Chemtronics earns money along three lines: electronic-component distribution, its largest revenue share (high volume but thin margins); chemical materials such as process thinners, etchants, and cleaners for semiconductor and display processes, plus glass thinning; and automotive electronics for next-generation cars such as wireless charging and V2X, so a stable distribution base carries higher-margin chemical materials and growth-oriented electronics on top. In March it laid out its shareholder-return and profitability-improvement direction through a corporate value-up plan, the May 15 quarterly report confirmed Q1 revenue of ₩174.5 billion (+16.9%) and operating profit of ₩7.4 billion (+4.0%), and the March business report confirmed record-high annual revenue of ₩637.5 billion. What stands out recently is that as revenue passes a cycle trough and climbs to a record high, this year's forward P/E is on the low side within the process-materials peer group, whereas with a debt ratio of 332.9%, a current ratio of 80.0%, and interest coverage below 1x, the safety cushion is thin, so if the profit recovery is delayed or interest and guarantee burdens grow, the balance sheet could wobble first.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 332.9%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 80.0%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue rose 10.8% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 16.9% higher than a year earlier.
- ROE is 4.4% (controlling-interest basis). It is above the sector average.
- Operating margin is 3.6%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Kim Bo-gyun 11.83% (individual)
Controlling bloc incl. related parties 23.51%
With the controlling bloc holding 24%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- Chemtronics earns money not along one line but three.
- The first, and largest by revenue share, is electronic-component distribution: a wholesale business that brings in domestic and overseas semiconductor, passive-component, and display parts and supplies them to set manufacturers, a structure with high volume but thin margins.
- The second is chemical materials, making process chemicals such as thinners, etchants, and cleaners used in semiconductor and display processes, along with etching (thinning) to shave display glass thin.
- The third is automotive electronics and wireless communications, where it is growing next-generation car parts such as wireless charging, vehicle modules, and V2X (communication in which a vehicle exchanges information with the road and other vehicles).
- In short, low-margin but stable distribution lays the base of revenue, with higher-margin chemical materials and high-growth electronics layered on top.
- The latest close is ₩20,850 and the market cap is ₩349.7 billion.
- The price sits below both the 20-day line (₩26,008) and the 60-day line (₩32,700).
- Trading below both its short- and medium-term moving averages, the trend is on the subdued side.
- The RSI (an auxiliary gauge that measures upward versus downward momentum over the past 14 days on a 0-100 scale) is 29.4, close to depressed territory.
- The one-month change is -25.0%, the three-month change is -22.4%, and the stock sits -54.4% below its 52-week high.
- Relative strength versus the KOSDAQ is 58 (on a 1-99 scale, computed from returns against the index over the past year with more recent performance weighted more heavily; higher means stronger than the market).
- That places it around the top 42% of all stocks by strength.
- Over the past three months it has lagged the index by 3.5%.
- Chart readings are best interpreted alongside trading volume and disclosure dates.
- On last year's confirmed basis (2025 consolidated), the P/E ratio (how many times one year of profit the share price represents) is 34.10x and the P/B (how many times net assets the share price represents) is 1.49x.
- That the P/E looks high is not because the share price is expensive but because the dividing value, last year's net profit, temporarily shrank by about half in a weak year.
- It is normal for the trailing (based on past confirmed results) P/E of a year in which profit dipped once to look inflated relative to the company's true value.
- The forward P/E on this year's profit is on the lower-than-middle side among the peer group making the same process materials (Soulbrain 34.1x, Dongjin Semichem 29.1x, ENF Technology 12.2x).
- In other words, viewed against the trend of profit returning to a normal track, the multiple is actually not heavy versus peers.
- ROE (how much is earned in a year on capital) is 4.4%, similar to the industry average, and the operating margin is 3.6%, a result of the thin margins of the distribution business, which makes up a large share of revenue, pulling the average down.
- The most clearly identifiable weakness is the financial structure.
- With a debt ratio (debt relative to equity) of 332.9%, a current ratio (assets convertible to cash within a year relative to debt due within a year) of 80.0%, and an interest coverage ratio (how many times operating profit covers interest) below 1x, covering interest with operating profit is tight.
