Novatech makes and sells permanent magnets (Nd-Fe-B) that use the rare-earth metal neodymium; because they are strongly magnetic yet thin and small, they go into smart devices such as smartphones and tablet PCs, and the company runs manufacturing subsidiaries in places like Vietnam and China. In March 2026 it filed a voluntary corporate value-up plan; in February it disclosed annual revenue of ₩55.6 billion, operating profit of ₩6.7 billion and net profit of ₩17.7 billion; and a report on the results of a treasury-share disposal followed. What stands out recently is that a P/B of 0.77x and a P/E of 6.93x, together with a very stable balance sheet (current ratio of 14.6x, interest coverage of 398x) and an ROE of 11.2%, are strengths, but revenue and operating profit have fallen for three straight years and first-quarter operating profit slid to breakeven, so the key question is whether downstream demand and magnet-component orders revive.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 15.5% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 34.8% lower than a year earlier.
- ROE is 11.2% (controlling-interest basis). It is above the sector average.
- Operating margin is 12.0%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Oh Chun-taek 52.24% (individual)
Controlling bloc incl. related parties 54.74%
With the controlling bloc holding 55%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Novatech makes and sells permanent magnets, specifically magnets that use the rare-earth metal neodymium (Nd-Fe-B).
- These magnets can be made thin and small while remaining strongly magnetic, so they go into smart devices such as smartphones and tablet PCs.
- Based at its Korean headquarters, the company designs and supplies components through manufacturing subsidiaries in Vietnam, China and elsewhere.
- It is a single magnet-application business with no separate divisions, and as a small-cap with a market capitalization of ₩122.8 billion, it is worth watching not only the business flow but also how a single disclosure affects results and the share count.
- The latest close is ₩11,020 and market capitalization is ₩116.5 billion.
- The price sits below its 20-day line (₩12,668) and its 60-day line (₩17,470).
- Trading below both the short- and medium-term moving averages, the trend is on the soft side.
- The RSI (an indicator that gauges the strength of gains versus declines over the past 14 days on a 0-100 scale) is 26.3, close to depressed territory.
- The one-month change is -19.4%, the three-month change is -46.0%, and the price is -63.4% from its 52-week high.
- Relative strength versus the KOSDAQ is 41 (on a 1-99 scale, converted from returns against the index over the past year with heavier weight on the recent period; higher means stronger than the market).
- That places it in roughly the top 59% of all stocks by strength.
- Over the past three months it lagged the index by 29.6%.
- Chart readings are best interpreted alongside trading volume and disclosure dates.
- Recent annual revenue was ₩55.6 billion, operating profit ₩6.7 billion and net profit ₩17.7 billion.
- The operating margin was 12.0% and ROE (how much a company earns in a year on its equity) was 11.2%, so profitability is decent, while the net margin was a high 31.9%.
- The balance sheet is especially solid.
- The debt ratio (debt relative to equity) is 109.5%, but with a current ratio of 14.6x and an interest coverage ratio of 398x, the ability to repay short-term debt and cover interest is ample.
- On valuation, the P/E (how many times a year's profit the share price represents) is 6.58x and the P/B (how many times book value the share price represents) is 0.73x.
- A P/B below 1x means the shares are priced even below the company's net assets, so a low figure here is not something to view as a burden.
- The forecast P/E based on this year's profit is also 8.33x, below the peer median, so on the read the valuation is shown as Undervalued.
- Over a multi-year trend, revenue fell from ₩92.4 billion in 2023 to ₩65.8 billion in 2024 and ₩55.6 billion in 2025, and operating profit came down from ₩25.6 billion to ₩12.6 billion and then ₩6.7 billion.
- Weak downstream smart-device demand fed straight through to magnet-component revenue.
- Net profit, however, held up over the same period at ₩29.7 billion, then ₩17.3 billion, then ₩17.7 billion, edging up 2.3% in 2025 from the prior year, apparently supported by non-operating income.
- In the latest quarter (first quarter of 2026) revenue was ₩11.2 billion, down 34.8% from the same period a year earlier, and operating profit was -₩22.18 million, near a breakeven loss, yet net profit rose 6.1% to ₩4.0 billion.
- The forecast P/E computed on this year's expected profit stays at 8.33x because, even as the top line shrinks, the company keeps its net-profit resilience at a steady level through magnet pricing and margin management and through non-operating income.
- Whether the top line recovers is the point to watch going forward.
- Recent disclosures center on shareholder returns and results.
- On March 30, 2026 it filed a corporate value-up plan (voluntary disclosure), in which the company itself put forward its plans on shareholder value.
- If it contains figures, treat it as a primary basis for the outlook; if not, as directional material.
- On February 26 a disclosure of changes in revenue and profit structure reported annual revenue of ₩55.6 billion, operating profit of ₩6.7 billion and net profit of ₩17.7 billion, material to check against the annual trend and for any one-off factors.
- On February 10 the report on the results of a treasury-share disposal lets one verify the terms of the cash return and the change in share count; check whether profit and cash flow support the return.
- The strengths are clear.
- The share price is cheap against both net assets (P/B of 0.77x) and profit (P/E of 6.93x, forecast P/E of 7.91x), the balance sheet is very stable with a current ratio of 14.6x and interest coverage of 398x, and profitability is decent at an ROE of 11.2%.
- The price sits in depressed territory, down more than 60% from its 52-week high, so the price burden against asset and earnings value is low.
