TCK makes the silicon carbide (SiC) rings and parts that go inside the etch tools used to cut semiconductor patterns, a single product line that accounts for roughly 80% of revenue; because these rings hold the wafer in place and withstand the plasma, they are consumables that are replaced periodically, so they sell again and again the more chips are produced, and the company holds a near-monopoly position with a global share of around 80% in this field. In its April 2026 preliminary Q1 results it confirmed a double-digit recovery in both revenue and earnings, and in May it voluntarily disclosed the status of its value-up execution while continuing a dividend of ₩1,430 per share (payout ratio about 22.9%). What stands out lately is the strength of a world No. 1 monopoly position in SiC rings, a near-debt-free balance sheet, and margins of around 30% alongside earnings jumping again in 2026, with the current-price P/E of 46x coming down to around 30x on this year's expected earnings; on the other hand, results move with the memory-semiconductor investment cycle, so replacement demand can slow if capacity expansion cools, and after a large run over six months a good part of the expectation is already priced in.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 9.3% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 21.7% higher than a year earlier.
- ROE is 13.5% (total-net basis). It is above the sector average.
- Operating margin is 27.8%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Tokai Carbon 52.6% (individual)
Controlling bloc incl. related parties 52.6%
With the controlling bloc holding 53%, control is very secure but the free float is thin.
🔎 In-depth analysis
- TCK makes the component materials that go inside the etch tools used to cut semiconductor patterns.
- Its core product is rings and parts made of silicon carbide (SiC) (solid SiC), a single line that accounts for roughly 80% of revenue.
- Inside the etch tool this ring holds the wafer in place and withstands the plasma; with use it wears down and must be replaced periodically, so rather than a one-time sale of a tool, it sells again and again the more chips are produced.
- In this SiC ring field TCK holds what is effectively a monopoly position, with a global share of around 80%.
- The rest of revenue comes from high-purity graphite for semiconductors (about 11%) and susceptors for LEDs and semiconductors.
- The latest close is ₩226,000 and the market cap is ₩2.5 trillion.
- The price sits below both the 20-day line (₩259,425) and the 60-day line (₩278,400).
- Trading below both the short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a supporting indicator that weighs upward versus downward strength over the past 14 days on a 0-100 scale) is 39.7, a neutral level.
- The one-month change is -10.8%, the three-month change is +1.6%, and the position relative to the 52-week high is -35.1%.
- Relative strength versus the KOSDAQ is 90 (1-99, computed 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 10% of all stocks by strength.
- Over the past three months it outpaced the index by 27.9%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- The balance sheet is sturdy.
- The debt ratio (debt to equity) is about 1%, effectively debt-free, and the current ratio (short-term assets against short-term liabilities) is a comfortable 926%.
- Profitability is also good, with an operating margin of 27.8%, a net margin of 23.2%, and an ROE (how much is earned in a year on equity) of 13.5%.
- That said, the current P/E ratio (how many times a year's earnings the share price is) of 36.14x may look burdensome; this is because it is calculated on the 2025 net profit (₩69.9 billion), a 'trough-year' figure down 2.9% from the prior year.
- In the current phase where earnings are rising again, it is closer to reality to look at this year's expected earnings than at a P/E based on last year's earnings.
- Revenue rose for three straight years, from ₩226.7 billion in 2023 to ₩275.7 billion in 2024 to ₩301.3 billion in 2025, but the pace of increase slowed and 2025 net profit actually dipped slightly (a phase where demand for semiconductor consumables briefly caught its breath).
- Then the trend turns in Q1 2026: revenue of ₩95.4 billion (+21.7% year over year), operating profit of ₩28.5 billion (+21.7%), and net profit of ₩25.1 billion (+28.7%) climbed back to double-digit growth.
- This is because as memory (DRAM and NAND) capacity expands and shrinks, the etch process grows, and replacement demand for consumables like SiC rings grows with it.
- Given this Q1 pace and the second-half capacity-expansion trend, this year's net profit should exceed not only 2025 (₩69.9 billion) but also the past peak of 2022 (₩94.0 billion), reaching a new cycle high.
- In other words, today's earnings are not a cycle top but closer to the early stage of an upswing.
- On April 28, 2026 the company disclosed preliminary Q1 results confirming a double-digit recovery in both revenue and earnings, and it held an investor day (IR) on May 15.
- On May 4 it voluntarily disclosed the 2025 execution status of its corporate value-up plan, laying out its direction on shareholder returns and earnings-strength improvement.
- The dividend is ₩1,430 per share (payout ratio about 22.9%), returning part of earnings to shareholders.
- This confirmation of an earnings recovery and the shareholder-return stance are favorable signals on a mid-term view.
- The strengths are clear.
- It holds a world No.
- 1 monopoly position in SiC rings, a semiconductor consumable, maintains a near-debt-free balance sheet and margins of around 30%, and, having passed the 2025 trough, its earnings are jumping again from Q1 2026.
