Chips&Media (094360) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
Chips&Media does not make chips itself; instead it licenses video-codec IP -- designs that compress and decompress video -- to system-semiconductor design companies. It earns a license fee when a customer takes the IP and a royalty each time a chip containing that IP is sold, and it has recently been broadening its IP into AI video processing (NPU) and camera image processing (ISP). In 2026 it announced a corporate-value-enhancement plan on March 25, followed by IR and preliminary Q1 results in April and a quarterly report on May 15; in Q1 revenue rose while operating profit fell on off-season effects, and the dividend payout ratio is 40.2%. What stands out lately is that, thanks to a model of licensing IP with no production or inventory, the operating margin holds at 24.5%, 2025 operating profit rose 31.9%, the balance sheet is firm with a current ratio of 1,023%, and it occupies the rare position of being profitable. On the other hand, royalties trail customers' chip shipments by a one-to-two-year lag, so quarterly results swing, and volatility grows if the pace of new IP adoption is slow.
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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 “Fabless, Design & IP” (Semiconductors & IT Components · Semiconductors), a type typically read first through forward P/E.
Fabless design and IP firms earn from design know-how and intellectual property rather than factories, so future profits hinge on new-product adoption and royalty flows. That makes forward P/E — reflecting expected earnings — the first lens rather than past results.
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 5.1% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 7.6% higher than a year earlier.
- ROE is 7.0% (total-net basis). It is above the sector average.
- Operating margin is 24.0%.
- 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 Korea Investment Semiconductor Investment 31.26% (corporate)
Controlling bloc incl. related parties 34.24%
With the controlling bloc holding 34%, the ownership structure is stable.
🔎 In-depth analysis Reading
Chips&Media does not make chips itself; it licenses 'video-codec IP' (intellectual property, like a semiconductor design blueprint) that compresses and decompresses video to system-on-chip (SoC) design companies. Money comes in through two channels. The first is a one-time license fee when a customer takes the IP; the second is a royalty received in proportion to unit volume each time a chip containing that IP is actually sold. Recently, on top of existing video codecs (H.264, HEVC, AV1), it has been broadening its IP types into AI video processing (NPU) and camera image processing (ISP). Because there is no in-house production or inventory, the operating margin holds high at 24.5%, and once an IP is adopted, royalties keep flowing for as long as the customer's chip sells -- the core strength of the business. That said, because royalties trail the customer's chip-shipment flow by a one-to-two-year lag, results swinging quarter to quarter should be seen as a natural characteristic.
The latest close is ₩10,250 and the market capitalization is ₩218.9 billion. The price sits below its 20-day moving average (₩10,270) and below its 60-day moving average (₩13,108). 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 45.9, a neutral level. The one-month change is -15.8%, the three-month change is -46.6%, and the position relative to the 52-week high is -48.3%. Relative strength versus the KOSDAQ is 27 (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 26% of all stocks. Over the past three months it lagged the index by 19.0%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
On last year's confirmed results, the P/E ratio (how many times one year's net profit the price represents) is 36.96x and the P/B (how many times net assets the price represents) is 2.61x. The reason this P/E looks high is that 2025 net profit fell from the prior year, shrinking the denominator (profit), so it is hard to call the stock 'expensive' from last year's figure alone. For such an earnings-inflection stock, the real picture is the forward P/E based on this year's expected earnings, and that value is distinctly lower than last year's confirmed multiple. Profitability is high, with an operating margin of 24.5% and a net margin of 20.8%, and ROE (how much is earned on equity in a year) of 7.0% is ahead of peers, many of which run losses (average -3.0%). The balance sheet is firm too: the debt ratio is 25.8%, but the current ratio is 1,023%, so short-term liquidity is ample, and interest coverage of 41x means the debt burden is light.
Over the multi-year trend, revenue rose to ₩28.5 billion, up +5.1% from the prior year, with the pace of increase quickening, and operating profit recovered +31.9% to ₩7.0 billion. That means the core business is regaining momentum. The -40.8% drop in 2025 net profit was not because the business worsened but largely because 2024 net profit included non-operating items, raising the comparison base. Importantly, the core-business metrics -- revenue and operating profit -- rose together. The most recent quarter (Q1 2026) also grew, with revenue of ₩5.8 billion (+7.6%), and the decline in operating profit should be viewed together with the fact that Q1 is a seasonal off-season. Behind the forward P/E coming down on this year's earnings basis is a flow in which once-adopted codec, AI, and ISP IP accumulates as royalties in line with customers' chip shipments, and the license base thickens as the new IP lineup broadens. Because there is no in-house production, more revenue drops through well to profit, so if this improvement continues, this year's earnings are naturally supported.
The official disclosure flow has two axes: earnings and shareholder returns. On March 25, 2026, the company itself announced a corporate-value-enhancement plan (voluntary disclosure) setting out its direction for enhancing shareholder value; this was followed by an IR on April 23, a fair disclosure of preliminary Q1 results on April 28, and a quarterly report on May 15 that disclosed the confirmed figures. The preliminary Q1 results showed revenue up while operating profit fell on off-season effects, and the value-enhancement plan should be read together with a context in which a certain level of shareholder return -- a 40.2% payout ratio -- is already in place. This summary is based on the official source documents and the company IR, not general news.
