TC Materials (125020) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
TC Materials processes copper into conductor materials for the power and electrical industries, with its main products being enameled copper wire for extra-high-voltage underground and submarine power cables, continuously transposed conductor for transformer windings, and rectangular copper wire for transformers and motors; it is a materials supplier that delivers copper components to makers of cables, transformers, and motors. A newly listed company that came to the KOSDAQ in 2025, it confirmed a trough in February with 2025 revenue of ₩299.1 billion and operating profit of ₩6.8 billion, and its May first-quarter report confirmed a rebound driven by recovering demand in power infrastructure and automotive electrical systems. The notable point is that, on recovered earnings, a forward P/E of about 9.8x signaling undervaluation and the long-run tailwinds of grid replacement and data-center power demand are strengths, while quarterly swings tied to copper prices and the timing of large orders, share-count increases from further conversion-right exercises, and a short listing history should all be kept in view.
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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 “Wire & Cable” (Shipbuilding, Machinery, Defense & Power Equipment · Machinery & Electrical Equipment), a type typically read first through P/E.
Cable and wire makers build revenue from power-infrastructure spending and project orders, and pass raw-material costs into pricing, so earnings tend to be reasonably steady. That is why trailing P/E, based on actually earned profit, is 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
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 1.6% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 49.3% higher than a year earlier.
- ROE is 5.7% (total-net basis). It is above the sector average.
- Operating margin is 3.2%.
- 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 Biosmart 47.61% (corporate)
Controlling bloc incl. related parties 50.57%
With the controlling bloc holding 51%, control is very secure but the free float is thin.
🔎 In-depth analysis Reading
TC Materials processes copper into 'conductor materials' used in the power and electrical industries. Its mainstays are enameled copper wire used in extra-high-voltage underground and submarine power cables, continuously transposed conductor (CTC) for transformer windings, and rectangular copper wire used in transformers and motors. Put simply, it is a materials supplier that delivers the 'copper components that go inside' to the large manufacturers who make cables, transformers, and motors. Its revenue splits broadly into power-infrastructure materials, automotive-electrical (vehicle electrical equipment) materials, and appliance and motor materials, and recently it has been expanding into areas such as EV motor materials and the fabrication and servicing of large motor stators.
The latest close is ₩5,260 and the market capitalization is ₩184.3 billion. The price sits above its 20-day moving average (₩4,862) and below its 60-day moving average (₩6,081). 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 51.8, a neutral level. The one-month change is +7.2%, the three-month change is -35.7%, and the position relative to the 52-week high is -45.4%. Relative strength versus the KOSDAQ is 81 (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 82% of all stocks. Over the past three months it outpaced the index by 3.0%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
This is a stock where profitability and valuation only come into focus once you separate 'last year' from 'this year.' The trailing P/E (how many times last year's finalized earnings the share price is) prints high at 93.41x, but this is not because the shares are expensive; it is an optical effect from the denominator shrinking as 2025 net profit temporarily contracted to ₩1.67 billion. The real picture is the forward P/E on recovered earnings (a multiple on this year's expected earnings), at about 9.8x, which is actually lower than peer cable and power-equipment makers and close to an undervalued zone. A P/B (how many times net asset value the share price is) of 2.23x is also lower than the peer set (roughly 4-6x), and the P/S (how many times revenue the share price is) is 0.8x. Profitability, with ROE (how much is earned in a year on equity) of 2.1% and an operating margin of 2.3%, is still low, but this should be read as being on last year's trough basis. The finances are solid: with a current ratio of 246% and an interest coverage ratio (how many times operating profit covers interest) of 16.6x, debt-servicing ability is ample, and a debt ratio (debt versus equity) of 155% is not an excessive level for manufacturing.
Three-year revenue moved ₩252.0 billion to ₩303.9 billion to ₩299.1 billion, flat and choppy, and 2025 was a clear trough with operating profit -37.8% and net profit -73.3%. That trend changed decisively in Q1 2026. Revenue of ₩101.4 billion (+49.3%), operating profit of ₩6.4 billion (+169.4%), and net profit of ₩4.9 billion (+162.4%) meant a single quarter's net profit reached about three times last year's full-year figure (₩1.67 billion). This rebound is not a numerical fluke but comes from demand. Power-infrastructure revenue rose about 73% and automotive-electrical about 60% year over year, because the extra-high-voltage and submarine cables and the transformer and EV-motor materials the company supplies are directly tied to the structural demand of grid replacement and data-center power. The very reason this year's earnings recover to this degree lies in that demand and utilization improvement, and the forward P/E of about 9.8x reflects those recovered earnings. The trailing P/E computed on last year's numbers embeds the trough and therefore understates the company's real capability, so this year's trend is closer to the company's underlying strength.
This company newly listed on the KOSDAQ in 2025, so its disclosure history is not yet long. The key item is the Q1 quarterly report filed on May 14, 2026, in which the earnings rebound from recovering demand in power infrastructure and automotive electrical systems was confirmed in the numbers. Earlier, in February, a change in annual revenue and profit structure (2025 revenue ₩299.1 billion, operating profit ₩6.8 billion, net profit ₩1.7 billion) was disclosed, confirming the trough, and it communicated with investors through two investor relations (IR) sessions in April and May. Separately, in October 2025 the exercise of convertible-bond conversion rights (first tranche) newly increased shares by about 2.4% (roughly 810,000 shares), a case of equity dilution that is the flip side of financing and worth watching in a small-cap. With no major event disclosures such as single sale/supply contracts or dividends yet, quarterly results and IR are the primary material for reading the trend for now.