- This is a stock to be viewed on two counts together: the valuation is on the lighter side, but the financial safety cushion is thin.
- Revenue was depressed once, from ₩563.4 billion in 2021 to ₩542.3 billion in 2023 after COVID, then recovered to ₩575.2 billion in 2024 and ₩637.5 billion in 2025, setting a new record high.
- The pace of growth also quickened, faster this year (+10.8%) than last year (+6.1%), so the top-line growth gained momentum.
- The most recent quarter (Q1 2026) continued this flow, with revenue of ₩174.5 billion, up 16.9% year on year.
- Profit has a slightly different tone.
- Net profit swung from a loss in 2023 (-₩9.1 billion) to a surplus of ₩20.6 billion in 2024, then took a breather at ₩10.3 billion in 2025, and this temporary drop in 2025 profit is what made the trailing P/E look high.
- What matters is this year's flow.
- That the forward P/E on this year's profit falls to about half of last year's confirmed P/E (41x) means a picture is in place of this year's profit recovering markedly from last year's trough.
- The basis for that lies within the business: demand for semiconductor and display process materials is rising along with a recovery in utilization rates, component-distribution volume is confirmed in revenue up 16.9%, and the electronics business such as wireless charging and V2X is being added as a new revenue axis.
- On a multi-year trend it is closer to a recovery phase where revenue passes a cycle trough and climbs again, and with no confirmed basis that the outlook for next year and beyond falls below this year, this is not a spot to conclude a top or the upper end of the cycle.
- The focus of the recent disclosure flow is threefold.
- The corporate value-up plan voluntarily disclosed on 2026-03-26 is material in which the company itself laid out its shareholder-return and profitability-improvement direction, a matter to confirm in subsequent quarters for how it is reflected in actual results and finances.
- The quarterly report (2026.03) filed on 2026-05-15 is official material containing Q1 revenue of ₩174.5 billion (+16.9%) and operating profit of ₩7.4 billion (+4.0%), and the business report (2025.12) of 2026-03-18 is the basis confirming record-high annual revenue of ₩637.5 billion.
- On the financial side, there is a May 18, 2026 decision on a debt guarantee for a third party and a March disclosure of a conversion claim on redeemable convertible preferred shares, and as this is a company with a high debt ratio, it is best to confirm in the original documents the guarantee size and counterparty and the change in share count from the conversion together.
- Starting with the strengths, revenue is passing a cycle trough and climbing to a record high, with top-line growth gaining momentum, and this year's profit too has a recovery from last year's trough underlying it.
- As a result, last year's confirmed P/E looks high, but the forward P/E on this year's profit is on the low side within the process-materials peer group, a spot where one can view the profit recovery as not fully reflected in the price.
- The business mix is also balanced, pairing higher-margin chemical materials and growth-oriented electronics on top of a stable distribution base, rather than leaning to one side.
- The caution is the finances.
- With a debt ratio of 332.9%, a current ratio of 80.0%, and interest coverage below 1x, the safety cushion is thin, so if the profit recovery is delayed or interest and guarantee burdens grow, the balance sheet could wobble first.
- In sum, in a phase where process-materials and electronics profit catches up with revenue growth and financial burdens ease, the valuation burden is small and the stock is strong, whereas in a phase where the profit recovery is delayed and financial pressure persists, it is a structure that weakens.
