Synergy Innovation is a company classified in the medical, precision and optical instruments industry, a small- to mid-cap that steadily generates recent annual revenue of ₩113.1 billion and operating profit of ₩19.2 billion from its core business. Recently it has been reducing the chance of an increase in share count by buying back and cancelling its 14th convertible bond and repurchasing bonds before maturity, and with revenue trending up for several years it has a solid balance sheet — a 17.0% operating margin, a 30.5% debt ratio and a 356% current ratio. What stands out recently is that if the earnings recovery — in which Q1 net profit has already surpassed the whole of last year's — continues quarter by quarter and the share count stays stable, a P/B of 0.68x below book stands out as a strength; but if that Q1 profit turns out to be a one-off, earnings could return to the low run of last year.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 24.8% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 0.8% lower than a year earlier.
- ROE is 1.4% (controlling-interest basis). It is below the sector average.
- Operating margin is 17.0%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder S Innovation New Technology Union 35.85% (individual)
Controlling bloc incl. related parties 38.27%
With the controlling bloc holding 38%, the ownership structure is stable.
🔎 In-depth analysis
- Synergy Innovation is a company classified in the medical, precision and optical instruments industry.
- Recent annual revenue is ₩113.1 billion and operating profit is ₩19.2 billion, so it steadily generates revenue and profit from its core business.
- As a small- to mid-cap with a market capitalization of ₩142.9 billion, it is worth watching not only the trend of the business itself but also how a single disclosure affects the balance sheet and share count.
- The latest close is ₩1,667 and market capitalization is ₩146.9 billion.
- The price sits below the 20-day line (₩1,728) and below the 60-day line (₩1,871).
- Trading under both its short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that measures the balance of up-days versus down-days over the last 14 days on a 0-100 scale) is 42.5, a neutral level.
- The one-month change is -5.5%, the three-month change is -14.9%, and the price stands -45.6% below its 52-week high.
- Relative strength versus the KOSDAQ is 56 (on a 1-99 scale that weights recent one-year returns against the index more heavily toward recent performance; higher means stronger than the market).
- That places it in roughly the top 44% of all stocks by strength.
- Over the past three months it has outpaced the index by 13.8%.
- Chart reading is best done alongside trading volume and disclosure dates.
- Recent annual revenue is ₩113.1 billion and operating profit is ₩19.2 billion, with an operating margin of 17.0%, so core profitability is on the good side.
- The debt ratio (debt against equity) is low at 30.5%, and the current ratio (assets convertible to cash within a year against debt due within a year) is an ample 356%, so the balance sheet is stable.
- P/E (how many times one year of earnings the price is) looks high at 47.4x, but this owes largely to last year's net profit being temporarily depressed at ₩3.0 billion.
- In fact, this year's Q1 net profit of ₩5.6 billion has already surpassed the whole of last year's, so a P/E calculated on last year's full-year earnings does not fully show the company's actual earnings power now.
- Conversely, P/B (how many times book value the price is) is 0.69x, meaning the share price is set below the company's net assets.
- In a phase where earnings are turning up, the picture on this year's and later earnings matters more than last year's earnings-based metrics.
- Revenue grew more than threefold in four years, from ₩30.7 billion in 2021 to ₩113.1 billion in 2025, and operating profit rose from ₩1.2 billion to ₩19.2 billion.
- Recently revenue grew 24.8% over the prior year, quickening its pace, and operating profit rose 19%.
- Net profit fell to ₩3.0 billion last year, but this reflects a base effect from the year before (2024), when a one-off boosted profit sharply, and this year's Q1 net profit of ₩5.6 billion surpassed the whole of last year in a single quarter.
- Q1 revenue (₩27.0 billion) and operating profit (₩3.8 billion) coming in similar to or somewhat below the same period a year earlier is a flow tied to the quarterly revenue mix, and should be viewed separately from the bigger picture of steadily growing annual revenue.
- Revenue and operating profit trending up for several years, with net profit also recovering quickly this year, is the basis for the company's growth.
- Recent disclosures center on convertible bonds (bonds — borrowed money that can later be converted into shares) related to funding and share count.
- On June 5, 2026 the company decided to buy back and cancel (eliminate) its 14th convertible bond (issued December 2023, maturing December 2027), and ahead of that it repurchased bonds before maturity worth ₩6.8 billion on March 23, 2026 and ₩4.9 billion on December 22, 2025 (conversion price ₩2,776).
- When the company buys back and eliminates convertible bonds, the chance of the share count rising later is reduced by that much.
- Look at the purpose of any funding inflow together with changes in share count, and where facility or operating purposes are stated, check whether the investment is actually carried out and connects to revenue.
- The strong side is clear.
- Revenue has trended up for several years, an operating margin of 17.0% supports core profitability, and the balance sheet is solid with a 30.5% debt ratio and a 356% current ratio.
- Above all, the share price sits below book at a P/B of 0.68x, and the key point is that this year's Q1 net profit has already surpassed the whole of last year — an earnings-recovery phase.
- The trailing P/E looking high is the result of last year's net profit being temporarily depressed, not of a weak business.
- The points to check are whether the large Q1 net profit continues rather than being a single occurrence, and whether further changes in share count arise from the convertible bonds.
