Vitzrocell makes non-rechargeable lithium primary batteries that, once installed, run for more than ten years without replacement. It earns more than 95% of its revenue across three lines: cylindrical cells for smart meters and IoT sensors, high-temperature cells for oil- and gas-field drilling, and defense ampoule and thermal batteries, with its ampoule batteries holding the top market share in India, Turkey and Korea. In May the company signed a ₩20.47 billion ampoule-battery supply contract (8.4% of last year's annual revenue) with India's state-owned defense firm BEL and resolved to cancel 200,000 treasury shares, while an ROE of 17.2% and an operating margin of 28.5%, together with Q1 net profit up 55.7%, show growth in the numbers. The key point to watch is that a high-margin axis in defense and high-temperature cells plus a solid balance sheet are strengths, and the valuation on this year's expected earnings (about the low-20s) is on the low side versus defense-exposed peers, while the timing variance in defense orders and the progress of an Itron lawsuit raised in May (3.6% of equity) are cautions to monitor.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 15.3% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 26.6% higher than a year earlier.
- ROE is 17.2% (total-net basis). It is above the sector average.
- Operating margin is 28.5%.
- P/B is high versus peers, a stretch on an asset basis.
Ownership & governance As of 2025-12-31
Largest shareholder Vitzrotech 34.53% (individual)
Controlling bloc incl. related parties 38.35%
With the controlling bloc holding 38%, the ownership structure is stable.
🔎 In-depth analysis
- What Vitzrocell makes are non-rechargeable 'lithium primary batteries.' Unlike secondary batteries that are recharged and reused like a phone's, their self-discharge is extremely low, so once installed they run for more than ten years without replacement, which is their strength.
- More than 95% of revenue comes from these batteries, along three lines.
- First, cylindrical (bobbin-type) cells go into 'install-once, leave-for-years' devices such as smart electricity, gas and water meters (AMI, remote meter reading without a person on site), IoT sensors and memory backup, and make up the largest revenue share.
- Second, high-temperature cells are used in oil- and gas-field drilling equipment (high-temperature underground environments); their high unit price gives them especially good margins.
- Third are defense ampoule batteries and thermal batteries.
- Ampoule batteries stay dormant and wake at the needed moment, used in guided weapons and the like, and have secured the top market share in India, Turkey and Korea; thermal batteries are high-value products used in guided weapons, smart bombs and drones.
- Its smart-meter batteries are exported to some 50 countries, making it a major global supplier.
- What is central to this company is that all three markets have high reliability and certification thresholds, so competitors are few and they are niches.
- The latest close is ₩31,450 and the market capitalization is ₩1.4 trillion.
- The price sits below the 20-day line (₩40,110) and below the 60-day line (₩49,338).
- Trading under both its short- and medium-term moving averages, the trend looks subdued.
- The RSI (a supplementary gauge that scores upward versus downward momentum over the past 14 days on a 0-100 scale) is 26.3, close to oversold territory.
- The price is down 30.3% over one month and 17.1% over three months, and sits 50.9% below its 52-week high.
- Relative strength versus the KOSDAQ is 88 (on a 1-99 scale that weights the past year's return against the index toward recent performance; higher means stronger than the market), placing the stock in roughly the top 12% for strength among all listings.
- Over the past three months it led the index by 11.1%.
- Chart signals are best read alongside trading volume and disclosure dates.
- Both profitability and the balance sheet are solid.
- ROE (annual return on equity) is 17.2%, above the industry average, and the operating margin (operating profit as a share of revenue) is 28.5%, with a net margin of 23.4%, high for a specialty-components company.
- The finances are firm too.
- The current ratio (assets soon convertible to cash against debt due within a year) is a very comfortable 730%, the debt ratio (debt against equity) is 112%, and interest coverage of 12.9x makes the interest burden light.
- In valuation, the point to note is that on last year's (2025) confirmed earnings the P/E (how many times one year's earnings the price represents) of 29.4x looks high.
- But because this is calculated on 'past earnings' in a phase where earnings are growing quickly, it tends to overstate the actual burden.
- As shown in growth and outlook below, the P/E on this year's expected earnings steps down to the low-20s.
- The P/B (how many times net assets the price represents) is 4.31x.
- The quality of growth is good.
- Revenue rose from ₩113.2 billion in 2021 to ₩243.1 billion in 2025, a five-year compound rate of 21%, and operating profit grew far faster over the same period, from ₩17.4 billion to ₩69.3 billion (structural growth with margins improving alongside).
- In 2025 revenue was up 15.3% and operating profit up 33.4% year over year.
- Q1 2026 was especially strong: revenue ₩68.3 billion (+26.6%), operating profit ₩20.3 billion (+34.5%) and net profit ₩20.2 billion (+55.7%), with net-profit growth far outpacing revenue, which reads as the effect of a larger mix of high-margin products such as defense ampoule and thermal batteries and high-temperature cells.
