YC Chem makes the chemical materials repeatedly consumed in semiconductor processes: Photo materials such as the photoresist used to etch circuit patterns account for more than half of revenue, followed by wet chemicals and rinse solutions, so revenue is directly tied to customer utilization rates and the pace of new-process adoption. In March-April 2026 the company carried out a stock split dividing one share into two, and its May quarterly report confirmed a Q1 revenue increase together with a turn to operating and net profit. What stands out lately is that operating profit, in deficit for years, turned positive, so a recovery in semiconductor-materials demand and localization are beginning to show in results; on the other hand, with a 352% debt ratio and an 80% current ratio the debt burden is heavy and interest weighs on net profit, so continued profitability and financial improvement need to be confirmed together.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 352.4%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 80.1%).
- Revenue rose 18.2% year over year, and the pace is quickening (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 37.5% higher than a year earlier.
- ROE is 9.4% (total-net basis). It is above the sector average.
- Operating margin is -2.1%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Lee Seong-il 29.22% (individual)
Controlling bloc incl. related parties 40.09%
With the controlling bloc holding 40%, the ownership structure is stable.
🔎 In-depth analysis
- YC Chem earns money by developing and producing the chemical materials that go into the process of making semiconductors.
- More than half of revenue is Photo materials, which include the photoresist used to etch circuit patterns, the solution that keeps fine patterns from collapsing, and developer solution.
- The next-largest share is the wet chemicals used to etch or wash wafers, followed by the rinse solutions used to rinse surfaces in the patterning process.
- In other words, rather than equipment or finished chips, it supplies the materials repeatedly consumed in stamping out chips, so revenue is directly tied to customer utilization rates and the pace of new-process adoption.
- Domestic memory-semiconductor companies are its main customers, and the company has supplied some process materials, previously reliant on imports, through localization.
- The latest closing price is ₩9,690 and the market capitalization is ₩19.59 billion.
- The price sits below its 20-day line (₩11,371) and below its 60-day line (₩15,280).
- Trading below both its short- and medium-term moving averages, the trend is on the soft side.
- The RSI (an auxiliary gauge that scores the strength of gains versus losses over the past 14 days on a 0-100 scale) is 36.3, a neutral level.
- The one-month change is -25.0%, the three-month change is -54.9%, and the position versus the 52-week high is -65.5%.
- Relative strength versus the KOSDAQ is 25 (1-99, converting return versus the index over the past year with more weight on recent periods; higher means stronger than the market).
- That places it around the top 76% for strength among all stocks.
- Over the past three months it has lagged the index by 43.9%.
- Chart reading is best done together with trading volume and disclosure dates.
- The P/E ratio of 42.33x (how many times one year's profit the price is), P/B of 3.99x (how many times the company's net assets the price is), and P/S of 3.1x (how many times revenue the price is) shown on screen now are all trailing figures based on last year's (2025) confirmed results.
- But last year the core business posted an operating loss of -₩1.8 billion, and net profit of about ₩4.6 billion resulted from a mix of non-operating items, so it is hard to read the company's real earning power from these trailing multiples alone.
- For a company at an inflection point where its core business turns to profit, it is more apt to look at this year's earnings than at a year already over.
- On the profitability side, ROE (how much is earned in a year on shareholders' equity) is 9.4%, an unremarkable level for a small materials company.
- Meanwhile, finances are clearly a part to watch: the debt ratio (debt relative to equity) is high at 352%, and the current ratio (assets that can be converted to cash immediately against debt due within a year) is 80%, below 100%.
- Because heavy debt means interest costs weigh on net profit, it is worth keeping in mind that even as operating profit grows, the margin left as net profit can be correspondingly narrow.
- The top line is growing fast.
- Revenue was ₩83.1 billion in 2025, up 18.2% year on year, an acceleration from the prior year's 12.9% growth.
- In Q1 2026 it surged 37.5% year on year to ₩26.0 billion, taking the growth pace up another notch.
- The more important change is the bottom line.
- Operating profit, in deficit throughout 2023 and 2024, turned positive at about ₩1.6 billion in Q1 2026, and net profit also turned positive.
- That the core business, in deficit for years, has turned to profit is the clearest signal of this phase.
- For a company like this, the forward P/E (this year's expected P/E) is closer to the real picture than the trailing P/E (last year's confirmed P/E).
- In YC Chem's case, though, despite the positive direction of revenue growth and the core-business turn to profit, the size of profit expected this year is still not large relative to the market cap, so the multiple on a forward basis is not low either.
- This means it is a structure that only becomes lighter when the growth drivers of demand recovery and process-material localization convert quickly into thicker profit, and it naturally shows that the turn to profit is at the very start of maturing.
- Recent disclosures run along two main lines.
- The first is the stock split carried out in March-April 2026, dividing one share into two and increasing shares outstanding from 11.11 million to 20.22 million (purpose: expanding the free float).
- This is a capital event and so is neutral to corporate value itself, and a simple comparison with the pre-split price is not appropriate.
- The second is the Q1 results confirmed in the May quarterly report, where operating and net profit turned positive along with a revenue increase.
- Beyond this, routine disclosures such as the regular general meeting, business report, and audit report filing followed, and there were reports of ownership changes by executives and major shareholders.
- No new large orders or dividend-related disclosures were confirmed.
- The strength is that the core business turnaround has been confirmed in the numbers.
- Operating profit, in deficit for years, turned positive in Q1 2026 and the revenue growth pace has steepened, so the direction of a recovery in semiconductor-materials demand and process-material localization has begun to show in actual results.
