RFHIC sells radio-frequency (RF) semiconductor devices made from gallium nitride (GaN), with its flagship power amplifiers and transistors used in 5G base stations and military radar, and its core edge is a vertical integration that runs from the GaN wafer process all the way to finished modules. In March 2026 it agreed to supply LIG Nex1 with a core AESA-radar module worth about ₩19.2 billion, and in June it agreed to supply Collins Aerospace in the U.S. with high-output power amplifiers worth about ₩22.1 billion, broadening its revenue from a telecom-only base into defense and aviation, while its 2025 total dividend rose 299% year on year to about ₩10.1 billion. What stands out is a mix of strength and caution: it is widening its customer base in the high-barrier GaN domain and its finances are stable with net cash and low debt, while last year's high P/E and P/B, the quarterly volatility of order-based revenue, and its sensitivity to 5G and defense-budget cycles are the cautions.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 61.7% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 35.1% higher than a year earlier.
- ROE is 8.5% (controlling-interest basis).
- Operating margin is 16.6%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Cho Deok-su 15.41% (individual)
Controlling bloc incl. related parties 33.57%
With the controlling bloc holding 34%, the ownership structure is stable.
🔎 In-depth analysis
- RFHIC sells radio-frequency (RF) semiconductor devices made from the material gallium nitride (GaN).
- Its flagship products are power amplifiers and transistors, which take a radio signal and amplify it to carry it far.
- These components go inside 5G base stations to amplify communication signals, and in military radar they are used to emit radio waves and detect targets.
- Its recent revenue mix is roughly three-quarters GaN power amplifiers and about one-quarter GaN transistors.
- Vertical integration, running from the raw GaN wafer (GaN-on-SiC) process all the way to finished modules, is this company's core competitive edge.
- The latest close is ₩49,000 and the market cap is ₩1.3 trillion.
- The price sits below the 20-day line (₩65,755) and below the 60-day line (₩84,987).
- Trading below both the short- and mid-term moving averages, the trend looks pressured.
- The RSI (an indicator that gauges upward versus downward momentum over the past 14 days on a 0-100 scale) is 27.4, close to oversold territory.
- The one-month change is -32.7%, the three-month change is -40.8%, and the price sits -56.4% from its 52-week high.
- Relative strength versus the KOSDAQ is 91 (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), placing it in roughly the top 9% of all stocks by strength.
- Over the past three months it lagged the index by 21.0%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- Valuation metrics look expensive because they are on last year's results.
- The P/E ratio (how many times one year's earnings the price represents) is 45.40x and the P/B (how many times book equity the price represents) is 3.84x.
- But with earnings rising sharply, judging on last year's figures alone misses the picture.
- Profitability is sound: ROE (how much it earns in a year on its equity) is 8.5% and operating margin is 16.6%.
- Finances are solid.
- The debt ratio (debt against equity) is low at 44%, and the current ratio is 3.97x, giving ample short-term payment capacity.
- Net debt is negative (about -₩44.4 billion), a net-cash position with more cash than debt.
- EV/EBIT (an earnings multiple that reflects debt and cash — a debt-inclusive version of the P/E) is 46.9x, and EV/Sales (enterprise value divided by revenue) is 7.8x.
- The FCF yield (actual cash generated against market cap) is still low at 1.6%, which reads as a stage of continued investment for growth.
- Growth is accelerating.
- 2025 revenue rose 61.7% from the prior year to ₩185.8 billion.
- Operating profit jumped nearly 20-fold from ₩1.5 billion to ₩30.9 billion, a textbook earnings inflection as profit climbs from the bottom onto a normal track.
- The trend continued into 2026.
- Q1 2026 revenue was ₩43.1 billion, up 35% year on year, and operating profit more than doubled to ₩7.7 billion.
- Factoring in this trend and the second-half recognition of new defense order volumes, this year's earnings look set to rise clearly above last year's.
- So even though last year's P/E looks high, the burden falls considerably on this year's earnings basis.
- The biggest trend is defense and aviation orders.
- In March 2026 it agreed to supply LIG Nex1 with a core AESA-radar module worth about ₩19.2 billion (16.7% of prior-period revenue).
- In June it signed a contract to supply Collins Aerospace in the U.S. with high-output power amplifiers worth about ₩22.1 billion (11.9% of prior-period revenue).
- Both contracts are of in-house production and run through early 2027.
- They are physical evidence that revenue, once telecom-only, is broadening to defense and global aviation customers.
- Shareholder returns were also strengthened.
- The 2025 total dividend rose 299% year on year to about ₩10.1 billion, with a payout ratio of 35.4%.
- The point to watch is clear.
- In the high-barrier domain of GaN RF semiconductors, it is widening its customer base beyond telecom into defense and aviation.
- Finances are stable, with net cash and a low debt ratio.
- Earnings jumped sharply from the bottom in 2025, and growth continued into Q1 2026.
- There are cautions too.
- Last year's high P/E and P/B mean a valuation burden remains unless earnings growth is actually confirmed.
- Order-based revenue carries large quarterly volatility depending on the timing of contract fulfillment.
- Its sensitivity to the 5G investment cycle and defense-budget flows should also be kept in view.
- In short, if defense orders translate into revenue as planned, the growth is strongly confirmed, while an order gap or a slowdown in telecom investment can raise volatility.
