Duksan Hi-Metal makes the joining materials that connect semiconductor chips to their substrates. It was the first Korean company to localize solder ball production and holds a world No. 1-2 position and a 60-70% domestic share in back-end semiconductor bonding materials, while also running a gas and hydrogen cylinder business through a subsidiary. Q1 2026 revenue rose +55.6% year on year, returning to double-digit growth, and last year's loss stemmed not from the core business but from an impairment charge on a subsidiary. An investor briefing was disclosed on May 13 and the results of an extraordinary shareholders' meeting on May 29. The point to watch: if the core business holds its market share, the top line keeps recovering, and the subsidiary losses come to an end, the value obscured by that one-off loss reads as undervalued on a forward P/E basis; against that, a 319% debt ratio, a 92% current ratio, and the thin core-business margin revealed by the Q1 operating loss all warrant close attention.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 319.1%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 92.1%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The most recent full-year net result was a loss.
- Revenue rose 0.2% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 55.6% higher than a year earlier.
- ROE is -56.0% (total-net basis). It is below the sector average.
- Operating margin is 1.2%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder Duksan Holdings 34.88% (corporate)
Controlling bloc incl. related parties 57.67%
With the controlling bloc holding 58%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Duksan Hi-Metal makes and sells the joining materials that electrically connect semiconductor chips to their substrates.
- Its flagship products are solder balls, metal spheres smaller than a grain of millet that link chip to substrate in packaging formats such as BGA, CSP and WLP, along with solder paste (solder powder mixed with flux), and micro solder balls, core solder balls (CSB), solder powder and flux used for flip-chip bumping.
- It was the first company in Korea to localize solder ball production, and its core competitiveness lies in holding a world No.
- 1-2 position and a roughly 60-70% domestic share in back-end semiconductor bonding materials.
- Beyond its core solder business, it also runs other operations through subsidiaries, including gas and hydrogen cylinders (Duksan EtherCity) and defense, so its consolidated results blend the performance of the core business and the subsidiaries together.
- The latest closing price is ₩7,950 and the market cap is ₩361.2 billion.
- The price sits below both the 20-day line (₩11,574) and the 60-day line (₩14,600).
- Trading beneath both its short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a gauge that scores upward versus downward momentum over the past 14 days on a 0-100 scale) is 32.9, a neutral reading.
- The one-month change is -39.0%, the three-month change is -32.7%, and the price sits -59.4% below its 52-week high.
- Relative strength versus KOSDAQ is 88 (on a 1-99 scale that weights recent one-year returns against the index more heavily toward the present; higher means stronger than the market), placing it in roughly the top 11% of all stocks by strength.
- Over the past three months it trailed the index by 14.8%.
- It is best to read the chart alongside trading volume and disclosure dates.
- Because last year's annual net profit was negative, the P/E ratio (how many times one year's earnings the price represents) cannot measure valuation on a trailing basis.
- That loss, however, stemmed mainly from a subsidiary impairment charge (a one-off loss recorded to write down the subsidiary's book value) rather than a weak core business, so judging value from last year's confirmed (trailing) figures alone distorts the picture.
- The forward P/E, aligned with the actual earnings trend, is well below the peer median of 25.12x, which on a forward-earnings basis reads closer to an undervalued signal.
- The P/B ratio (how many times shareholders' equity the price represents), a measure of asset value, is 1.75x, similar to the peer median of 2.29x; the forward P/B eases further to 1.75x, so it is not an overly expensive zone relative to assets either.
- The operating margin was 1.2%, keeping the core business in the black, while the debt ratio (debt relative to equity) is a comparatively high 319%, a point that warrants separate scrutiny.
- Five-year revenue grew from ₩92.7 billion in 2021 to ₩236.4 billion in 2025, a 26.4% average annual growth rate.
- After a sharp +63% jump in 2024, full-year 2025 paused at +0.2%, but the most recent quarter, Q1 2026, saw revenue of ₩68.7 billion, up 55.6% year on year, reviving the top-line growth trend.
- Last year's net loss (₩115.7 billion) was largely a one-off driven by the subsidiary impairment charge, and Q1 returned to a net profit of ₩5.18 billion.
- Behind the forward P/E anchored to this year's actual earnings trend is a structure in which a recovery in semiconductor packaging demand, together with the solid market share of the core solder ball business (world No.
- 1-2, 60-70% domestic), supports both the top line and earnings.
- In other words, this year's figures are not simply a one-quarter spike but a trend produced jointly by recovering quarterly revenue and core-business competitiveness.
- That said, the Q1 operating loss of -₩670 million, with operating and net results moving in opposite directions, is a point to check alongside earnings quality.
- Recent disclosures cluster around results, governance and shareholder returns.
- On May 15 the quarterly report confirmed Q1 2026 results (revenue +55.6%), and on May 13 the company held an investor briefing to explain results and business direction directly.
- On May 29 the results of an extraordinary shareholders' meeting were disclosed, and in April there were a stock-option grant filing and a KOSDAQ market-segment reclassification disclosure.
- It is safer to verify the facts using these disclosures and briefing materials as primary sources rather than general news.
- The strengths are clear: a solid market share in back-end semiconductor solder balls (world No.
