TSE earns money from components and equipment used in the stage that checks whether a finished semiconductor works properly—probe cards (wafer inspection), interface boards and test sockets—along with OLED inspection equipment. Because these inspection components wear out and need replacing as chip output rises, demand grows with production, and a defining feature is vertical integration from raw materials through inspection services via its subsidiaries. Its Q1 report on May 15, 2026 confirmed a surge in results, and it declared a dividend of ₩450 per share; it also entered the HBM probe-card market—long monopolized by foreign suppliers—after passing the quality tests of all three major memory makers. The strengths worth watching are inspection-consumable demand tied directly to AI, HBM and DRAM production, vertical integration, a low debt ratio (36.7%), and a Q1 in which net profit already exceeded last year's full-year figure; the cautions are that the business rides the memory production and investment cycle, so profit swings sharply when the industry cools, the price sits near its 52-week high, and the pace at which actual HBM probe-card volume expands is the key variable.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 23.2% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 81.5% higher than a year earlier.
- ROE is 9.8% (controlling-interest basis). It is above the sector average.
- Operating margin is 11.5%.
- P/B is high versus peers, a stretch on an asset basis.
Ownership & governance As of 2024-12-31
Largest shareholder Kwon Sang-jun 21.23% (individual)
Controlling bloc incl. related parties 50.28%
With the controlling bloc holding 50%, control is very secure but the free float is thin.
🔎 In-depth analysis
- TSE earns money from components and equipment used in the stage that checks whether a finished semiconductor 'works properly.' It has three main products.
- (1) Probe cards—components that make needle-like contact with chips on a wafer (the semiconductor base plate) to run electrical tests, connecting the inspection equipment to the wafer during wafer inspection (after the front-end process).
- Used on DRAM, NAND and logic chips, they carry the largest revenue share of late.
- (2) Interface boards—substrates that exchange signals between the inspection equipment and the chip during final testing after packaging (the back-end process).
- (3) Test sockets—consumable parts that connect signals when a packaged chip is plugged into inspection equipment.
- Added to these is OLED (display) inspection equipment.
- On a recent standalone basis, revenue is roughly 40-plus percent probe cards, around 30% interface boards, and in the mid-to-high teens test sockets.
- In addition, subsidiary Tiger Elec handles the PCBs that are the raw material for probe cards and interface boards, MegaTouch handles pogo pins and interposers, and GM Test handles semiconductor test services—giving the group vertical integration from raw materials through finished products and inspection services.
- Because inspection components wear out and need replacing as chip output rises, results rise directly when memory production such as DRAM and HBM increases.
- The latest close is ₩224,000 and the market cap is ₩2.5 trillion.
- The price sits below its 20-day moving average (₩244,250) but above its 60-day line (₩206,098).
- With the short- and medium-term trends diverging, direction should be read separately.
- The RSI (a gauge that measures the strength of gains versus losses over the past 14 days on a 0-100 scale) is 47.6, a neutral level.
- The stock is up 8.0% over one month and up 103.3% over three months, and it sits 18.8% below its 52-week high.
- Its relative strength versus the KOSDAQ is 98 (on a 1-99 scale, based on returns against the index over the past year weighted toward the most recent period; higher means stronger than the market).
- That places it in roughly the top 2% of all stocks by strength.
- Over the past three months it outpaced the index by 167.6%.
- Chart readings are best interpreted alongside trading volume and disclosure dates.
- On last year's (2025) confirmed earnings, the P/E ratio (how many times one year's profit the price represents) is 64.81x and the P/B (how many times the company's net assets) is 6.33x.
- The numbers look high on their own, but this P/E is calculated on ₩38.2 billion of confirmed profit from last year and does not capture the current earnings trend—and 2025 net profit was actually a trough, down 10% from the prior year.
- In reality, Q1 2026 delivered ₩40.0 billion of net profit in a single quarter, already exceeding last year's full-year profit (₩38.2 billion), and Q1 operating profit (₩42.0 billion) reached about 85% of full-year 2025 operating profit (₩49.2 billion).
- In an inflection like this, where profit jumps sharply, a multiple based on last year makes the stock look more expensive than it really is.
- Reflecting this year's higher earnings, the P/E falls substantially to around 20x.
- Profitability, at an ROE (how much it earns in a year on its equity) of 9.8% on a 2025 basis, was ordinary, but improves markedly once the Q1 surge is reflected, with an operating margin of 11.5%.
- The balance sheet is solid: the debt ratio (debt to equity) is low at 36.7%, and the current ratio (cash-like assets against debt due within a year) is ample at 277%.
- The dividend is ₩450 per share, a yield of about 0.2%, with a payout ratio (share of net profit paid as dividends) of 12.4%—a company weighted toward growth over dividends.
