KC Tech is a leading Korean localization player that makes and sells both CMP (chemical mechanical polishing) and wet-cleaning equipment used in semiconductor fabs and the slurry consumable that CMP requires; because slurry is consumed repeatedly, it cushions the swings in equipment revenue, and the main customers are Samsung Electronics and SK Hynix. Q1 2026 earnings reached about 60% of the full prior year, confirming a surge in the semiconductor segment, and a treasury-share disposal and a dividend (₩450 per share) followed in March. The point to watch is that, sitting in the middle of structural demand from finer process migration and HBM expansion and with an essentially debt-free balance sheet, the forward valuation burden eases; but equipment revenue swings sharply by quarter with customers' investment cycles, concentration in two customers is high, and the shares have more than tripled in six months, so whether the earnings improvement is sustained is the key question.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 0.7% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 101.0% higher than a year earlier.
- ROE is 10.1% (controlling-interest basis). It is above the sector average.
- Operating margin is 15.7%.
- P/B is high versus peers, a stretch on an asset basis.
Ownership & governance As of 2025-12-31
Largest shareholder KC 34.35% (corporate)
Controlling bloc incl. related parties 54.54%
With the controlling bloc holding 55%, control is very secure but the free float is thin.
🔎 In-depth analysis
- KC Tech earns money by making two things used in semiconductor fabs.
- The first is equipment.
- Its mainstays are CMP (chemical mechanical polishing) tools that grind the wafer surface flat and wet-cleaning tools that rinse wafers between process steps, alongside cleaning and coating equipment for displays.
- The second is materials.
- It directly makes and sells slurry (the polishing liquid) and nano-dispersion materials, consumables that CMP requires.
- Equipment sells heavily when fabs expand or convert lines, while slurry is consumed repeatedly as long as a fab keeps running, cushioning the swings in equipment revenue.
- The main customers are Samsung Electronics and SK Hynix, and the company has raised its domestic share by localizing CMP equipment and slurry that Japanese and U.S. makers originally held.
- The latest close is ₩83,500 and the market cap is ₩1.7 trillion.
- The price sits below its 20-day line (₩92,525) but above its 60-day line (₩73,730).
- With the short- and medium-term trends diverging, the direction should be read in two parts.
- RSI (a supplementary gauge that weighs upward against downward force over the last 14 days on a 0-100 scale) is 47.5, a neutral level.
- The one-month change is +28.3%, the three-month change is +90.4%, and the position versus the 52-week high is -28.9%.
- Relative strength versus the KOSPI is 83 (1-99, computed from returns against the index over the past year with recent performance weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 16% of all stocks by strength.
- Over the last three months it has outpaced the index by 44.5%.
- Chart reading is best done alongside trading volume and disclosure dates.
- On the valuation figures alone it looks demanding.
- The P/E ratio (how many years of profit the price represents) is 43.6x and P/B (the price relative to book equity) is 4.4x.
- The key point, though, is that this P/E is based on last year's (2025) confirmed earnings.
- As shown below, this year's earnings are surging, so the 43x measure against last year's yardstick overstates the company's current state.
- Profitability is healthy: ROE (how much is earned in a year on equity) is 10.1%, the operating margin is 15.7%, and the net margin is 14.0%.
- The balance sheet is especially solid.
- The debt ratio (debt against equity) is 113%, not low on the number alone, but the current ratio is 714%, meaning current assets exceed near-term obligations by more than sevenfold, and interest coverage is 468x, so the real debt burden is close to nil.
- Five-year revenue ran ₩344.5 billion (2021) → ₩378.2 billion (2022) → ₩286.9 billion (2023) → ₩385.4 billion (2024) → ₩382.9 billion (2025): it dipped once in 2023, recovered, then stalled in the ₩380 billion range over the past two years.
- Earnings traced a similar cycle.
- Then an inflection came in Q1 2026.
- Cumulative Q1 revenue of ₩156.1 billion (up 101% year on year), operating profit of ₩34.8 billion (up 344%), and net profit of ₩31.6 billion (up 304%) reflected a faster migration to finer semiconductor processes that sharply lifted demand for CMP and cleaning equipment, with slurry consumable demand attached to it.
- In particular, the Q1 net profit of ₩31.6 billion equals about 60% of the full prior year's net profit (₩53.4 billion).
- Given that the demand backdrop of Samsung Electronics' expanded investment and SK Hynix's HBM expansion continues into the second half, full-year earnings this year are likely to run well above last year's.
- In other words, the 43x P/E on last year's basis is a yardstick from before earnings jumped, and re-measured against this year's expected earnings the figure comes down considerably.
- Recent disclosures have concentrated on results, shareholder returns, and stake changes.
- A treasury-share disposal (decision and result report) took place in March 2026, and in May the Q1 2026 quarterly report was filed, confirming the semiconductor segment's surge in the numbers.
- Several large-holding and executive ownership disclosures followed from April through June, and a corporate governance report was disclosed in May.
- The dividend, at ₩450 per share (a yield of about 0.4%, a payout ratio of about 16.6%), returns a portion of earnings.
- The strengths are clear.
- As a leading localization player with both CMP/cleaning equipment and CMP slurry, it sits in the middle of structural demand from finer process migration and HBM expansion.
- Q1 2026 earnings reached about 60% of the full prior year, and the balance sheet is essentially debt-free and high quality.
- The P/E looks high on last year's basis, but on this year's expected earnings the valuation burden eases considerably.
- On the other hand, there are cautions.
- Equipment revenue swings sharply by quarter with customers' investment cycles, and a large share of revenue is concentrated in the two customers Samsung Electronics and SK Hynix, so their investment pace drives results.