- 1-2, 60-70% domestic), a core top line that returned to double-digit growth in Q1 2026, and the fact that last year's loss came from a subsidiary impairment charge rather than the core business.
- A forward P/E below the peer median of 25.12x, aligned with actual earnings, can be read as a signal that the value hidden by last year's one-off loss lies on the undervalued side on a forward-earnings basis.
- Points to weigh alongside this are the financial structure, with a 319% debt ratio and a 92% current ratio, and the thin core-business margin revealed by the Q1 operating loss.
- In short, the setup is one where the undervalued appeal comes alive when the core business holds its market share, the top line keeps recovering, and the subsidiary losses wind down; conversely, its momentum fades when the core margin is squeezed again or the financial burden grows.
🔎 Valuation vs peers Inconclusive
In line with the business reality of back-end semiconductor and packaging materials, the peer set is KOSDAQ-listed names with verifiable data in the materials and back-end space; P/E and P/B are the site's own calculations at the current price.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hana Materials | 26.13x | 2.16x | 8.28% |
| SFA Semicon | — | 1.73x | -4.05% |
| FADU | — | 186.30x | -391.69% |
On a confirmed (trailing) basis, net profit was negative, so P/E cannot tell whether the stock is expensive or cheap. Looking instead at the asset-value-based P/B, it is 2.26x, similar to the peer median of 2.29x and not far off comparators Hana Materials and SFA Semicon. That loss, however, was largely a one-off arising from a subsidiary impairment charge rather than the core business, so if the impairment is over and the core stays profitable, the P/B is hard to call excessive. Conversely, if impairments continue or the core margin (1.2%) is squeezed further, it becomes a burden. Because there is no official company outlook, future earnings can only be gauged from the seasonality of DART quarterly results, so at this point it is more appropriate to remain inconclusive than to declare the stock under- or overvalued.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | ₩73.2 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩7,950 and the market capitalization is ₩361.2 billion. The price sits below its 20-day moving average (₩11,574) and below its 60-day moving average (₩14,600). 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 32.9, a neutral level. The one-month change is -39.0%, the three-month change is -32.7%, and the position relative to the 52-week high is -59.4%. Relative strength versus the KOSDAQ is 88 (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 89% of all stocks. Over the past three months it lagged the index by 14.8%. 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 -14.75% / 6M +48.40% / 12M +86.46%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 1.75x is below the sector median (2.10x).
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
The operating margin is 1.2%. The debt ratio is 319.1%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $95.7M | $156.3M | $156.7M | +0.22% ↓ slower |
| Operating profit | -$7.3M | $12.4M | $1.9M | -84.91% |
| Net profit | $2.2M | $20.7M | -$76.7M | -469.72% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $61.5M | $113.7M | $95.7M | $156.3M | $156.7M |
| Operating profit | $4.0M | -$1.8M | -$7.3M | $12.4M | $1.9M |
| Net profit | $21.1M | $4.0M | $2.2M | $20.7M | -$76.7M |
| Revenue CAGR | 4-yr avg 26.36% | ||||
Revenue rose 0.2% year over year (2023 ₩144.5 billion → 2024 ₩235.9 billion → 2025 ₩236.4 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit fell 84.9% year over year. Over the 5 years on record, revenue compound annual growth (CAGR) is 26.4%. The two-year revenue CAGR is 27.9%. In the most recent quarter (Q1 2026), revenue was 55.6% 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.
Points to watch
- Debt far exceeds equity (debt ratio 319.1%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 92.1%).
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue rose 0.2% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-05-15EarningsQ1 2026 quarterly report filed - quarterly revenue of ₩68.7 billion, up 55.6% year on year; operating loss of -₩670 million; net profit of ₩5.18 billionShort term: a key source confirming the recovery in the core top line. However, with the operating loss and net profit moving in opposite directions, earnings quality needs to be checked as well. Source
- 2026-05-13IRInvestor briefing (IR) disclosure - notice of a session where the company explains its results and business status directlyMedium term: an opportunity to confirm, through the company's official channel, its business direction and core-business recovery plan following the subsidiary impairment charge. Source
- 2026-05-29FilingResults of extraordinary shareholders' meeting disclosed (including a correction) - outcome of the agenda items releasedMedium term: a governance and management decision matter that, depending on the nature of the extraordinary agenda, could affect future business or capital policy. Source
- 2026-04-30FilingKOSDAQ market-segment reclassification disclosure - a change in the segment classification by the KOSDAQ market division of the Korea ExchangeMedium term: a segment reclassification relates to how the stock is classified and managed within the market; the facts should be confirmed against the exchange's original filing. Source
- 2026-04-16FilingFiling on the grant of stock options (correction)Short term: a matter related to employee compensation and incentives. The possibility of future share-count change (dilution) upon exercise should be checked. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-29Amended filing
- 2026-05-29Shareholders' meeting notice
- 2026-05-15PeriodicQuarterly report
- 2026-05-13Disclosure
- 2026-05-13Shareholders' meeting notice
- 2026-05-13Disclosure
- 2026-04-30Disclosure
- 2026-04-17Shareholders' meeting notice
- 2026-04-17Disclosure
- 2026-04-16Amended filing
- 2026-04-16Amended filing
- 2026-03-27Disclosure
📖 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.