Sang-A Frontec (089980) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
Sang-A Frontec is classified under 'rubber and plastics' but actually processes engineering plastics into precision parts and materials. It makes gaskets and cap assemblies for secondary batteries, automotive seals, and medical-device parts (products), semiconductor release films and PCB sheets (materials), and wafer and panel transfer carriers (environment), and it also mass-produces PEM, a core material for hydrogen fuel cells and water electrolysis, with major customers including Samsung Electronics, Samsung SDI, Hyundai Motor, and SK. In late April it decided on a ₩45.0 billion 8th-series private convertible bond (₩29.4 billion to refinance the existing 6th series, ₩15.6 billion for working capital); with a conversion price of ₩28,876, above the current price, there is little near-term incentive to convert, but a potential dilution factor remains from May 2027. In March it confirmed a corporate-value enhancement plan and a dividend of ₩200 per share (a payout ratio of 46.2%). What stands out lately is that revenue has broken out of a plateau, rising by double digits in the first quarter, and the company supplies materials into structurally growing downstream markets (secondary batteries, semiconductors, PEM), bringing the forward P/E (about 32.8x) down, all strengths, while an operating margin of 3.4% and an ROE of 3.3% mean absolute profitability is still low and the dilution burden of the ₩45.0 billion convertible bond remains, so this is a stock to watch for whether margin recovery and dilution management follow through.
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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 “Battery Materials, Parts & Equipment” (Secondary Batteries), a type typically read first through EV/EBITDA.
Battery materials, parts, and equipment names run heavy capital spending and depreciation alongside the industry's capacity build-out, so net income alone poorly reflects real cash generation. That makes EV/EBITDA — operating cash before depreciation, plus debt — 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
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 97.4%).
- Revenue rose 14.1% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 19.1% higher than a year earlier.
- ROE is 3.5% (controlling-interest basis). It is below the sector average.
- Operating margin is 3.3%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Lee Sang-won 18.79% (individual)
Controlling bloc incl. related parties 42.34%
With the controlling bloc holding 42%, the ownership structure is stable.
🔎 In-depth analysis Reading
Sang-A Frontec is grouped under 'rubber and plastics' by official classification, but it actually processes engineering plastics (high-performance plastics resistant to heat and chemicals) into precision parts and materials. In its annual report, revenue splits into roughly three streams. First, the products division makes gaskets, insulators, and cap assemblies for secondary batteries (parts that seal and insulate cells), automotive seal rings, and medical needles and IV sets. Second, the materials business supplies release films for semiconductor processes, sheets for PCB processing, and belts for office equipment. Third, the environment division makes carriers (transport containers) that move semiconductor and solar wafers and display panels. On top of this, as a new growth axis, it directly mass-produces PEM (polymer electrolyte membrane, a membrane that lets only hydrogen ions pass), the core material for hydrogen fuel cells and water electrolysis (a technology that splits water with electricity to obtain hydrogen). Major customers include large firms such as Samsung Electronics, Samsung SDI, Hyundai Motor, and SK, with the single largest customer accounting for about 18% of total revenue.
The latest close is ₩13,790 and the market capitalization is ₩220.5 billion. The price sits above its 20-day moving average (₩13,338) and below its 60-day moving average (₩17,169). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 47.1, a neutral level. The one-month change is -5.4%, the three-month change is -50.9%, and the position relative to the 52-week high is -52.8%. Relative strength versus the KOSDAQ is 54 (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 55% of all stocks. Over the past three months it lagged the index by 23.6%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
On a confirmed annual (2025) basis the P/E (share price divided by one year's net profit) is 32.64x and the P/B (share price divided by net assets per share) is 1.08x. A P/B of 1.26x is not much above net assets. The key reason the P/E looks high is that 2025 was the starting point of an earnings recovery, so the absolute size of profit is still small. For a stock whose profit is just turning up from a bottom like this, the trailing P/E on last year's results tends to look more expensive than it really is, and the forward P/E reflecting this year's expected earnings (about 32.8x) comes out lower. In other words, on a forward basis the multiple falls below last year's figure and moves into a range similar to the forward multiples of peers making the same semiconductor and polymer materials. The ROE (annual return on shareholders' equity) is 3.3% and the operating margin 3.4%, so absolute profitability is still low, and with a debt ratio (debt to equity) of 186.9% and a current ratio (assets readily convertible to cash against debt due within a year) of 97.2%, short-term liquidity is on the tight side. In the end, valuation is better read not as 'last year's numbers are expensive' but as whether 'this year's profit recovers and the forward multiple normalizes.'
