Hanyang Digitech is an ODM that takes DRAM and NAND made by Samsung Electronics, assembles them into PC and server memory modules and SSDs, and supplies them back to Samsung Electronics; of its ₩651.1 billion in 2025 consolidated revenue, memory modules were 65.5% and SSDs 31.7%, making those two businesses effectively the whole company. First-quarter 2026 revenue of ₩192.0 billion (+28.5%), operating profit of ₩6.8 billion (+43.1%), and net profit of ₩5.0 billion (+36.3%) confirmed a recovery, and in February the company disposed of 661,509 treasury shares (4.3%) via a block trade, raising about ₩17.1 billion. What stands out lately is that when memory demand is alive and Samsung orders and the exchange rate are favorable, its recovery in earnings and a low valuation shine together, but with essentially one customer in Samsung and a thin 3.7% operating margin, earnings can swing when pricing or the exchange rate turn unfavorable.
At-a-glance assessment financial health · growth · profitability · valuation
- Revenue rose 9.4% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 28.5% higher than a year earlier.
- ROE is 8.8% (controlling-interest basis). It is above the sector average.
- Operating margin is 3.7%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Kim Hyung-yuk 23.97% (individual)
Controlling bloc incl. related parties 53.74%
With the controlling bloc holding 54%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Hanyang Digitech is not a company that designs its own semiconductor chips or makes wafers; it is an ODM that takes DRAM (memory chips that store data temporarily and quickly) and NAND made by Samsung Electronics, assembles them into memory modules and SSDs (storage devices) for PCs, laptops, and servers, and supplies them back to Samsung Electronics.
- Of the ₩651.1 billion in 2025 consolidated revenue, memory modules were ₩425.6 billion (65.5%) and SSDs ₩206.7 billion (31.7%), so those two businesses are effectively the whole company, with IP communications such as VoIP internet phones and routers (₩8.7 billion, 1.3%) and building rental (₩10.0 billion, 1.5%) making up the rest.
- Production is handled by the Vietnamese subsidiary Hanyang Digitech VINA, and for both memory modules and SSDs the customer is effectively Samsung Electronics alone.
- The main raw material is the printed circuit board (PCB), heavily sourced overseas, so results move with DRAM and NAND prices, the won-dollar exchange rate, and Samsung's order volumes.
- In other words, this is a business structure directly linked to the memory cycle: it grows by taking volume in step when memory demand revives and Samsung's lines run busy.
- The latest close is ₩20,400 and the market cap is ₩311.0 billion.
- The price sits below its 20-day line (₩22,995) and below its 60-day line (₩28,401).
- Trading beneath both its short- and mid-term moving averages, the trend is on the soft side.
- The RSI (an indicator that gauges upward versus downward momentum over the past 14 days on a 0-100 scale) is 40.8, a neutral reading.
- The one-month change is -14.3%, the three-month change is -22.9%, and the position versus the 52-week high is -52.0%.
- Relative strength against the KOSDAQ is 83 (on a 1-99 scale that weights recent returns versus the index over the past year more heavily; higher means stronger than the market).
- That places it in roughly the top 16% of all stocks by strength.
- Over the past three months it lagged the index by 3.6%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- On confirmed annual (2025) results, the P/E ratio (how many times one year's net profit the price represents) is 20.77x, the P/B (how many times net assets the price represents) is 1.83x, and ROE (how much is earned in a year on shareholders' equity) is 8.8%.
- One thing needs noting here.
- 2025 was a year when profit fell temporarily even as revenue rose because costs climbed, and computing a P/E on that reduced profit makes the number look higher than reality.
- In such an earnings-inflection phase, the forward value (on this year's expected earnings) is closer to the true picture than past results.
- The forward P/B on this year's basis is 1.83x, far below the confirmed 21.4x P/E.
- This reflects the first-quarter return of earnings to a normal track.
- Financially, too, a debt ratio of 75.0%, a current ratio of 139%, and an interest coverage ratio of 2.3x are not excessive levels.
- The 3.7% operating margin is thin, as expected for a business that receives and assembles rather than making chips itself, but that same structure means earnings recover quickly when volume and utilization hold up.
- Over five years, revenue more than doubled from ₩303.4 billion in 2021 to ₩651.1 billion in 2025.