- The point to be careful about is the top line.
- Revenue and operating profit have fallen for three straight years and first-quarter operating profit slid to breakeven, so the key is whether downstream smart-device demand and magnet-component orders revive.
- In sum, if the top line bases out and operating profit turns toward recovery, the low valuation and solid balance sheet can work strongly in its favor; conversely, if revenue keeps declining, it may take time for the read to change on net-profit resilience alone.
🔎 Valuation vs peers Undervalued
A peer set of other-manufacturing names with similar market capitalization.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| E-World | — | 0.46x | -8.67% |
| Spigen Korea | 6.04x | 0.33x | 5.49% |
Within other manufacturing, we looked first at a public-data peer set of comparable market capitalization. The current P/E (how many times a year's profit the share price represents) is 6.58x and the P/B (how many times book value the share price represents) is 0.73x. That said, for smaller-cap names the impact of earnings swings and funding disclosures is large, so we did not rely on trailing-year confirmed-results metrics alone. The basis for the outlook box is a DART seasonality approximation.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩43.6 billion | — | ₩14.7 billion |
| Next quarter | Q2 2026 | ₩10.4 billion | — | ₩4.9 billion |
Price history Close · MA20 · MA60
The latest close is ₩11,020 and the market capitalization is ₩116.5 billion. The price sits below its 20-day moving average (₩12,668) and below its 60-day moving average (₩17,470). 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 26.3, near oversold territory. The one-month change is -19.4%, the three-month change is -46.0%, and the position relative to the 52-week high is -63.4%. Relative strength versus the KOSDAQ is 41 (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 41% of all stocks. Over the past three months it lagged the index by 29.6%. 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 -29.65% / 6M -37.27% / 12M -38.80%
Key metrics vs whole-market median
Valuation
The P/E of 6.58x is below the whole-market median (13.81x). The P/B of 0.73x is below the whole-market median (1.15x). 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 9.2%, initial growth 2.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 0.832x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 11.2%, above the whole-market average (5.0%). The operating margin is 12.0%. The debt ratio is 109.5%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $61.3M | $43.6M | $36.8M | -15.53% ↑ faster |
| Operating profit | $17.0M | $8.4M | $4.4M | -46.87% ↑ faster |
| Net profit | $19.7M | $11.5M | $11.7M | +2.28% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $60.0M | $73.2M | $61.3M | $43.6M | $36.8M |
| Operating profit | $21.8M | $17.5M | $17.0M | $8.4M | $4.4M |
| Net profit | $26.9M | $11.0M | $19.7M | $11.5M | $11.7M |
| Revenue CAGR | 4-yr avg -11.47% | ||||
Revenue fell 15.5% year over year (2023 ₩92.4 billion → 2024 ₩65.8 billion → 2025 ₩55.6 billion), and the three-year trend is 'falling'. That said, the rate of decline narrowed from the prior year. Operating profit fell 46.9% year over year. That said, the decline narrowed. Over the 5 years on record, revenue compound annual growth (CAGR) is -11.5%. The two-year revenue CAGR is -22.4%. In the most recent quarter (Q1 2026), revenue was 34.8% 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.
- The dividend yield, at 26.1%, is on the high side.
- ROE of 11.2% points to solid profitability.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 15.5% year over year (3-year trend: falling).
Recent news & events searched · sourced
- 2026-03-30UpdateCorporate value-up plan (voluntary disclosure): check the company's original plan documentThis is planning material the company put forward directly. If it contains figures, treat it as a primary basis for the outlook box; if not, treat it only as directional material. Source
- 2026-02-26EarningsChange of 30% or more (15% for large corporations) in revenue or profit structure: annual revenue ₩55.6 billion, operating profit ₩6.7 billion, net profit ₩17.7 billionThis is recent confirmed or preliminary results material. Check whether it is in the same direction as the annual trend and whether any one-off factors are present. Source
- 2026-02-10UpdateReport on results of treasury-share disposal: check the terms of the returnThis is a disclosure related to a cash return or a change in the share count. Confirm whether earnings resilience and cash flow support it. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩11,020 | ₩11,020 | Confirmed | link |
| Latest quarterly results | revenue ₩11.2 billion, operating profit -2,218 | revenue ₩11.2 billion, operating profit -2,218 | Confirmed | link |
| Annual results | revenue ₩55.6 billion, operating profit ₩6.7 billion | revenue ₩55.6 billion, operating profit ₩6.7 billion | Confirmed | link |
| Outlook/plan disclosure original text | : | : | Confirmed | link |
| Results disclosure original text | revenue30%: revenue ₩55.6 billion · operating profit ₩6.7 billion · net profit ₩17.7 billion | revenue30%: revenue ₩55.6 billion · operating profit ₩6.7 billion · net profit ₩17.7 billion | Confirmed | link |
| Shareholder-return disclosure original text | : | : | Confirmed | link |
| Outlook box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-05-15PeriodicQuarterly report
- 2026-04-30OwnershipOwnership-change filing
- 2026-03-30Disclosure
- 2026-03-27Shareholders' meeting notice
- 2026-03-20OwnershipOwnership-change filing
- 2026-03-19PeriodicAnnual business report
- 2026-03-19Audit report
- 2026-03-12Amended filing
- 2026-03-12Amended filing
- 2026-03-11Shareholders' meeting notice
- 2026-03-11Shareholders' meeting notice
- 2026-03-11Shareholders' meeting notice
📖 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.