Innox Advanced Materials makes money from materials rather than finished goods: it produces insulating and adhesive films for flexible printed circuit boards (FPCBs), adhesive and protective films for OLED panels, semiconductor packaging materials, and protective sheets for solar cells, so its revenue tracks the output and product cycles of its downstream smartphone, display and semiconductor customers. Revenue and profit in the first quarter of 2026 both fell from a year earlier, yet the company still paid a dividend of ₩350 per share (a yield of about 1.2%) even in a weaker quarter, and it carries solid profitability with a 14.8% ROE and an 18.6% operating margin. What stands out recently is that its valuation, a trailing P/E of 8.4x and a forward P/B of 1.11x, sits below the sector median and is backed by durable earnings power; when downstream customer utilization recovers, that low valuation and high margin can shine together, whereas a prolonged downstream off-season or inventory correction can widen the swings in quarterly profit.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 276.6%).
- Revenue rose 4.0% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 15.9% lower than a year earlier.
- ROE is 14.8% (controlling-interest basis). It is above the sector average.
- Operating margin is 18.6%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Innox 26.32% (corporate)
Controlling bloc incl. related parties 33.08%
With the controlling bloc holding 33%, the ownership structure is stable.
🔎 In-depth analysis
- Innox Advanced Materials earns its money from materials, not finished products.
- Revenue rests on four main pillars.
- First are the insulating and adhesive films (the INNOFLEX line) used in the flexible circuit boards (FPCBs) that bend inside phones and laptops, wrapping and bonding the circuitry.
- Second are the adhesive and protective films (SMARTFLEX) used in making OLED panels for smartphones and TVs, supplied to panel makers such as Samsung Display and LG Display.
- Third are packaging materials used to attach and protect semiconductor chips on substrates (the semiconductor segment), and fourth are protective sheets for solar cells.
- In short, revenue is tied directly to the output and new-product launch cycles of the downstream industries (smartphones, displays and semiconductors), so its customers' utilization rates and the state of the panel and chip markets flow straight through to the company's results.
- The latest close is ₩21,450 and market capitalization is ₩427.7 billion.
- The price sits below its 20-day line (₩25,452) and its 60-day line (₩30,419).
- Trading below both its short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that weighs 14-day up-strength against down-strength on a 0-100 scale) is 34.7, a neutral level.
- The one-month change is -18.9%, the three-month change is -26.3%, and the price sits -49.0% below its 52-week high.
- Relative strength versus the KOSDAQ is 68 (on a 1-99 scale that converts trailing one-year return versus the index with heavier weight on recent performance; higher means stronger than the market), placing it in roughly the top 31% of all stocks by strength.
- Over the past three months it lagged the index by 5.5%.
- Chart reading is best done alongside volume and disclosure dates.
- On confirmed 2025 results, the trailing P/E (how many times one year's earnings the price represents) is 7.37x and the P/B (how many times net assets) is 1.09x.
- On this year's estimated earnings, the forward P/B is 1.09x, sitting below the median for comparable electronic-parts and display names.
- In other words, whether measured against last year's numbers or this year's expected earnings, the price is cheap relative to earnings and assets, which reads as an undervaluation signal.
- Profitability is solid, too: ROE (how much it earns in a year on shareholders' equity) is 14.8% and the operating margin is 18.6%, both above the peer average.
- The debt ratio is 276.6%, which looks high on the surface, but with a current ratio of 225.8% and an interest coverage ratio of 6.35x (operating profit more than six times interest expense), the company has ample capacity to meet short-term obligations and cover interest, so the burden is hard to call excessive.
- Over several years, revenue rose two years running, from ₩387.0 billion in 2023 to ₩422.8 billion in 2024 and ₩439.6 billion in 2025, while operating profit more than doubled from ₩42.2 billion in 2023 to ₩86.8 billion in 2024 before holding at ₩81.9 billion in 2025.
- As is typical of a materials business, earnings swing with downstream conditions, but since 2024 the company has held onto strong earnings power.
- The most recent quarter, the first of 2026, showed revenue of ₩95.1 billion (-15.9% year on year), operating profit of ₩16.9 billion (-36.0%) and net profit of ₩14.4 billion (-28.1%), as a temporary downstream off-season and inventory adjustment fed into quarterly results.
- This is because the OLED, semiconductor and FPCB materials the company makes see renewed adoption and volume as downstream customer utilization normalizes, supported by a healthy 18.6% operating margin.
- More than any one or two quarters of fluctuation, the fact that the company's materials are steadily designed into panel and chip product cycles underpins this year's expected earnings.
- Recent disclosures center on results and shareholder returns.
- Preliminary first-quarter figures came out first on May 6, 2026 in a fair disclosure of provisional consolidated operating results, then were confirmed in the quarterly report on May 15.
- Both point to the same thing: first-quarter revenue and profit fell from a year earlier.
- Separately, an April 7 dividend decision (a corrected filing of the March 26 resolution) fixed a dividend of ₩350 per share, with a payout ratio of 11.8% and a yield of about 1.2%, keeping the shareholder-return stance intact even through the off-season.
- At the March 26 annual general meeting, employee stock options and the appointment of an outside director were also approved.
