Sarnics (042600) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
Sarnics earns money on two pillars, electronic components and solar-power parts: through its subsidiary Kwangsung Electronics it makes injection-molded plastic parts that go into LCD TVs and the like for delivery to set makers, and through subsidiaries it runs a solar-power parts business. In February 2026 a change-in-profit-loss-structure disclosure put full-year revenue at ₩164.9 billion, an operating loss at ₩2.6 billion, and a net loss at ₩31.5 billion, followed the same month by a decision on and a report on the results of a treasury-share disposal. What stands out lately is that with a P/B of 1.38x, lower than the sector comparison set (in the 2x range), and the price down 55% from its 52-week high, the stock is cheap relative to assets, but revenue has fallen for two straight years and there have been net losses for three straight years, while a debt ratio of 143.7% and a current ratio of 64.5% leave little financial headroom, so the axis of judgment is less 'how cheap' than 'when profit returns'.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Electronic Components” (Semiconductors & IT Components), a type typically read first through forward P/E.
Electronic components swing with set-makers' product launches and demand cycles, so what lies ahead matters more than earnings already booked. That makes forward P/E — pricing the shares against expected earnings — the first metric to read.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
That said, earnings are swinging with the industry cycle right now, so this metric is best viewed alongside asset value and the demand backdrop.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 70.1%).
- The most recent full-year net result was a loss.
- Revenue fell 18.5% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 10.9% lower than a year earlier.
- ROE is -35.4% (controlling-interest basis). It is below the sector average.
- Operating margin is -1.6%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2025-12-31
Largest shareholder Heo Je-hong 21.04% (individual)
Controlling bloc incl. related parties 63.75%
With the controlling bloc holding 64%, control is very secure but the free float is thin.
🔎 In-depth analysis Reading
Sarnics earns money on two pillars: electronic components and solar-power parts. On the electronic-components side, through its subsidiary Kwangsung Electronics it makes and assembles injection-molded plastic parts that go into LCD TVs and the like for delivery to set makers; on the solar side, it runs a related parts business through subsidiaries. Relative to its revenue scale (₩164.9 billion a year), the market cap is small at ₩122.7 billion, so it is best to watch not only the results of the business itself but also how a single disclosure, such as a treasury-share disposal, affects the share count and the financials.
The latest close is ₩9,130 and the market capitalization is ₩113.4 billion. The price sits above its 20-day moving average (₩8,677) and below its 60-day moving average (₩12,374). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 47.4, a neutral level. The one-month change is -9.4%, the three-month change is -57.5%, and the position relative to the 52-week high is -58.5%. Relative strength versus the KOSDAQ is 52 (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 52% of all stocks. Over the past three months it lagged the index by 35.9%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
The most recent annual revenue was ₩164.9 billion, with an operating loss of ₩2.6 billion and a net loss of ₩31.5 billion, so it is in a loss position. With an operating margin of -1.6%, ROE (how much is earned in a year on equity) of -35.4%, a debt ratio (debt against equity) of 243.7%, and a current ratio (assets quickly convertible to cash against debt due within a year) of 64.5%, the financial structure carries some strain. Because earnings are in the red, the P/E cannot be produced, and the asset-based P/B (how many times book value the price is worth) is 1.24x. Compared with sector peers whose P/B is in the 2x range, the price is on the low side relative to book value, so the assessment also views the valuation as undervalued. That undervaluation, though, is based on assets rather than earnings, so whether the company escapes the loss and profit returns is what decides the value.
Revenue contracted 18.5% from ₩202.5 billion in 2024 to ₩164.9 billion in 2025, and Q1 2026 revenue of ₩45.4 billion was also 10.9% lower than the same period a year earlier. Operating profit swung from a ₩7.3 billion profit in 2024 to a ₩2.6 billion loss in 2025, and net profit has been in the red for three straight years. Revenue this year is estimated at around ₩178.8 billion, a figure that reflects the confirmed Q1 results and the past distribution of results across quarters. A modest recovery in revenue itself is expected versus the prior year, but there is not yet confirmation that profit swings back into the black. So on the growth side, the key is to check each quarter whether revenue has bottomed and whether the size of the loss is narrowing.
On February 25, 2026, a change-of-30%-or-more (15% for large corporations) in revenue or profit-loss structure disclosure produced confirmed results of ₩164.9 billion in revenue, a ₩2.6 billion operating loss, and a ₩31.5 billion net loss. Check whether it points the same way as the annual trend and whether any one-off costs are mixed in. On February 12-13, a decision on a treasury-share disposal and a report on its results followed. Because a treasury-share disposal affects the number of shares that reach the market and cash flow, it is worth confirming the disposal terms and the use of the funds.
Sarnics's strength is its price position. With an asset-based P/B of 1.38x, lower than the sector comparison set (in the 2x range), and the price down 55% from its 52-week high with the RSI in oversold territory, it is clearly cheap relative to assets. The weakness, conversely, is the core business. Revenue has fallen for two straight years and there have been net losses for three straight years, and a debt ratio of 143.7% and a current ratio of 64.5% leave little financial headroom. In sum, this is a stock where, if signs emerge that the loss is narrowing and revenue is finding a floor, the low P/B can be read as room to recover. Conversely, if the loss drags on or additional financing raises the share count, a cheap valuation alone would be hard to defend. In the end, the axis of judgment is less 'how cheap' than 'when profit returns'.
