Daejoo Electronic Materials makes money from silicon anode material, which, when added to the anode of an EV battery, boosts charging capacity and speed beyond what graphite alone can deliver, and from electronic-component materials such as the conductive pastes used in MLCCs. It supplies its silicon anode material to Panasonic and Samsung SDI and is currently expanding production capacity from 3,000 tons in 2025 to 5,000 tons in 2026. On the back of this rising volume, first-quarter revenue jumped 68% and operating profit 93%, though a non-cash valuation loss on derivatives also arose from the re-measurement of options attached to its convertible bonds. What stands out lately is the clear balance between two forces: a distinct growth inflection in which rising silicon anode volume is lifting both revenue and operating profit, set against caution points such as a high valuation on last year's earnings, a 260% debt ratio, a 63.9% current ratio, and net profit that swings with the valuation gains and losses on its convertible-bond derivatives.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 260.3%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 63.9%).
- Revenue rose 16.1% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 68.3% higher than a year earlier.
- ROE is 8.1% (controlling-interest basis). It is above the sector average.
- Operating margin is 8.1%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Lim Jung-gyu 7.24% (individual)
Controlling bloc incl. related parties 27.35%
With the controlling bloc holding 27%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- Daejoo Electronic Materials earns money mainly from two kinds of materials.
- The first is silicon anode material.
- Added to the anode of an EV battery, it raises charging capacity and speed beyond what graphite alone allows, and it is the company's growth engine.
- The company supplies it to battery cell makers such as Panasonic and Samsung SDI and is currently expanding capacity from 3,000 tons in 2025 toward 5,000 tons in 2026.
- The second is conductive materials and electronic-component materials, such as the conductive pastes that go into parts like multilayer ceramic capacitors (MLCCs) - a steady base the company has run for years.
- In short, battery materials drive growth while electronic-component materials provide the foundation.
- The latest close is ₩74,600 and market capitalization is ₩1.2 trillion.
- The price sits below the 20-day line (₩100,060) and below the 60-day line (₩128,772).
- With the price under both the short- and mid-term moving averages, the trend looks subdued.
- The RSI (an auxiliary gauge that weighs upward against downward momentum over the past 14 days on a 0-100 scale) is 29.2, close to depressed territory.
- The one-month change is -35.1%, the three-month change is -34.2%, and the position versus the 52-week high is -59.2%.
- Relative strength against the KOSDAQ is 81 (on a 1-99 scale, computed from the past year's return versus the index with more weight on recent performance; higher means stronger than the market), placing it in roughly the top 18% of all stocks by strength.
- Over the past three months it lagged the index by 12.5%.
- Chart reading is best done alongside trading volume and disclosure dates.
- The valuation metrics run high, carrying growth expectations.
- The P/E ratio (how many times one year's earnings the price represents) is 56.43x, which looks demanding on last year's confirmed earnings.
- That said, this figure mixes in derivative-related gains and losses within last year's earnings, so it should be read together with the growth and outlook sections below.
- The P/B (how many times net assets the price represents) is 4.60x.
- ROE (how much is earned in a year on equity) is 8.1%, keeping a profitable footing.
- The balance sheet is somewhat heavy.
- The debt ratio (debt against equity) is 260%, and the current ratio (assets that can be quickly turned into cash against debts due within a year) is 63.9%, below 100%.
- Net debt (total borrowings minus cash) is about ₩245.8 billion.
- FCF yield (the ratio of actual cash generated to market cap) is -0.9%, still negative during this capital-investment phase.
- Because the company continues to invest for growth, its financial headroom should be monitored alongside.
- Over the long run, revenue trends upward.
- It rose from ₩185.0 billion in 2023 to ₩219.3 billion in 2024 and ₩254.6 billion in 2025.
- Revenue in 2025 grew 16.1% year on year.
- By contrast, 2025 operating profit (₩20.7 billion) and net profit (₩20.7 billion) fell 29.5% and 44.0% respectively from the prior year, largely a base effect after earnings had surged sharply in 2024.
- The important shift came in the first quarter of 2026.
- Revenue jumped 68.3% year on year to ₩90.9 billion.
- Operating profit also leapt 93.0% to ₩9.2 billion.
- The operating margin improved from 8.1% in 2025 to 10.1% in the first quarter.
- This signals that as silicon anode volume grows, both the top line and margins improve together.
- First-quarter net profit was a loss of ₩3.5 billion, but this was due to a derivative-related valuation loss - a non-operating, non-cash item explained below.
- The operating trend itself is clearly improving.
- The core of the first-half 2026 disclosures is the tidying up of the financing structure.
- Material-fact reports in May reported that early-redemption rights on the 7th and 8th convertible bonds (corporate bonds carrying conversion rights) issued in 2024 had been exercised.
- Around the same time there was a disclosure of a loss on derivative transactions.
- This loss is an accounting valuation loss that arose from re-measuring the value of options attached to the convertible bonds; no actual cash flowed out.
- In June there was a disclosure of the exercise of conversion rights.
- When convertible bonds turn into shares, latent supply becomes actual stock, so the share count is a point to keep watching.
- On the regular-disclosure side, the first-quarter 2026 report was filed in May.
