Mecaro mainly produces the 'heater block' that holds a wafer in place and warms it to a set temperature inside semiconductor process equipment; in 2025 heater blocks made up 93.65% of revenue (₩88.6 billion) and 97.10% in Q1, so a single product is effectively its core business, and it has been a long-standing supplier of parts to SK Hynix since shortly after its founding. On April 13 preliminary results reported Q1 revenue of ₩25.5 billion (+18.7%), the May quarterly report set out the heater block share, the wind-down of the valve business and the status of its solar-cell subsidiary, and the March annual report confirmed annual revenue of ₩94.6 billion and operating profit of ₩15.4 billion. The point to watch: earnings have risen fast for two straight years, the balance sheet is very light with a 9.9% debt ratio and a 614% current ratio, and a forward P/E of 25.22x is below peers' trailing multiples; against that, more than 90% of revenue is concentrated in the single heater-block product, tying results to front-end semiconductor equipment investment, and the solar-cell subsidiary is still in its investment phase and posting losses.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 50.5% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 18.7% higher than a year earlier.
- ROE is 6.2% (controlling-interest basis). It is above the sector average.
- Operating margin is 16.2%.
- P/B is low versus peers too, so it looks cheap on an asset basis as well.
Ownership & governance As of 2025-12-31
Largest shareholder Lee Jae-jung 27.8% (individual)
Controlling bloc incl. related parties 50.95%
With the controlling bloc holding 51%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Mecaro mainly produces the 'heater block' that holds a wafer (the semiconductor base disc) in place and warms it to a set temperature inside the equipment used to make semiconductors.
- Per the 2025 annual report, heater blocks made up 93.65% of total revenue (₩88.6 billion), and 97.10% in Q1 2026, so this single product is effectively the company's core business.
- The company has been a long-standing supplier of parts to Hynix (now SK Hynix) since shortly after its founding in 2000, and through its subsidiary MECARO CHINA it trades precursors (raw materials used to deposit semiconductor thin films) and heater blocks in China.
- It wound down its low-margin special-valve division as of November 30, 2024, and is now broadening its main product lineup with aluminum nitride (AlN) ceramic parts and metal heater blocks.
- It is also preparing a solar-cell business (CIGS, perovskite and transparent solar cells) through its 100%-owned subsidiary Mecaro Energy; that division is still in an early investment phase and posting losses, so it differs in character from the core semiconductor-parts business.
- The latest closing price is ₩34,700 and the market cap is ₩353.7 billion.
- The price sits below both the 20-day line (₩42,800) and the 60-day line (₩39,910).
- Trading beneath both its short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a gauge that scores upward versus downward momentum over the past 14 days on a 0-100 scale) is 34.8, a neutral reading.
- The one-month change is -8.0%, the three-month change is -2.8%, and the price sits -27.6% below its 52-week high.
- Relative strength versus KOSDAQ is 92 (on a 1-99 scale that weights recent one-year returns against the index more heavily toward the present; higher means stronger than the market), placing it in roughly the top 7% of all stocks by strength.
- Over the past three months it led the index by 26.5%.
- It is best to read the chart alongside trading volume and disclosure dates.
- On a confirmed annual (2025) basis, the P/E ratio (how many times one year's earnings the price represents) is 28.04x and the P/B ratio (how many times net assets the price represents) is 1.73x.
- What matters, though, is that this P/E is a trailing figure computed on 'last year's one-year earnings.' Mecaro is a company that has just passed an earnings inflection point - a loss in 2023, a swing to profit in 2024, and profit expansion in 2025 - so looking only at last year's figures makes the P/E look higher than its true strength.
- The forward P/E reflecting this year's expected earnings is 25.22x, distinctly lower than the trailing 35.15x.
- That mid-20s level is even below the trailing P/E of peer semiconductor materials and parts names (Hana Materials 30.72x, Soulbrain 34.14x), so for a company whose earnings are growing it reads closer to an undervalued signal.
- The operating margin is a healthy 16.2%, and with a debt ratio (debt relative to equity) of 9.9% and a current ratio of 614%, the financial structure is very light.
- ROE (how much is earned in a year on equity) is 6.2%, not yet high, which is natural to read alongside the fact that this is an early phase where earnings are only just beginning to accumulate after the swing back from a loss.
