Micro Contact Solution (098120) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
Micro Contact Solution makes test parts such as burn-in sockets, which run finished semiconductor chips under high temperature and pressure in advance to screen out defects. Its Semicon division is the main business, with Samsung Electronics, SK Hynix and Micron as customers, while industrial electromagnetic switches provide supplementary revenue. Its March business report confirmed 2025 revenue of ₩100.3 billion and net profit of ₩16.9 billion (+58% YoY), and its May quarterly report showed Q1 net profit continuing to grow by 22%. The notable point recently is that high profitability at a 20.8% ROE and growth, alongside multiples lower than peers, work as a strength; on the other hand, concentration among a few large memory customers, the cyclical nature of the industry, and the volatility that comes with a small size of about ₩198.7 billion in market cap all warrant attention.
This page organises public market and filing data for information purposes. It is not a recommendation to buy or sell, nor investment advice. Metrics labelled “forward” are our own unverified estimates. Please verify with the original DART filings and decide at your own responsibility.
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 Materials & Components” (Semiconductors & IT Components · Semiconductor Components), a type typically read first through forward P/E.
Semiconductor materials and components are growth-tilted businesses whose future results move with the downstream chip investment cycle and new design wins, so expected profits explain the share price better than past earnings. That's why forward P/E — reflecting projected net income — comes before the trailing figure.
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 44.0% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 8.9% higher than a year earlier.
- ROE is 20.8% (controlling-interest basis). It is above the sector average.
- Operating margin is 17.7%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Yang Seung-eun 18.34% (individual)
Controlling bloc incl. related parties 20.88%
With the controlling bloc holding 21%, control is maintained but the free float is relatively large.
🔎 In-depth analysis Reading
This company earns money in two main ways. The larger axis is the Semicon (semiconductor test socket) division, which makes 'burn-in sockets' that run memory chips under high temperature and pressure in advance to screen out defects, along with test parts such as IC sockets, module sockets and test sockets. Since each chip is a contact part that touches the test equipment, demand for test sockets rises together with the volume of memory made (especially high-value products like DDR5 and HBM), and its customers are Samsung Electronics, SK Hynix and Micron of the U.S. The other axis is the Appliance (industrial electromagnetic switch / magnetic switch) division, which makes parts that turn power on and off in home and industrial equipment and is widening its sales channels into markets like India where price competitiveness works. In short, it is a back-end semiconductor consumable-parts company where 'when memory sells well, test sockets sell well,' with industrial switches playing a steady supplementary-revenue role.
The latest close is ₩24,100 and the market capitalization is ₩200.3 billion. The price sits above its 20-day moving average (₩22,082) and below its 60-day moving average (₩26,711). 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 53.2, a neutral level. The one-month change is +9.3%, the three-month change is -33.3%, and the position relative to the 52-week high is -39.3%. Relative strength versus the KOSDAQ is 79 (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 79% of all stocks. Over the past three months it lagged the index by 3.1%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
The P/E ratio (how many times a year's profit the share price represents) is 11.86x and P/B (how many times net asset value the share price is) is 2.33x. Profitability is solid, with ROE (how much is earned in a year on equity) at 20.8%, an operating margin of 17.7% and a net margin of 16.8%, so about one-sixth of revenue is left as net profit. Finances are safe too: the current ratio (assets that can be turned into cash within a year against debt due within a year) is very high at 534%, and interest coverage is 339x, so there is effectively no debt burden. The key point here is that for a stock like this whose earnings are growing fast, the 'forward P/E' calculated on this year's expected earnings, rather than the P/E on last year's confirmed results, is the true picture. Micro Contact Solution's forward P/B comes down to 1.93x. With ROE in the 20% range and an operating margin in the 17% range, a multiple like this is cheap relative to earnings and assets, and, as seen later, the gap is even clearer against companies in the same field.
The three-year trend is clear. Revenue was gentle at ₩64.8 billion in 2023 and ₩69.7 billion in 2024, then jumped 44% in a single year to ₩100.3 billion in 2025, while operating profit (+73.9%) and net profit (+58.1%) grew even faster than revenue, so the pace of growth itself is accelerating (three straight years of acceleration). Over a longer horizon, revenue was almost flat in the ₩60-billion-plus range through 2021-2024 and then stepped up a rung in 2025, a result of test-socket demand reviving in earnest as memory conditions recovered and the share of high-value memory like HBM and DDR5 grew. Q1 2026 cumulative revenue was ₩27.6 billion (+8.9%) and net profit ₩5.4 billion (+22.2%), with profit growing faster than revenue as margins improve further. This business concentrates revenue and profit in the second half, especially Q4, so looking at first-half numbers alone easily understates the full year's strength. The forward P/E on this year's expected earnings being lower than the trailing basis (11.8x) is because clear drivers back it up: this earnings growth, margin improvement and high-value memory demand. In other words, at the same share price, the company earns more this year.
Recent disclosures center on regular results and shareholder returns. In March 2026 the 2025 business report confirmed revenue of ₩100.3 billion and net profit of ₩16.9 billion (+44% and +58% YoY), and around the same time a cash dividend (₩100 per share) was decided. Since it is at a growth stage that reinvests most of its profit into the business, the dividend is symbolic. In May the Q1 2026 quarterly report continued the trend with net profit up 22% from a year earlier. In April there were reports of major-shareholder large-holding and executive share changes, which are better seen as notification-type disclosures of ownership-structure changes than as good or bad news directly related to the company's operations.