- Five-year revenue went from ₩307.7 billion in 2021 to ₩339.3 billion in 2022, ₩249.1 billion in 2023 (an operating loss amid the semiconductor downturn), ₩348.1 billion in 2024 and ₩428.9 billion in 2025—a path that dipped deeply once before climbing back to a record high.
- Operating profit likewise swung from a ₩2.4 billion loss in 2023 to ₩39.9 billion in 2024 and ₩49.2 billion in 2025.
- The real change came in 2026.
- Q1 revenue surged 81.5% year-on-year to ₩150.7 billion, operating profit jumped about thirteenfold from Q1 last year (up roughly 1,247% year-on-year), and net profit rose more than twentyfold.
- The key cause is that as AI spreads, DRAM demand has exploded, and with HBM (high-bandwidth memory) and general DRAM mass production rising, supply of the probe cards used for inspection has increased sharply.
- In particular, the company entered in earnest the HBM probe-card market—effectively monopolized by foreign suppliers until now—by passing the quality tests of the three major domestic and overseas memory makers, a new growth axis.
- This demand is only at the early stage of ramping in 2026, so it is more natural to see Q1 as the start of a full-year volume expansion than as a temporary peak.
- Projecting this year's earnings on this trend, the valuation that looked high on last year's basis falls substantially to around 20x on this year's basis.
- In other words, measured against how fast the company is now earning, it is not as expensive as last year's confirmed P/E made it seem.
- Recent disclosures center on regular reports, shareholder returns and ownership changes.
- The Q1 report on May 15, 2026 confirmed the surge in results, and the annual report on March 18 disclosed full-year 2025 results and the business structure (probe cards, interface boards, test sockets, OLED inspection equipment, and subsidiary vertical integration).
- In February 2026, a cash dividend for fiscal 2025 (₩450 per share) was decided, and the March 26 annual general meeting confirmed the financial statements, dividend and board agenda items.
- Earlier, in October 2025, the disposal of treasury shares was decided and completed—treasury-share disposal has the effect of increasing the free float, which can affect supply-demand.
- The executive/major-holder specific-security ownership reports and large-holding reports that continued from March to May are periodic filings that flag ownership changes and should be viewed separately from business direction.
- Disclosures containing 'future numbers,' such as single supply contracts or an official annual business plan, were not separately identified in this period, so the results themselves are what best explain the state of the business.
- The strengths are clear.
- (1) an inspection-consumable business tied directly to rising AI, HBM and DRAM production; (2) entry into the HBM probe-card market—long monopolized by foreign suppliers—after passing the quality tests of the three major memory makers, adding a growth axis; (3) vertical integration from raw materials (PCBs, pogo pins) through finished products and inspection services, giving control over cost and supply; and (4) low debt (36.7%) and ample liquidity (277%).
- Above all, an earnings inflection actually appeared, with Q1 2026 net profit alone exceeding last year's full-year figure, and this year's P/E reflecting that profit is markedly lower than that of peer inspection-component names (Leeno Industrial, ISC).
- Against its expanded results, the price load is not heavy.
- At the same time, there are points to watch.
- (1) This business rides the memory production and investment cycle, so—as with the 2023 swing into loss—inspection demand also falls when the industry cools, making profit volatile.
- (2) The price has risen sharply in a short span and sits near its 52-week high, so short-term volatility is heavy.
- (3) Whether actual HBM probe-card volume and share expansion continue as hoped is the key variable.
- In short: on a forward (this year's expected earnings) basis the valuation is light and the stock is strong so long as the memory upcycle and HBM entry continue and the Q1 profit level settles in for the year, while its earnings swings widen when memory investment and mass production roll over.
🔎 Valuation vs peers Undervalued
Because the base industry code (medical, precision and optical instruments) does not match the actual business, we reset the peer set to companies making the same semiconductor test components—direct rivals in inspection components such as probe cards and sockets (Leeno Industrial, ISC), viewed together with a subsidiary and adjacent component maker (Tiger Elec). Figures use the site's uniform formula (current price, last year's earnings).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Leeno Industrial | 35.11x | 7.30x | 20.78% |
| ISC | 53.55x | 5.60x | 10.46% |
| Tiger Elec | 80.97x | 7.33x | 9.05% |
(a) Position versus peers: the roughly 80x P/E on last year's confirmed earnings is high within the inspection-component group, but 2025 net profit was a trough, down from the prior year, and does not yet capture the Q1 2026 earnings inflection. (b) Premium/discount: recalculated on this year's expected earnings, the P/E comes down to around 20x, markedly lower than close peers Leeno Industrial (about 41x) and ISC (about 64x). (c) The limits of trailing and the forward basis: for a stock whose profit exceeds last year's full-year figure in a single quarter, the meaning of the trailing P/E is greatly limited, and this year's expected (forward) earnings are closer to the real picture. Projecting this year's earnings on the grounds of HBM probe-card entry and the DRAM upcycle, on a forward basis it reads as undervalued relative to peers. That said, this judgment rests on the premise that this year's earnings continue along the Q1 trajectory.