- The point to be careful about is finances.
- With a 352% debt ratio and an 80% current ratio, the debt burden is heavy and interest weighs on net profit, so even as the core business improves, the margin left as net profit may grow slowly.
- On valuation, last year's trailing multiple contains the core-business loss, so it is hard to assess the company by itself, but even on this year's expected earnings the size of profit relative to market cap is still not large, so the multiple is not at a low level.
- In sum, if quarterly profit does not stop at one or two quarters but continues, profit grows thicker, and the debt and interest burden falls together, it can be seen as a strong company; conversely, if customer utilization softens and the profit margin narrows again, the heavy finances will be felt first despite the large top-line growth.
🔎 Valuation vs peers Overvalued
On the basis of the business reality of supplying chemical materials consumed in semiconductor processes (photoresist, wet chemicals, cleaning/developer solutions) to domestic memory customers, the peer set is listed companies in the same semiconductor-chemical-materials space.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Soulbrain | 29.03x | 2.17x | 7.49% |
Compared with Soulbrain, whose business reality is closest (semiconductor wet and electronic materials, P/E 39.7x, P/B 3.0x, ROE 7.5%), YC Chem trades at a higher multiple relative to earnings and net assets, with a P/E of 55.8x and a P/B of 5.3x. That the multiple is higher even though the peer leads on revenue scale, stability, and track record of sustained profit suggests that expectations for the turn to profit are already substantially reflected in the price. That said, the trailing P/E calculated on last year's confirmed earnings is based on a year that mixed non-operating gains amid an operating loss, so it can distort core earning power in either direction, and for a company passing an inflection point in its core business, a forward view of this year's earnings is more appropriate. If the turn to profit continues over several quarters, the effective multiple could fall, but based only on the currently confirmed figures we judge it an overvalued zone with a large premium versus peers.
Price history Close · MA20 · MA60
The latest close is ₩9,690 and the market capitalization is ₩195.9 billion. The price sits below its 20-day moving average (₩11,371) and below its 60-day moving average (₩15,280). 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 36.3, a neutral level. The one-month change is -25.0%, the three-month change is -54.9%, and the position relative to the 52-week high is -65.5%. Relative strength versus the KOSDAQ is 25 (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 24% of all stocks. Over the past three months it lagged the index by 43.9%. 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 -43.88% / 6M -46.24% / 12M -61.73%
Key metrics vs sector median
Valuation
The P/E of 42.33x is above the sector median (14.79x). The P/B of 3.99x is above the sector median (0.97x).
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 9.4%, above the sector average (4.0%). The operating margin is -2.1%. The debt ratio is 352.4%, so the financial structure is somewhat high.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $41.3M | $46.6M | $55.1M | +18.19% ↑ faster |
| Operating profit | -$5.2M | -$5.4M | -$1.2M | — |
| Net profit | -$4.0M | -$10.6M | $3.1M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $44.0M | $54.6M | $41.3M | $46.6M | $55.1M |
| Operating profit | $1.5M | $3.5M | -$5.2M | -$5.4M | -$1.2M |
| Net profit | -$539,410 | $2.8M | -$4.0M | -$10.6M | $3.1M |
| Revenue CAGR | 4-yr avg 5.75% | ||||
Revenue rose 18.2% year over year (2023 ₩62.3 billion → 2024 ₩70.3 billion → 2025 ₩83.1 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating results are in the red, so a swing back to profit matters more than the growth rate here. Over the 5 years on record, revenue compound annual growth (CAGR) is 5.8%. The two-year revenue CAGR is 15.5%. In the most recent quarter (Q1 2026), revenue was 37.5% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- Revenue grew 18.2% year over year, a sign of growth.
Points to watch
- Debt far exceeds equity (debt ratio 352.4%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 80.1%).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-15EarningsDisclosed the Q1 2026 quarterly report. Revenue about ₩26.0 billion (+37.5% year on year), operating profit about ₩1.6 billion and net profit about ₩0.5 billion, so operating results turned positive.That the core business, in deficit for years, turned to a quarterly profit is the most crucial positive signal both short and medium term. Source
- 2026-04-28FilingTrading resumed after the change-of-listing for the stock split. Shares outstanding changed from 11.11 million to 20.22 million and par value from ₩1,000 to ₩500 (split purpose: expanding the free float).The per-share price falls so trading access improves, but it is neutral to corporate value itself. A simple comparison with the pre-split price is inappropriate. Source
- 2026-04-15FilingCorrective disclosure of the stock-split decision. A 1:2 split dividing one share into two, with the new shares' expected listing date of April 29, 2026.A capital event aimed at boosting trading through an expanded free float, with no effect on earnings or assets. Source
- 2026-03-18FilingDisclosed the 2025 business report. Annual revenue ₩83.1 billion (+18.2% year on year), but an operating loss of -₩1.8 billion and net profit of about ₩4.6 billion, confirming an earnings structure mixed with non-operating items.A point where top-line growth and a core-business loss coexisted, serving as the immediate baseline before the subsequent Q1 turn to profit. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-15PeriodicQuarterly report
- 2026-05-07OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-07OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-28Spin-off/split decision
- 2026-04-15Spin-off/split decision (amended)
- 2026-04-07Spin-off/split decision
- 2026-03-27Shareholders' meeting notice
- 2026-03-18PeriodicAnnual business report
- 2026-03-18Audit report
- 2026-03-12Shareholders' meeting notice
- 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.