VM (089970) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
VM makes dry-etch equipment that carves circuit shapes into the wafer during semiconductor manufacturing. Using its own plasma-source technology, it supplies silicon, metal, and oxide-film etch equipment, and its flagship silicon-etch tools ship in volume to SK Hynix's DRAM lines, so in effect the scale of a large domestic memory customer's investment drives its results. A large equipment order was disclosed in March, first-quarter revenue of ₩88.9 billion, operating profit of ₩30.1 billion, and net profit of ₩25.6 billion confirmed a surge in April, and the company is preparing joint development of a third-generation poly-silicon etch tool with SK Hynix. What stands out lately is that SK Hynix's HBM and DRAM capacity-expansion demand, an order backlog that has passed ₩220 billion, and double-digit ROE since turning to profit are strengths, while on the other side revenue is heavily concentrated on SK Hynix's investment and thus sensitive to changes in the customer's capacity plans, quarterly recognition is lumpy given the nature of equipment sales, and the shares sit at a 52-week high in overbought territory as a high-beta equipment stock.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Semiconductor Equipment” (Semiconductors & IT Components · Semiconductor & Display Equipment), a type typically read first through forward P/E.
Chip-equipment makers see orders surge and dry up with their customers' capital-spending cycles, so earnings can move sharply from here. Since future orders and profits drive the price more than past results, forward P/E, based on expected earnings, is the first lens.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 105.5% year over year, and the pace is slowing (3-year trend: rising).
- Net profit swung from a loss a year earlier back into the black (a turnaround).
- Most recent quarter (Q1 2026) revenue was 396.4% higher than a year earlier.
- ROE is 24.6% (total-net basis). It is above the sector average.
- Operating margin is 24.6%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2025-12-31
Largest shareholder Choi Woo-hyung 9.14% (individual)
Controlling bloc incl. related parties 9.72%
With the controlling bloc holding 10%, ownership is dispersed, leaving room for control-related or activist dynamics.
🔎 In-depth analysis Reading
VM makes dry-etch equipment that carves shapes into the wafer along the circuit pattern during semiconductor manufacturing. Built on its own plasma-source technology, it supplies silicon (poly), metal, and oxide-film etch equipment for 300mm wafers, and its flagship silicon-etch tools ship in volume to SK Hynix's DRAM lines. About 99% of revenue is from equipment and parts sales, of which the domestic share is about 90%, so in effect the scale of a large domestic memory customer's investment drives its results. A core competitive strength is that it has expanded its position by localizing etch equipment that US and Japanese makers had long dominated.
The latest close is ₩64,200 and the market capitalization is ₩1.7 trillion. The price sits below its 20-day moving average (₩80,945) and below its 60-day moving average (₩79,803). 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 41.5, a neutral level. The one-month change is -26.4%, the three-month change is +13.0%, and the position relative to the 52-week high is -46.4%. Relative strength versus the KOSDAQ is 92 (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 93% of all stocks. Over the past three months it outpaced the index by 64.2%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
On the metrics alone, the P/E (how many times one year's net profit the price represents) is 60.86x and the P/B (how many times book equity the price represents) is 8.28x, both looking very high. But this P/E is on a trailing (last year's earnings) basis just after emerging from losses in 2023-2024, so the illusion right after an earnings inflection is large. Actual profitability is sound, with an ROE (how much is earned in a year on equity) of 14.8%, an operating margin of 17.1%, and a net margin of 18.1%, and the balance sheet is solid, with a debt ratio (debt against equity) of 40% and a current ratio of 328%. In other words, the financial footing is firm, but this is a phase where the valuation must be re-read through this year's surging earnings rather than last year's figures.
Revenue plunged from ₩178.1 billion in 2021 to ₩26.0 billion in 2023 (a memory downcycle), then revived to ₩70.3 billion in 2024 and ₩144.4 billion in 2025, while operating profit and loss turned from losses in 2023-2024 to +₩24.7 billion in 2025. This is a textbook semiconductor-equipment cycle stock. The strength of the recovery showed clearly in the first quarter of 2026, with quarterly revenue of ₩88.9 billion (+396% year on year), operating profit of ₩30.1 billion, and net profit of ₩25.6 billion - in a single quarter approaching last year's full-year net profit (₩26.1 billion). The backdrop is SK Hynix's investment in expanding HBM and DRAM capacity. SK Hynix has officially stated it will roughly double its memory capacity over the next five years, and the company's cumulative order value passed ₩220 billion as of last month. Reflecting this backlog and the continuing new investment, it is natural for this year's earnings to jump well above last year's, and on that forward basis the picture is quite different from the seemingly high P/E on last year's earnings.
The recent flow can be summed up by orders and results. In March, a single supply contract disclosed a large equipment order, and in April a fair disclosure of consolidated preliminary results confirmed a first-quarter surge to revenue of ₩88.9 billion, operating profit of ₩30.1 billion, and net profit of ₩25.6 billion. A regular shareholders' meeting and director- and stock-option-related disclosures followed in March, and from April to June there were repeated ownership-change disclosures such as large-holdings reports and reports on executives' holdings of specific securities. On top of this, the company is preparing joint development (JDP) of a third-generation poly-silicon etch tool with SK Hynix and is reported to have passed a demo test, so expansion into next-generation equipment is under way.
