Haesung DS makes back-end packaging materials that turn semiconductor chips into finished packages. Its two revenue engines are lead frames (about two-thirds of sales, roughly half of which is for automotive electronics), the thin metal frames that connect a chip to external circuitry, and package substrates (BGA substrates) for PC and server DRAM. On March 26 it voluntarily disclosed a corporate value-up plan and raised last year's payout ratio to 64%, and its April 30 preliminary Q1 results showed revenue and profit jumping sharply year over year, confirming a rebound off the bottom in the numbers. What stands out is that it holds two growth axes at once — automotive semiconductors and server/PC DRAM substrates — and on this year's normalizing earnings trades at a bit over 15x P/E while retaining financial stability and a dividend. On the other side, lead frames and substrates are cyclical items sensitive to semiconductor and automotive end-demand, so DDR5 volumes and automotive utilization are the keys to this year's earnings.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 8.4% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 37.2% higher than a year earlier.
- ROE is 4.2% (controlling-interest basis). It is below the sector average.
- Operating margin is 7.1%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Haesung Industrial 34% (corporate)
Controlling bloc incl. related parties 36.31%
With the controlling bloc holding 36%, the ownership structure is stable.
🔎 In-depth analysis
- Haesung DS makes the materials that go into the 'back-end' stage where a semiconductor is turned from a chip into a finished package.
- There are two main axes.
- The first is lead frames, the thin metal skeleton that links a semiconductor chip to external circuitry, accounting for about two-thirds of sales.
- Roughly half of this is for automotive electronics, so demand grows as the number of chips per car rises.
- The second is package substrates (BGA substrates), boards that carry finer circuitry than lead frames and go mostly into PC and server DRAM.
- In particular, as the generation shifts to DDR5, both substrate unit prices and volumes are rising together.
- In short, this company's revenue comes from two streams — 'automotive semiconductors' and 'server/PC DRAM substrates' — and when both markets recover at once, its results rebound quickly.
- The latest close is ₩52,400 and market cap is ₩890.8 billion.
- The price sits below the 20-day line (₩69,545) and below the 60-day line (₩74,990).
- Trading beneath both the short- and mid-term moving averages, the trend is on the subdued side.
- The RSI (a supplementary gauge that scores upward versus downward strength over the past 14 days on a 0-100 scale) is 34.6, a neutral level.
- The one-month change is -29.3%, the three-month change is +0.8%, and the position relative to the 52-week high is -48.8%.
- Relative strength versus KOSPI is 52 (1-99, computed from returns against the index over the past year with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 48% of all stocks by strength.
- Over the past three months it lagged the index by 24.1%.
- Chart reading is best done alongside trading volume and disclosure dates.
- On confirmed 2025 full-year results, the P/E ratio (how many times one year's earnings the price represents) is 37.40x, which looks high, but that divides a 'trough' net profit squeezed down to ₩23.8 billion in 2025, so it overstates the real earnings power.
- By contrast, the P/B (how many times book net assets the price represents) is a rather low 1.58x, and the dividend yield of 1.5% (₩900 per share, a 64% payout ratio) returns a substantial share of earnings to shareholders.
- With a debt ratio (debt against equity) of 156%, interest coverage of 6.9x, and a current ratio of 215%, the balance sheet is stable.
- Last year's ROE (how much is earned on equity in a year) of 4.2% is the value from a year when earnings were depressed, and it will naturally rise as earnings normalize.
- In sum, 'the trailing metrics look expensive, but the balance sheet is sound and earnings are turning up off the bottom.'
- Five-year revenue ran ₩655.4 billion in 2021, ₩839.4 billion in 2022 (the cyclical peak), ₩672.2 billion in 2023, ₩603.0 billion in 2024, and ₩653.4 billion in 2025.
- After the simultaneous semiconductor and automotive boom of 2022, it went through a correction and recovered 8.4% again in 2025.
- Earnings swung even more: operating profit fell from ₩204.4 billion in 2022 to ₩56.9 billion in 2024, then passed the trough zone at ₩46.5 billion in 2025.
- The decisive change is Q1 2026: revenue of ₩188.7 billion (+37.2% YoY), operating profit of ₩11.0 billion, and net profit of ₩10.8 billion, with earnings snapping back sharply off the bottom.
- Because Q1 profit a year earlier was extremely low, the year-over-year growth rate prints as several dozen times.
- This rebound reflects a combined recovery in automotive lead-frame demand and rising DDR5 substrate volumes and prices.
- DDR5 substrates tend to weigh more heavily as the year progresses, so this year's earnings should trace a path heavier in the second half than the first.
- Reflecting this earnings inflection, this year's net profit is on a path to normalize to well over double last year's (₩23.8 billion), with operating margin also recovering to double digits.
- Applied to the current market cap (about ₩1.05 trillion), the multiple on this year's expected earnings falls to a bit over 15x.
- The gap between 44x on last year's basis and around 15x on this year's expected basis is itself the signal that 'earnings are normalizing off the bottom.'
- On March 26, 2026 the company voluntarily disclosed a 'corporate value-up plan,' laying out on its own a direction of shareholder returns and margin improvement; indeed last year's payout ratio rose to 64%, confirming the will to return earnings.
- On April 30 it issued a fair disclosure of preliminary consolidated Q1 2026 results, with revenue and profit jumping sharply year over year and confirming the earnings rebound in the numbers.
- The May 15 quarterly report locked in those figures, and a May 18 investor briefing (IR) continued communication with the market.
- These three items (the value-up plan, the preliminary Q1 results, and the IR) form the backbone of this year's storyline, with the company talking about earnings recovery and shareholder returns at the same time.
