Neotis earns money mainly from micro-bits — ultra-small, high-precision consumable tools used to cut and drill PCBs — along with shafts (power-window motor shafts for European cars), lens-polishing machines made by its subsidiary Kwangjin Precision, and real-estate rental income. Of Q1 2026 revenue of ₩17.9 billion, micro-bits were ₩8.1 billion (about 45%), shafts ₩5.3 billion (about 30%), and lens-polishing machines ₩4.2 billion (about 24%); since about 70% of raw materials is tungsten carbide, PCB demand and tungsten prices drive results. In May 2026, to expand micro-bit capacity (₩10 billion for facilities, ₩8.6 billion for advance raw-material purchases), it issued 662,000 convertible preferred shares (issue price ₩28,057, ₩18.6 billion total) to an overseas fund, creating a roughly 4.75% dilution factor if fully converted; at the same time it cancelled 140,000 treasury shares (about ₩3.9 billion) and disclosed a ₩200-per-share dividend (63% payout) and a plan to maintain a payout ratio of at least 40%. The notable point is that, on the repeat demand of consumable tools, operating profit swung from a 2023 loss to ₩7.8 billion in 2025 and Q1 net profit accelerated +95.3%, bringing the confirmed P/E of 65x down on a forward basis — a strength — while a rise in tungsten prices would pressure costs and roughly 4.75% dilution is also scheduled, so whether the capacity expansion translates into revenue and profit must be watched.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 231.2%).
- Revenue rose 26.5% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 3.4% higher than a year earlier.
- ROE is 7.6% (controlling-interest basis). It is above the sector average.
- Operating margin is 11.3%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Kwon Eun-young 17.9% (individual)
Controlling bloc incl. related parties 43.9%
With the controlling bloc holding 44%, the ownership structure is stable.
🔎 In-depth analysis
- Neotis actually earns money in three streams.
- The first and largest is micro-bits, ultra-small high-precision consumable tools used to cut and drill PCBs (printed circuit boards) — router and endmill bits to cut PCBs, drill bits to bore them.
- Of Q1 2026 consolidated revenue of ₩17.9 billion, this segment was the largest at ₩8.1 billion (about 45%).
- The second is the shaft segment (₩5.3 billion, about 30%), which mainly makes motor shafts for the power-window motors of European cars.
- The third is the lens-polishing-machine segment (₩4.2 billion, about 24%), handled by its subsidiary Kwangjin Precision (in which it acquired a 50% stake in July 2021), making optical-lens processing machines; the remainder is real-estate rental income.
- The key raw material is tungsten carbide (a tungsten-plus-cobalt cemented carbide), accounting for about 70% of total purchases.
- Because PCB tools are single-use consumables, steady repeat demand is the foundation of the business, and by the same token PCB downstream demand and tungsten-price trends drive results.
- The latest close was ₩15,070 and the market cap is ₩207.9 billion.
- The price sits below both the 20-day line (₩21,754) and the 60-day line (₩25,802).
- Trading below both its short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a gauge comparing recent upward and downward strength over the past 14 days on a 0-100 scale) is 30.1, a neutral level.
- The one-month change is -46.8%, the three-month change is -28.9%, and the position versus the 52-week high is -55.4%.
- Relative strength against the KOSDAQ is 96 (on a 1-99 scale, computed from returns versus the index over the past year with more weight on recent performance; higher means stronger than the market), placing it in roughly the top 4% of all stocks by strength.
- Over the past three months it lagged the index by 3.6%.
- It is best to read the chart alongside trading volume and disclosure dates.
- On confirmed annual (2025) results, the P/E (how many times one year of profit the share price is) is 49.46x and the P/B (how many times book equity the price is) is 3.78x.
- ROE (how much is earned on equity in a year) is 7.6%, in line with the industry average, and the operating margin is 11.3%.
- The debt-to-equity ratio of 231.2% is somewhat high, but with a current ratio of 200% and interest coverage of about 3x, short-term liquidity itself holds up.
- One important point is that this P/E is on a trailing (last-year confirmed) basis.
- Neotis has just swung operating profit from a 2023 loss to ₩7.8 billion in 2025, so last year's profit is still a low base, and for a company whose profit is rising quickly, a trailing multiple computed on past results naturally looks higher than its real strength.
- Measured against this year's expected profit, the forward P/B comes down to 3.78x.
