OE Solutions (138080) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
OE Solutions makes optical transceivers as its core product — devices that convert light and electrical signals into each other inside a telecom network to send data far and fast — producing both carrier network-build products and data-center products, so its results rise and fall with the telecom investment cycle and with data-center and AI-server investment flows. Revenue passed a bottom in 2024 and rebounded +79.2% in 2025, and Q1 2026 net profit turned positive, while capital-related disclosures also appeared, such as a downward adjustment of the conversion price on convertible bonds in April and a share-collateral transaction by the largest shareholder in May. What stands out lately is that it is strong when a recovery in network investment and data-center and AI traffic lifts optical-transceiver demand and core-business profits continue quarter after quarter; against this, convertible-bond conversion and collateral disposal could lead to more shares outstanding or supply-demand shifts, and the continuity of the Q1 profit needs to be reconfirmed next quarter.
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 “IT Hardware & Equipment” (Semiconductors & IT Components), a type typically read first through forward P/E.
IT hardware and equipment makers see orders and earnings swing with their customers' investment cycles and new-product launches, so what matters is the profit still to come, not the profit already booked. That is why forward P/E, based on expected earnings, is the first lens here.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
That said, the company is currently in a revenue-growth rather than a profit phase, so this metric alone offers only a limited read.
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
- The most recent full-year net result was a loss.
- Revenue rose 79.2% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 28.1% higher than a year earlier.
- ROE is -42.1% (controlling-interest basis). It is below the sector average.
- Operating margin is -27.9%.
- 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 Park Chan 17.94% (individual)
Controlling bloc incl. related parties 25.43%
With the controlling bloc holding 25%, control is maintained but the free float is relatively large.
🔎 In-depth analysis Reading
OE Solutions makes optical transceivers as its core product. An optical transceiver is a key component of telecom equipment that converts light (optical signals) and electrical signals into each other, sending data far and fast. The business splits into two main lines: one is carrier products used in network builds (mobile telecom such as 5G, and government and public networks), and the other is data-center products with which servers exchange data inside a data center. The components it handles are in a domain where value grows the faster and farther a signal is sent, so demand revives when a network moves to a new generation or when data traffic increases. As a result, its performance rises and falls in step with the telecom investment cycle and with data-center and artificial-intelligence (AI) server investment flows.
The latest close is ₩22,400 and the market capitalization is ₩277.3 billion. The price sits above its 20-day moving average (₩18,961) and below its 60-day moving average (₩27,840). 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 52.9, a neutral level. The one-month change is +5.2%, the three-month change is -49.8%, and the position relative to the 52-week high is -58.5%. Relative strength versus the KOSDAQ is 90 (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 91% of all stocks. Over the past three months it lagged the index by 38.0%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
OE Solutions is a company at a crossroads where its earnings structure is changing, so past and future numbers need to be viewed separately. Because it ran an annual loss through 2025, the trailing P/E (the price divided by the past year's net profit) is not computed, and the P/B (the price divided by the company's net assets) is 3.67x. This P/B looks higher than the sector average, but that is natural for a company emerging from losses. Net assets shrink while the company is loss-making, whereas the share price reflects recovery first, so the P/B of a stock passing its bottom tends to look elevated. More important is the forward P/E on future earnings, a figure computed on the premise that the company turns to a meaningful profit. In Q1 2026 quarterly net profit turned positive, so that turn has actually begun, and the operating loss also narrowed sharply. The debt ratio is 86.1% and the current ratio (the degree to which short-term assets cover debt due within a year) is 153%, so the immediate funding situation is on the sound side. In sum, viewed only on the multiples at the point of past losses it looks expensive, but the company is already at an inflection turning to profit, and the very yardstick for gauging value is shifting from past to future earnings.
