Solus Advanced Materials is a materials company that makes 'battery foil' — the thin copper film used in EV batteries — along with 'copper foil' for semiconductors and substrates, and organic materials for OLED displays. In 2025 strong sales of high-value copper foil for AI accelerators drove revenue to a record ₩616.4 billion, but a slowing EV market cut battery-foil revenue, producing an operating loss of ₩71.5 billion and continuing the run of losses. What stands out lately is the plan to sell off the currently strong copper-foil division and use the proceeds to ease its financial burden and focus on battery foil: if EV demand in Europe and North America revives and the new Canadian plant ramps up, this could form a foundation for a rebound, but until then heavy investment and low utilization may keep losses and borrowing pressure in place.
At-a-glance assessment financial health · growth · profitability · valuation
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 41.3%).
- The most recent full-year net result was a loss.
- Revenue rose 7.9% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 22.2% higher than a year earlier.
- ROE is -9.7% (controlling-interest basis). It is below the sector average.
- Operating margin is -11.9%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder Skylake Long-Term Strategic Investment 41.06% (corporate)
Controlling bloc incl. related parties 41.18%
With the controlling bloc holding 41%, the ownership structure is stable.
🔎 In-depth analysis
- Solus Advanced Materials makes money from three materials.
- The first is 'battery foil,' the thin copper film used in the anode of EV batteries, produced at its plant in Hungary, Europe, and supplied to battery makers in Europe and North America.
- The second is 'copper foil' used in semiconductor substrates and AI-accelerator circuits; in 2025 surging demand for high-value products for AI servers (HVLP copper foil) lifted revenue.
- The third is organic light-emitting materials used in OLED screens for smartphones, TVs and vehicles.
- Segment revenue in 2025 was ₩306.5 billion for copper foil, ₩183.7 billion for battery foil and ₩126.2 billion for OLED, so last year's growth was in effect led by copper foil.
- The stock at ₩7,680 sits below its 20-day line (₩9,526) and 60-day line (₩11,103).
- With the medium-term moving averages above the price, the trend leans weak.
- The one-month return is -28.4%, a large short-term drop; three months is -16.2% and six months is +8.0%.
- The RSI is 33.9, close to oversold territory.
- The price is 52.5% below its 52-week high.
- A weak EV-materials cycle and continuing losses appear to have weighed on the stock.
- On valuation, a loss means the P/E ratio (how many years of earnings the price represents) cannot be calculated.
- Instead, the P/B (price versus book net assets) is 0.78x, below 1x — meaning it trades cheaper than its asset value.
- Profitability is still weak: ROE (how much is earned in a year on equity) is -9.7% and the operating margin is -11.9%, both negative.
- The balance sheet carries some burden.
- The debt ratio (borrowings versus equity) is 176% and the current ratio (assets available now versus debt due within a year) is a low 41%.
- Debt-adjusted metrics make the picture heavier.
- Net debt (total borrowings minus cash) is about ₩844.1 billion, and enterprise value (EV, market cap plus net debt) is about ₩1,440.9 billion.
- EV/Sales (enterprise value divided by revenue) is 2.3x.
- The FCF yield (actual cash generated relative to market cap) is -42%, showing the company is still in an investment phase that consumes cash.
- Revenue has risen steadily, from ₩429.4 billion in 2023 to ₩570.9 billion in 2024 and ₩616.4 billion in 2025 — three straight years of growth to a record.
- Profit tells a different story.
- Operating results have been in the red for four years running since 2022, and net profit worsened to -₩66.9 billion in 2025.
- The quality of growth varies by segment.
- In 2025 copper foil surged 56% on AI demand, but battery foil fell 26% amid fiercer EV competition and reduced North American subsidies.
- The company's officially stated 2026 revenue target is ₩533.0 billion (battery foil ₩394.0 billion, OLED ₩139.0 billion).
- This figure excludes copper foil, which the company is seeking to sell.
- In other words, the plan is to carve out the copper foil that had led growth and rebuild the underperforming battery-foil business.
- In fact, first-quarter 2026 revenue rose 22.2% year over year and the net loss narrowed sharply to -₩2.9 billion.
- The company has not, however, officially given a timeline for returning to profit.
- First-half 2026 disclosures center on business realignment.
- On April 28 the company voluntarily disclosed a corporate value-up plan, laying out its 2026 revenue target and a battery-foil-centered strategy.
- On the same day, consolidated preliminary results confirmed the prior year's large loss.
- Through April and May, capital increases at subsidiaries (overseas production entities) and decisions to acquire and dispose of other companies' shares followed in succession.