- Points to watch: this company holds two growth axes at once — automotive semiconductors and server/PC DRAM substrates — and its Q1 2026 results rebounded sharply off the bottom.
- The P/E on last year's basis looks high, but on this year's expected basis with earnings normalizing it comes down to around 15x, and factoring in a P/B of 1.86x, financial stability, and a dividend, it is hard to view as a materials firm carrying heavy valuation strain for an earnings-inflection stage.
- Points of caution: lead frames and substrates are cyclical items sensitive to semiconductor and automotive end-demand, so if the DRAM cycle or automotive production turns down, the pace of earnings recovery can slow.
- Whether DDR5 substrate volumes load as expected in the second half, and whether automotive lead-frame utilization holds, are the keys to this year's earnings.
- In sum, 'when end-demand is alive, the forward-basis undervaluation appeal is clear, and when the end market turns down, the cyclical earnings volatility is a burden.'
🔎 Valuation vs peers Undervalued
Compared against Korea-listed firms that make semiconductor back-end materials and substrates such as lead frames and package substrates. All on-site figures are base calculations at the current price.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Simmtech | 0.00x | 7.67x | -28.52% |
| Samsung Electro-Mechanics | 157.93x | 11.69x | 7.40% |
| Daeduck | 121.02x | 0.73x | 0.60% |
Most peer substrate and component names trade at earnings troughs, so their trailing P/E is meaningless or distorted into the hundreds (Simmtech is loss-making, Samsung Electro-Mechanics 203x, Daeduck 139x). Haesung DS's own trailing P/E of 44x also divides a trough profit of ₩23.8 billion for 2025, creating the illusion of being pricier than it is. But the P/B is a low 1.58x versus peers, and with Q1 earnings rebounding sharply off the bottom, the multiple on this year's expected earnings comes down to around 15x as earnings normalize. On this year's expected basis accounting for the earnings inflection, the valuation strain is low for a materials firm with two growth axes in automotive and DDR5, so we judge it undervalued.
Price history Close · MA20 · MA60
The latest close is ₩52,400 and the market capitalization is ₩890.8 billion. The price sits below its 20-day moving average (₩69,545) and below its 60-day moving average (₩74,990). 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 34.6, a neutral level. The one-month change is -29.3%, the three-month change is +0.8%, and the position relative to the 52-week high is -48.8%. Relative strength versus the KOSPI is 52 (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 52% of all stocks. Over the past three months it lagged the index by 24.1%. 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 -24.10% / 6M -35.48% / 12M -24.60%
Key metrics vs sector median
Valuation
The P/E of 37.40x is above the sector median (18.61x). The P/B of 1.58x is in line with the sector median (1.63x). 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 4.2%, below the sector average (7.0%). The operating margin is 7.1%. The debt ratio is 156.0%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $445.5M | $399.6M | $433.1M | +8.36% ↑ faster |
| Operating profit | $67.9M | $37.7M | $30.8M | -18.25% ↑ faster |
| Net profit | $56.0M | $38.9M | $15.8M | -59.42% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $434.4M | $556.3M | $445.5M | $399.6M | $433.1M |
| Operating profit | $57.2M | $135.5M | $67.9M | $37.7M | $30.8M |
| Net profit | $47.2M | $105.6M | $56.0M | $38.9M | $15.8M |
| Revenue CAGR | 4-yr avg -0.08% | ||||
Revenue rose 8.4% year over year (2023 ₩672.2 billion → 2024 ₩603.0 billion → 2025 ₩653.4 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit fell 18.2% year over year. That said, the decline narrowed. Over the 5 years on record, revenue compound annual growth (CAGR) is -0.1%. The two-year revenue CAGR is -1.4%. In the most recent quarter (Q1 2026), revenue was 37.2% 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.
- The balance sheet is stable in terms of debt and liquidity.
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
- 2026-04-30EarningsFair disclosure of preliminary consolidated Q1 2026 results — revenue ₩188.7 billion, operating profit ₩11.0 billion, net profit ₩10.8 billion, a sharp rebound versus a year earlierShort term: confirms the escape from the earnings trough in the numbers. Medium term: the starting point of a recovery trend in automotive lead frames and DDR5 substrates Source
- 2026-03-26FilingVoluntary disclosure of a corporate value-up plan — laying out a direction of margin improvement and shareholder returns (last year's payout ratio of 64% realized)Medium term: room to expand dividends and returns as earnings normalize; a signal of continued shareholder-friendly policy Source
- 2026-05-18IRDisclosure of an investor briefing (IR) — expanding communication with the market during an earnings-rebound phaseShort term: improved access to information on business progress and demand conditions Source
- 2026-05-15FilingQ1 2026 quarterly report filed — preliminary results confirmed in the finalized financial statements (revenue ₩188.7 billion, operating profit ₩11.0 billion, net profit ₩10.8 billion)Short term: confirms consistency between preliminary and final figures, with financial details disclosed Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 revenue | ₩188.7 billion | ₩188,652,143,902 | Confirmed | link |
| Q1 2026 operating profit | ₩11.0 billion | ₩10,978,261,787 | Confirmed | link |
| 2025 full-year operating profit | ₩46.5 billion | ₩46,491,092,436 | Confirmed | link |
| 2026 expected net profit and multiple | net profit approx. ₩67.0 billion · approx. 15x | — | Unverified | — |
Recent filings
- 2026-05-29Corporate governance report
- 2026-05-29OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-27OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-18Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-04-30EarningsFair-disclosure notice
- 2026-04-01OwnershipOwnership-change filing
- 2026-03-26Shareholders' meeting notice
- 2026-03-26Disclosure
- 2026-03-26Disclosure
- 2026-03-18PeriodicAnnual business report
- 2026-03-18Audit 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.