Sunic System makes 'deposition equipment' that coats a thin layer of light-emitting material onto glass substrates when producing the OLED displays used in smartphone, tablet, and laptop screens, offering everything from small R&D tools to large mass-production machines with Samsung Display, LG Display, and China's BOE as customers. In 2025 it posted revenue of ₩515.7 billion and operating profit of ₩111.5 billion, a sharp turnaround from the prior-year loss, but Q1 2026 revenue was only ₩16.1 billion because equipment payments are recognized around delivery and inspection timing, and the Q1 net loss of ₩19.6 billion was mostly a non-cash accounting valuation loss tied to convertible bonds rather than actual cash going out. What stands out lately is that while Gen 8.6 IT OLED investment ramps up through 2026-2027 and orders keep coming, its high margins and net-cash balance sheet are strengths, but revenue is swung by the delivery schedules of a handful of large machines, making quarterly results highly uneven.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 254.2%).
- Revenue rose 356.7% 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 1.3% higher than a year earlier.
- ROE is 67.1% (total-net basis). It is above the sector average.
- Operating margin is 21.6%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder DongA Eltek 47.13% (corporate)
Controlling bloc incl. related parties 47.13%
With the controlling bloc holding 47%, the ownership structure is stable.
🔎 In-depth analysis
- Sunic System manufactures 'deposition equipment,' a core process tool for making OLED displays.
- Deposition is the process of coating organic light-emitting material onto a substrate in an extremely thin layer under vacuum, and it is the heart that determines OLED image quality and yield.
- The company was a global leader in small R&D tools that test new products, and it has recently broadened into large machines used in actual mass production.
- Its customers are global panel makers such as Samsung Display, LG Display, and China's BOE, and revenue comes mostly from a structure in which it wins orders for such equipment, builds and delivers it, and collects payment.
- In other words, it is an 'order-driven' business where a handful of large equipment contracts drive results.
- The share price has been weak recently.
- The 20-day average (₩62,155), 60-day average (₩81,010), and 120-day average (₩85,942) all sit above the current price (₩51,500), placing it below the short- and mid-term trend lines.
- The one-month return of -30.5% and three-month return of -37.6% show large declines, and the price sits roughly 61% below its 52-week high.
- The RSI (an indicator that gauges recent up- and down-strength on a 0-100 scale) is 29.5, below 30, which typically corresponds to an oversold zone.
- In sum, after the strong 2025, the share price has instead fallen back sharply.
- Profitability metrics are very strong.
- ROE (how much it earns in a year on equity) is 67.1%, far above the peer average, and the operating margin is 21.6%.
- That said, these figures are based on 2025, when earnings were concentrated, so it is hard to assume this much profit every year.
- On valuation, the P/E ratio (how many times one year's earnings the price represents) looks low at 5.4x, but this simply divides by 2025's large earnings, so it looks lower than the real feel warrants.
- The balance sheet is actually a strength.
- Net debt is negative, that is, a net-cash position (about ₩43.6 billion) with more cash than debt, and EV/EBIT (like a debt-adjusted P/E) is 4.7x while EV/Sales (enterprise value divided by revenue) is 1.0x, so the burden is not large.
- The FCF yield (cash actually earned relative to market cap) is 12.5%, so cash generation is sound too.
- The debt ratio of 254% on the surface reflects convertible bonds and the like; as the Q1 2026 convertible bonds converted into stock, the accounting liability shifted to equity, so the balance sheet is moving toward improvement.
- The revenue trajectory went from recovery to a leap.
- Revenue was ₩62.4 billion in 2023, ₩112.9 billion in 2024, and ₩515.7 billion in 2025, a 356.7% surge in 2025 versus the prior year in particular.
- Operating profit jumped from ₩7.9 billion in 2024 to ₩111.5 billion in 2025, and net profit turned from a ₩28.1 billion loss in 2024 to a ₩96.5 billion profit in 2025.
- This surge, however, largely reflects large equipment deliveries concentrated in 2025.
