RF Materials makes semiconductor packages that wrap high-frequency compound-semiconductor chips such as GaN, GaAs and InP - protecting them from external shock, moisture and heat while letting electrical signals pass out stably - with 5G base-station power amplifiers, optical-communication modules, and military radar and sensor parts as its mainstays, and a large share of revenue from a few big customers including parent company RFHIC and the U.S.'s Wolfspeed. To fund a new-plant expansion it decided to issue 500,000 new shares (about ₩28.2 billion), with largest shareholder RFHIC taking up its full allotment, and its Q1 quarterly report confirmed strong results. What stands out lately is the two-sided picture: it has the strength of a turnaround from loss to profit that carried into Q1 and an ROE above the peer average; on the other hand, revenue is concentrated in a few customers so a drop from even one can cause large swings, and the dilution from the rights offering and the timing at which the expansion turns into operation and revenue must be watched together.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 242.9%).
- Revenue rose 44.0% year over year, and the pace is quickening (3-year trend: mixed).
- Net profit swung from a loss a year earlier back into the black (a turnaround).
- Most recent quarter (Q1 2026) revenue was 69.6% higher than a year earlier.
- ROE is 13.4% (controlling-interest basis). It is above the sector average.
- Operating margin is 11.5%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder RFHIC 41.85% (corporate)
Controlling bloc incl. related parties 47.91%
With the controlling bloc holding 48%, the ownership structure is stable.
🔎 In-depth analysis
- RF Materials makes 'semiconductor packages' used in communications, lasers and infrared sensors.
- Put simply, it manufactures metal and ceramic cases that wrap high-frequency compound-semiconductor chips such as GaN (gallium nitride), GaAs (gallium arsenide) and InP (indium phosphide), protecting them from external shock, moisture and heat while letting electrical signals pass out stably.
- Its mainstays are 5G base-station power amplifiers (RF), optical-communication modules, and military radar and sensor parts.
- Revenue tends to have a large share from a few big customers, including parent company and largest shareholder RFHIC and U.S. compound-semiconductor firm Wolfspeed, so these customers' order flow feeds directly into results.
- The latest close is ₩44,650 and market capitalization is ₩401.6 billion.
- The price sits below its 20-day line (₩56,010) and below its 60-day line (₩81,112).
- Trading below both the short- and medium-term moving averages, the trend looks subdued.
- The RSI (a supplementary gauge that weighs 14-day upward versus downward force on a 0-100 scale) is 32.3, a neutral level.
- The one-month change is -26.4%, the three-month change is -39.5%, and the position versus the 52-week high is -62.6%.
- Relative strength against the KOSDAQ is 96 (on a 1-99 scale that converts the past year's return against the index with recent periods weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 3% of all stocks by strength.
- Over the past three months it lagged the index by 14.6%.
- Chart reading is best done alongside trading volume and the dates of disclosures.
- On a confirmed annual (2025) basis, the P/E ratio (how many times a year's profit the share price is) is 53.70x and the P/B (how many times net assets the price is) is 7.19x.
- On the surface the numbers look high, but this P/E should be seen together with the fact that it is on a trailing basis ('last year's profit').
- The company was in the red through 2024, swung to profit in 2025, and is at an inflection where Q1 2026 profit rose sharply, so a trailing P/E divided by a single past year's profit does not fully capture the earnings power it is generating now.
- The forward P/E reflecting this year's expected profit falls to about half the trailing figure, and that is closer to the current earnings trend.
- The forward P/B also falls to 7.08x.
- Profitability is solid: ROE (how much it earns in a year on equity) is 13.4%, above the peer average (about 7%), and the operating margin is 11.5%.
- The debt ratio (debt against equity) is 243%, somewhat high, but with a current ratio of 272% short-term liquidity is ample and an interest coverage ratio of 5.3x, so finances are managed at a 'stable' level.
- Over five years, revenue moved from ₩37.8 billion in 2021 to ₩47.9 billion in 2023, ₩44.5 billion in 2024, and ₩64.1 billion in 2025 - dipping once in 2024 before rebounding sharply +44.0% in 2025.