- The point to watch is clear: rising silicon anode volume is lifting revenue and operating profit together.
- The 68% revenue and 93% operating-profit gains in the first quarter are the evidence.
- If the capacity expansion proceeds as planned, the durability of growth is underpinned.
- The cautions are just as clear.
- First, the valuation is high; the P/E on last year's earnings is demanding, and future earnings growth must actually materialize to justify it.
- Second, the balance sheet is heavy, with a 260% debt ratio and a 63.9% current ratio, so financial headroom needs continued monitoring.
- Third, net profit swings with the valuation gains and losses on the convertible-bond derivatives; quarterly net profit can be volatile, so it is more accurate to read it alongside the operating-profit trend.
- In sum, the operating-earnings inflection is distinct, but the high valuation and financial burden serve as the counterweight.
🔎 Valuation vs peers Fairly valued
Compared against domestic listed makers of EV battery materials; Daejoo makes anode (silicon) material while Ecopro BM and L&F make cathode material, so the material types differ, but they belong to the same battery-material growth theme.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Ecopro BM | 277.09x | 6.31x | 2.28% |
| L&F | 0.00x | 5.51x | -79.27% |
On last year's confirmed earnings, the P/E of 66x is high in absolute terms. However, it has the limitation of being a figure taken just before an earnings inflection. First-quarter 2026 operating profit leapt 93% year on year, clearly improving the operating trend, and on this year's earnings that reflect it, the burden eases somewhat. Against battery-material peers the position is distinct: cathode leader Ecopro BM carries a triple-digit P/E and L&F is in a net loss, whereas Daejoo maintains both profitability and growth. Within the same theme, its earnings support is relatively better. Even so, given the financial burden (260% debt ratio) and the derivative-driven volatility of net profit, we see this as a fairly valued range in which growth expectations are already largely reflected in the price.
Price history Close · MA20 · MA60
The latest close is ₩74,600 and the market capitalization is ₩1.2 trillion. The price sits below its 20-day moving average (₩100,060) and below its 60-day moving average (₩128,772). 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 29.2, near oversold territory. The one-month change is -35.1%, the three-month change is -34.2%, and the position relative to the 52-week high is -59.2%. Relative strength versus the KOSDAQ is 81 (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 82% of all stocks. Over the past three months it lagged the index by 12.5%. 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 -12.48% / 6M +44.87% / 12M +0.73%
Key metrics vs sector median
Valuation
The P/E of 56.43x is above the sector median (18.61x). The P/B of 4.60x is above the sector median (1.63x). 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.
Profitability & financials
Return on equity (ROE) is 8.1%, above the sector average (7.0%). The operating margin is 8.1%. The debt ratio is 260.3%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $122.6M | $145.4M | $168.8M | +16.09% ↓ slower |
| Operating profit | $4.1M | $19.5M | $13.7M | -29.53% ↓ slower |
| Net profit | $460,676 | $24.4M | $13.7M | -43.97% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $131.7M | $115.4M | $122.6M | $145.4M | $168.8M |
| Operating profit | $11.7M | $7.9M | $4.1M | $19.5M | $13.7M |
| Net profit | $15.2M | $661,828 | $460,676 | $24.4M | $13.7M |
| Revenue CAGR | 4-yr avg 6.39% | ||||
Revenue rose 16.1% year over year (2023 ₩185.0 billion → 2024 ₩219.3 billion → 2025 ₩254.6 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit fell 29.5% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 6.4%. The two-year revenue CAGR is 17.3%. In the most recent quarter (Q1 2026), revenue was 68.3% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- Revenue grew 16.1% year over year, a sign of growth.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-15FilingEarly-redemption rights on the 7th convertible bond issued in 2024 were exercised, covering part of the ₩43.0 billion total issue.A financing-structure change in which part of the latent conversion supply is cleared, working to reduce future share-dilution pressure. Source
- 2026-05-15UpdateDisclosure of a loss on derivative transactions - an accounting valuation loss from re-measuring the value of options attached to the convertible bonds, a non-operating item rather than a cash outflow.A factor that pulls down short-term net profit. Being non-cash and valuation-based, however, it should be viewed separately from the operating results. Source
- 2026-05-14EarningsFiling of the first-quarter 2026 report. Revenue of ₩90.9 billion (up 68.3% year on year) and operating profit of ₩9.2 billion (up 93.0%).Expanded silicon anode volume improved both the top line and margins - a signal of an earnings inflection. Source
- 2026-06-01FilingDisclosure of the exercise of convertible-bond conversion rights, with part of the convertible bonds converted into shares.Latent supply converts into actual stock, changing the share count. Dilution is an item to keep checking. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-01Disclosure
- 2026-06-01Disclosure
- 2026-05-29OwnershipOwnership-change filing
- 2026-05-18Amended filing
- 2026-05-15Disclosure
- 2026-05-15Material-fact report
- 2026-05-15Material-fact report
- 2026-05-14Material-fact report
- 2026-05-14Material-fact report
- 2026-05-14PeriodicQuarterly report
- 2026-04-30OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-30OwnershipOfficers'/major-shareholders' holdings 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.