit).
- So even if first-half numbers look weak, it is hard to gauge the year from those alone, and second-half delivery and inspection schedules govern annual results.
- This year it secured a new supply contract in April, and because equipment and CCSS are recognized as revenue several months to a year after signing, these orders become a driver lifting second-half revenue and profit.
- If customers' expansion demand revives and the fourth-quarter concentration works as in normal years, this year's forward earnings picture is one of recovery from 2025's low bottom to a normal level, and the forward P/E being much lower than peers also reflects this recovery magnitude.
- Two things sit at the center of the recent flow.
- First, the April 13, 2026 'conclusion of a single sale and supply contract' disclosure, an official signal that the company secured new orders.
- Because the equipment and CCSS business is recognized as revenue several months to a year after signing, following design, fabrication, installation and inspection, this contract becomes a recovery clue for second-half and next-year results.
- Second, the March 13, 2026 'treasury-share disposal result report,' a case of disposing of held treasury shares.
- A treasury-share disposal is material for examining both shareholder returns and financial and cash flow together.
- Beyond this, large-holding and executive-ownership reports on May 28, 20 and 4 followed, showing that shareholdings of major shareholders and insiders are shifting.
- On the regular side, the May 15 first-quarter report and the March 12 2025 business report are the basis for confirmed results.
- The observation point is 'whether customers' expansion demand and the April new orders lead to a second-half earnings recovery.' The strengths are clear.
- With a debt-to-equity ratio of 27.6% and a current ratio of 326%, the financials are solid enough to weather a beat in the investment cycle, and holding a position in the CCSS fab-infrastructure area, it is structured to benefit directly when customer investment revives.
- Above all, the trailing P/E looks high because last year's earnings fell, but the forward P/E reflecting earnings returning to a normal level is about 4.8x, much lower than peer equipment names (KC Tech, GST, Hanyang ENG), so on a forward basis it sits in undervalued territory.
- The April supply contract and the fourth-quarter revenue-concentration seasonality are also footholds for the recovery.
- A point to watch together is that for this picture to be realized, the resumption of customer expansion and the conversion of orders into revenue must be confirmed in actual quarterly figures.
- In sum, if the investment cycle revives and the second-half fourth-quarter concentration works as in normal years, undervaluation is highlighted and it is strong; if the resumption of expansion is delayed or the fourth-quarter concentration breaks down, the recovery is pushed back and it is weak.
- It is a stock well suited to confirming the recovery flow step by step through quarterly results and new-order disclosures.
🔎 Valuation vs peers Inconclusive
Instead of the plain 'machinery and equipment' industry code, we compared it on its actual business of semiconductor and display back-end equipment and process infrastructure: Hanyang ENG, whose CCSS and plant infrastructure overlap; KC Tech, in process equipment such as wet and CMP; and GST, in semiconductor utility equipment.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hanyang Eng | 12.09x | 0.81x | 6.69% |
| KC Tech | 30.96x | 3.12x | 10.07% |
| GST | 17.62x | 2.65x | 15.03% |
(a) Position versus the peer group: a P/B of 1.62x is below KC Tech (2.85) and GST (3.67) and above Hanyang ENG (0.88), so it is in the middle on an asset-value basis. By contrast, the trailing P/E of 30x is the highest in the peer group. (b) This P/E premium is not due to a business edge but largely because the denominator (2025 net profit) shrank after a -43% plunge for the year. ROE of 5.4% is also below the peer group (KC Tech 10.1%, GST 15.0%), so before profitability recovers it is hard to declare it cheap or expensive on the P/E alone. (c) In an earnings-inflection zone the limit of last year's trailing P/E is large. Converting this year's net profit to about ₩21.5 billion via a DART seasonality approximation brings the forward P/E down to about 21.6x, but this is an approximation, not an official company forecast. Until the recovery of core operating profit is confirmed in figures, it is hard to draw the line between fairly valued and overvalued, so we keep it inconclusive.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩75.3 billion | approx. ₩0.4 billion | approx. ₩3.5 billion |
Price history Close · MA20 · MA60