- The current-price P/E of 46x looks expensive, but this is an optical distortion calculated on trough-year earnings; on this year's expected earnings it comes down to around 30x, a level comparable to peer consumables and materials companies.
- The caution is that this company's results ultimately move with the memory-semiconductor investment cycle.
- When expansion is brisk, consumables demand grows quickly, but if semiconductor investment cools, replacement demand can slow as well.
- It is also worth bearing in mind that, after a large run over six months, a good part of the recovery expectation is already reflected in the price.
- In short, it is a structure that is 'strong as long as memory expansion continues, and where consumables demand slows along with the investment cycle when it turns.'
🔎 Valuation vs peers Fairly valued
Compared against companies that sell consumables and materials repeatedly consumed the more chips are produced, rather than one-time tool sales, with test-consumable leader Leeno Industrial and semiconductor materials/chemicals maker Soulbrain as the peer set, and equipment maker Wonik IPS for reference.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Leeno Industrial | 35.11x | 7.30x | 20.78% |
| Soulbrain | 29.03x | 2.17x | 7.49% |
| Wonik IPS | 61.28x | 5.31x | 8.66% |
The current-price P/E of 46x looks high versus peers, but it has the limitation of being calculated on the 2025 (trough-year) earnings, when profit dipped slightly. Reflecting the recovery path in which Q1 2026 net profit jumped +28.7% year over year, the P/E on this year's expected earnings comes down to around 30x, a level that is hard to call particularly expensive next to consumables leader Leeno Industrial (41x) or materials maker Soulbrain (33x). Given the monopoly market position and the debt-free balance sheet, the valuation in this recovery phase is judged to be within a fair range.
Price history Close · MA20 · MA60
The latest close is ₩226,000 and the market capitalization is ₩2.5 trillion. The price sits below its 20-day moving average (₩259,425) and below its 60-day moving average (₩278,400). 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 39.7, a neutral level. The one-month change is -10.8%, the three-month change is +1.6%, and the position relative to the 52-week high is -35.1%. Relative strength versus the KOSDAQ is 90 (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 90% of all stocks. Over the past three months it outpaced the index by 27.9%. 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 +27.92% / 6M +68.17% / 12M +111.04%
Key metrics vs whole-market median
Valuation
The P/E of 36.14x is above the whole-market median (13.81x). The P/B of 4.87x is above the whole-market median (1.15x).
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 11.0%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.503x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 13.5%, above the whole-market average (5.0%). The operating margin is 27.8%. The debt ratio is 109.3%, so the financial structure is moderate.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $150.2M | $182.7M | $199.7M | +9.29% ↓ slower |
| Operating profit | $44.2M | $53.5M | $55.6M | +3.89% ↓ slower |
| Net profit | $40.6M | $47.7M | $46.3M | -2.90% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $179.5M | $211.8M | $150.2M | $182.7M | $199.7M |
| Operating profit | $68.5M | $84.2M | $44.2M | $53.5M | $55.6M |
| Net profit | $54.3M | $62.3M | $40.6M | $47.7M | $46.3M |
| Revenue CAGR | 4-yr avg 2.71% | ||||
Revenue rose 9.3% year over year (2023 ₩226.7 billion → 2024 ₩275.7 billion → 2025 ₩301.3 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 3.9% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 2.7%. The two-year revenue CAGR is 15.3%. In the most recent quarter (Q1 2026), revenue was 21.7% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- ROE of 13.5% points to solid profitability.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue rose 9.3% year over year, and the pace is slowing (3-year trend: rising).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-04-28EarningsQ1 2026 preliminary results, revenue ₩95.4 billion (+21.7% year over year), operating profit ₩28.5 billion (+21.7%), net profit ₩25.1 billion (+28.7%), a double-digit recovery.Short term: confirms entry into a recovery phase after the 2025 earnings trough. Mid term: grounds the possibility that this year's earnings surpass the past peak. Source
- 2026-05-04IRVoluntary disclosure of the 2025 execution status of the corporate value-up plan, laying out the direction on shareholder returns and earnings-strength improvement.Mid term: a favorable signal that the shareholder-return stance, including dividends, will be maintained. Source
- 2026-05-15IRHeld an investor day (IR) and filed the Q1 quarterly report.Short term: an occasion to explain the recovering results and business status to the market directly. Source
- 2026-04-28DividendFiscal 2025 dividend of ₩1,430 per share (payout ratio about 22.9%), returning part of earnings to shareholders.Mid term: a signal of stable cash flow and continued shareholder returns. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-15Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-07OwnershipOwnership-change filing
- 2026-05-04Disclosure
- 2026-04-28EarningsFair-disclosure notice
- 2026-04-06OwnershipOwnership-change filing
- 2026-04-01OwnershipOwnership-change filing
- 2026-03-18Disclosure
- 2026-03-18Shareholders' meeting notice
- 2026-03-18Disclosure
- 2026-03-12OwnershipOwnership-change filing
- 2026-03-10PeriodicAnnual business 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.