SOLUM (248070) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
SOLUM makes its money by expanding electronic shelf labels (ESL), which replace paper price tags on store shelves, into retail solutions that tie together in-store networks and data, and by shifting its weight, alongside power modules for TVs and appliances, toward high-value areas such as high-power supplies for AI data centers and EV power control. In February 2026 it presented first-half revenue of ₩904.0 billion via fair disclosure, and in March it decided on its first year-end dividend since listing (₩75 per share, a payout ratio of 47.5%); Q1 operating profit of +88.8% marks a departure from the trough. What stands out most is that if the earnings recovery carries through to the full year and the high-value businesses show up as real revenue, the low P/B of 1.34x and recovering earnings come into focus together, while a debt ratio of 132.9%, negative free cash flow, a lawsuit seeking to void a new-share issuance, and support for a loss-making U.S. subsidiary are variables to watch alongside.
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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 “Electronic Components” (Semiconductors & IT Components), a type typically read first through forward P/E.
Electronic components swing with set-makers' product launches and demand cycles, so what lies ahead matters more than earnings already booked. That makes forward P/E — pricing the shares against expected earnings — the first metric to read.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
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
- Revenue rose 6.6% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 20.3% higher than a year earlier.
- ROE is 2.8% (controlling-interest basis). It is below the sector average.
- Operating margin is 3.2%.
- 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 Jeon Sung-ho 13.05% (individual)
Controlling bloc incl. related parties 27.01%
With the controlling bloc holding 27%, control is maintained but the free float is relatively large.
🔎 In-depth analysis Reading
SOLUM makes its money along two main axes. The first is electronic shelf labels (ESL, electronic labels that replace paper price tags on the shelves of marts and stores); beyond simply selling labels, it is broadening the business into retail solutions that bundle in-store network infrastructure and store data. The second is the power and electronic-components business, making power modules and boards that go into TVs and appliances, and lately shifting its weight toward high-value areas such as high-power supplies for AI data centers and EV charging and power control. It runs a U.S. production entity (SOLUM USA, a 100% subsidiary) to operate the local supply chain, but this entity is still in the red, so the parent lends it working capital.
The latest close is ₩14,900 and the market capitalization is ₩712.5 billion. The price sits above its 20-day moving average (₩14,252) and below its 60-day moving average (₩16,935). 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 50.9, a neutral level. The one-month change is -4.3%, the three-month change is -36.9%, and the position relative to the 52-week high is -36.9%. Relative strength versus the KOSPI is 16 (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 15% of all stocks. Over the past three months it lagged the index by 21.9%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Looking only at last year's (2025) results creates a misunderstanding. The P/E ratio (how many times a year's earnings the price represents) looks high at 53.68x. But this is overstated because it divides by a bottom-of-cycle result in which 2025 net profit was pressured to ₩13.4 billion by one-off costs. When earnings are pressured for a single year at an inflection point, the P/E automatically balloons. Rather than reading it as 'expensive' right away, the picture fits better viewed on forward earnings. By contrast, the P/B (how many times net assets the price represents) is 1.28x, so the burden relative to assets is not heavy. Profitability is in an early recovery. ROE (how much is earned on equity in a year) is 2.5% and the operating margin is 2.7%, still low. The weakness worth noting is the financial structure. The debt ratio (debt relative to equity) is high at 232.9%, and the interest coverage ratio (how many times operating profit can cover interest) is only 2.11x. Adjusting enterprise value for debt makes the picture a bit heavier. EV/Sales (enterprise value divided by revenue) is 0.6x, low relative to revenue, but EV/EBIT (a debt-adjusted version of the P/E) is 21.8x. Net debt (total borrowings less cash) is ₩281.0 billion. The FCF yield (the ratio of cash actually generated to market cap) is negative at -6.1%. In an investment phase where money is going into facilities and working capital, cash is still flowing out.
The growth trajectory is close to a U-shape. Revenue rose from ₩1.2 trillion in 2021 to ₩2.0 trillion in 2023, fell to ₩1.6 trillion in 2024, then recovered +6.6% to ₩1.7 trillion in 2025. Profit fell more sharply. Operating profit dropped from ₩154.5 billion in 2023 to ₩46.5 billion in 2025. The company's disclosed reason is higher SG&A from strengthening the global sales network plus one-off costs, so it was a period when investment ran ahead rather than the business breaking down. That is the bottom of the downcycle. The inflection appeared in Q1 2026. Revenue of ₩478.2 billion (+20.3% year over year), operating profit of ₩21.7 billion (+88.8%) and net profit of ₩4.7 billion (+91.8%) showed profit growing far faster than revenue. Q1 operating profit alone already filled about half of last year's full-year operating profit. Because ESL is a business where retailers' store conversions cluster in the second half, Q1 is usually the weakest quarter. On top of that, the company directly presented first-half 2026 revenue of ₩904.0 billion via fair disclosure. It further officially announced a mid- to long-term target, 'Vision 3-3-3,' to reach ₩3 trillion in revenue and ₩300 billion in operating profit by 2028 around the axes of ESL, power and display. By our own estimate, this year's net profit looks to be in the low ₩20 billion range, in which case the forward P/E falls to the mid-30s. That is an entirely different picture from the 54x on last year's results.
