ABOV Semiconductor is a fabless-style company that designs and sells non-memory semiconductors such as MCUs, which control home appliances and everyday devices like rice cookers, vacuum cleaners, and remote controls; it outsources production to external foundries and focuses on design and sales. Full-year 2025 results were revenue of ₩244.1 billion, operating profit of ₩10.1 billion, and net profit of ₩10.1 billion, turning to profit from a 2023 loss, with an ROE of 8.5%; in September 2025 it decided on a subsidiary-related rights offering (₩10 billion of working capital), but first-quarter 2026 operating profit fell year over year. What stands out lately is a two-sided setup: if the profit recovery continues quarter by quarter and appliance demand holds up, the cheap valuation of a 14.3x P/E and a 1.21x P/B stands out as a strength, but with a debt ratio of 240.6% and an interest coverage ratio of 1.07 leaving little room, a stalled earnings recovery could make the financial burden felt quickly.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 240.6%).
- Revenue rose 5.2% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 1.3% higher than a year earlier.
- ROE is 8.5% (controlling-interest basis). It is above the sector average.
- Operating margin is 4.2%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Choi Won 18.65% (individual)
Controlling bloc incl. related parties 21.15%
With the controlling bloc holding 21%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- ABOV Semiconductor is a fabless-style semiconductor company (one that designs chips without owning factories) that designs and sells non-memory semiconductors used in home appliances and everyday devices.
- Its signature product is the MCU (a small semiconductor that packs several functions onto one chip to control a device), widely used in rice cookers, vacuum cleaners, remote controls, and small appliances.
- Rather than running its own factories, it outsources production to external foundries and focuses on design and sales, so results move with appliance demand, chip prices, and the pace of new-product adoption.
- Because its market cap is not especially large, it helps to watch how each financing or earnings disclosure affects finances and the share count alongside the business flow.
- The latest closing price is ₩7,190 and the market cap is ₩127.8 billion.
- The price sits below the 20-day line (₩8,899) and below the 60-day line (₩11,352).
- Trading below both the short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that weighs upward versus downward strength over the past 14 days on a 0–100 scale) is 29.8, close to a depressed zone.
- The one-month change is -26.3%, the three-month change is -31.4%, and the position versus the 52-week high is -52.8%.
- Relative strength versus the KOSDAQ is 45 (1–99, converting the past year's return versus the index with more recent weighting — higher means stronger than the market).
- That places it around the top 55% of all stocks by strength.
- Over the past three months it lagged the index by 11.5%.
- It helps to read the chart alongside trading volume and disclosure dates.
- Recent annual revenue was ₩244.1 billion, with operating profit of ₩10.1 billion and net profit of ₩10.1 billion.
- The operating margin was 4.2%, and ROE (how much is earned in a year on equity) was 8.5%, above the industry average.
- The P/E ratio (how many times a year's earnings the share price is) is 12.65x and the P/B (how many times book value the share price is) is 1.08x, both below the industry median, so on the diagnostic they are classified as undervalued.
- Here a P/E around 14x is not a 'burden' but rather a calm level, given that this company was in the red until just the prior year and has only just turned to profit.
- For a company at the inflection from loss to profit, the earnings base is still thin, so the P/E can look somewhat high, and once earnings settle the P/E falls quickly at the same price.
- The point to watch is that the debt ratio of 240.6% means more debt than equity, and the interest coverage ratio (how many times operating profit can cover interest) of 1.07 leaves little room.
- In short, the valuation is on the cheap side, but treat the financial strength as 'average' and confirm alongside whether the earnings recovery continues.
- In 2023 the company was in the red with an operating loss of ₩14.6 billion and a net loss of ₩12.5 billion, but in 2024 it narrowed the operating loss to ₩5.1 billion, and in 2025 it clearly turned to profit with operating profit of ₩10.1 billion and net profit of ₩10.1 billion.
- Net profit rose about 2.8-fold, from ₩2.7 billion in 2024 to ₩10.1 billion in 2025.
- Revenue held with little swing — ₩232.4 billion (2023) → ₩232.1 billion (2024) → ₩244.1 billion (2025) — while costs and product mix improved and earnings sharply recovered.
- In other words, the core of this recovery is not a revenue explosion but a 'structural improvement' from a loss-making structure to a profitable one.
- That said, in the first quarter of 2026, revenue was ₩62.5 billion (+1.3% year over year), keeping the top line steady, but operating profit was ₩3.2 billion, down 24.1% year over year — profit was maintained but the earnings pace paused a beat.
- So while 'escaping losses' is a clear fact, the next checkpoint is whether the recovered margin is maintained and expanded quarter by quarter.
- There is also no clear evidence that next year and beyond will be lower than this year, so there is no clue to declare this a 'cycle top.'
- Three recent disclosures are worth reading together.
- The March 26, 2026 'corporate value-up plan (voluntary disclosure)' is material in which the company itself set out its direction for improving shareholder value; if it contains concrete figures, it becomes a primary basis for future direction.
- In the February 19, 2026 'change in revenue or profit/loss structure' disclosure, annual revenue of ₩244.1 billion, operating profit of ₩10.1 billion, and net profit of ₩10.1 billion were confirmed, backing the turn to profit noted above with a disclosure.
- On September 9, 2025, a subsidiary-related rights offering (20 million common shares · ₩10 billion of working capital) was decided; this is a matter to watch alongside where the funds go and the change in share count, with the key being whether the working capital actually feeds into business and revenue.
- Two strengths stand out.
- First, the structural improvement from a 2023 loss to a 2025 profit was confirmed in a disclosure, and ROE at 8.5% is above the industry average.
