AP Systems sells the manufacturing equipment installed on the production lines of factories that make displays and semiconductors; in ELA, a core front-end tool for smartphone OLED panels, it holds a position that is effectively a de facto standard, counts Samsung Display as a key customer, and also makes semiconductor heat-treatment and encapsulation equipment. Its results are tied to large customers' new-line capital spending, making it an order-driven business that lurches from quarter to quarter, but a sharp earnings rebound was confirmed in Q1 2026, and in May a single supply contract was disclosed, confirming the flow of future revenue recognition. The point to watch is that ELA's entry barriers and the Q1 earnings rebound put the forward P/B at 0.74x — lower than peers, an undervalued zone — while revenue hinges on the capital-spending decisions of a few large customers, so if the investment cycle is delayed, quarterly earnings variance widens.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 10.9% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 60.9% higher than a year earlier.
- ROE is 6.5% (controlling-interest basis). It is above the sector average.
- Operating margin is 7.2%.
- 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 APS 25.38% (corporate)
Controlling bloc incl. related parties 25.44%
With the controlling bloc holding 25%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- AP Systems sells the manufacturing equipment that goes into factories making displays and semiconductors (it supplies machines installed on production lines, not parts or finished products).
- Its flagship product is ELA (an OLED front-end tool that crystallizes amorphous silicon with an excimer laser to form LTPS thin-film transistors), effectively a de facto standard on small- and mid-size smartphone OLED lines, with Samsung Display as a key customer.
- To this it adds semiconductor heat-treatment (RTP, which processes wafers at high temperature for a short time) equipment and display encapsulation equipment to make revenue, and it is extending its laser technology into secondary batteries and solar power.
- Its earnings model is directly linked to the new-line capital spending (equipment orders) of large display and semiconductor customers, which is why results are an order-driven business that lurches from quarter to quarter.
- The latest close is ₩19,750 and market capitalization is ₩297.3 billion.
- The price sits below both the 20-day line (₩22,038) and the 60-day line (₩23,918).
- Trading below both its short- and mid-term moving averages, the trend is subdued.
- RSI (a supplementary gauge comparing upward and downward force over the past 14 days on a 0-100 scale) is 39.6, a neutral level.
- The one-month change is -11.2%, the three-month change is +2.8%, and the position versus the 52-week high is -34.6%.
- Relative strength against the KOSDAQ is 80 (1-99, computed from returns versus the index over the past year with recent periods weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 19% of all stocks by strength.
- Over the past three months it led the index by 33.9%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- On the most recent full-year (2025 confirmed) figures, the P/E ratio (how many times one year's net profit the price represents) is 12.50x and the P/B (how many times net assets) is 0.81x.
- However, these numbers are calculated on 2025 results — the year earnings were weakest — so in a phase like now, with earnings rising fast, they do not properly show the company's real value.
- In an inflection where earnings change sharply, a forward P/E reflecting this year's expected profit is closer to the true picture.
- On this year's expected profit, the forward P/B is 0.81x, clearly lower than comparable process-equipment makers.
- In other words, it looks ordinary on last year's results, but reflecting this year's earnings flow, the price is cheap relative to earnings and assets — read as an undervaluation signal.
- Profitability is also solid, with ROE (how much it earns in a year on equity) of 6.5% above the industry median (5.0%) and an operating margin of 7.2%.
- Finances are stable, with a debt ratio (debt against equity) of 85.3%, a current ratio of 183.7% and interest-coverage of 3.1x, and the dividend yield is about 1.3% (dividend per share ₩340, payout ratio 21.1%).
- On annual results alone, the past few years were a slowdown.
- Revenue fell from ₩533.6 billion in 2023 to ₩516.7 billion in 2024 and ₩460.1 billion in 2025 (-10.9% year on year), operating profit slid from ₩60.1 billion to ₩47.2 billion to ₩33.3 billion, and net profit dropped -54.1%.
- This largely reflected customers' OLED and semiconductor capex cycles entering a lull.
- But the flow changed in Q1 2026.
- Revenue of ₩196.1 billion (+60.9%), operating profit of ₩18.0 billion (+135.4%) and net profit of ₩19.7 billion (+142.3%) rose sharply year on year, and Q1 operating profit alone already exceeded half of full-year 2025 operating profit (₩33.3 billion).
- The reason this year's expected profit is set so high is clear: as customers' OLED-line investment passed its lull and resumed, demand for core tools such as ELA revived; the equipment has high entry barriers so its share is stable; and it has entered a phase where orders are recognized as actual revenue.
- The multi-year trend was a slowdown, but it is now closer to the start of a recovery cycle past that trough.
- The large quarterly swings inherent to an order-driven business bear watching, but the scale and direction of the Q1 rebound are themselves clear.
- May 2026 was a month crowded with results and contract disclosures.
- The May 8 consolidated preliminary results (fair disclosure) first signaled the sharp Q1 earnings rebound, and the May 15 quarterly report confirmed those figures.
- On May 20, a disclosure on a single supply contract (an amendment filing) emerged, confirming the flow by which equipment orders will be recognized as future revenue.
- On June 8, an investor presentation (IR) disclosure followed, showing the company strengthening investor communication.
- Because revenue on a single supply contract is booked in stages according to delivery progress, it is best to view a contract as reflected across several quarters rather than flowing straight into the next quarter's results.
- This is a stock with clear strengths.
- First, it holds a leading position in ELA, a core tool with high entry barriers, so it benefits directly when key customers resume OLED-line investment.
- Second, the Q1 earnings rebound is pronounced, and the valuation reflecting that flow on this year's expected profit (forward P/B 0.74x) is lower than comparable process-equipment makers, placing it in an undervalued zone.