The core of this company is the flow of earnings passing a bottom and turning up. Revenue fell to a bottom of ₩32.0 billion in 2024 from ₩46.0 billion in 2023, then rebounded to ₩57.4 billion in 2025, up +79.2% year over year. Not merely a base effect, this is the result of orders returning as network investment and data-center demand revived. Earnings improved alongside: the operating loss narrowed by nearly half from -₩30.4 billion in 2024 to -₩16.0 billion in 2025, and most recently in Q1 2026, with revenue of ₩18.0 billion (+28.1% year over year), the operating loss narrowed to -₩0.61 billion and quarterly net profit turned positive at +₩1.57 billion. Crossing the profit threshold in a single quarter from a loss is a signal that the earnings makeup is actually changing — costs falling, unit prices rising, and the like. That a forward P/E on this year's earnings can be produced also ties to the premise that the Q1 turn to profit is not a one-off but that revenue has climbed onto a recovery track and profit continues on an annual basis too. Optical transceivers are components whose demand grows when a telecom-generation transition and rising AI and data-center traffic come together, so both the bottom the company passed and its current rebound move in step with this demand cycle. That said, quarterly net profit can include items outside the core business, so whether the core-business profit continues next quarter is worth checking too.
The big picture in disclosures splits two ways. The clearest recovery signal is the May 15, 2026 quarterly report, which confirmed that Q1 net profit turned positive — a disclosure showing the inflection out of losses in numbers. On the other hand there were also capital-related disclosures that could increase the number of shares: in April there was a downward adjustment of the conversion price on previously issued convertible bonds (bonds convertible into shares later), and in May the largest shareholder entered a transaction pledging held shares as collateral. Such items can bring more shares to the market in the course of conversion or collateral disposal, affecting short-term supply and demand, so they are worth watching alongside the recovery signal but separately from it. Taken together, a core-business recovery signal (passing the earnings bottom) and items to watch (supply-demand and ownership-structure changes) appeared at the same time.
The strong side is clear. Revenue passed a bottom in 2024 and rebounded +79.2% in 2025, and in Q1 2026 quarterly net profit turned positive, confirming the inflection out of losses in actual numbers. The backdrop is a flow in which a recovery in network investment and data-center and AI traffic lifts optical-transceiver demand again. Because of past losses the trailing P/E is not computed and the P/B looks higher than the sector average, but this is common for a stock recovering past its bottom, and the forward P/E on future earnings is the picture closer to reality. Seen in balance, the cautious side is that items such as convertible-bond conversion and the largest shareholder's collateral could lead to more shares outstanding or supply-demand shifts, and whether the Q1 profit continues steadily from the core business needs to be reconfirmed next quarter. In sum, this stock is strong when the demand cycle revives and core-business profits continue quarter after quarter, and weak when the recovery stalls or supply-demand and ownership issues surface.
🔎 Valuation vs peers Inconclusive
The peer set is KOSDAQ names genuinely close in business character — makers of telecom-network components such as optical transceivers and RF; all three share performance that swings with the telecom investment cycle and large recent earnings variation.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| RFHIC | 45.77x | 3.63x | 9.12% |
| KMW | — | 5.03x | -20.57% |
| Hanwha Vision | 53.16x | 2.80x | 5.27% |
(a) Position versus peers: the P/B of 5.89x is similar to RFHIC (5.86x), lower than KMW (8.51x) and higher than Hanwha Vision (4.1x), placing it about in the middle among similar telecom-component names. ROE at -42.1% is the lowest of the three, meaning its profitability recovery is the least advanced. (b) Premium/discount: the P/B is high versus the sector median, but this can be seen as the expectation-front-loading common to stocks whose earnings are recovering past a bottom. (c) Limits of last year's trailing (confirmed) basis: with losses through 2025 the trailing P/E is not computed at all, and as a company at an earnings inflection its value is hard to gauge on past multiples alone. The forward basis rests only on a seasonality approximation of DART's confirmed results (about ₩64.8 billion a year) since there is no official company outlook, and this is an unverified estimate, so until the timing of the turn to operating profit is confirmed, no verdict of under- or overvaluation is made and judgment is withheld.