- Second, at a 14.3x P/E and a 1.21x P/B the shares are lower than peers, and with the price down nearly half from its high, they trade cheap relative to earnings and assets.
- In other words, this is not an 'expensive and risky' stock but a place where, if the recovered earnings hold, undervalued appeal is alive.
- On the other hand, the point to weigh is the financial side.
- With a debt ratio of 240.6% — more debt than equity — and an interest coverage ratio of 1.07 leaving little room, the financial burden could be felt quickly if earnings wobble again.
- First-quarter operating profit falling year over year, and the share-count and cash flows from the subsidiary rights offering, must also be watched.
- In sum, this is a stock where, if the profit recovery continues quarter by quarter and appliance demand holds up, the cheap valuation stands out as a strength, and conversely weakens if the earnings recovery stalls or the financial burden grows.
🔎 Valuation vs peers Undervalued
A comparison set of semiconductor names with adjacent market caps.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Green Resource | 12.48x | 1.83x | 14.67% |
| Telechips | — | 1.07x | -43.11% |
| Fidelix | — | 3.62x | -6.61% |
We looked first at a public-data comparison set of semiconductor names with similar market caps. The current P/E (how many times a year's earnings the share price is) is 12.65x and the P/B (how many times book value the share price is) is 1.08x. However, because smaller-cap names are heavily affected by earnings swings and financing disclosures, we did not draw firm conclusions from last year's confirmed-results metrics alone. The basis for the outlook box is a DART seasonality approximation.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩241.4 billion | ₩7.7 billion | — |
| Next quarter | Q2 2026 | ₩63.3 billion | ₩2.4 billion | — |
Price history Close · MA20 · MA60
The latest close is ₩7,190 and the market capitalization is ₩127.8 billion. The price sits below its 20-day moving average (₩8,899) and below its 60-day moving average (₩11,352). 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 29.8, near oversold territory. The one-month change is -26.3%, the three-month change is -31.4%, and the position relative to the 52-week high is -52.8%. Relative strength versus the KOSDAQ is 45 (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 45% of all stocks. Over the past three months it lagged the index by 11.5%. 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 -11.49% / 6M -32.26% / 12M -41.12%
Key metrics vs sector median
Valuation
The P/E of 12.65x is below the sector median (27.09x). The P/B of 1.08x is below the sector median (2.10x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets.
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 11.0%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
The operating margin is 4.2%. The debt ratio is 240.6%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $154.1M | $153.8M | $161.8M | +5.17% ↑ faster |
| Operating profit | -$9.7M | -$3.4M | $6.7M | — |
| Net profit | -$8.3M | $1.8M | $6.7M | +281.37% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $111.0M | $160.8M | $154.1M | $153.8M | $161.8M |
| Operating profit | $11.7M | $17.1M | -$9.7M | -$3.4M | $6.7M |
| Net profit | $9.1M | $8.2M | -$8.3M | $1.8M | $6.7M |
| Revenue CAGR | 4-yr avg 9.88% | ||||
Revenue rose 5.2% year over year (2023 ₩232.4 billion → 2024 ₩232.1 billion → 2025 ₩244.1 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Over the 5 years on record, revenue compound annual growth (CAGR) is 9.9%. The two-year revenue CAGR is 2.5%. In the most recent quarter (Q1 2026), revenue was 1.3% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
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
- 2026-03-26UpdateCorporate value-up plan (voluntary disclosure): check the original company planThis is planning material the company itself presented. Where figures are given, treat them as a primary basis for the outlook box; where none are given, treat it only as directional material. Source
- 2025-09-09UpdateRights offering decision (major management matter of a subsidiary): 20,000,000 common shares · ₩10 billion of working capitalThis is a disclosure to read alongside the purpose of the incoming funds and the change in share count. Where a facility or operating purpose is stated, the key is whether the investment is actually executed and linked to revenue. Source
- 2026-02-19EarningsChange of 30% or more (15% for large corporations) in revenue or profit/loss structure: annual revenue ₩244.1 billion · operating profit ₩10.1 billion · net profit ₩10.1 billionThis is recently confirmed or preliminary earnings material. Check whether it is in line with the annual trend and whether any one-off factors are present. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩7,190 | ₩7,190 | Confirmed | link |
| Most recent quarterly results | revenue ₩62.5 billion, operating profit ₩3.2 billion | revenue ₩62.5 billion, operating profit ₩3.2 billion | Confirmed | link |
| Annual results | revenue ₩244.1 billion, operating profit ₩10.1 billion | revenue ₩244.1 billion, operating profit ₩10.1 billion | Confirmed | link |
| Original outlook/plan disclosure | : | : | Confirmed | link |
| Original financing disclosure | : 20,000,000 · ₩10.0 billion | : 20,000,000 · ₩10.0 billion | Confirmed | link |
| Original earnings disclosure | revenue30%: revenue ₩244.1 billion · operating profit ₩10.1 billion · net profit ₩10.1 billion | revenue30%: revenue ₩244.1 billion · operating profit ₩10.1 billion · net profit ₩10.1 billion | Confirmed | link |
| Outlook box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-05-15PeriodicQuarterly report
- 2026-05-13TreasuryTreasury-stock disposal decision
- 2026-05-08TreasuryMaterial-fact report
- 2026-05-06TreasuryTreasury-stock disposal decision
- 2026-04-30TreasuryMaterial-fact report
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-19PeriodicAnnual business report
- 2026-03-18Audit report
- 2026-03-13Amended filing
- 2026-03-11DividendCash/stock dividend decision
- 2026-03-11Shareholders' 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.