- The basis for this year's outlook is clear.
- In May it won a ₩20.47 billion ampoule-battery supply contract (8.4% of last year's revenue) with India's state-owned defense firm BEL.
- Thermal batteries are expanding on demand from guided weapons and drones, and smart-meter replacement demand continues.
- Given the Q1 earnings trajectory and the improving defense and high-temperature-cell mix, this year's net profit is expected to be clearly above last year's (₩56.9 billion).
- In that case the P/E on this year's expected earnings falls to about the low-20s, so even if last year's P/E looks high, the frame of reference changes on this year's basis.
- In its value-up plan the company set long-term targets for 2030 of ₩600 billion in revenue, ₩160 billion in operating profit and a consolidated ROE of 25%.
- It should be kept in mind that these are the company's long-term targets, not confirmed results.
- The core of recent disclosures is a large order, shareholder returns and a risk factor.
- On May 26 the company signed a contract to supply mid-size ampoule batteries for shell electronic fuzes to India's state-owned defense firm BEL (Bharat Electronics) for ₩20.47 billion.
- This equals 8.4% of last year's annual revenue and is a result in India, the world's largest ampoule-battery market.
- On June 30 the board resolved to cancel 200,000 treasury shares, with a cancellation date of July 6 and the purpose of enhancing shareholder value.
- In the value-up plan disclosed on July 1, it presented long-term targets for 2030 of ₩600 billion in revenue, ₩160 billion in operating profit and a consolidated ROE of 25%.
- On the caution side, on May 14 US customer Itron filed suit in US federal court seeking ₩11.62 billion in damages, citing a battery-specification mismatch.
- The claim amount is about 3.6% of equity, and the company said it would respond through legal counsel and technical experts.
- At the March shareholders' meeting a dividend of ₩260 per share (a yield of about 0.7%, a payout ratio of about 20.5%) was also confirmed.
- Points to observe: on top of its firm position as Korea's No.
- 1 in lithium primary batteries, high-margin axes in defense (ampoule and thermal batteries) and high-temperature cells are pushing results higher.
- With an ROE of 17.2% and an operating margin of 28.5% profitability is good, and with a 730% current ratio and low debt the balance sheet is solid too.
- Q1 net profit up 55.7% is that growth showing up in the numbers, and the valuation on this year's expected earnings (about the low-20s) is if anything on the low side compared with defense-exposed peers.
- Points of caution: because the P/E on last year's confirmed earnings looks high, whether this year's earnings growth actually continues needs confirmation in the quarterly results.
- Defense orders vary in timing, and the progress of the lawsuit disclosed in May also bears watching.
- In sum, in a phase where defense and specialty-battery demand continues, the valuation appeal against growth stands out; if an order gap or margin compression appears, earnings volatility could increase.
🔎 Valuation vs peers Fairly valued
Officially classified under 'electrical equipment,' but the core of earnings and growth is defense and industrial specialty batteries. As of generation time, compared on an on-site basis against defense-exposed peers (Hanwha Aerospace P/E 41.0, P/B 5.9, ROE 14.5%; LIG Defense & Aerospace P/E 66.2, P/B 11.7, ROE 17.7%). The figures are the site's base calculated values (on current price).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hanwha Aerospace | 34.98x | 5.07x | 14.51% |
| LIG Defense & Aerospace | 60.26x | 10.68x | 17.72% |
(a) Position versus peers: the 29.4x P/E on last year's confirmed earnings is if anything lower than the defense-exposed peer set (41-66x). Its ROE (17.2%) is similar to LIG's (17.7%), yet its P/E is less than half. (b) Premium/discount: it carries a premium versus general electrical equipment, but versus the defense and specialty-battery peer set its actual business touches, it is at a discount. (c) The limits of trailing and the basis for forward: because it is in a phase where earnings grow quickly, the P/E calculated on last year's earnings tends to overstate the burden. On this year's expected earnings reflecting Q1 net profit up 55.7% and the growth trajectory, the P/E falls to about the low-20s. Taking this together, the current valuation, allowing for a defense and specialty-battery premium, is judged to sit in a not-excessive fair-value range. That said, the timing variance in defense orders and margin volatility are variables for any re-valuation.