- In that span, 2025 saw revenue rise +9.4% while operating profit fell -31.9% and net profit fell -41.3%; the company disclosed the cause as reduced profit due to higher cost of sales.
- That is, the business did not turn down; costs were heavy for one year, and indeed in the first quarter of 2026 revenue of ₩192.0 billion (+28.5%), operating profit of ₩6.8 billion (+43.1%), and net profit of ₩5.0 billion (+36.3%) rebounded together in double digits.
- That profit grew faster than revenue is a signal that margins are normalizing again as the cost burden eases.
- This is also the backdrop for this year's forward earnings being drawn this way.
- As memory demand recovers, Samsung's line utilization rises, and Hanyang Digitech's module and SSD volumes and utilization rise in step.
- High-capacity server memory modules in particular carry good pricing and profitability, aiding an improved product mix.
- That the first-quarter recovery is not a one-off but the starting point of a flow turning back up in the cycle is the basis for this year's earnings clearly exceeding the confirmed results.
- There are two key points in recent disclosures.
- First, the May 14, 2026 quarterly report confirmed the recovery in the results, with first-quarter revenue of ₩192.0 billion (+28.5%), operating profit of ₩6.8 billion (+43.1%), and net profit of ₩5.0 billion (+36.3%).
- Given that in the 2025 preliminary results (February 11) the company itself cited higher cost of sales as the cause of the profit drop, this shows in the numbers a flow of results returning to place as costs ease.
- Second, the treasury-share disposal on February 23-25, 2026.
- It sold 661,509 treasury shares it held (4.3% of shares outstanding) to an outside investor via a block trade at a 4.7% discount, raising about ₩17.1 billion, and after the disposal its treasury holdings became zero.
- The transaction was to secure investment and operating funds, of a nature that increases the floating share count and brings cash into the company.
- The annual report (2026.03.16) is a regular disclosure for confirming the results above and the revenue mix.
- Starting with the strengths, Hanyang Digitech is structured to grow by taking Samsung volume directly when the memory cycle revives, and in the first quarter of 2026 both revenue and profit rebounded in double digits, showing the cost burden easing.
- This year's forward P/E is clearly lower than the semiconductor names grouped on the same site (such as Hana Materials at 30.7x) or the confirmed 21.4x P/E, so on recovered earnings this is not a name carrying a heavy valuation burden.
- Rather, that the price sits nearly half below its 52-week high just as earnings normalize is a point worth watching.
- The cautions are just as clear.
- With effectively one customer in Samsung Electronics, front-end order volume drives the flow, and with a thin 3.7% operating margin, earnings can swing if DRAM and NAND pricing or the won-dollar exchange rate move unfavorably.
- In sum, in a phase where memory demand is alive and Samsung orders and the exchange rate are favorable, its recovery in earnings and low valuation shine together; in a phase where pricing, the exchange rate, or front-end demand turn down, the thin margin comes back as a burden.
- Which one it is can be gauged by watching the direction of the quarterly margin alongside memory-industry conditions.
🔎 Valuation vs peers Fairly valued
Names classified as the same 'semiconductor' group on the site with available data are taken as reference, while noting that Hanyang Digitech is not a chip maker but a Samsung-bound memory-module and SSD assembly ODM with a different margin structure.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hana Materials | 26.13x | 2.16x | 8.28% |
| SFA Semicon | — | 1.73x | -4.05% |
On the surface, its P/E and P/B look cheap, below the industry median. But the comparison names grouped with it, Hana Materials and SFA Semicon, differ in business character and margin band (materials, packaging, and so on), so simple multiple comparison has limits. Also, the trailing P/E of 21.4x is computed on 2025 results with sharply lower profit, so it can look somewhat higher than on recovered earnings, and conversely, on a seasonality-approximation basis reflecting the recovering first quarter, the P/E comes out lower. In the end, with the past multiple from a year of falling profit and the recovering approximation multiple diverging, and with clear structural weaknesses of a thin margin and single-customer dependence, it is hard to conclude one way. So rather than pinning it as undervalued, it is viewed as a fair range, with the direction of the quarterly margin and Samsung orders and the exchange rate confirmed alongside.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩188.9 billion | approx. ₩6.5 billion | approx. ₩3.6 billion |