- Over the same period operating profit swung from a -₩1.5 billion loss in 2024 to a +₩7.4 billion profit in 2025 (a turnaround), and net profit likewise turned from loss to a +₩7.1 billion profit.
- In Q1 2026, revenue was ₩20.0 billion (+69.6%), operating profit ₩3.2 billion (+281.9%), and net profit ₩3.4 billion (+499.5%), with the pace of increase steepening further.
- Not only is revenue rising, but profit is swelling far faster than revenue - the classic pattern seen when demand for high-frequency compound semiconductors such as 5G, defense radar and optical communication revives, utilization rises, and fixed-cost burden is spread.
- The forward P/E on this year's expected profit is a figure that reflects this earnings expansion; unlike the trailing P/E that looked expensive right after last year's loss, it is a value that has come down in line with actual earnings power.
- Meanwhile there is no clear evidence that beyond this year (2027 onward) is lower than this year, so it is hard to conclude the current phase is a cycle top.
- The biggest recent event is a rights offering to fund a new-plant expansion.
- The company decided to issue 500,000 new shares (about ₩28.2 billion) via a shareholder allotment followed by a public offering of forfeited shares, with largest shareholder RFHIC taking up its full allotment.
- The 500,000 new shares equal about 6% of the existing roughly 8.5 million shares, a factor that dilutes per-share value, but the largest shareholder putting in its own money to back the expansion can also be read as a signal that the company is confident about growing demand.
- With the issue price finalization and the existing-shareholder subscription scheduled for mid-June, it affects near-term supply and demand.
- Alongside this, the Q1 2026 quarterly report (2026-05-15) confirmed strong results, and in early June a number of stake-change reports from executives and major shareholders were filed.
- The strengths are clear.
- The turnaround from loss to profit carried into Q1 2026, with the pace of profit growth quickening, and profitability is good enough that ROE exceeds the peer average.
- Its business position - compound-semiconductor packages tied to 5G, defense and optical-communication demand - is also solid.
- The points to be careful about are that revenue is concentrated in a few customers such as RFHIC and Wolfspeed, so a drop in even one customer's orders can cause large earnings swings, and the share-count increase (dilution) from the rights offering and the timing at which the expansion investment turns into operation and revenue.
- In sum, if customer orders and the expansion's ramp-up continue and the earnings trend is sustained, the current valuation is a structure backed by profit growth; if a particular customer slows or the expansion is delayed, the multiple burden grows.
- Which side prevails is best confirmed by whether quarterly results carry the earnings trend forward.
🔎 Valuation vs peers Inconclusive
The comparison is drawn from names adjoining the compound-semiconductor, high-frequency (RF) and electronic-components business whose market cap and metrics are verifiable. That said, RF Materials is in the narrow, specialized field of 'package materials and components,' so a fully identical peer set is rare.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Korea Circuit | 35.58x | 3.82x | 10.74% |
| Sungho Electronics | 15.56x | 5.64x | 36.27% |
On last year's confirmed results, the P/E of 78x and P/B of 10.5x are high not only versus the peer median (P/E 28x, P/B 2.4x) but also relative to the comparison set, so on the surface it is an 'overvalued' zone. However, this stock is at an inflection - a 2024 loss, a 2025 swing to profit, and a Q1 2026 profit surge - so a trailing P/E built on past earnings can under- or over-reflect the current earnings trend. Gauging this year's profit with a DART seasonality approximation (not an official company outlook) brings the forward multiple down sharply, but that approximation itself is low in reliability because it mixes loss quarters. Accordingly, weighing together 'the absence of an official annual company outlook + inflection-point results + customer-concentration and dilution variables,' judgment is held rather than a definitive call. The key is to check each quarter whether profit is actually realized to the extent of the seasonality approximation (customer orders, expansion ramp-up).