The recent flow is a phase where an earnings recovery and governance and litigation issues appear together. In February 2026 the company directly presented first-half revenue of ₩904.0 billion via fair disclosure, in March it decided on its first year-end dividend since listing (₩75 per common share, a payout ratio of 47.5%), and in April it voluntarily disclosed a corporate value-up plan, laying out the expansion of ESL solutions, the AI-data-center high-power and EV-power businesses, and a predictable shareholder-return direction. In May the Q1 quarterly report confirmed a large improvement in revenue and operating profit. Meanwhile, a lawsuit seeking to void the new-share issuance of the redeemable convertible preferred shares (RCPS) issued in 2025 was filed in January and is ongoing, and an extension of a ₩36.3 billion loan to the loss-making U.S. subsidiary was also decided in May. It is a period where disclosures showing the growth direction and disclosures requiring confirmation come out together.
The axis of observation is 'results that have passed a bottom.' 2025 was a trough with earnings heavily pressured. Q1 2026 operating profit of +88.8% is a signal of departure from that trough. The company officially presented first-half revenue of ₩904.0 billion, and the direction of broadening ESL into a solutions and data business while shifting toward high-value areas such as AI-data-center high-power supplies is set out in the disclosures. The valuation is also favorable. A P/B of 1.34x is lower than the peer set, so the asset-based burden is light. The 54x P/E on last year's results is the product of earnings being pressured for a single year by one-off costs, so on forward earnings it falls to the mid-30s. The stock is also pressured -35% versus the 52-week high, so the improvement is still under-reflected in the price. The first dividend is a starting point for shareholder returns. The cautions are also clear. A debt ratio of 132.9% and an interest coverage ratio of 2.11x mean financial headroom is not ample. With negative free cash flow, the pace at which profit converts into actual cash is still slow. The lawsuit seeking to void the new-share issuance and support for the loss-making U.S. subsidiary are also variables whose outcomes must be watched. In sum, if the Q1 earnings recovery carries through to the full year and the high-value businesses show up as real revenue, the low P/B and recovering earnings come into focus together in a strong phase. If the recovery proves to be a temporary rebound or the financial and litigation burdens grow, it is a weak phase.
🔎 Valuation vs peers Undervalued
Given that the power and electronic-components business was spun off from Samsung Electro-Mechanics, the peer set is the parent, Samsung Electro-Mechanics, and automotive-electronics and substrate parts maker LG Innotek. All three are cyclical parts businesses, so they share the trait of high multiples on last year's results.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Samsung Electro-Mechanics | 130.00x | 9.35x | 8.33% |
| LG Innotek | 38.42x | 2.16x | 7.97% |
The 54.6x P/E on last year's results divides by a bottom-of-cycle result in which 2025 net profit was pressured to ₩13.4 billion by one-off costs, so it should not be taken at face value. The peers, Samsung Electro-Mechanics and LG Innotek, share the same trap in that their multiples on last year's results are also greatly inflated by an earnings trough. The P/B is 1.32x, so the burden relative to assets is not heavy. Above all, Q1 2026 operating profit turned around to +88.8% year over year, the company officially presented first-half revenue of ₩904.0 billion, and the ESL order backlog has built up to the ₩2 trillion range. On forward earnings the P/E falls to the mid-30s. Considering that it is in an earnings-inflection phase and that the stock is pressured -35% versus the 52-week high, it is judged to be undervalued, with the improvement still under-reflected. This comes with the condition that the debt ratio and cash generation must support the improvement.
Price history Close · MA20 · MA60
The latest close is ₩14,900 and the market capitalization is ₩712.5 billion. The price sits above its 20-day moving average (₩14,252) and below its 60-day moving average (₩16,935). 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 50.9, a neutral level. The one-month change is -4.3%, the three-month change is -36.9%, and the position relative to the 52-week high is -36.9%. Relative strength versus the KOSPI is 16 (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 15% of all stocks. Over the past three months it lagged the index by 21.9%. 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 -21.92% / 6M -24.48% / 12M -54.37%
Key metrics Computed vs sector median
Valuation
The P/E of 53.01x is above the sector median (15.45x). The P/B of 1.28x is above the sector median (0.86x). 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) Estimate
Model output — not a price target. This is what the formula returns under the assumptions below, not a view on where the share price should go.