- In fact, Q1 2026 revenue was only ₩16.1 billion, because equipment revenue is recognized around delivery and inspection timing, so results concentrate in particular quarters and years.
- The path ahead depends on orders.
- Gen 8.6 IT OLED investment is ramping up through 2026-2027, and the company is winning orders one after another, such as large-area deposition equipment for LG Display and Gen 8.6 equipment for BOE, so there is room for earnings to be recorded largely again when this volume is recognized as actual revenue.
- Across the market as a whole, this investment cycle looks set to run through 2027, so there is no basis to view this year as the peak.
- The core of the filings is equipment orders.
- In May 2026 the company signed a supply contract with LG Display for large-area OLED deposition equipment (the contract amount was withheld at the customer's request), and earlier there were correction filings for contract fulfillment such as completing delivery of research-use deposition equipment.
- In Q1 2026 a derivatives-loss filing was issued; its content shows that as the share price rose, the value of the conversion rights on the convertible bonds the company issued increased, producing an accounting valuation loss (net loss of ₩25.1 billion).
- The company specified this as a 'book loss with no actual cash outflow whatsoever' and explained that, on the contrary, as the convertible bonds convert into stock, liabilities shift to equity and the balance sheet improves.
- On the shareholder-return side, it paid a 2025 year-end dividend of ₩1,000 per share (a dividend yield of about 1.9%).
- Frequent investor-presentation (IR) filings have also continued.
- Sunic System clearly has the character of a beneficiary of the OLED equipment investment cycle.
- The strengths are clear.
- With a net-cash balance sheet there is no debt burden, and in years when equipment is delivered it shows operating margins in the 20% range and high ROE.
- Gen 8.6 IT OLED investment is expanding around Samsung Display and BOE through 2026-2027, so as long as this flow continues the order base is supported.
- The P/E looks low thanks to 2025's large earnings; considering the balance sheet and cash generation as well, this is not a period of heavy valuation burden.
- The cautions are equally clear.
- Revenue is swung by the delivery schedules of a handful of large machines, so results vary greatly by quarter and year.
- Q1 2026 revenue of only ₩16.1 billion is one example.
- Net profit too can swing widely in accounting terms because of the derivatives valuation on the convertible bonds (unrelated to actual cash).
- In sum, it is strong when orders continue to be recognized as actual revenue, and weak when customer investment delays or slipped delivery schedules pile up.
🔎 Valuation vs peers Undervalued
Domestic listed makers of OLED and display manufacturing equipment.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| AP Systems | 12.50x | 0.81x | 6.47% |
| Philoptics | 0.00x | 5.81x | -14.63% |
| Wonik IPS | 61.28x | 5.31x | 8.66% |
Compared with peer equipment stocks, Sunic System's trailing P/E of 5.4x is on the low side. But this figure is based on 2025, when earnings were concentrated, so rather than taking it at face value the earnings volatility must be factored in. For order-driven equipment stocks with large earnings inflections, the balance sheet and cash generation should be viewed alongside any single year's P/E. This company is in a net-cash position, with EV/EBIT of 4.7x and an FCF yield of 12.5%, so the real valuation burden is not large. If orders are recognized as actual revenue while Gen 8.6 OLED investment continues through 2026-2027, then given the current share-price position and the low EV multiples it reads as undervalued. That said, the fact that revenue is swung by a handful of large delivery schedules, with sharp quarterly swings, remains a discount factor.
Price history Close · MA20 · MA60
The latest close is ₩51,500 and the market capitalization is ₩520.3 billion. The price sits below its 20-day moving average (₩62,155) and below its 60-day moving average (₩81,010). 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 29.5, near oversold territory. The one-month change is -30.5%, the three-month change is -37.6%, and the position relative to the 52-week high is -60.7%. Relative strength versus the KOSDAQ is 79 (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 80% of all stocks. Over the past three months it lagged the index by 18.1%. 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 -18.09% / 6M +13.98% / 12M +44.95%
Key metrics vs sector median
Valuation
The P/E of 5.39x is below the sector median (14.44x). The P/B of 3.62x is above the sector median (1.44x).