The strengths are clear. Earnings that bottomed in 2025 rebounded steeply in Q1 2026 on power-infrastructure and automotive-electrical demand, and the forward P/E of about 9.8x on recovered earnings is lower than peers, reading as undervalued. The P/B is also lower than the peer set, the finances are stable, and the extra-high-voltage and submarine cable and EV-motor materials the company supplies are tied to the long-run tailwinds of grid replacement and data-center power demand. There are separate cautions. Quarterly results can swing widely with copper prices and the timing of large orders, further conversion-right exercises leave room for the share count to rise, and with a short listing history it remains to be seen whether one strong quarter continues at the same pace all year. In short, valuation appeal is alive as long as grid and automotive-electrical demand holds and the quarterly recovery continues, while earnings volatility can come to the fore in quarters where copper prices swing sharply or orders thin out.
🔎 Valuation vs peers Inconclusive
Compared against the group of cable and power-equipment makers that receive TC Materials' copper conductor materials to build cables and power equipment; positioned as the 'upstream supply material' maker for that peer set, it shares the same grid cycle.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Taihan Cable & Solution | 63.77x | 3.39x | 5.26% |
| Iljin Electric | 27.04x | 4.66x | 19.39% |
| Daewon Cable | 128.69x | 8.39x | 8.57% |
(a) The peer cable and power-equipment makers also show uniformly high trailing P/Es of 40-103x. This means the whole sector is at the early stage of an earnings inflection, so last year's earnings-based multiples are inflated, and TC Materials' 141x is an optical effect in the same context. (b) The P/B, at 2.01x, is actually lower than the peer set (4.8-7.1x), a discount on a net-asset basis. (c) The trailing P/E is heavily distorted by the 2025 net-profit trough, and on a forward basis reflecting the Q1 recovery in earnings the multiple falls sharply. However, the durability of one strong quarter, volatility tied to copper prices and order timing, and the possibility of further conversion-right exercises make it hard to conclude 'cheap' or 'expensive.' It is therefore left inconclusive.
Price history Close · MA20 · MA60
The latest close is ₩5,260 and the market capitalization is ₩184.3 billion. The price sits above its 20-day moving average (₩4,862) and below its 60-day moving average (₩6,081). 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 51.8, a neutral level. The one-month change is +7.2%, the three-month change is -35.7%, and the position relative to the 52-week high is -45.4%. Relative strength versus the KOSDAQ is 81 (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 82% of all stocks. Over the past three months it outpaced the index by 3.0%. 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 +2.99% / 6M +81.30% / 12M -5.50%
Key metrics Computed vs sector median
Valuation
The P/E of 110.04x is above the sector median (12.50x). The P/B of 2.23x is above the sector median (1.21x). 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.
Profitability & financials
Return on equity (ROE) is 5.7%, above the sector average (1.0%). The operating margin is 3.2%. The debt ratio is 55.2%, so the financial structure is stable.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $177.1M | $213.5M | $210.1M | -1.57% ↓ slower |
| Operating profit | $6.1M | $7.7M | $4.8M | -37.78% ↓ slower |
| Net profit | $9.2M | $4.4M | $1.2M | -73.30% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $177.1M | $213.5M | $210.1M |
| Operating profit | — | — | $6.1M | $7.7M | $4.8M |
| Net profit | — | — | $9.2M | $4.4M | $1.2M |
| Revenue CAGR | 2-yr avg 8.94% | ||||
Revenue fell 1.6% year over year (2023 ₩252.1 billion → 2024 ₩303.9 billion → 2025 ₩299.1 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 37.8% year over year. The decline widened. Over the 3 years on record, revenue compound annual growth (CAGR) is 8.9%. The two-year revenue CAGR is 8.9%. In the most recent quarter (Q1 2026), revenue was 49.3% 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
- Revenue fell 1.6% year over year (3-year trend: mixed).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-14EarningsQ1 2026 quarterly report filed. Revenue ₩101.4 billion (+49.3%), operating profit ₩6.4 billion (+169.4%), net profit ₩4.9 billion, a clear rebound from the 2025 trough.Positive both short and medium term. A single quarter's net profit was about three times last year's full-year figure, dispelling the trailing-P/E optical effect and showing the potential for earnings normalization. Source
- 2026-02-09EarningsDisclosure of a change of 30% or more (15% for large corporations) in revenue or profit structure. Confirmed the 2025 trough with revenue ₩299.1 billion, operating profit ₩6.8 billion, and net profit ₩1.7 billion, a sharp year-over-year earnings drop.A medium-term reference point. Confirming that 2025 was the earnings trough forms the low base against which to compare the 2026 rebound. Source
- 2025-10-21UpdateExercise of convertible-bond conversion rights (first tranche). A cumulative 810,735 shares were newly issued, causing about 2.37% dilution of total shares outstanding.A medium-term caution. As a share-count increase that is the flip side of financing, per-share value dilution and the possibility of further conversion are matters to track. Source
- 2026-05-21IRInvestor relations (IR) session held. Explained business status and outlook to investors right after the Q1 results announcement.Short-term easing of information asymmetry. A signal that confirms this newly listed company's willingness to communicate through IR. Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-05-21Disclosure
- 2026-05-14PeriodicQuarterly report
- 2026-04-10Disclosure
- 2026-04-06OwnershipOwnership-change filing
- 2026-03-24Disclosure
- 2026-03-24Shareholders' meeting notice
- 2026-03-16PeriodicAnnual business report (amended)
- 2026-03-16PeriodicAnnual business report
- 2026-03-16Audit report
- 2026-03-09Shareholders' meeting notice
- 2026-03-09Shareholders' 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.