The latest close is ₩24,000 and the market capitalization is ₩372.2 billion. The price sits below its 20-day moving average (₩28,322) and below its 60-day moving average (₩31,306). 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 40.1, a neutral level. The one-month change is -11.3%, the three-month change is -17.9%, and the position relative to the 52-week high is -41.2%. Relative strength versus the KOSDAQ is 75 (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 76% of all stocks. Over the past three months it outpaced the index by 5.1%. 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 +5.08% / 6M -15.88% / 12M +25.22%
Key metrics vs sector median
Valuation
The P/E of 24.14x is above the sector median (14.44x). The P/B of 1.30x is in line with the sector median (1.44x). 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 10.1%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.397x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 5.4%, in line with the sector average (5.0%). The operating margin is 6.0%. The debt ratio is 27.6%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $211.7M | $221.4M | $217.4M | -1.79% ↓ slower |
| Operating profit | $15.9M | $18.1M | $13.1M | -27.74% ↓ slower |
| Net profit | $16.0M | $18.0M | $10.2M | -43.19% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $211.8M | $280.0M | $211.7M | $221.4M | $217.4M |
| Operating profit | $16.9M | $23.0M | $15.9M | $18.1M | $13.1M |
| Net profit | $15.4M | $19.8M | $16.0M | $18.0M | $10.2M |
| Revenue CAGR | 4-yr avg 0.66% | ||||
Revenue fell 1.8% year over year (2023 ₩319.5 billion → 2024 ₩334.0 billion → 2025 ₩328.1 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 27.7% 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 1.3%. In the most recent quarter (Q1 2026), revenue was 12.2% lower 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 fell 1.8% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-04-13UpdateDisclosure of the conclusion of a single sale and supply contract. Official material announcing that new orders were secured.Equipment and CCSS are booked as revenue several months to a year after signing, following design, fabrication, installation and inspection. A clue to a second-half and next-year recovery after the weak first quarter, with the contract size and timing of revenue recognition to be confirmed in follow-up reports. Source
- 2026-05-15UpdateFirst-quarter 2026 quarterly report. Contains confirmed results of revenue of ₩73.8 billion and operating profit of ₩0.44 billion.Material officially confirming a first quarter in which operating-line profitability nearly vanished. Given the seasonality of results concentrated in the fourth quarter, whether this weakness hardens annually should be checked in the second-half quarters. Source
- 2026-03-13UpdateTreasury-share disposal result report. Disclosed the result of disposing of held treasury shares.A disclosure that lets one examine shareholder returns and financial and cash flow together. As the disposed volume comes onto the market, the supply-demand and shareholder-value aspects should be viewed together. Source
- 2026-03-12Update2025 business report. Annual confirmed results of consolidated revenue of ₩328.1 billion, operating profit of ₩19.7 billion, and net profit of ₩15.4 billion.Material confirming a year in which profit slowed sharply, with operating profit -27.7% and net profit -43.2% year on year, and the benchmark results that form the denominator of the current trailing P/E of 30x. Source
- 2026-05-28UpdateReport on large holdings of stock and the like (general). A disclosure announcing changes in a major shareholder's holdings.Large-holding and executive-ownership reports have continued into May, so the effect on supply-demand from changes in major shareholders' and insiders' holdings is a point to examine. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| FY2025 annual revenue | ₩328.1 billion | ₩328.1 billion | Confirmed | link |
| First-quarter 2026 revenue and operating profit | revenue ₩73.8 billion / operating profit ₩0.4 billion | 1 | Confirmed | link |
| 2026 annual operating profit (seasonality approximation) | approx. ₩1.8 billion | — | Unverified | link |
| Latest closing price | ₩24,000 | — | Unverified | link |
Recent filings
- 2026-05-28OwnershipOwnership-change filing
- 2026-05-20OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-15PeriodicQuarterly report
- 2026-05-04OwnershipOwnership-change filing
- 2026-04-13Single supply/sales contract
- 2026-03-20Disclosure
- 2026-03-20Shareholders' meeting notice
- 2026-03-13TreasuryTreasury-stock disposal decision
- 2026-03-12PeriodicAnnual business report
- 2026-03-12Audit report
- 2026-03-05Disclosure
- 2026-03-05Shareholders' meeting 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.