- And with the shares having more than tripled in six months, a good deal of the good news is already reflected, so whether the earnings improvement continues as hoped is the key question ahead.
- In short, this stock is strong while semiconductor investment stays elevated, and weak when customer investment slows or equipment recognition bunches into a particular quarter.
🔎 Valuation vs peers Undervalued
KC Tech is classified under KSIC as 'medical, precision and optical instruments,' but it is in fact a semiconductor equipment and materials company making CMP/cleaning equipment and CMP slurry. It is therefore appropriate to compare it with Korean front-end semiconductor equipment makers. The P/E and P/B figures below are all on last year's confirmed earnings (trailing).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Wonik IPS | 61.28x | 5.31x | 8.66% |
| Hanmi Semiconductor | 95.98x | 29.75x | 31.00% |
| Jusung Engineering | 208.36x | 12.60x | 6.05% |
A trailing P/E of 43.6x and P/B of 4.4x look expensive on their own, but two things must be seen together. First, the trailing figures of peer semiconductor equipment makers are Wonik IPS (P/E 96.7, P/B 8.4), Hanmi Semiconductor (P/E 109.8, P/B 34.0), and Jusung Engineering (P/E 315, P/B 19.1), so KC Tech trades at a markedly lower multiple than these. Second, KC Tech's 43.6x is on a last-year basis, from before earnings jumped. With Q1 2026 net profit reaching about 60% of the full prior year, earnings are surging, so re-measured against this year's expected earnings the multiple falls sharply toward roughly 20x. In other words, the P/E burden on the last-year yardstick is close to an illusion that fails to reflect the earnings inflection, and looking at its position versus peers together with the earnings trajectory, it is judged to be in undervalued territory. That said, the low multiple partly reflects the risks of concentration in two large customers and the quarterly volatility of equipment revenue, which should also be weighed.
Price history Close · MA20 · MA60
The latest close is ₩83,500 and the market capitalization is ₩1.7 trillion. The price sits below its 20-day moving average (₩92,525) and above its 60-day moving average (₩73,730). 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 47.5, a neutral level. The one-month change is +28.3%, the three-month change is +90.4%, and the position relative to the 52-week high is -28.9%. Relative strength versus the KOSPI is 83 (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 84% of all stocks. Over the past three months it outpaced the index by 44.5%. 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 +44.46% / 6M +14.02% / 12M +26.09%
Key metrics vs sector median
Valuation
The P/E of 30.96x is above the sector median (22.72x). The P/B of 3.12x is above the sector median (1.61x). 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 10.4%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 2.211x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 10.1%, above the sector average (5.0%). The operating margin is 15.7%. The debt ratio is 113.2%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $190.2M | $255.5M | $253.7M | -0.67% ↓ slower |
| Operating profit | $21.7M | $33.0M | $39.7M | +20.45% ↓ slower |
| Net profit | $21.0M | $34.9M | $35.4M | +1.34% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $228.4M | $250.7M | $190.2M | $255.5M | $253.7M |
| Operating profit | $34.5M | $40.0M | $21.7M | $33.0M | $39.7M |
| Net profit | $27.8M | $36.7M | $21.0M | $34.9M | $35.4M |
| Revenue CAGR | 4-yr avg 2.67% | ||||
Revenue fell 0.7% year over year (2023 ₩286.9 billion → 2024 ₩385.4 billion → 2025 ₩382.9 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit rose 20.4% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 2.7%. The two-year revenue CAGR is 15.5%. In the most recent quarter (Q1 2026), revenue was 101.0% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- ROE of 10.1% points to solid profitability.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 0.7% year over year (3-year trend: mixed).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-13EarningsQ1 2026 quarterly report disclosed — cumulative revenue ₩156.1 billion, operating profit ₩34.8 billion, net profit ₩31.6 billion, up 101% / 344% / 304% year on year. The main backdrop is expanded demand for CMP and cleaning equipment from the migration to finer semiconductor processes.A strong upside factor for both the short and medium term. One quarter's net profit reaching about 60% of the full prior year lifts the bar for full-year earnings sharply. Source
- 2026-03-24FilingMaterial-fact report (treasury-share disposal decision) disclosed — a decision to dispose of treasury shares held.An event tied to shareholder returns and capital policy. Depending on the volume and method, it can affect near-term supply and demand. Source
- 2026-03-25FilingTreasury-share disposal result report disclosed — reporting the actual disposal following the earlier decision.A near-term supply-and-demand event. Completion of the disposal removes the related uncertainty. Source
- 2026-05-28FilingCorporate governance report disclosed — a periodic disclosure of governance status, including board composition and shareholder rights.Limited direct impact on results, but a reference point for governance transparency. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Market cap = close x listed shares | ₩83,500 | ₩83,500 | Confirmed | link |
| Q1 2026 results | revenue 1,561 / operating profit 348 / net profit 316 | — | Confirmed | link |
| Trailing EPS and P/E | EPS ₩2,696.8, PER 43.57x | net profit 534 ÷ 19,798,661 = ₩2,696.8 | Confirmed | link |
| Approximate full-year net profit this year (seasonality- and trend-based) | approx. 1,180 | — | Unverified | link |
Recent filings
- 2026-06-05OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-28Corporate governance report
- 2026-05-13PeriodicQuarterly report
- 2026-04-17OwnershipOwnership-change filing
- 2026-04-01OwnershipOwnership-change filing
- 2026-04-01OwnershipOwnership-change filing
- 2026-03-25OwnershipOwnership-change filing
- 2026-03-25TreasuryTreasury-stock disposal decision
- 2026-03-25OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-25OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-25OwnershipLargest-shareholder ownership change report
- 2026-03-24TreasuryMaterial-fact 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.