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 10.1%, initial growth 2.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 0.62x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 67.1%, above the sector average (5.0%). The operating margin is 21.6%. The debt ratio is 254.2%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $41.4M | $74.8M | $341.8M | +356.73% ↑ faster |
| Operating profit | -$2.7M | $5.2M | $73.9M | +1310.54% |
| Net profit | -$6.1M | -$18.6M | $64.0M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $30.6M | $49.1M | $41.4M | $74.8M | $341.8M |
| Operating profit | -$4.7M | $2.9M | -$2.7M | $5.2M | $73.9M |
| Net profit | -$6.8M | -$2.1M | -$6.1M | -$18.6M | $64.0M |
| Revenue CAGR | 4-yr avg 82.76% | ||||
Revenue rose 356.7% year over year (2023 ₩62.4 billion → 2024 ₩112.9 billion → 2025 ₩515.8 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 1310.5% year over year. Over the 5 years on record, revenue compound annual growth (CAGR) is 82.8%. The two-year revenue CAGR is 187.5%. 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.
- ROE of 67.1% points to solid profitability.
- Revenue grew 356.7% year over year, a sign of growth.
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
- 2026-05-22UpdateSupply contract signed with LG Display for large-area OLED deposition equipment (contract period through 2027-05-21; contract amount withheld at the customer's request to protect trade secrets).A large mass-production equipment order that forms the basis for future revenue recognition. Payment is split 30% down, 60% on delivery, and 10% on inspection, so results are reflected around delivery timing. Source
- 2026-05-15UpdateDerivatives-loss disclosure - as the share price rose, the value of the convertible-bond conversion rights increased, recognizing an accounting valuation and disposal net loss of ₩25.1 billion (no actual cash outflow). As the convertible bonds convert into stock, liabilities transfer to equity and the balance sheet improves.The main cause of the Q1 net loss, but a non-cash accounting loss. The operations themselves stayed in the black (operating profit of ₩1.47 billion). Source
- 2026-05-06UpdateCorrection filing on fulfillment completion and 100% payment receipt for a supply contract of research-use OLED deposition equipment (total ₩5.96 billion) for DuPont Specialty Materials Korea.Confirms stable ordering and fulfillment for the R&D equipment line. Source
- 2026-04-20Dividend2025 year-end cash dividend of ₩1,000 per share decided (dividend yield about 1.9%, total dividend ₩8.82 billion, payment 2026-04-21).Shareholder returns continue. The payout ratio is on the low side, so the burden relative to earnings is not large. Source
- 2026-05-15EarningsQ1 2026 quarterly report - revenue ₩16.1 billion, operating profit ₩1.47 billion, net loss ₩19.6 billion (the net loss is mostly a convertible-bond derivatives valuation loss).Because of the delivery-concentrated nature of equipment revenue, Q1 revenue is low but operations remain in the black. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 revenue | ₩515.7 billion(₩515,761,033,577) | ₩515,761,033,577 | Confirmed | link |
| Dividend per share | ₩1,000(DPS) | ₩1,000 | Confirmed | link |
| Nature of the Q1 2026 net loss | ₩19.6 billion | ₩25.1 billion | Confirmed | link |
| 2026 estimated net profit | approx. ₩60.0 billion(self-estimate) | — | Unverified | link |
Recent filings
- 2026-06-01Single supply/sales contract (amended)
- 2026-05-26Single supply/sales contract
- 2026-05-18Disclosure
- 2026-05-15Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-11Disclosure
- 2026-05-06Single supply/sales contract (amended)
- 2026-04-30Disclosure
- 2026-04-20DividendCash/stock dividend decision (amended)
- 2026-04-14Single supply/sales contract (amended)
- 2026-03-27Single supply/sales contract
- 2026-03-26Shareholders' 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.