- In sum, if the earnings recovery continues quarter by quarter and the share count stays stable, the current low price and low P/B stand out as strengths; if the Q1 profit ends as a one-off, earnings could return to the low run of last year — a point to watch alongside.
🔎 Valuation vs peers Overvalued
Medical, precision and optical instrument names close by market capitalization.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| NanoEntek | 86.51x | 1.50x | 1.74% |
| M.I.Tech | 6.85x | 1.11x | 16.15% |
| KNR Systems | — | 5.01x | -36.99% |
Within medical, precision and optical instruments, the public-data peer set nearest by market capitalization was looked at first. The current P/E (how many times one year of earnings the price is) is 48.74x and P/B (how many times book value) is 0.69x. That said, smaller-cap names are more affected by earnings swings and financing disclosures, so no conclusion was drawn from last year's confirmed-results metrics alone. The basis for the outlook box is a DART seasonality approximation.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩137.4 billion | ₩19.1 billion | — |
| Next quarter | Q2 2026 | ₩36.4 billion | ₩4.8 billion | — |
Price history Close · MA20 · MA60
The latest close is ₩1,667 and the market capitalization is ₩146.9 billion. The price sits below its 20-day moving average (₩1,728) and below its 60-day moving average (₩1,871). 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 42.5, a neutral level. The one-month change is -5.5%, the three-month change is -14.9%, and the position relative to the 52-week high is -45.6%. Relative strength versus the KOSDAQ is 56 (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 56% of all stocks. Over the past three months it outpaced the index by 13.8%. 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 +13.84% / 6M -16.20% / 12M -41.15%
Key metrics vs sector median
Valuation
The P/E of 48.74x is above the sector median (22.72x). The P/B of 0.69x is below the sector median (1.61x). 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 10.4%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 1.4%, below the sector average (5.0%). The operating margin is 17.0%. The debt ratio is 30.5%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $55.2M | $60.1M | $74.9M | +24.77% ↑ faster |
| Operating profit | $9.9M | $10.7M | $12.7M | +18.96% ↑ faster |
| Net profit | $1.5M | $6.9M | $2.0M | -70.96% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $20.4M | $20.1M | $55.2M | $60.1M | $74.9M |
| Operating profit | $810,687 | $797,909 | $9.9M | $10.7M | $12.7M |
| Net profit | $3.8M | $10.7M | $1.5M | $6.9M | $2.0M |
| Revenue CAGR | 4-yr avg 38.52% | ||||
Revenue rose 24.8% year over year (2023 ₩83.2 billion → 2024 ₩90.6 billion → 2025 ₩113.1 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 19.0% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 38.5%. The two-year revenue CAGR is 16.6%. In the most recent quarter (Q1 2026), revenue was 0.8% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- Revenue grew 24.8% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-06-05UpdateOther management matter (voluntary disclosure) (decision to cancel own bond (14th convertible bond)): points to consider for judgment - this bond was first issued on December 22, 2023, with a maturity of December 22, 2027. - The "4. bond cancellation (scheduled) date" in item 2, main contents, above may change per the schedule of the relevant authorities. - The decision (confirmation) date aboveThis is a disclosure where the purpose of the funding inflow should be viewed together with the change in share count. Where facility or operating purposes are stated, whether the investment is actually carried out and connects to revenue is the key. Source
- 2026-03-23UpdateRepurchase of bonds before maturity after issuance of convertible bonds (including overseas convertible bonds): bond amount ₩6.8 billion, conversion price ₩2,776This is a disclosure where the purpose of the funding inflow should be viewed together with the change in share count. Where facility or operating purposes are stated, whether the investment is actually carried out and connects to revenue is the key. Source
- 2025-12-22UpdateRepurchase of bonds before maturity after issuance of convertible bonds (including overseas convertible bonds): bond amount ₩4.9 billion, conversion price ₩2,776This is a disclosure where the purpose of the funding inflow should be viewed together with the change in share count. Where facility or operating purposes are stated, whether the investment is actually carried out and connects to revenue is the key. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩1,667 | ₩1,667 | Confirmed | link |
| Latest quarterly results | revenue ₩27.0 billion, operating profit ₩3.8 billion | revenue ₩27.0 billion, operating profit ₩3.8 billion | Confirmed | link |
| Annual results | revenue ₩113.1 billion, operating profit ₩19.2 billion | revenue ₩113.1 billion, operating profit ₩19.2 billion | Confirmed | link |
| Funding disclosure text | ): - 2023 12 22 , 2027 12 22 . - 2. "4. " . - 3. | ): - 2023 12 22 , 2027 12 22 . - 2. "4. " . - 3. | Confirmed | link |
| Funding disclosure text | : ₩6.8 billion · ₩2,776 | : ₩6.8 billion · ₩2,776 | Confirmed | link |
| Funding disclosure text | : ₩4.9 billion · ₩2,776 | : ₩4.9 billion · ₩2,776 | Confirmed | link |
| Outlook box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-06-05Convertible-bond issuance
- 2026-05-21OwnershipOwnership-change filing
- 2026-05-20Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-04-30Disclosure
- 2026-04-22Disclosure
- 2026-04-01Material-fact report (amended)
- 2026-03-27Shareholders' meeting notice
- 2026-03-23Convertible-bond issuance
- 2026-03-19PeriodicAnnual business report
- 2026-03-19Audit report
- 2026-03-18Material-fact report (amended)
📖 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.