- Five-year revenue went from ₩49.0 billion in 2021 to ₩54.0 billion in 2022 to ₩38.6 billion in 2023 (a downturn), then rose sharply again to ₩62.9 billion in 2024 (+62.9%) and ₩94.6 billion in 2025 (+50.5%).
- Operating profit expanded rapidly beyond a mere swing to profit, from a -₩7.6 billion loss in 2023 to ₩4.1 billion in 2024 to ₩15.4 billion in 2025 (+273% year on year).
- In Q1 2026 as well, revenue of ₩25.5 billion (+18.7% year on year), operating profit of ₩4.1 billion (+24.1%) and net profit of ₩4.9 billion (+21.4%) showed earnings growth outpacing revenue growth, indicating that improving unit prices and mix and rising utilization are feeding through to profitability.
- This is exactly the basis for the forward P/E falling to 25.22x on this year's expected earnings.
- Amid a recovery in the memory semiconductor cycle and continued process investment by SK Hynix, demand for the heater block - a consumable, core part that goes inside the equipment - is rising alongside, and as the company broadens application into AlN ceramics and metal heater blocks, the post-swing earnings growth is settling into a trend rather than a one-off.
- The revenue growth rate itself naturally steadied from +62.9% to +50.5% in the year after a large recovery, but with both the absolute profit amount and the margin growing at once, the quality of growth is if anything firming up.
- Recent disclosures cluster around results, investor briefings and employee share compensation.
- On 2026-04-13 fair disclosure of preliminary results first reported Q1 revenue of ₩25.5 billion (+18.7%), and on the same day the company held an investor briefing (IR) to explain results and business direction to investors directly.
- The 2026-04-17 treasury-share disposal decision concerned delivering 100,000 treasury shares (exercise price ₩12,000) upon exercise of employee stock options granted in 2021; the share count relative to shares outstanding is small, so the impact on supply-demand is limited.
- In May, the quarterly report (Mar 2026) confirmed Q1 results and disclosed the heater block revenue share (97.1%), the valve business wind-down and the solar-cell subsidiary status together, and in March the annual report (Dec 2025) confirmed annual revenue of ₩94.6 billion and operating profit of ₩15.4 billion.
- Overall, the flow is calm and centered on results confirmation and regular reporting, rather than one-off disclosures like orders or large investments.
- Mecaro is a company with relatively clear strengths.
- (1) Having emerged from a 2023 loss, earnings have grown fast for two straight years, and in Q1 this year the earnings growth rate again outpaced the revenue growth rate, so the recovery is firming into a trend.
- (2) With a 9.9% debt ratio and a 614% current ratio, the balance sheet is very light, leaving ample room to fund growth investment from its own resources.
- (3) It has a clear flagship product in the heater block, backed by a long history of cooperation with SK Hynix, and a forward P/E of 25.22x on this year's expected earnings sits below peer parts names' trailing P/Es, so the valuation burden relative to the earnings trend is on the small side.
- Points to weigh alongside this are that more than 90% of revenue is concentrated in the single heater-block product, tying results to the front-end semiconductor equipment investment cycle, and that the solar-cell subsidiary (Mecaro Energy) is still in its investment phase and posting losses.
- In short, in a phase where memory investment stays alive and heater block demand continues, the light balance sheet and low forward valuation work as strengths; in a phase where front-end investment slows or new-business losses grow, single-product dependence becomes a variable.