Earnings outlook Estimate company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩15.7 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩22,400 and the market capitalization is ₩277.3 billion. The price sits above its 20-day moving average (₩18,961) and below its 60-day moving average (₩27,840). 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 52.9, a neutral level. The one-month change is +5.2%, the three-month change is -49.8%, and the position relative to the 52-week high is -58.5%. Relative strength versus the KOSDAQ is 90 (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 91% of all stocks. Over the past three months it lagged the index by 38.0%. 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 -37.95% / 6M +87.94% / 12M +127.29%
Key metrics Computed vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 3.67x is above the sector median (0.83x).
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 -42.1%, below the sector average (3.0%). The operating margin is -27.9%. The debt ratio is 57.7%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $32.3M | $22.5M | $40.3M | +79.16% ↑ faster |
| Operating profit | -$21.8M | -$21.3M | -$11.2M | — |
| Net profit | -$23.8M | -$23.3M | -$19.0M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $69.3M | $54.1M | $32.3M | $22.5M | $40.3M |
| Operating profit | $1.2M | -$6.1M | -$21.8M | -$21.3M | -$11.2M |
| Net profit | $10.1M | -$4.2M | -$23.8M | -$23.3M | -$19.0M |
| Revenue CAGR | 4-yr avg -12.68% | ||||
Revenue rose 79.2% year over year (2023 ₩46.0 billion → 2024 ₩32.0 billion → 2025 ₩57.4 billion), and the three-year trend is 'mixed'. 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 -12.7%. The two-year revenue CAGR is 11.7%. In the most recent quarter (Q1 2026), revenue was 28.1% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- Revenue grew 79.2% year over year, a sign of growth.
Points to watch
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-15EarningsQ1 2026 quarterly report disclosed. Revenue about ₩18.0 billion (+28.1% year over year), operating profit -₩0.61 billion (narrower loss), net profit +₩1.57 billion with quarterly net profit turning positive.In the short term a bottom-passing recovery signal, but with the operating line still in loss the profit's continuity needs confirming next quarter. Over the medium term it may be the starting point of a revenue-recovery trend. Source
- 2026-04-13FilingConversion-price adjustment disclosed. The conversion price on previously issued convertible bonds was adjusted downward.On conversion the number of shares issued rises and existing shareholders' stakes can be diluted, so over the medium term it can act as a dilution burden on per-share value. Source
- 2026-05-22UpdateShare-collateral pledge agreement that could entail a change of largest shareholder (amended filing). A large-holding report was also filed the same day.The largest shareholder has pledged held shares as collateral, implying the possibility that a sharp price move could trigger enforcement of the pledge and change control. It needs ongoing monitoring from a medium-term governance-stability standpoint. Source
- 2026-05-19FilingReport on holdings of specified securities by executives and major shareholders filed. Reports of stake changes by executives and major shareholders followed one after another over April-May.Stake changes by insiders and major shareholders serve as a supplementary clue for reading governance and supply-demand flows together. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| P/B | 5.89x | ₩30,600 / BPS ₩5,192.9 = 5.89x | Confirmed | link |
| Q1 2026 revenue | approx. ₩18.0 billion | DART (2026.03) | Confirmed | link |
| Five-year revenue trend | 2021 ₩98.7 billion → 2024 ₩32.0 billion → 2025 ₩57.4 billion | — | Unverified | link |
| 2026 annual revenue approximation | approx. ₩64.8 billion | — | Unverified | link |
Recent filings Source
- 2026-05-22OwnershipOwnership-change filing
- 2026-05-22OwnershipLargest-shareholder ownership change report (amended)
- 2026-05-19OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-15OwnershipOwnership-change filing
- 2026-05-15OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-15PeriodicQuarterly report
- 2026-05-12OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-30OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-24OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-13Disclosure
- 2026-04-08OwnershipOwnership-change filing
- 2026-04-08OwnershipOfficers'/major-shareholders' holdings report
📖 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.