Over five years revenue grew from ₩178.5 billion in 2021 to ₩196.0 billion in 2025, and in 2025 in particular it rose 14.1% year on year as the pace of increase quickened. Profit shows a pattern of one deep dip and then a turn. Operating profit fell from ₩9.0 billion in 2023 to ₩5.8 billion in 2024, then recovered +14.8% to ₩6.7 billion in 2025, and net profit also rose +9.6% in 2025. In the most recent quarter (first quarter of 2026) revenue was ₩48.5 billion (+19.1% versus the same period a year earlier), operating profit ₩1.2 billion (+7.7%), and net profit ₩0.7 billion (+158%), with the top line and profit rising together to continue the recovery. The reason this year's expected profit reaches this level is clear. It supplies materials and parts into structurally growing downstream markets such as secondary batteries, semiconductors, and fuel cells, so the top line is rising again, and once revenue passes a certain scale the fixed-cost burden eases and profit recovers faster than revenue. New materials such as PEM adding to revenue also support this year's profit recovery. The forward P/E reflects this recovering this-year profit and is lower than the confirmed prior-year basis.
The center of this year's flow is fundraising. In late April the company decided to issue a ₩45.0 billion 8th-series private convertible bond (a bond that can be exchanged for shares), of which ₩29.4 billion goes to buying back the existing 6th-series convertible bond issued in 2023 before maturity (refinancing) and ₩15.6 billion to working capital. The new bond's conversion price is ₩28,876, far above the current price, so there is little incentive to convert into shares right now, but conversion becomes possible from May 2027, leaving it as a potential dilution factor (where the share count rises and each share's slice shrinks). In March it voluntarily disclosed a 2026 corporate-value enhancement plan, laying out expansion in eco-friendly materials (fuel cells, secondary batteries, solar) and a shareholder-return direction of dividends and treasury shares, and in the same month confirmed a dividend (₩200 per share, a payout ratio of 46.2%). The May quarterly report officially confirmed the first-quarter recovery in results.
The strengths are clear. Revenue has broken out of a plateau, rising by double digits in the first quarter; profit, which had dipped deeply, entered a recovery phase from 2025; and the company supplies materials and parts into structurally growing downstream markets such as secondary batteries, semiconductors, and fuel cells (PEM), with large firms among its customers. On valuation too, the P/E on last year's basis looks high but the P/B is not a burden relative to net assets, and the forward P/E reflecting this year's recovering profit (about 32.8x) falls below last year's and moves into a range similar to peers in polymer and semiconductor materials. There are also cautions. With an operating margin of 3.4% and an ROE of 3.3%, absolute profitability is still low, so this recovery must not end in a quarter or two; the margin itself has to rise for the forward multiple to be justified. And the ₩45.0 billion convertible bond leaves a dilution burden from 2027 on. In sum, it is strong if new-growth materials such as secondary batteries and PEM translate into real profit and profitability improves, and weak if only the top line grows while margins stay flat or dilution comes to the fore. Rather than declaring it one way or the other, this is a stock to watch for whether the conditions of 'margin recovery and dilution management' are met.
🔎 Valuation vs peers Overvalued
Matching its real business of engineering-plastic-based precision materials and parts (secondary batteries, semiconductors, displays, fuel cells), the peer set was drawn from listed makers of the same high-performance polymer and semiconductor materials. Tire makers under the base industry code (rubber and plastics) were excluded as their business character differs.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| PI Advanced Materials | 18.08x | 1.55x | 9.89% |
| Soulbrain | 29.27x | 2.13x | 7.72% |
(a) Position versus peers: Sang-A Frontec's confirmed P/E (43.9x) is about double that of fellow polymer-materials name PI Advanced Materials (P/E 23x) and similar to semiconductor-materials name Soulbrain (43x). But at an ROE of 3.3% it is below both peers (8.6% and 7.5%), so relative to profitability the multiple sits in a more burdensome spot. (b) Premium/discount: expectations for fuel-cell and secondary-battery growth attach as a premium, while the low operating margin and convertible-bond dilution burden are discount factors. (c) Limits of trailing and the forward view: last year was an earnings inflection where the trailing P/E looks inflated because profit was at a bottom, but the approximate forward P/E applying seasonality to the confirmed first-quarter results actually comes out even higher. In other words, on either the prior-year basis or the approximate this-year basis the multiple is on the high side, so it is hard to call cheap, and we judge it a price level justified only on the premise of a margin recovery.