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 2.8%, below the sector average (4.0%). The operating margin is 3.2%. The debt ratio is 145.3%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.4B | $1.1B | $1.2B | +6.64% ↑ faster |
| Operating profit | $108.5M | $48.5M | $32.7M | -32.69% ↑ faster |
| Net profit | $84.6M | $27.8M | $9.4M | -65.98% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $810.2M | $1.2B | $1.4B | $1.1B | $1.2B |
| Operating profit | $18.6M | $53.1M | $108.5M | $48.5M | $32.7M |
| Net profit | $9.4M | $33.2M | $84.6M | $27.8M | $9.4M |
| Revenue CAGR | 4-yr avg 10.19% | ||||
Revenue rose 6.6% year over year (2023 ₩2.0 trillion → 2024 ₩1.6 trillion → 2025 ₩1.7 trillion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit fell 32.7% year over year. That said, the decline narrowed. Over the 5 years on record, revenue compound annual growth (CAGR) is 10.2%. The two-year revenue CAGR is -6.7%. In the most recent quarter (Q1 2026), revenue was 20.3% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- —
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-02-09FilingThe company presented a first-half 2026 consolidated revenue outlook of ₩904.0 billion via fair disclosure (operating profit and net profit not given), an internal estimate based on market analysis and business-plan targets.The company's official revenue guide is presented as a figure for the first time, becoming a reference point for the near-term earnings direction. With operating and net profit omitted, profitability needs separate confirmation. Source
- 2026-03-16DividendDecision on the first year-end cash dividend since listing: ₩75 per common share, a market-price yield of 0.4%, total dividends of ₩6.74 billion, a payout ratio of 47.51%.A starting point for shareholder-return policy. That said, the dividend yield itself is low, so the growth recovery is a bigger variable than the dividend. Source
- 2026-04-01IRVoluntary disclosure of a corporate value-up plan: expanding ESL into a network- and data-based retail solution, extending high-value work into high-power supplies for AI data centers and EV power control, and pursuing predictable shareholder returns.The company directly presents its medium-term business direction and shareholder-return intent. The pace at which this shows up in actual revenue and profit is the point to watch. Source
- 2026-01-13UpdateA lawsuit was filed seeking to void the new-share issuance of the Type 2 redeemable convertible preferred shares (7 million shares) issued in July 2025 (plaintiffs Align Partners Asset Management and one other, Suwon District Court).Uncertainty related to capital and governance structure. Depending on the outcome, there could be an effect on the preferred shares and equity, so the progress needs to be watched. Source
- 2026-05-14EarningsFiling of the Q1 2026 quarterly report: cumulative revenue of ₩478.2 billion, operating profit of ₩21.7 billion, net profit of ₩4.7 billion, a large improvement year over year.A first confirmation of the earnings recovery. Whether this trend carries into Q2-Q4 is the key to the full-year results. Source
- 2026-05-08FilingDecision to extend a ₩36.3 billion (USD 25 million) working-capital loan to the 100% U.S. subsidiary SOLUM USA (at an interest rate of 4.75%).Continued funding support for a loss-making subsidiary. It is aimed at maintaining the local supply chain but is a burden on the parent's cash flow. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 annual operating profit | ₩46.5 billion | ₩46.5 billion | Confirmed | link |
| 2025 annual revenue | 1 ₩700.2 billion | 1 ₩700.2 billion | Confirmed | link |
| Dividend per share (FY2025 year-end) | ₩75 | ₩75 | Confirmed | link |
| First-half 2026 revenue (company official outlook) | — | ₩904.0 billion | Confirmed | link |
| Q1 2026 operating profit | ₩21.7 billion | — | Unverified | link |
Recent filings Source
- 2026-06-08OwnershipLargest-shareholder ownership change report
- 2026-06-08OwnershipOwnership-change filing
- 2026-06-08OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-04Disclosure
- 2026-06-01OwnershipLargest-shareholder ownership change report
- 2026-06-01OwnershipOwnership-change filing
- 2026-06-01OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-27Corporate governance report
- 2026-05-22OwnershipOwnership-change filing
- 2026-05-15OwnershipLargest-shareholder ownership change report
- 2026-05-15OwnershipOwnership-change filing
- 2026-05-15OwnershipOfficers'/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.