- Third, its financial structure on the debt and liquidity side is also stable.
- On the other hand, the nature of the business carries a caveat: revenue hinges on the capex decisions of a few large customers, so quarterly results vary widely.
- In short, as long as customers' new-line investment and orders keep converting into actual revenue, the low forward valuation is an attractive spot and the trend holds strong.
- Conversely, if the investment cycle is delayed again, the order-driven nature can widen earnings swings, so it is appropriate to watch new orders and delivery progress together.
🔎 Valuation vs peers Inconclusive
Rather than the simple KSIC 'machinery and equipment' code, the peer set was drawn from display and semiconductor process-equipment makers whose business substance is close. In particular, SFA, with a large display-equipment weighting, is the closest in business and valuation structure, and large front-end semiconductor equipment makers were also viewed as references.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| SFA Engineering | 13.69x | 0.84x | 6.14% |
| Wonik IPS | 61.28x | 5.31x | 8.66% |
| Jusung Engineering | 208.36x | 12.60x | 6.05% |
(a) Position versus peers: compared with SFA (P/E 17.4, P/B 1.07), the closest business match, AP Systems (P/E 16.07, P/B 1.04) is at almost the same level, while large front-end semiconductor equipment makers (Wonik IPS, Jusung Engineering) carry much higher multiples with growth expectations already priced in, making a direct comparison unreasonable. (b) Premium/discount: ELA's leading position is a premium factor, but order concentration and quarterly volatility are discount factors, so the two offset. (c) Limits of trailing figures and the forward basis: last year's confirmed P/E of 16.07x is on 2025, the earnings-trough year, so on an approximate operating profit converting the confirmed Q1 results by seasonality (about ₩93.5 billion), the price burden relative to earnings is lighter than on last year's basis. However, this approximation is not official company guidance, so within the same multiple range it is more appropriate to withhold judgment until the annual sustainability of the strong Q1 is confirmed than to declare it cheap or expensive.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩228.1 billion | approx. ₩16.7 billion | approx. ₩21.4 billion |
Price history Close · MA20 · MA60
The latest close is ₩19,750 and the market capitalization is ₩297.3 billion. The price sits below its 20-day moving average (₩22,038) and below its 60-day moving average (₩23,918). 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 39.6, a neutral level. The one-month change is -11.2%, the three-month change is +2.8%, and the position relative to the 52-week high is -34.6%. Relative strength versus the KOSDAQ is 80 (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 81% of all stocks. Over the past three months it outpaced the index by 33.9%. 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 +33.87% / 6M +15.43% / 12M +13.67%
Key metrics vs sector median
Valuation
The P/E of 12.50x is in line with the sector median (14.44x). The P/B of 0.81x is below the sector median (1.44x). 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 4.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 6.5%, above the sector average (5.0%). The operating margin is 7.2%. The debt ratio is 85.3%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $353.6M | $342.5M | $305.0M | -10.95% ↓ slower |
| Operating profit | $39.8M | $31.3M | $22.1M | -29.37% ↓ slower |
| Net profit | $39.8M | $34.3M | $15.8M | -54.07% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $350.4M | $322.5M | $353.6M | $342.5M | $305.0M |
| Operating profit | $42.6M | $60.0M | $39.8M | $31.3M | $22.1M |
| Net profit | $37.9M | $54.5M | $39.8M | $34.3M | $15.8M |
| Revenue CAGR | 4-yr avg -3.41% | ||||
Revenue fell 10.9% year over year (2023 ₩533.6 billion → 2024 ₩516.7 billion → 2025 ₩460.1 billion), and the three-year trend is 'falling'. The rate of decline widened from the prior year. Operating profit fell 29.4% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is -3.4%. The two-year revenue CAGR is -7.1%. In the most recent quarter (Q1 2026), revenue was 60.9% 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
- Revenue fell 10.9% year over year (3-year trend: falling).
Recent news & events searched · sourced
- 2026-06-08IRInvestor presentation (IR) disclosure — the company arranged a session to explain results and business to investorsMedium term. As a venue where the company explains the background to the Q1 rebound and the order and investment cycle, it can be a clue for comparing the seasonality approximation against the company's official view. Source
- 2026-05-20UpdateSingle supply contract signed (amendment filing) — part of an equipment supply contract's terms disclosed as a correctionMedium term. Equipment orders are recognized as revenue spread out over time, so the contract's scale and delivery timing need to be checked for how they flow into the next quarters' results. Source
- 2026-05-15UpdateQuarterly report (March 2026) — Q1 confirmed results disclosedNear term. The Q1 revenue of ₩196.1 billion and operating profit of ₩18.0 billion known from preliminary results were confirmed in the formal report. Source
- 2026-05-08EarningsConsolidated operating (preliminary) results fair disclosure — first release of the sharp Q1 earnings reboundNear term. The point at which the rebound of +60.9% revenue and +135.4% operating profit year on year was first made known to the market. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Latest quarter (Q1 2026) revenue | ₩196.1 billion | ₩196.1 billion | Confirmed | link |
| Latest quarter (Q1 2026) operating profit | ₩18.0 billion | ₩18.0 billion | Confirmed | link |
| FY2025 annual revenue (decline confirmed) | ₩460.1 billion | ₩460.1 billion | Confirmed | link |
| This year's operating profit seasonality approximation | ₩93.5 billion | — | Unverified | link |
Recent filings
- 2026-06-08Disclosure
- 2026-05-20Single supply/sales contract (amended)
- 2026-05-15PeriodicQuarterly report
- 2026-05-08EarningsFair-disclosure notice
- 2026-04-30OwnershipOwnership-change filing
- 2026-04-30OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-30OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-30OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-30OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-30OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-30OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-30OwnershipOfficers'/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.