🔎 Valuation vs peers Undervalued
A comparison set of similarly-sized companies within the electronic-components and display sector.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Elansys | 44.79x | 3.46x | 8.29% |
| RS Automation | — | 2.29x | -6.83% |
| MDevice | 11.58x | 3.17x | 22.67% |
We looked first at a public-data comparison set of similarly-sized companies within electronic components and displays. The current P/E (how many times a year's earnings the price is worth) is not available, and the P/B (how many times book value the price is worth) is 1.24x. That said, because smaller-cap names are heavily swayed by earnings swings and financing disclosures, we did not draw firm conclusions from metrics based solely on last year's confirmed results. The basis for the forward box is a DART seasonality approximation.
Earnings outlook Estimate company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩178.8 billion | — | — |
| Next quarter | Q2 2026 | ₩41.8 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩9,130 and the market capitalization is ₩113.4 billion. The price sits above its 20-day moving average (₩8,677) and below its 60-day moving average (₩12,374). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 47.4, a neutral level. The one-month change is -9.4%, the three-month change is -57.5%, and the position relative to the 52-week high is -58.5%. Relative strength versus the KOSDAQ is 52 (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 52% of all stocks. Over the past three months it lagged the index by 35.9%. 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 -35.88% / 6M -9.36% / 12M +0.25%
Key metrics Computed vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 1.24x is above the sector median (0.86x).
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
Return on equity (ROE) is -35.4%, below the sector average (4.0%). The operating margin is -1.6%. The debt ratio is 137.8%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $141.7M | $142.3M | $115.9M | -18.54% ↓ slower |
| Operating profit | $273,696 | $5.1M | -$1.8M | -136.15% ↓ slower |
| Net profit | -$20.2M | -$37.8M | -$22.2M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $134.9M | $153.6M | $141.7M | $142.3M | $115.9M |
| Operating profit | -$442,218 | $331,724 | $273,696 | $5.1M | -$1.8M |
| Net profit | $20.1M | $63.3M | -$20.2M | -$37.8M | -$22.2M |
| Revenue CAGR | 4-yr avg -3.73% | ||||
Revenue fell 18.5% year over year (2023 ₩201.7 billion → 2024 ₩202.5 billion → 2025 ₩164.9 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 136.2% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is -3.7%. The two-year revenue CAGR is -9.6%. In the most recent quarter (Q1 2026), revenue was 10.9% lower than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- —
Points to watch
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 70.1%).
- The most recent full-year net result was a loss.
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 18.5% year over year (3-year trend: mixed).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-02-25EarningsChange of 30% or more (15% for large corporations) in revenue or profit-loss structure: full-year revenue ₩164.9 billion · operating loss ₩2.6 billion · net loss ₩31.5 billionThis is recent confirmed or preliminary results. Check whether it points the same way as the annual trend and whether any one-off factors are involved. Source
- 2026-02-13UpdateReport on the results of a treasury-share disposal: check the return termsThis is a disclosure tied to cash returns or a change in share count. Confirm whether earnings strength and cash flow support it. Source
- 2026-02-12Update[Corrective refiling] Material-event report (treasury-share disposal decision): check the return termsThis is a disclosure tied to cash returns or a change in share count. Confirm whether earnings strength and cash flow support it. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩9,130 | ₩9,130 | Confirmed | link |
| Latest quarterly results | revenue ₩45.4 billion, operating profit -₩0.6 billion | revenue ₩45.4 billion, operating profit -₩0.6 billion | Confirmed | link |
| Annual results | revenue ₩164.9 billion, operating profit -₩2.6 billion | revenue ₩164.9 billion, operating profit -₩2.6 billion | Confirmed | link |
| Earnings disclosure (original filing) | revenue30%: revenue ₩164.9 billion · operating profit -₩2.6 billion · net profit -₩31.5 billion | revenue30%: revenue ₩164.9 billion · operating profit -₩2.6 billion · net profit -₩31.5 billion | Confirmed | link |
| Shareholder-return disclosure (original filing) | check the payout terms | check the payout terms | Confirmed | link |
| Shareholder-return disclosure (original filing) | [amended] : check the payout terms | [amended] : check the payout terms | Confirmed | link |
| Basis for the forward box | DART | DART | Confirmed | link |
Recent filings Source
- 2026-05-14PeriodicQuarterly report
- 2026-03-26Shareholders' meeting notice
- 2026-03-18PeriodicAnnual business report
- 2026-03-18Audit report
- 2026-03-11Shareholders' meeting notice
- 2026-02-25Shareholders' meeting notice
- 2026-02-25EarningsEarnings filing
- 2026-02-13TreasuryTreasury-stock disposal decision
- 2026-02-12TreasuryMaterial-fact report (amended)
- 2026-02-12TreasuryMaterial-fact report
📖 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.