Protec makes semiconductor back-end (packaging) equipment, with dispensers that apply liquid materials evenly between a chip and its substrate, and laser bonders that instantly join chips with a laser, as its mainstays. In 2025 it posted record results, with revenue of ₩230.5 billion (up 35%) and net profit of ₩47.6 billion (up 120%), and in the first quarter of 2026 net profit jumped 6.9 times year over year to ₩19.0 billion, extending the surge in profit. What stands out lately is that in a phase where demand for laser bonders is concentrating on high-performance packaging of AI chips, the company is strong thanks to high margins and a net-cash balance sheet — but equipment revenue can swing sharply from quarter to quarter with the timing of customer investment, so if the order flow cools, earnings volatility rises too.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 35.4% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 105.3% higher than a year earlier.
- ROE is 13.7% (controlling-interest basis). It is above the sector average.
- Operating margin is 20.1%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Choi Seung-hwan 30.5% (individual)
Controlling bloc incl. related parties 30.5%
With the controlling bloc holding 30%, the ownership structure is stable.
🔎 In-depth analysis
- Protec makes equipment used in the 'back-end (packaging)' step where, after a semiconductor is made, chips are attached to substrates and encased.
- It has two mainstays.
- First, the dispenser precisely and evenly dispenses liquid materials such as epoxy and resin between a chip and its substrate, and the company is a top-three global supplier in this field.
- Second, the laser bonder (laser reflow) is a newer type of equipment that attaches a chip to a substrate in two to three seconds using an infrared laser.
- Because it does not expose the material to heat for long, it can reduce warping of thin substrates, so demand is growing in the demanding packaging where many chips are stacked thinly, as in AI semiconductors.
- Expanding dispensers to domestic memory customers and supplying laser bonders to overseas back-end and non-memory firms are the two axes that have lifted recent results.
- The stock has risen sharply over the medium term, up 14% over three months and 63% over six.
- That said, the one-month return of -23% marks a short-term correction.
- The current price of ₩59,500 sits below the 20-day and 60-day moving averages (around ₩77,000-79,000), so the short-term trend is pressed down.
- It is about 38% below its 52-week high.
- The RSI is 34, close to oversold.
- It is notable that the stock has slipped from its high even in a phase of record results.
- Profitability is good.
- ROE (how much is earned in a year on equity) is 13.7%, the operating margin is 20.1% and the net margin is 20.7%.
- The balance sheet is very solid.
- The current ratio of 4.6x gives ample short-term payment capacity, and the interest-coverage ratio of 32.7x means interest burden is virtually nil.
- Net borrowings are negative — a net-cash position with more cash than debt.
- On valuation (whether the price is expensive versus earnings and assets), the P/E ratio (how many years of earnings the price represents) is 11.2x and the P/B (price versus book net assets) is 1.5x.
- Debt-adjusted metrics carry no burden either: EV/EBIT (a debt-adjusted equivalent of the P/E) is 13.3x and EV/EBITDA is 11.2x.
- The dividend yield is a low 0.7%, but the weight of shareholder return leans toward treasury-share cancellation rather than dividends.
- Growth is steep.
- In 2025 revenue rose 35% year over year, while operating profit jumped 2.4 times and net profit 2.2 times.
- In the first quarter of 2026 the acceleration is even clearer, with revenue up 105% year over year, operating profit up 428% and net profit up 685%.
- This increase resulted from wider supply of high-spec dispensers together with rising sales of high-margin laser equipment.
- Going forward, the trend of laser bonders being adopted for high-performance packaging of AI semiconductors is the core driver of profit.
- Reflecting this surge, the price multiple on this year's earnings falls distinctly below the 11.2x calculated on last year's confirmed results.
- In other words, even though the P/E on last year's results is not especially high, this is a phase where the actual valuation gets cheaper as this year's profit grows further.
- As befits an equipment company, recent disclosures center on financial matters and shareholder returns.
- In March 2026 it decided on a dividend, and in the same month resolved a capital reduction that cancels treasury shares (treasury-share cancellation), completed in early May.
- This cut the number of shares outstanding to 9 million, and as the share count falls, earnings per share (EPS) rise.
- That a company flush with net cash pairs dividends with treasury-share cancellation signals its commitment to shareholder returns.
- On the business side, it is in a phase of broadening laser-bonder supply to overseas back-end and foundry firms, confirmed by the surge in revenue and profit in its earnings disclosures (quarterly and business reports).
- The strengths are clear.
- Among semiconductor back-end equipment, the company has secured a high-margin new product — the laser bonder needed for AI packaging — and profit is actually surging.
- The balance sheet is very stable, with net cash and a 4.6x current ratio, and it is lifting shareholder value through treasury-share cancellation.
- The P/E on last year's results is 11x, but reflecting this year's profit surge, the valuation falls below that.
- In particular, compared with leading domestic equipment names on the same AI-packaging and bonder theme that carry much higher multiples, Protec's current valuation is on the low side.
- There are cautions too.
- Equipment revenue swings sharply from quarter to quarter with the timing of customer capital spending.
- Profit spikes when orders concentrate as they do now, but earnings volatility rises when the semiconductor investment cycle cools.