Price history Close · MA20 · MA60
The latest close is ₩31,450 and the market capitalization is ₩1.4 trillion. The price sits below its 20-day moving average (₩40,110) and below its 60-day moving average (₩49,338). 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 26.3, near oversold territory. The one-month change is -30.3%, the three-month change is -17.1%, and the position relative to the 52-week high is -50.9%. 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 88% of all stocks. Over the past three months it outpaced the index by 11.1%. 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 +11.12% / 6M +92.70% / 12M +5.63%
Key metrics vs sector median
Valuation
The P/E of 25.05x is above the sector median (19.17x). The P/B of 4.31x is above the sector median (2.15x). 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, free-cash-flow basis, forward earnings power normalized 1.425x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 17.2%, above the sector average (2.0%). The operating margin is 28.5%. The debt ratio is 112.2%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $116.8M | $139.7M | $161.1M | +15.33% ↓ slower |
| Operating profit | $25.0M | $34.4M | $45.9M | +33.44% ↓ slower |
| Net profit | $23.9M | $34.0M | $37.7M | +11.05% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $75.1M | $93.4M | $116.8M | $139.7M | $161.1M |
| Operating profit | $11.5M | $19.1M | $25.0M | $34.4M | $45.9M |
| Net profit | $11.3M | $15.3M | $23.9M | $34.0M | $37.7M |
| Revenue CAGR | 4-yr avg 21.04% | ||||
Revenue rose 15.3% year over year (2023 ₩176.2 billion → 2024 ₩210.8 billion → 2025 ₩243.1 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 33.4% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 21.0%. The two-year revenue CAGR is 17.4%. In the most recent quarter (Q1 2026), revenue was 26.6% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- ROE of 17.2% points to solid profitability.
- Revenue grew 15.3% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-12EarningsQ1 2026 report filed — revenue ₩68.3 billion (+26.6%), operating profit ₩20.3 billion (+34.5%), net profit ₩20.2 billion (+55.7%)Short term: confirms a re-acceleration of growth. Medium term: an improving high-margin mix of defense and high-temperature cells means net-profit growth far exceeds revenue, the starting point of this year's earnings-growth trajectory. Source
- 2026-07-01IRValue-up plan disclosed — 2030 targets of ₩600 billion in revenue, ₩160 billion in operating profit, a 26.7% operating margin and a consolidated ROE of 25%. Review of a payout ratio of 25% or more from 2027 onward, and new businesses centered on secondary-battery materials and lithium metal.Short term: formalizes a shareholder-return and growth roadmap. Medium term: whether the targets are met hinges on defense exports and execution of new businesses, and the return direction of dividends and cancellations is favorable. Source
- 2026-06-30DividendBoard resolution to cancel 200,000 treasury shares — cancellation date 2026-07-06, purpose being to enhance shareholder value (about ₩8.0 billion based on the prior day's close).Short term: favorable for supply-demand and per-share value through a reduced share count. Medium term: a measure reaffirming shareholder-return intent alongside the dividend. Source
- 2026-05-26UpdateContract signed to supply ₩20.47 billion (about US$13.62 million) of mid-size ampoule batteries for shell electronic fuzes to India's state-owned defense firm BEL (Bharat Electronics) — 8.4% of last year's revenue, contract period 2026-05-23 to 2027-10-29.Short term: confirms a large order. Medium term: as a result in India, the world's largest ampoule-battery market, it underpins second-half defense revenue growth. Source
- 2026-05-14UpdateUS customer Itron filed suit in US federal court (Eastern District of Washington) seeking ₩11.62 billion (about US$7.93 million) in damages, citing a battery-specification mismatch — 3.6% of equity, an additional suit to a case raised in 2024.Short term: the dispute itself is an uncertainty. Medium term: the claim amount is not large against equity, but the outcome of the suit is a risk to watch. Source
- 2026-03-25DividendAnnual general meeting result — cash dividend of ₩260 per share confirmed (a yield of about 0.7%, a payout ratio of about 20.5%)Short term: confirms continued shareholder returns. Medium term: the dividend yield is low, so the core of value lies in earnings growth rather than the dividend. Source
- 2026-03-17Filing2025 annual report filed — annual revenue ₩243.1 billion, operating profit ₩69.3 billion and net profit ₩56.9 billion confirmedShort term: confirms the five-year growth trend and profitability. Medium term: last year's confirmed results are the denominator of the current trailing P/E and the reference point for forward comparison. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| FY2025 annual results (revenue, operating profit, net profit) | revenue ₩243.1 billion / operating profit ₩69.3 billion / net profit ₩56.9 billion | DART (2025.12) | Confirmed | link |
| Q1 2026 net profit and YoY | net profit ₩20.2 billion, +55.7% | DART (2026.03) | Confirmed | link |
| Latest close | ₩31,450 | — | Unverified | link |
| This year's (2026) expected net profit and forward P/E | net profit approx. ₩81.0 billion, forward PER approx. 20.6x | — | Unverified | link |
Recent filings
- 2026-05-26Single supply/sales contract
- 2026-05-14Litigation disclosure
- 2026-05-12PeriodicQuarterly report
- 2026-04-28OwnershipOwnership-change filing
- 2026-04-03OwnershipOwnership-change filing
- 2026-03-25Disclosure
- 2026-03-25Shareholders' meeting notice
- 2026-03-17PeriodicAnnual business report
- 2026-03-17Audit report
- 2026-03-10Disclosure
- 2026-03-10Shareholders' meeting notice
- 2026-03-10Shareholders' meeting notice
📖 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.