🔎 Valuation vs peers Fairly valued
Among companies that make materials and parts going into semiconductor equipment, the comparison uses names close in business character with verifiable data; a limitation is that direct comparators among listed makers of the same 'heater block' are rare, so the sample is small.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hana Materials | 26.13x | 2.16x | 8.28% |
| Soulbrain | 29.03x | 2.17x | 7.49% |
| SFA Semicon | — | 1.73x | -4.05% |
(a) Position versus peers: the P/E is similar to that of semiconductor materials and parts companies, while the P/B is somewhat lower. (b) Premium/discount: on a net-asset basis it looks slightly cheap, but with capital efficiency (ROE) below peers, it is hard to simply declare it 'undervalued.' (c) Limits of trailing: the current P/E is computed on last year's (2025) confirmed earnings, but with earnings having just passed an inflection point - a 2023 loss, a 2024 swing to profit, and 2025 profit expansion - it is unstable to judge on last year's figures alone. Assuming this year's earnings from a DART seasonality approximation (unverified) brings the forward P/E down, but this is an estimate, not an official company outlook, which should be made clear. Taken together, we view it as a 'fairly valued, neither expensive nor cheap' zone, with single-product dependence and new-business losses as variables to weigh alongside.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩25.3 billion | approx. ₩4.2 billion | approx. ₩3.8 billion |
Price history Close · MA20 · MA60
The latest close is ₩34,700 and the market capitalization is ₩353.7 billion. The price sits below its 20-day moving average (₩42,800) and below its 60-day moving average (₩39,910). 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 34.8, a neutral level. The one-month change is -8.0%, the three-month change is -2.8%, and the position relative to the 52-week high is -27.6%. Relative strength versus the KOSDAQ is 92 (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 93% of all stocks. Over the past three months it outpaced the index by 26.5%. 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 +26.51% / 6M +67.79% / 12M +213.76%
Key metrics vs sector median
Valuation
The P/E of 28.04x is in line with the sector median (27.09x). The P/B of 1.73x is below the sector median (2.10x).
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
The operating margin is 16.2%. The debt ratio is 9.9%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $25.6M | $41.7M | $62.7M | +50.52% ↓ slower |
| Operating profit | -$5.1M | $2.7M | $10.2M | +272.98% |
| Net profit | -$1.6M | $3.7M | $8.4M | +128.70% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $32.5M | $35.8M | $25.6M | $41.7M | $62.7M |
| Operating profit | $1.7M | $1.7M | -$5.1M | $2.7M | $10.2M |
| Net profit | $5.3M | $29.0M | -$1.6M | $3.7M | $8.4M |
| Revenue CAGR | 4-yr avg 17.86% | ||||
Revenue rose 50.5% year over year (2023 ₩38.6 billion → 2024 ₩62.9 billion → 2025 ₩94.6 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 273.0% year over year. Over the 5 years on record, revenue compound annual growth (CAGR) is 17.9%. The two-year revenue CAGR is 56.6%. In the most recent quarter (Q1 2026), revenue was 18.7% 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.
- Revenue grew 50.5% year over year, a sign of growth.
- 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
- 2026-04-13EarningsFair disclosure of Q1 2026 preliminary results - consolidated revenue of ₩25.5 billion (+18.7% year on year) released in advanceShort term: a disclosure that confirmed the Q1 recovery to the market first. Details such as operating profit are finalized in the quarterly report, so they should be viewed together. Source
- 2026-04-13IRInvestor briefing (IR) held - a session for investors timed to the preliminary results announcementMedium term: the official channel where the company explains its results and business direction directly. The primary source for confirming official outlook figures. Source
- 2026-04-17FilingTreasury-share disposal decision - delivery of 100,000 treasury shares upon exercise of employee stock options (exercise price ₩12,000)Short term: not a disposal to prop up the share price but a delivery for stock-option exercise. With a small share count relative to shares outstanding, the supply-demand impact is limited. Source
- 2026-05-13UpdateQuarterly report (Mar 2026) - Q1 confirmed results and business/product mix disclosedMedium term: an official source where the previously preliminary Q1 results are confirmed and the business structure can be verified - the heater block revenue share (97.1%), the discontinued valve business and the solar-cell subsidiary status. Source
- 2026-03-18UpdateAnnual report (Dec 2025) - FY2025 consolidated revenue of ₩94.6 billion and operating profit of ₩15.4 billion confirmedMedium term: the most comprehensive official source, covering 2025 annual results after emerging from a loss and the structure of subsidiaries (Mecaro Energy, MECARO CHINA). Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-02OwnershipOwnership-change filing
- 2026-05-19OwnershipOwnership-change filing
- 2026-05-13PeriodicQuarterly report
- 2026-04-28OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-28OwnershipOwnership-change filing
- 2026-04-22OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-22OwnershipOwnership-change filing
- 2026-04-17TreasuryMaterial-fact report
- 2026-04-13Disclosure
- 2026-04-13EarningsFair-disclosure notice
- 2026-04-10OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-10OwnershipOfficers'/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.