This is a stock with a clear strength. Revenue rose 44% in a single year and operating and net profit grew even faster, ROE is high at 20.8%, and yet its share multiples are markedly lower than companies in the same semiconductor test-parts field. Since demand for test sockets rises together as memory conditions stay healthy and the share of high-value memory like HBM and DDR5 grows, this low multiple works directly as appeal when the business is strong. The points to watch carefully are that its customers are concentrated among a few large memory makers, so results can swing if their investment or utilization falters; that memory is a cyclical industry that repeats booms and busts; and that at about ₩198.7 billion its market cap is small, so its share price tends to be volatile. In sum, as long as memory demand holds, it sits cheap relative to its profitability and growth, and the variables that could shake it depend on memory conditions and a few customers' investment direction more than on the company itself.
🔎 Valuation vs peers Undervalued
KOSDAQ-listed companies that make back-end semiconductor test sockets and parts were used as the substantive peer set.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Leeno Industrial | 33.55x | 7.17x | 22.93% |
| ISC | 51.47x | 5.33x | 12.89% |
| TSE | 59.89x | 5.38x | 17.95% |
| Okins Electronics | 34.98x | 4.38x | 17.54% |
Against the true peer set, its position is clear. Its revenue growth (+44%) and ROE (20.8%) are top-tier within the peer set, yet its P/E of 14x and P/B of 2.9x are far below Leeno Industrial (P/E 46), ISC (P/E 73), TSE (P/E 72) and Okins Electronics (P/E 49), suggesting a substantial discount within the same field. There is a reason for this discount: customers are concentrated among a few large memory makers, the market cap is small so volatility is high, and it rides the memory cycle directly. Also, the displayed P/E of 14x is a trailing figure on last year's confirmed earnings, so on a forward basis reflecting the Q4-heavy seasonality and this year's margin improvement, the multiple has room to fall further (with no official company guidance disclosure, this can only be gauged from a seasonal approximation). All told, the observation that it is 'cheap versus the same field' holds, but one must also leave open the possibility that the discount is a normal price reflecting customer concentration and cyclical risk.
Price history Close · MA20 · MA60
The latest close is ₩24,100 and the market capitalization is ₩200.3 billion. The price sits above its 20-day moving average (₩22,082) and below its 60-day moving average (₩26,711). 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 53.2, a neutral level. The one-month change is +9.3%, the three-month change is -33.3%, and the position relative to the 52-week high is -39.3%. Relative strength versus the KOSDAQ is 79 (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 79% of all stocks. Over the past three months it lagged the index by 3.1%. 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 -3.09% / 6M +68.04% / 12M +8.10%
Key metrics Computed vs sector median
Valuation
The P/E of 11.86x is below the sector median (15.45x). The P/B of 2.33x is above the sector median (0.86x).
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 10.4%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 20.8%, above the sector average (4.0%). The operating margin is 17.7%. The debt ratio is 21.0%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $45.5M | $48.9M | $70.5M | +44.00% ↑ faster |
| Operating profit | $5.2M | $7.2M | $12.5M | +73.90% ↑ faster |
| Net profit | $5.2M | $7.5M | $11.9M | +58.09% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $43.1M | $42.9M | $45.5M | $48.9M | $70.5M |
| Operating profit | $5.6M | $5.5M | $5.2M | $7.2M | $12.5M |
| Net profit | $5.3M | $5.0M | $5.2M | $7.5M | $11.9M |
| Revenue CAGR | 4-yr avg 13.07% | ||||
Revenue rose 44.0% year over year (2023 ₩64.8 billion → 2024 ₩69.7 billion → 2025 ₩100.3 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 73.9% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 13.1%. The two-year revenue CAGR is 24.4%. In the most recent quarter (Q1 2026), revenue was 8.9% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- ROE of 20.8% points to solid profitability.
- Revenue grew 44.0% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-03-19Earnings2025 business report filed - annual revenue about ₩100.3 billion and net profit about ₩16.9 billion, up +44% and +58% versus a year earlier, a step-up in results for the first time in five years.A medium-term positive signal, with the memory recovery and rising test-socket demand confirmed in the results. Source
- 2026-03-12DividendCash/in-kind dividend decided - ₩100 per common share cash dividend (dividend yield about 0.35%, payout ratio about 4.9%).A signal that this is a growth-stage company channeling most of its profit into reinvestment and retention, so the dividend is symbolic. Source
- 2026-05-14EarningsQ1 2026 quarterly report filed - cumulative revenue about ₩27.6 billion (+8.9%) and net profit about ₩5.4 billion (+22.2%), with profit growth outpacing revenue as margins improve.A short-term positive signal as top-line growth slowed but profitability improved and the earnings flow continued. Note the Q4-weighted seasonality, however. Source
- 2026-04-10FilingLarge-holding report and executive/major-shareholder specific-securities ownership report filed - notification of changes in shareholdings.Not directly related to operations; read as a notification-type disclosure of shareholder composition and ownership changes. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 annual net profit | approx. ₩16.9 billion | approx. ₩16.9 billion | Confirmed | link |
| Q1 2026 net profit growth (YoY) | +22.2% (base quarter) | +22.2% | Confirmed | link |
| Cash dividend per share (DPS) | ₩100 (base valuation) | ₩100 | Confirmed | link |
| 2026 estimated net profit | approx. ₩22.5 billion | — | Unverified | link |
Recent filings Source
- 2026-05-22PeriodicQuarterly report (amended)
- 2026-05-14PeriodicQuarterly report
- 2026-04-30Disclosure
- 2026-04-17DividendCash/stock dividend decision (amended)
- 2026-04-10OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-10OwnershipOwnership-change filing
- 2026-03-27Shareholders' meeting notice
- 2026-03-19PeriodicAnnual business report
- 2026-03-19Audit report
- 2026-03-12DividendCash/stock dividend decision (amended)
- 2026-03-12Shareholders' meeting notice
- 2026-03-12Shareholders' 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.