The strengths are clear. Thanks to a model of licensing IP with no in-house production or inventory, the operating margin holds steadily at 24.5%, and 2025 operating profit rose +31.9%, showing the core business accelerating again. The balance sheet is firm too, with a current ratio of 1,023% and interest coverage of 41x. On valuation, even though last year's confirmed P/E looks high, the forward P/E on this year's earnings comes down, and against direct peers (IP and design companies) -- many of which are loss-making so P/E comparison is not even possible -- its position as a rare profitable company stands out. The price too is in a zone where expectations have cooled, down -31.5% over six months and -40.2% from its 52-week high. A point to watch is that, by the nature of the business, royalties trail customers' chip shipments with a lag, so quarterly results swing. In sum, the more new IP adoption and customer chip shipments continue and royalties accumulate, the stronger both earnings and valuation appeal become; conversely, if the pace of new adoption is slow, the structure is one of larger quarter-to-quarter swings.
🔎 Valuation vs peers Inconclusive
Centered on listed Korean companies that, rather than making chips themselves, license design IP or provide design services, choosing those closest to the video-IP business reality. All on-site figures use the same formula as the base.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Openedges Technology | — | 26.72x | -176.53% |
| Gaonchips | — | 9.95x | -26.27% |
| Hana Materials | 28.40x | 2.25x | 10.28% |
The direct peers (Openedges and Gaonchips) are loss-making, so their P/Es are blank and only their P/Bs are high in the double digits. That is, this video and design IP area itself is one that pre-reflects future-growth expectations, so the profitable Chips&Media's P/B of 3.7x can even be read as a discount to peers. Conversely, against a profitable mid-cap semiconductor company (Hana Materials), its P/E of 52.7x is a premium. However, this 52.7x is on a trailing (last-year confirmed) basis in which 2025 net profit fell -40.8% and shrank the denominator, so it is overstated at the inflection point. Operating profit rose +31.9%, and forward revenue and operating profit seen only through a DART seasonality approximation are about ₩28.7 billion and ₩2.3 billion respectively, so the core business is improving. With peers at varying earnings stages and no company guidance figures, the verdict is left Inconclusive rather than a firm undervalued or overvalued call.
Earnings outlook Estimate company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩6.7 billion | approx. ₩0.4 billion | approx. ₩2.0 billion |
Price history Close · MA20 · MA60
The latest close is ₩10,250 and the market capitalization is ₩218.9 billion. The price sits below its 20-day moving average (₩10,270) and below its 60-day moving average (₩13,108). 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 45.9, a neutral level. The one-month change is -15.8%, the three-month change is -46.6%, and the position relative to the 52-week high is -48.3%. Relative strength versus the KOSDAQ is 27 (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 26% of all stocks. Over the past three months it lagged the index by 19.0%. 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 -18.96% / 6M -20.48% / 12M -41.08%
Key metrics Computed vs sector median
Valuation
The P/E of 36.96x is above the sector median (26.76x). The P/B of 2.61x is above the sector median (1.63x).
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
The operating margin is 24.0%. The debt ratio is 25.7%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $19.4M | $19.0M | $20.0M | +5.14% ↑ faster |
| Operating profit | $5.5M | $3.7M | $4.9M | +31.87% ↑ faster |
| Net profit | -$18.8M | $7.0M | $4.2M | -40.83% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $14.0M | $16.9M | $19.4M | $19.0M | $20.0M |
| Operating profit | $3.7M | $5.1M | $5.5M | $3.7M | $4.9M |
| Net profit | $4.4M | $7.0M | -$18.8M | $7.0M | $4.2M |
| Revenue CAGR | 4-yr avg 9.25% | ||||
Revenue rose 5.1% year over year (2023 ₩27.6 billion → 2024 ₩27.1 billion → 2025 ₩28.5 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit rose 31.9% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 9.2%. The two-year revenue CAGR is 1.6%. In the most recent quarter (Q1 2026), revenue was 7.6% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- 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
- 2026-03-25FilingCorporate-value-enhancement plan (voluntary disclosure) -- the company itself announced its direction for enhancing shareholder value.A reference for gauging the medium-term direction of shareholder returns and capital efficiency. Follow-through needs to be checked together with the 40.2% payout-ratio context. Source
- 2026-04-23IRIR held -- the company itself explained business and earnings status.In the short term, an opportunity for the company to officially explain its earnings and business direction. The business trend should be supplemented with the IR content alongside the disclosed figures. Source
- 2026-04-28EarningsFair disclosure of preliminary consolidated Q1 2026 results -- revenue up, operating profit down.A short-term earnings checkpoint. Revenue rose +7.6% but operating profit fell -11.1% on the off-season, so whether this carries through the year needs confirmation in subsequent quarters. Source
- 2026-05-15FilingMarch 2026 quarterly report -- confirmed Q1 financials disclosed.Regular reporting that finalizes the preliminary results. The confirmed figures of ₩5.8 billion in quarterly revenue and ₩0.2 billion in operating profit should be checked against the latest-results box. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| FY2025 operating profit | ₩7.0 billion (+31.9% YoY) | ₩7.0 billion | Confirmed | link |
| FY2025 net profit | ₩5.9 billion (-40.8% YoY) | ₩5.9 billion | Confirmed | link |
| Q1 2026 revenue | ₩5.8 billion (+7.6% YoY) | ₩5.8 billion | Confirmed | link |
| 2026 full-year seasonality-approximated operating profit | approx. ₩2.3 billion | — | Unverified | link |
Recent filings Source
- 2026-05-15PeriodicQuarterly report
- 2026-04-28EarningsFair-disclosure notice
- 2026-04-23Disclosure
- 2026-03-25Disclosure
- 2026-03-24Disclosure
- 2026-03-24Amended filing
- 2026-03-24Shareholders' meeting notice
- 2026-03-11PeriodicAnnual business report
- 2026-03-11Audit report
- 2026-03-09Shareholders' meeting notice
- 2026-02-23Shareholders' 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.