- An April 3 large-holdings report and a March 18 filing of insider and major-shareholder holdings offer a way to track ownership changes and, alongside quarterly results, serve as clues for checking shifts in supply and demand.
- The strengths are clear.
- A trailing P/E of 8.4x and P/B of 1.24x, and a forward P/B of 1.11x, all sit below the peer median, and that low valuation is backed by durable profitability, a 14.8% ROE and an 18.6% operating margin.
- In other words, this is not merely a cheap company but one that earns well while being cheap.
- Its finances also have the strength to weather things on the interest and liquidity fronts, and it maintained its dividend even in a quarter of lower profit.
- What to watch alongside is that the business itself rides downstream conditions in smartphones, displays and semiconductors.
- So when downstream customer utilization recovers and material adoption in new products grows, the low valuation and high margin shine together; conversely, a prolonged downstream off-season or inventory correction widens the swings in quarterly profit.
- The key is not whether it is strong or weak, but tracking which way downstream demand and customer utilization move while checking on this low-valuation, high-profitability combination.
🔎 Valuation vs peers Inconclusive
We first compared names with the same business substance, making display and semiconductor materials (films and adhesives) and supplying them to panel makers and chip customers, taking leading OLED-materials stocks in the same electronic-parts and display sector as the core peer set.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Duksan Neolux | 13.35x | 1.57x | 11.77% |
| Korea Circuit | 35.58x | 3.82x | 10.74% |
On confirmed results alone, the P/E and P/B sit below the same business group and the sector median, making the stock look cheap. But a trailing P/E tends to overstate undervaluation at an inflection point where earnings are turning down. Indeed, since the company discloses no official guidance, a DART seasonality approximation points to this year's earnings falling below last year's, and in that case the forward P/E actually rises. So a low valuation and shrinking earnings coexist, making it hard to conclude either way. If quarterly profit bottoms and downstream demand turns, the low valuation becomes a strength; if the slowdown drags on, it edges toward a value trap, so we leave it Inconclusive.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩112.5 billion | approx. ₩29.6 billion | approx. ₩12.5 billion |
Price history Close · MA20 · MA60
The latest close is ₩21,450 and the market capitalization is ₩427.7 billion. The price sits below its 20-day moving average (₩25,452) and below its 60-day moving average (₩30,419). 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 34.7, a neutral level. The one-month change is -18.9%, the three-month change is -26.3%, and the position relative to the 52-week high is -49.0%. Relative strength versus the KOSDAQ is 69 (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 69% of all stocks. Over the past three months it lagged the index by 5.5%. 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 -5.48% / 6M +10.84% / 12M -9.76%
Key metrics vs sector median
Valuation
The P/E of 7.37x is below the sector median (18.61x). The P/B of 1.09x is below the sector median (1.63x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets.
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 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 14.8%, above the sector average (7.0%). The operating margin is 18.6%. The debt ratio is 276.6%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $256.5M | $280.2M | $291.4M | +3.98% ↓ slower |
| Operating profit | $27.9M | $57.5M | $54.3M | -5.63% ↓ slower |
| Net profit | $21.7M | $46.9M | $38.5M | -17.94% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $323.0M | $324.3M | $256.5M | $280.2M | $291.4M |
| Operating profit | $64.1M | $64.4M | $27.9M | $57.5M | $54.3M |
| Net profit | $53.1M | $56.6M | $21.7M | $46.9M | $38.5M |
| Revenue CAGR | 4-yr avg -2.54% | ||||
Revenue rose 4.0% year over year (2023 ₩387.0 billion → 2024 ₩422.8 billion → 2025 ₩439.6 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit fell 5.6% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is -2.5%. The two-year revenue CAGR is 6.6%. In the most recent quarter (Q1 2026), revenue was 15.9% lower 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.
- ROE of 14.8% points to solid profitability.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue rose 4.0% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-05-06EarningsFair disclosure of preliminary Q1 2026 results - revenue and operating profit down by double digits year on yearShort term: the earnings slowdown is confirmed in the numbers, an earnings-inflection signal. Medium term: whether downstream display and semiconductor demand recovers will drive the direction of results. Source
- 2026-05-15FilingQ1 2026 quarterly report - revenue of ₩95.1 billion and operating profit of ₩16.9 billion confirmedShort term: confirms the provisional figures. Medium term: a primary source for checking shifts in the quarterly margin and the segment revenue mix. Source
- 2026-04-07DividendCash and in-kind dividend decision (corrected filing) - ₩350 per share, payout ratio about 11.8%Short term: confirms the shareholder-return stance is intact. Medium term: whether dividend capacity holds up through the earnings slowdown is the point to watch. Source
- 2026-03-26FilingAnnual general meeting results and filing of employee stock-option grantsShort term: limited impact. Medium term: as an employee-incentive design, an item to check for possible future dilution from a rising share count. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-15PeriodicQuarterly report
- 2026-05-06EarningsFair-disclosure notice
- 2026-04-07DividendCash/stock dividend decision (amended)
- 2026-04-03OwnershipOwnership-change filing
- 2026-03-26Disclosure
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-26DividendCash/stock dividend decision (amended)
- 2026-03-25Dividend disclosure
- 2026-03-18PeriodicAnnual business report
- 2026-03-18Audit report
- 2026-03-18OwnershipOfficers'/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.