- This is a phase where the valuation burden lightens quickly as profit builds, so rather than declaring it 'expensive' on the trailing number alone, it should be read together with the pace of the profit recovery.
- Five-year revenue ran ₩66.0 billion (2021) → ₩80.4 billion (2022) → ₩54.3 billion (2023) → ₩54.3 billion (2024) → ₩68.7 billion (2025), rising again in 2025 after weakness in 2023-2024.
- The key is the turn in profitability.
- Operating profit clearly reversed from a 2023 loss (-₩0.1 billion) to ₩3.2 billion in 2024 and ₩7.8 billion in 2025 (+144.8% year on year), and in Q1 2026, with revenue up a modest 3.4%, operating profit rose 36.4% and net profit rose 95.3%, so profit grew far faster than revenue.
- In other words, a structural improvement is underway in which more profit is left from the same revenue.
- The forward P/E, measured against this year's expected profit, coming down is an extension of this flow.
- Because micro-bits are single-use consumables, repeat demand supports results as long as PCB lines keep running, and the company is putting ₩18.6 billion directly into expanding micro-bit capacity, so there is a clear basis — demand plus expansion and margin improvement — for this year's profit to sit a step higher than last year.
- Net profit exceeding operating profit reflects non-operating items such as those from the subsidiary Kwangjin Precision.
- The key recent disclosure is that growth investment and shareholder returns are proceeding at the same time.
- In May 2026, to expand micro-bit production capacity (₩10 billion for facilities and plant expansion) and pre-purchase raw materials (₩8.6 billion), the company issued 662,000 convertible preferred shares (issue price ₩28,057, ₩18.6 billion total) to an overseas fund (Brookdale) via a third-party allocation.
- It drew the expansion funding from outside, and because these preferred shares can convert to common stock from June 2027, a dilution factor of roughly 4.75% is attached if fully converted.
- Around the same time, the company cancelled 140,000 treasury shares (about ₩3.9 billion), reducing shares outstanding to 13,794,818, and disclosed a value-enhancement plan including a 2026 dividend (₩200 per share, 63% payout) and a commitment to maintain a payout ratio of at least 40%.
- With funding-related dilution and share-cancellation and dividend-related returns intertwined, it is best to view their net effect together.
- Neotis's strength is that its profit structure is genuinely improving.
- PCB micro-bits are consumable tools with steady repeat demand, and after operating profit reversed from a 2023 loss to ₩7.8 billion in 2025, net profit accelerated +95.3% in Q1 2026.
- The trailing P/E on confirmed results looks high at 65x, but as profit builds quickly the forward P/E on this year's expected profit comes down, and the company putting its own capital directly into expansion while pairing it with dividends and share cancellations reads as a sign of business confidence.
- There are clear points to watch as well: with 70% of raw materials being tungsten carbide, a rise in tungsten prices directly pressures costs, and roughly 4.75% dilution is scheduled upon conversion of the preferred shares.
- In short, as long as the micro-bit expansion translates into revenue and profit and tungsten costs are held in check, the valuation burden lightens quickly alongside the profit recovery; conversely, if profit improvement stalls or cost burdens grow, the pace of recovery could slow.