🔎 Valuation vs peers Overvalued
Rather than the whole chemical industry, companies making the same semiconductor and display process materials as Chemtronics' chemical-materials business were chosen as the direct peer set (computed via on-site peers.py).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Soulbrain | 29.03x | 2.17x | 7.49% |
| Dongjin Semichem | 22.17x | 2.03x | 9.14% |
| ENF Technology | 10.62x | 1.23x | 11.60% |
Against the process-materials peer group (Soulbrain P/E 34.9x, Dongjin Semichem 28.5x, ENF 12.8x), Chemtronics' last-year confirmed P/E of 47.9x is on the highest side, while its ROE of 4.4% and operating margin of 3.6% are on the lowest side. Profitability is low yet the multiple is high, so it sits at a premium rather than a discount. That said, this P/E is a trailing (past confirmed basis) figure from a year when profit halved, so it is overstated during an inflection phase, and this year's operating profit gauged via a DART seasonality approximation (about ₩23.1 billion) is at a level similar to last year's, so even on a forward basis the multiple is hard to bring down much. Taken together, the current price is a phase where expectations of profit improvement in chemical materials and electronics are pre-reflected, and until those expectations are confirmed in results, it looks expensive versus peers. That said, with the business mix spanning distribution, materials, and electronics, it is hard to conclude on a single multiple.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | ₩178.1 billion | ₩7.7 billion | — |
Price history Close · MA20 · MA60
The latest close is ₩20,850 and the market capitalization is ₩349.7 billion. The price sits below its 20-day moving average (₩26,008) and below its 60-day moving average (₩32,700). 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 29.4, near oversold territory. The one-month change is -25.0%, the three-month change is -22.4%, and the position relative to the 52-week high is -54.4%. Relative strength versus the KOSDAQ is 58 (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 58% of all stocks. Over the past three months it lagged the index by 3.5%. 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 -3.48% / 6M -22.28% / 12M -9.82%
Key metrics vs sector median
Valuation
The P/E of 34.10x is above the sector median (14.79x). The P/B of 1.49x is above the sector median (0.97x).
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 9.8%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 4.4%, in line with the sector average (4.0%). The operating margin is 3.6%. The debt ratio is 332.9%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $359.4M | $381.2M | $422.5M | +10.82% ↑ faster |
| Operating profit | $12.7M | $24.7M | $15.4M | -37.83% ↓ slower |
| Net profit | -$6.0M | $13.7M | $6.8M | -50.23% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $373.4M | $411.6M | $359.4M | $381.2M | $422.5M |
| Operating profit | $25.5M | $14.9M | $12.7M | $24.7M | $15.4M |
| Net profit | $18.9M | $4.0M | -$6.0M | $13.7M | $6.8M |
| Revenue CAGR | 4-yr avg 3.14% | ||||
Revenue rose 10.8% year over year (2023 ₩542.3 billion → 2024 ₩575.2 billion → 2025 ₩637.5 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit fell 37.8% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 3.1%. The two-year revenue CAGR is 8.4%. In the most recent quarter (Q1 2026), revenue was 16.9% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- Revenue grew 10.8% year over year, a sign of growth.
Points to watch
- Debt far exceeds equity (debt ratio 332.9%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 80.0%).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-03-26FilingCorporate value-up plan (voluntary disclosure) filed - the company voluntarily disclosed its shareholder-return and profitability-improvement directionMedium term, a signal showing the will for shareholder returns and profitability improvement, but whether it is actually reflected in results and finances needs to be confirmed in subsequent quarterly results. Source
- 2026-05-15EarningsQuarterly report (2026.03) - Q1 revenue ₩174.5 billion (+16.9%), operating profit ₩7.4 billion (+4.0%), net profit -50.7%Short term, material confirming that the revenue uptrend continued but net profit fell, a reference point for gauging whether profitability recovers. Source
- 2026-05-18UpdateDecision on a debt guarantee for a third party - an additional guarantee burden arising amid a high debt ratioAn item to note on the financial-burden side over both the short and medium term, with the guarantee size, counterparty, and maturity needing confirmation in the original documents. Source
- 2026-03-18EarningsBusiness report (2025.12) - annual revenue ₩637.5 billion (record high), operating profit ₩23.2 billion (-37.8%), net profit ₩10.3 billion (-50.2%)Medium term, material confirming a year in which top-line growth and a profit slowdown diverged, the basis for last year's trailing P/E being set high. Source
- 2026-03-31FilingExercise of conversion claim on convertible shares (redeemable convertible preferred shares) - a factor changing the share count from preferred-share conversionMedium term, as the change in shares outstanding from conversion can affect per-share metrics, an item to be viewed together. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-18Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-12OwnershipOwnership-change filing
- 2026-03-31Disclosure
- 2026-03-27OwnershipOwnership-change filing
- 2026-03-27Amended filing
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-18PeriodicAnnual business report
- 2026-03-18Audit report
- 2026-03-06Material-fact report
- 2026-03-06Material-fact 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.