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩23.5 billion | approx. ₩7.2 billion | approx. ₩13.0 billion |
Price history Close · MA20 · MA60
The latest close is ₩44,650 and the market capitalization is ₩401.6 billion. The price sits below its 20-day moving average (₩56,010) and below its 60-day moving average (₩81,112). 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 32.3, a neutral level. The one-month change is -26.4%, the three-month change is -39.5%, and the position relative to the 52-week high is -62.6%. Relative strength versus the KOSDAQ is 96 (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 97% of all stocks. Over the past three months it lagged the index by 14.6%. 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 -14.64% / 6M +121.23% / 12M +651.05%
Key metrics vs sector median
Valuation
The P/E of 53.70x is above the sector median (18.61x). The P/B of 7.19x is above the sector median (1.63x). 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.
Profitability & financials
Return on equity (ROE) is 13.4%, above the sector average (7.0%). The operating margin is 11.5%. The debt ratio is 242.9%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $31.8M | $29.5M | $42.5M | +44.02% ↑ faster |
| Operating profit | -$22,949 | -$962,979 | $4.9M | — |
| Net profit | -$443,279 | -$3.2M | $4.7M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $25.0M | $33.4M | $31.8M | $29.5M | $42.5M |
| Operating profit | -$18,613 | $1.8M | -$22,949 | -$962,979 | $4.9M |
| Net profit | -$597,633 | $2.2M | -$443,279 | -$3.2M | $4.7M |
| Revenue CAGR | 4-yr avg 14.13% | ||||
Revenue rose 44.0% year over year (2023 ₩47.9 billion → 2024 ₩44.5 billion → 2025 ₩64.1 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Over the 5 years on record, revenue compound annual growth (CAGR) is 14.1%. The two-year revenue CAGR is 15.7%. In the most recent quarter (Q1 2026), revenue was 69.6% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- ROE of 13.4% points to solid profitability.
- Revenue grew 44.0% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-06-05FilingRegistration statement for a rights offering to fund the new-plant expansion (shareholder allotment followed by public offering of forfeited shares) takes effect - 500,000 new shares, about ₩28.2 billion, with largest shareholder RFHIC taking up its full allotmentShort term: per-share value dilution from issuing about 6% new shares, and supply-demand shifts tied to the subscription schedule. Medium term: an expectation of expanded compound-semiconductor package capacity from the expansion, with the largest shareholder's full participation a signal of demand confidence. Source
- 2026-05-15EarningsQ1 2026 quarterly report - revenue ₩20.0 billion (+69.6%), operating profit ₩3.2 billion (+281.9%), net profit ₩3.4 billion (+499.5%), large increases versus the same quarter a year earlierShort term: confirmation of strong results. Medium term: a benchmark result for checking whether the profit-growth trend following the 2025 swing to profit carries on a quarterly basis. Source
- 2026-05-11FilingRights-offering decision (amended) - for facility funds (new-plant construction), with the issue price applying a discount to the reference price, and the finalized issue price and existing-shareholder subscription schedule disclosedShort term: supply-demand variables tied to subscription participation and the fate of forfeited shares. Medium term: the deployment of raised funds into the expansion and the ramp-up timing are the key to future top-line growth. Source
- 2026-06-01FilingNumerous filings of specified-securities ownership reports by executives and major shareholders - stake-change details disclosedShort term: changes in insider and major-shareholder stakes affect supply-demand and sentiment. Medium term: shareholding-structure changes need to be checked alongside during the rights-offering process. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 operating profit | ₩3.2 billion(+281.9% YoY) | approx. ₩3.2 billion | Confirmed | link |
| Rights-offering new-share issuance size | 50(approx. ₩28.2 billion), approx. 850 approx. 6% | 500,000, approx. ₩28.2 billion | Confirmed | link |
| 2025 annual revenue | ₩64.1 billion(+44.0% YoY) | approx. ₩64.1 billion | Confirmed | link |
| 2026 annual operating profit (seasonality approximation) | approx. ₩28.1 billion | — | Unverified | link |
Recent filings
- 2026-06-05Disclosure
- 2026-06-01OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-01OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-01OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-01OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-01OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-01OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-27Amended filing
- 2026-05-27Amended filing
- 2026-05-19Amended filing
- 2026-05-19Amended filing
- 2026-05-15PeriodicQuarterly 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.