- Ultimately, the stock is strong while AI-packaging investment and laser-bonder adoption continue, and weaker when signals of a semiconductor-investment slowdown appear.
🔎 Valuation vs peers Undervalued
The peer set is domestic listed makers of AI and high-performance semiconductor packaging (back-end) equipment, whose business substance overlaps in laser bonders, bonding and precision equipment.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hanmi Semiconductor | 95.98x | 29.75x | 3100.00% |
| EO Technics | 73.75x | 6.13x | 830.00% |
| i3system | 21.63x | 2.91x | 1340.00% |
While leading domestic equipment names on the same AI-semiconductor packaging and bonder theme carry high multiples of P/E 70-96x and P/B 6-30x, Protec is at just P/E 11.2x and P/B 1.5x even on last year's confirmed results. Reflecting that company profit more than doubled in 2025 and that first-quarter 2026 net profit surged 6.9 times year over year, the multiple on this year's earnings falls below that on last year's basis. In other words, the P/E on last year's results is not itself burdensome, and accounting for the earnings inflection, it gets cheaper on a forward basis. Considering the net-cash balance sheet and high-margin product mix as well, it appears at a clear discount to peers. That said, the quarterly volatility of equipment revenue is a factor to weigh into the valuation.
Price history Close · MA20 · MA60
The latest close is ₩59,500 and the market capitalization is ₩535.5 billion. The price sits below its 20-day moving average (₩77,235) and below its 60-day moving average (₩78,860). 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 34.4, a neutral level. The one-month change is -22.7%, the three-month change is +14.0%, and the position relative to the 52-week high is -38.3%. Relative strength versus the KOSDAQ is 93 (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 94% of all stocks. Over the past three months it outpaced the index by 47.7%. 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 +47.69% / 6M +93.09% / 12M +134.52%
Key metrics vs sector median
Valuation
The P/E of 11.24x is below the sector median (14.44x). The P/B of 1.54x 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, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 13.7%, above the sector average (5.0%). The operating margin is 20.1%. The debt ratio is 127.0%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $103.4M | $112.9M | $152.8M | +35.38% ↑ faster |
| Operating profit | $11.6M | $8.9M | $30.7M | +244.46% ↑ faster |
| Net profit | $13.7M | $14.4M | $31.6M | +119.74% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $115.3M | $131.7M | $103.4M | $112.9M | $152.8M |
| Operating profit | $33.4M | $39.8M | $11.6M | $8.9M | $30.7M |
| Net profit | $31.3M | $28.8M | $13.7M | $14.4M | $31.6M |
| Revenue CAGR | 4-yr avg 7.29% | ||||
Revenue rose 35.4% year over year (2023 ₩156.1 billion → 2024 ₩170.3 billion → 2025 ₩230.5 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 244.5% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 7.3%. The two-year revenue CAGR is 21.5%. In the most recent quarter (Q1 2026), revenue was 105.3% 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.
- ROE of 13.7% points to solid profitability.
- Revenue grew 35.4% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
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
- 2026-05-14EarningsQ1 2026 quarterly report. Revenue ₩62.4 billion (up 105% year over year), operating profit ₩15.4 billion (up 428%), net profit ₩19.0 billion (up 685%), extending the surge in profit.Strong results reflecting wider sales of laser bonders and high-spec dispensers. A key basis for lowering the valuation on this year's earnings. Source
- 2026-05-04FilingCapital reduction (treasury-share cancellation) completed. Canceling treasury shares cut shares outstanding to 9 million, with an EPS-lifting effect.Strengthened shareholder returns. A net-cash company lifts per-share value through treasury-share cancellation. Source
- 2026-03-19Earnings2025 business report. Annual revenue ₩230.5 billion (up 35%), operating profit ₩46.3 billion (up 244%), net profit ₩47.6 billion (up 120%), confirming record results.Confirms structural profit improvement created by wider dispenser sales and new laser-bonder revenue. Source
- 2026-03-05DividendCash and in-kind dividend decided (₩400 per share). Backed by a net-cash balance sheet, dividends are paired with treasury-share cancellation.The dividend yield is low, but the direction, together with cancellation, grows total shareholder returns. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 full-year revenue and net profit | revenue ₩230.5 billion(+35.4%), net profit ₩47.6 billion(+120%) | revenue ₩230.5 billion, net profit ₩47.6 billion | Confirmed | link |
| Q1 2026 net profit | net profit ₩19.0 billion | (2026.03) net profit ₩19.0 billion | Confirmed | link |
| Reduction in shares outstanding (treasury-share cancellation) | 900 | — | Confirmed | link |
| 2026 in-house net-profit estimate | approx. ₩66.0 billion | — | Unverified | — |
Recent filings
- 2026-05-21OwnershipOwnership-change filing
- 2026-05-14PeriodicQuarterly report
- 2026-05-07OwnershipOwnership-change filing
- 2026-05-04Disclosure
- 2026-03-27Shareholders' meeting notice
- 2026-03-19PeriodicAnnual business report
- 2026-03-18Audit report
- 2026-03-12Shareholders' meeting notice
- 2026-03-05Shareholders' meeting notice
- 2026-03-05Shareholders' meeting notice
- 2026-03-05Material-fact report
- 2026-03-05DividendCash/stock dividend decision
📖 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.