Price history Close · MA20 · MA60
The latest close is ₩20,400 and the market capitalization is ₩311.0 billion. The price sits below its 20-day moving average (₩22,995) and below its 60-day moving average (₩28,401). 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 40.8, a neutral level. The one-month change is -14.3%, the three-month change is -22.9%, and the position relative to the 52-week high is -52.0%. Relative strength versus the KOSDAQ is 83 (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 84% of all stocks. Over the past three months it lagged the index by 3.6%. 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 -3.61% / 6M +5.41% / 12M +113.66%
Key metrics vs sector median
Valuation
The P/E of 20.77x is below the sector median (27.09x). The P/B of 1.83x is in line with 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 3.7%. The debt ratio is 75.0%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $317.4M | $394.5M | $431.5M | +9.39% ↓ slower |
| Operating profit | $12.7M | $23.2M | $15.8M | -31.88% ↓ slower |
| Net profit | $8.4M | $16.9M | $9.9M | -41.32% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $201.1M | $321.3M | $317.4M | $394.5M | $431.5M |
| Operating profit | $19.9M | $35.0M | $12.7M | $23.2M | $15.8M |
| Net profit | $16.1M | $24.6M | $8.4M | $16.9M | $9.9M |
| Revenue CAGR | 4-yr avg 21.03% | ||||
Revenue rose 9.4% year over year (2023 ₩478.8 billion → 2024 ₩595.2 billion → 2025 ₩651.1 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit fell 31.9% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 21.0%. The two-year revenue CAGR is 16.6%. In the most recent quarter (Q1 2026), revenue was 28.5% 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
- Revenue rose 9.4% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-02-11Earnings2025 consolidated preliminary results: revenue of ₩651.0 billion (+9.4%), operating profit of ₩23.9 billion (-31.9%), net profit of ₩15.9 billion (-37.6%). The company disclosed the cause of the change as reduced profit due to higher cost of sales.The company itself confirms the margin pressure of rising revenue but falling profit. A key short- and mid-term material that plainly shows the thin earnings strength and cost sensitivity of the assembly and module business. Source
- 2026-02-23FilingTreasury-share disposal decision: 661,509 treasury shares held (4.3% of shares outstanding) disposed to an outside investor via a block trade at a 4.7% discount to the board-resolution-date close, with the purpose of securing investment and operating funds (about ₩17.1 billion).Of a nature to raise cash and increase floating volume rather than a shareholder return. That the share count in circulation rises can be a burden on short-term supply and demand, a point to note. Source
- 2026-02-25FilingTreasury-share disposal result: on 2026-02-24, all 661,509 shares were disposed at ₩25,874 per share (about ₩17.1 billion total), leaving zero treasury shares held after the disposal.The disposal was executed in full as planned, bringing treasury holdings to zero. With no treasury-share cushion left for future use, this is a mid-term variable to confirm on the supply-and-demand and volume side. Source
- 2026-05-14UpdateQuarterly report (2026.03): first-quarter revenue of ₩192.0 billion (+28.5%), operating profit of ₩6.8 billion (+43.1%), net profit of ₩5.0 billion (+36.3%), a recovery versus the same period a year earlier.Confirms in the results that, after the 2025 profit slowdown, revenue and profit rebounded together in double digits. Whether the recovery continues is the question for this year's results. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 operating profit change | ₩23.9 billion | operating profit ₩23,875,147,064, -31.9% | Confirmed | link |
| 2025 revenue mix | +SSD | ₩425.6 billion(65.5%)·SSD ₩206.7 billion(31.7%)·IP 1.3%· 1.5% | Confirmed | link |
| Latest closing price | ₩20,400 | — | Unverified | link |
| This year's seasonality-approximated operating profit | approx. ₩26.6 billion | — | Unverified | link |
Recent filings
- 2026-05-14PeriodicQuarterly report
- 2026-03-24Shareholders' meeting notice
- 2026-03-16PeriodicAnnual business report
- 2026-03-16Audit report
- 2026-03-09Disclosure
- 2026-03-09Shareholders' meeting notice
- 2026-03-05Shareholders' meeting notice
- 2026-02-25TreasuryTreasury-stock disposal decision
- 2026-02-23TreasuryMaterial-fact report
- 2026-02-13OwnershipOwnership-change filing
- 2026-02-11EarningsEarnings filing
📖 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.