The points to watch are clear. The strengths are (1) structural demand from SK Hynix's HBM and DRAM capacity expansion, (2) growth visibility from an order backlog that has passed ₩220 billion and the joint development of third-generation equipment, and (3) double-digit ROE and a solid balance sheet since turning to profit. Even if last year's P/E and P/B look high, this is an inflection phase where earnings are just surging, so it is closer to reality to view it on a forward basis recalculated with this year's increased earnings. The cautions are (1) that revenue is heavily concentrated on SK Hynix's investment and thus sensitive to changes in the customer's capacity plans, (2) that quarterly recognition is lumpy given the nature of equipment sales, so annualizing a particular quarter's surge can produce over- or under-estimation, and (3) that the shares have spiked short-term and sit at a 52-week high in overbought territory. In short, as long as the memory investment cycle continues, earnings leverage works powerfully, but if that cycle slows, both results and the share price swing widely - a textbook high-beta equipment stock.
🔎 Valuation vs peers Fairly valued
A peer set based on the substance of the front-end semiconductor-equipment business (deposition and etch equipment, metrology); the base sector 'machinery and equipment' is a generic classification that does not reflect the actual business.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Jusung Engineering | 173.72x | 10.57x | 6.05% |
| Park Systems | 51.39x | 7.72x | 10.74% |
On last year's (trailing) P/E of 113x and P/B of 16.7x alone it looks expensive, but that reflects a large illusion at the earnings inflection point just after emerging from losses in 2023-2024. Deposition and etch peer Jusung Engineering's trailing P/E exceeding 300x is the same early-cycle phenomenon. VM earned net profit of ₩25.6 billion in the first quarter of 2026 alone, approaching last year's full-year figure (₩26.1 billion), and its order backlog has passed ₩220 billion, so recalculated with this year's surging earnings the valuation burden falls well below the surface numbers. Even so, it is too early to call it clearly undervalued - earnings are concentrated on SK Hynix's investment and equipment sales are lumpy quarter to quarter, so the range of forward earnings is wide. Taken together, on a forward basis reflecting the earnings inflection it is in a 'Fairly valued' range - a zone with large upside if the cycle continues and large downside if it slows.
Price history Close · MA20 · MA60
The latest close is ₩64,200 and the market capitalization is ₩1.7 trillion. The price sits below its 20-day moving average (₩80,945) and below its 60-day moving average (₩79,803). 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 41.5, a neutral level. The one-month change is -26.4%, the three-month change is +13.0%, and the position relative to the 52-week high is -46.4%. Relative strength versus the KOSDAQ is 92 (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 93% of all stocks. Over the past three months it outpaced the index by 64.2%. 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 +64.16% / 6M +223.98% / 12M +482.44%
Key metrics Computed vs sector median
Valuation
The P/E of 60.86x is above the sector median (14.07x). The P/B of 8.28x is above the sector median (1.01x). 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 24.6%, above the sector average (2.0%). The operating margin is 24.6%. The debt ratio is 40.3%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $18.3M | $49.4M | $101.4M | +105.49% ↓ slower |
| Operating profit | -$7.7M | -$6.0M | $17.3M | — |
| Net profit | -$4.9M | -$2.4M | $18.4M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $125.1M | $99.3M | $18.3M | $49.4M | $101.4M |
| Operating profit | $37.9M | $21.7M | -$7.7M | -$6.0M | $17.3M |
| Net profit | $32.6M | $19.6M | -$4.9M | -$2.4M | $18.4M |
| Revenue CAGR | 4-yr avg -5.10% | ||||
Revenue rose 105.5% year over year (2023 ₩26.0 billion → 2024 ₩70.3 billion → 2025 ₩144.4 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Over the 5 years on record, revenue compound annual growth (CAGR) is -5.1%. The two-year revenue CAGR is 135.6%. In the most recent quarter (Q1 2026), revenue was 396.4% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- ROE of 24.6% points to solid profitability.
- Revenue grew 105.5% 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
- 2026-04-15EarningsQ1 2026 consolidated preliminary results (fair disclosure) - revenue ₩88.9 billion, operating profit ₩30.1 billion, net profit ₩25.6 billion, surging from a year earlierIn a single quarter, approaching 2025 full-year net profit (₩26.1 billion). The earnings inflection is confirmed in results, providing a basis for re-valuation from a forward perspective (positive short and medium term). Source
- 2026-03-24UpdateSingle supply contract signed - a large supply contract for semiconductor etch equipmentRaises the visibility of revenue recognition in future quarters through a larger order backlog. A growth catalyst directly tied to the customer's expansion cycle (positive medium term). Source
- 2026-05-15FilingQ1 2026 quarterly report filed - business and financial details reflectedConfirmed financial and business structure disclosed after the preliminary results. Material for confirming revenue composition (share of equipment and domestic sales) and financial soundness (neutral, informational). Source
- 2026-03-30FilingRegular shareholders' meeting results and reports on director appointments and stock optionsA regular procedure related to governance and compensation. Limited direct effect on results, but relevant for staff incentives and governance (neutral). Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-06-05OwnershipOwnership-change filing
- 2026-06-02OwnershipOwnership-change filing
- 2026-05-27OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-15PeriodicQuarterly report
- 2026-04-15EarningsFair-disclosure notice
- 2026-04-10Disclosure
- 2026-04-01OwnershipOwnership-change filing
- 2026-03-30Disclosure
- 2026-03-30OwnershipOwnership-change filing
- 2026-03-30Disclosure
- 2026-03-30Shareholders' meeting notice
- 2026-03-24Single supply/sales contract
📖 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.