Price history Close · MA20 · MA60
The latest close is ₩224,000 and the market capitalization is ₩2.5 trillion. The price sits below its 20-day moving average (₩244,250) and above its 60-day moving average (₩206,098). 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 47.6, a neutral level. The one-month change is +8.0%, the three-month change is +103.3%, and the position relative to the 52-week high is -18.8%. Relative strength versus the KOSDAQ is 98 (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 98% of all stocks. Over the past three months it outpaced the index by 167.6%. 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 +167.59% / 6M +324.05% / 12M +458.13%
Key metrics vs sector median
Valuation
The P/E of 64.81x is above the sector median (22.72x). The P/B of 6.33x is above the sector median (1.61x). 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.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 10.4%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 9.8%, above the sector average (5.0%). The operating margin is 11.5%. The debt ratio is 36.7%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $165.1M | $230.7M | $284.3M | +23.23% ↓ slower |
| Operating profit | -$1.6M | $26.4M | $32.6M | +23.24% |
| Net profit | $80,136 | $28.2M | $25.3M | -10.00% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $203.9M | $224.9M | $165.1M | $230.7M | $284.3M |
| Operating profit | $36.2M | $37.5M | -$1.6M | $26.4M | $32.6M |
| Net profit | $29.6M | $33.0M | $80,136 | $28.2M | $25.3M |
| Revenue CAGR | 4-yr avg 8.66% | ||||
Revenue rose 23.2% year over year (2023 ₩249.1 billion → 2024 ₩348.1 billion → 2025 ₩428.9 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 23.2% year over year. Over the 5 years on record, revenue compound annual growth (CAGR) is 8.7%. The two-year revenue CAGR is 31.2%. In the most recent quarter (Q1 2026), revenue was 81.5% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- Revenue grew 23.2% year over year, a sign of growth.
- 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
- 2026-05-15EarningsQ1 2026 report filed. Consolidated revenue of about ₩150.7 billion (+81.5% year-on-year), operating profit of about ₩42.0 billion (about +1,247% year-on-year), net profit of about ₩40.0 billion—exceeding last year's full-year net profit (₩38.2 billion) in a single quarter.Near term: the surge in HBM and DRAM inspection demand is confirmed in figures, bringing earnings momentum to the fore. Medium term: an inflection quarter that prompts a re-look at a valuation that appeared high on last year's basis, now on this year's earnings. Source
- 2026-03-18Filing2025 annual report filed. Full-year revenue of ₩428.9 billion (+23.2% year-on-year), operating profit of ₩49.2 billion, net profit of ₩38.2 billion. Confirms the business mix of probe cards, interface boards, test sockets and OLED inspection equipment, and vertical integration (Tiger Elec, MegaTouch, GM Test).Near term: official confirmation of the business mix and subsidiary integration. Medium term: shows the trajectory of revenue returning to a record high after the 2023 downturn trough. Source
- 2026-03-26DividendAnnual general meeting results disclosed. Financial statements, dividend and board agenda items confirmed (fiscal 2025 dividend of ₩450 per share, payout ratio about 12.4%).Near term: confirmation of shareholder-return policy. Medium term: the dividend yield (about 0.2%) is low, so the core investment appeal is growth rather than dividends. Source
- 2025-10-20FilingTreasury-share disposal result report. Completed the previously decided disposal of held treasury shares.Near term: possible supply-demand effect from an increased free float. Medium term: the assessment turns on how the disposal proceeds are used (investment or operations). Source
- 2026-05-11FilingLarge-holding report and executive/major-holder specific-security ownership reports filed (periodic ownership-change disclosures).Near term: of a nature that flags ownership changes, to be referenced separately from business results. Medium term: reference material for short-term supply-demand. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 consolidated revenue | ₩428,900,789,083(approx. ₩428.9 billion) | approx. ₩428.9 billion | Confirmed | link |
| Q1 2026 consolidated operating profit | ₩41,991,772,083(approx. ₩42.0 billion) | approx. ₩42.0 billion | Confirmed | link |
| Q1 2026 consolidated net profit | ₩40,014,929,161(approx. ₩40.0 billion) | approx. ₩40.0 billion | Confirmed | link |
| 2026 full-year net profit (estimate) | approx. ₩150.0 billion(self-estimate) | — | Unverified | link |
Recent filings
- 2026-05-15PeriodicQuarterly report
- 2026-05-11OwnershipOwnership-change filing
- 2026-05-11OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-30OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-09OwnershipOwnership-change filing
- 2026-03-26Shareholders' meeting notice
- 2026-03-18PeriodicAnnual business report
- 2026-03-18Audit report
- 2026-03-10OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-05Amended filing
- 2026-03-05Disclosure
- 2026-03-05Shareholders' 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.