🔎 Valuation vs peers Inconclusive
Compared against growth-oriented KOSDAQ semiconductor companies that make high-value-added semiconductor devices and components such as GaN. Since there are few domestically listed peers with exactly the same business details, this is mainly for reference.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| ISC | 53.55x | 5.60x | 10.46% |
On last year's results the P/E of 52x and P/B of 4.4x look expensive. However, this is an earnings-inflection name whose operating profit jumped nearly 20-fold in 2025 and kept growing in Q1 2026, so trailing multiples on last year alone make judgment hard. On this year's earnings basis the multiples come down considerably. Compared with growth-oriented KOSDAQ semiconductor companies (e.g., ISC at a P/E of 58x), the valuation level itself sits within a similar growth-stock band. Whether defense orders are confirmed as revenue as planned is the key variable for the valuation, so rather than declaring it overvalued or undervalued at this point, the read is left inconclusive.
Price history Close · MA20 · MA60
The latest close is ₩49,000 and the market capitalization is ₩1.3 trillion. The price sits below its 20-day moving average (₩65,755) and below its 60-day moving average (₩84,987). 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 27.4, near oversold territory. The one-month change is -32.7%, the three-month change is -40.8%, and the position relative to the 52-week high is -56.4%. Relative strength versus the KOSDAQ is 91 (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 21.0%. 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 -20.97% / 6M +57.32% / 12M +89.03%
Key metrics vs sector median
Valuation
The P/E of 45.40x is above the sector median (16.19x). The P/B of 3.84x is above the sector median (1.32x). 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 10.1%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.292x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 8.5%. The operating margin is 16.6%. The debt ratio is 44.1%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $73.9M | $76.1M | $123.1M | +61.74% ↑ faster |
| Operating profit | $200,837 | $1.0M | $20.5M | +1919.20% ↑ faster |
| Net profit | $11.6M | $17.0M | $19.0M | +11.68% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $67.3M | $71.6M | $73.9M | $76.1M | $123.1M |
| Operating profit | $2.9M | $532,189 | $200,837 | $1.0M | $20.5M |
| Net profit | $4.0M | $1.8M | $11.6M | $17.0M | $19.0M |
| Revenue CAGR | 4-yr avg 16.30% | ||||
Revenue rose 61.7% year over year (2023 ₩111.4 billion → 2024 ₩114.9 billion → 2025 ₩185.8 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 1919.2% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 16.3%. The two-year revenue CAGR is 29.1%. In the most recent quarter (Q1 2026), revenue was 35.1% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- Revenue grew 61.7% 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
- 2026-06-04UpdateSigned a contract to supply Collins Aerospace in the U.S. with high-output power amplifiers. Contract value about ₩22.05 billion (USD 14,550,900), 11.87% of prior-period revenue, contract period 2026-06-02 to 2027-02-26, in-house production.Widens 2026-2027 revenue visibility by securing a large global aviation and defense customer. A medium-term positive that diversifies the telecom-concentrated structure. Source
- 2026-03-27UpdateSigned a contract to supply LIG Nex1 with a core module for the MFR AESA radar. Contract value about ₩19.23 billion, 16.74% of prior-period revenue, contract period 2026-03-26 to 2027-02-24, in-house production.Confirms inclusion in the domestic defense-radar value chain. With a single contract worth 17% of prior-period revenue, the medium-term earnings contribution is large. Source
- 2026-03-30FilingCorporate value-up plan disclosure. Dividends of 30%+ of standalone net profit, tax-exempt dividends via a reduction of capital reserves, and expansion of new businesses and overseas exports. 2025 total dividend about ₩10.1 billion (+298.9% year on year), payout ratio 35.4%, meeting the high-dividend-company requirement.Puts the shareholder-return policy in writing. Presents a direction of returning stable cash flow as dividends (medium-term positive). Source
- 2026-05-15EarningsQ1 2026 report disclosure. Revenue ₩43.1 billion (+35.1% year on year), operating profit ₩7.7 billion (+107.2%), net profit ₩8.7 billion (+100.1%).Confirms continued growth acceleration. Supports that last year's earnings inflection is not one-off but ongoing (near-term positive). Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Market cap | ₩1.3 trillion | ₩1.3 trillion | Confirmed | link |
| Collins Aerospace supply contract value | approx. ₩22.1 billion | ₩22,053,344,040 | Confirmed | link |
| LIG Nex1 supply contract value | approx. ₩19.2 billion | ₩19,229,999,940 | Confirmed | link |
| 2026 estimated net profit / forward P/E | approx. ₩37.0 billion / 40.3x(self-estimate) | — | Unverified | link |
Recent filings
- 2026-06-04Single supply/sales contract
- 2026-05-15PeriodicQuarterly report
- 2026-04-27EarningsFair-disclosure notice
- 2026-04-06OwnershipOwnership-change filing
- 2026-04-01OwnershipOwnership-change filing
- 2026-03-31PeriodicAnnual business report (amended)
- 2026-03-30Disclosure
- 2026-03-27Shareholders' meeting notice
- 2026-03-27Single supply/sales contract
- 2026-03-19PeriodicAnnual business report
- 2026-03-19Audit report
- 2026-03-13OwnershipOwnership-change filing
📖 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.