Earnings outlook Estimate company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩51.1 billion | approx. ₩1.3 billion | approx. ₩1.3 billion |
Price history Close · MA20 · MA60
The latest close is ₩13,790 and the market capitalization is ₩220.5 billion. The price sits above its 20-day moving average (₩13,338) and below its 60-day moving average (₩17,169). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 47.1, a neutral level. The one-month change is -5.4%, the three-month change is -50.9%, and the position relative to the 52-week high is -52.8%. Relative strength versus the KOSDAQ is 54 (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 55% of all stocks. Over the past three months it lagged the index by 23.6%. 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 -23.60% / 6M +12.60% / 12M -21.45%
Key metrics Computed vs sector median
Valuation
The P/E of 32.64x is above the sector median (9.49x). The P/B of 1.08x is above the sector median (0.53x). 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) Estimate
Model output — not a price target. This is what the formula returns under the assumptions below, not a view on where the share price should go.
DCF (discounted cash flow) estimate — discount rate 9.2%, 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 3.5%, in line with the sector average (4.0%). The operating margin is 3.3%. The debt ratio is 92.5%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $129.0M | $120.7M | $137.7M | +14.11% ↑ faster |
| Operating profit | $6.3M | $4.1M | $4.7M | +14.75% ↑ faster |
| Net profit | $8.4M | $4.3M | $4.7M | +9.61% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $125.4M | $127.3M | $129.0M | $120.7M | $137.7M |
| Operating profit | $8.4M | $9.1M | $6.3M | $4.1M | $4.7M |
| Net profit | $6.5M | $5.2M | $8.4M | $4.3M | $4.7M |
| Revenue CAGR | 4-yr avg 2.37% | ||||
Revenue rose 14.1% year over year (2023 ₩183.6 billion → 2024 ₩171.8 billion → 2025 ₩196.0 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit rose 14.8% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 2.4%. The two-year revenue CAGR is 3.3%. In the most recent quarter (Q1 2026), revenue was 19.1% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- Revenue grew 14.1% 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
- 2026-04-28FilingDecision to issue an 8th-series private convertible bond of ₩45.0 billion (conversion price ₩28,876, conversion requests from 2026-05-07, 0% coupon and maturity interest)It helps secure near-term working capital, but with the conversion price above the current price, immediate dilution is limited while it remains a potential dilution factor from 2027 on. Source
- 2026-05-11FilingEarly acquisition of ₩29.4 billion face value of the existing 6th-series convertible bond (issued 2023, conversion price ₩31,327) before maturityFunds raised through the new convertible bond (₩29.4 billion) were used to buy back and refinance the old bond, meaning it reduced the dilution potential of the higher-priced old bond in exchange for switching to the new bond's terms. Source
- 2026-03-25IRVoluntary disclosure of the 2026 corporate-value enhancement plan — laying out expansion in eco-friendly materials (fuel cells, secondary batteries, solar) and a shareholder-return direction of dividends and treasury sharesIt is a qualitative plan with no specific revenue or profit targets, but in that the company formally set new-growth materials and shareholder returns as its direction, it is a signal of the medium-term business direction. Source
- 2026-05-15EarningsFirst-quarter 2026 report — revenue ₩48.5 billion (+19.1%), operating profit ₩1.2 billion (+7.7%), net profit ₩0.7 billion (+158%)The top line and profit rose together, confirming the recovery, but whether a single quarter's result carries into the full year needs checking in the next quarter. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Confirmed annual P/E (2025) | 43.9x | DART (2025.12) net profit ₩6.8 billion· ₩296.3 billion | Confirmed | link |
| First-quarter 2026 cumulative operating profit | approx. ₩1.2 billion | DART 1 (2026.03) operating profit ₩1,165,237,860 | Confirmed | link |
| Total amount of the new convertible-bond issue | ₩45.0 billion | DART ₩45,000,000,000, ₩28,876 | Confirmed | link |
| This year's seasonality-approximated operating profit | approx. ₩4.3 billion | — | Unverified | link |
Recent filings Source
- 2026-06-04OwnershipOwnership-change filing
- 2026-05-15PeriodicQuarterly report
- 2026-05-14OwnershipOwnership-change filing
- 2026-05-11Convertible-bond issuance
- 2026-05-07Disclosure
- 2026-04-29Material-fact report (amended)
- 2026-04-28Material-fact report
- 2026-03-25Disclosure
- 2026-03-24Disclosure
- 2026-03-24Shareholders' meeting notice
- 2026-03-16PeriodicAnnual business report
- 2026-03-16Audit 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.