🔎 Valuation vs peers Overvalued
Its actual revenue splits about 45% PCB high-precision tools, about 30% automotive motor shafts, and about 24% optical lens-polishing machines — a mixed structure. The closest on-site reference peer set is precision and optical-equipment growth stocks, with auto-parts industry statistics used as a supplement for the shaft segment.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Park Systems | 58.60x | 8.97x | 15.31% |
The trailing P/E of 97x and P/B of 7.42x on confirmed results are high not only versus the auto-parts industry median (P/E 8x, P/B 0.66x) but even compared with the on-site precision and optical-equipment growth stock Park Systems (P/E 53.6x, P/B 8.2x). That said, this trailing P/E can be exaggerated because it rests on last year's results while profit was at an inflection point, so a forward view is needed. With no company-provided numerical outlook, approximating from the seasonality of confirmed DART results puts this year's operating profit at about ₩10.6 billion, up from ₩7.8 billion last year, so the forward multiple comes down somewhat. Even so, the absolute level is high, so the current price is only explained once it is confirmed that the micro-bit expansion translates into actual profit and tungsten costs are held in check. Rather than declaring it cheap or expensive, we view it as a phase where high expectations are pre-reflected in the price.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩17.9 billion | approx. ₩1.8 billion | — |
Price history Close · MA20 · MA60
The latest close is ₩15,070 and the market capitalization is ₩207.9 billion. The price sits below its 20-day moving average (₩21,754) and below its 60-day moving average (₩25,802). 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 30.1, a neutral level. The one-month change is -46.8%, the three-month change is -28.9%, and the position relative to the 52-week high is -55.4%. Relative strength versus the KOSDAQ is 96 (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 96% 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 -3.57% / 6M +103.18% / 12M +359.06%
Key metrics vs sector median
Valuation
The P/E of 49.46x is above the sector median (7.76x). The P/B of 3.78x is above the sector median (0.56x). 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 7.6%, in line with the sector average (7.0%). The operating margin is 11.3%. The debt ratio is 231.2%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $36.0M | $36.0M | $45.5M | +26.51% ↑ faster |
| Operating profit | -$55,521 | $2.1M | $5.2M | +144.76% |
| Net profit | -$2.0M | $3.2M | $2.8M | -12.51% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $43.7M | $53.3M | $36.0M | $36.0M | $45.5M |
| Operating profit | $6.4M | $7.7M | -$55,521 | $2.1M | $5.2M |
| Net profit | $3.8M | $3.4M | -$2.0M | $3.2M | $2.8M |
| Revenue CAGR | 4-yr avg 1.01% | ||||
Revenue rose 26.5% year over year (2023 ₩54.3 billion → 2024 ₩54.3 billion → 2025 ₩68.7 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit rose 144.8% year over year. Over the 5 years on record, revenue compound annual growth (CAGR) is 1.0%. The two-year revenue CAGR is 12.5%. In the most recent quarter (Q1 2026), revenue was 3.4% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- Revenue grew 26.5% 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
- 2026-05-12FilingIssued 662,000 convertible preferred shares (issue price ₩28,057, ₩18.6 billion total) to an overseas fund (Brookdale) via third-party allocation. ₩10 billion of facility funds is for micro-bit equipment and plant expansion, and ₩8.6 billion of operating funds is for advance purchases of raw material (tungsten carbide).A positive that secures funding for growth investment (expansion), but a mid-term caution is that conversion to common stock is possible from June 2027, with roughly 4.75% dilution scheduled if fully converted. Source
- 2026-05-12FilingDecision to cancel 140,000 treasury shares (about ₩3.9 billion). Scheduled cancellation date 2026-05-26; shares outstanding reduced to 13,794,818 after cancellation (paid-in capital unchanged).A shareholder return that raises per-share value by reducing shares outstanding. Its net effect should be viewed together with the concurrent convertible-preferred issuance (dilution). Source
- 2026-03-31UpdateValue-enhancement plan (voluntary disclosure): maintain a payout ratio of at least 40%, with goals of strategic investment, manufacturing-process efficiency, and securing dividend resources. With a 63% payout for the prior fiscal year (2025), it qualifies as a high-dividend company under the Special Tax Treatment Control Act.A mid-term positive confirming a steady dividend commitment in an official company document. However, the plan is forward-looking information that may change with market and management conditions. Source
- 2026-04-03DividendCash-dividend decision (revised): ₩200 per share, record date 2025-12-31, payment date 2026-04-10, total dividend about ₩2.68 billion.The dividend yield at the current price looks low at about 0.7%, but the yield at the record date was 2.28%. The dilution of the current yield due to the share-price surge should be taken into account. Source
- 2026-05-15UpdateQuarterly report (2026.03): consolidated revenue ₩17.9 billion, operating profit ₩2.3 billion. By segment: micro-bits ₩8.1 billion, shafts ₩5.3 billion, lens-polishing machines ₩4.2 billion, rental and other ₩0.3 billion. About 3.76% of revenue (about ₩0.67 billion) invested in R&D.Primary material confirming the actual business mix and segment revenue. That micro-bits are the largest segment shows a reality different from the industry code (auto parts). Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-04Disclosure
- 2026-05-21OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-15PeriodicQuarterly report
- 2026-05-14OwnershipOwnership-change filing
- 2026-05-13Material-fact report (amended)
- 2026-05-12Disclosure
- 2026-05-12Material-fact report
- 2026-05-04OwnershipOwnership-change filing
- 2026-04-16OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-03OwnershipOwnership-change filing
- 2026-04-03DividendCash/stock dividend decision (amended)
- 2026-03-31Disclosure
📖 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.