- These read as part of financing the copper-foil sale and overseas battery-foil expansion.
- In May a decision on providing debt guarantees to others was also disclosed, a structure in which the parent backs subsidiary borrowing.
- As a signal emerging amid financial strain, it warrants attention alongside the rest.
- This company sits in the middle of a business realignment.
- The strengths are clear.
- The stock trades below book net assets at a P/B of 0.78x.
- The first-quarter 2026 loss narrowed quickly, improving the direction of results.
- Once the copper-foil sale closes, the proceeds can reduce debt and ease the financial burden.
- On the other hand, the cautions are just as distinct.
- The copper foil being sold is the business that led last year's growth, so the remaining battery foil must fill that gap.
- Battery foil is heavily swayed by EV demand and by European and North American policy.
- Large investments such as the new Canadian plant are underway, so cash will flow out and borrowing pressure may persist for a while.
- In sum, the stock is strong when an EV-demand recovery, completion of the copper-foil sale and rising battery-foil utilization come together, and weak if the EV slowdown drags on or early-stage expansion losses continue.
🔎 Valuation vs peers Inconclusive
Compared with domestic materials firms that handle both EV battery materials (battery foil) and electronic materials (copper foil, OLED); because each company's business mix differs, a contrast on business phase and financial strength is more appropriate than a direct multiple comparison.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Lotte Energy Materials | 0.00x | 0.00x | 0.00% |
| Dongwon Systems | 0.00x | 0.00x | 0.00% |
A loss means valuation cannot be viewed through the P/E. On a book basis the P/B is 0.78x, below net assets. Yet it is hard to conclude the stock is cheap on asset undervaluation alone, because an operating loss, negative ROE and a high debt ratio (176%) accompany it. Last year's large loss badly impaired earnings metrics, but this reflects a trough in the EV-materials cycle overlapping with realignment costs, so it is too early to fix the company's value on trailing (past) figures alone. The company gave a 2026 revenue target but not a timeline for returning to profit, and net profit is heavily swayed by copper-foil sale gains, subsidiary equity-method effects and expansion investment, making future profit hard to estimate reliably. For now, therefore, an inconclusive verdict is more appropriate than declaring the stock under- or overvalued.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩533.0 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩7,680 and the market capitalization is ₩539.3 billion. The price sits below its 20-day moving average (₩9,526) and below its 60-day moving average (₩11,103). 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 33.9, a neutral level. The one-month change is -28.4%, the three-month change is -16.2%, and the position relative to the 52-week high is -52.4%. Relative strength versus the KOSPI is 28 (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 28% of all stocks. Over the past three months it lagged the index by 35.0%. 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 -34.96% / 6M -35.59% / 12M -61.07%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 0.78x is below the sector median (1.63x).
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 -9.7%, below the sector average (7.0%). The operating margin is -11.9%. The debt ratio is 176.2%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $284.6M | $378.4M | $408.3M | +7.91% ↓ slower |
| Operating profit | -$48.5M | -$36.1M | -$48.6M | — |
| Net profit | $124.3M | $3.1M | -$44.3M | -1540.75% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $252.1M | $305.7M | $284.6M | $378.4M | $408.3M |
| Operating profit | $3.3M | -$30.0M | -$48.5M | -$36.1M | -$48.6M |
| Net profit | $7.9M | -$7.5M | $124.3M | $3.1M | -$44.3M |
| Revenue CAGR | 4-yr avg 12.82% | ||||
Revenue rose 7.9% year over year (2023 ₩429.4 billion → 2024 ₩570.9 billion → 2025 ₩616.1 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating results are in the red, so a swing back to profit matters more than the growth rate here. Over the 5 years on record, revenue compound annual growth (CAGR) is 12.8%. The two-year revenue CAGR is 19.8%. In the most recent quarter (Q1 2026), revenue was 22.2% 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.
Points to watch
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 41.3%).
- The most recent full-year net result was a loss.
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue rose 7.9% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-04-28UpdateCorporate value-up plan voluntarily disclosed — 2026 revenue target of ₩533.0 billion (battery foil ₩394.0 billion, OLED ₩139.0 billion) presented, with a policy of battery-foil-centered business realignmentClarifies the business direction over the medium term. However, no timeline for returning to profit is specified, so the pace of earnings improvement needs to be confirmed. Source
- 2026-04-28EarningsConsolidated operating (preliminary) results fair disclosure — 2025 revenue of ₩616.4 billion (a record), operating loss of ₩71.5 billion, confirming continued lossesContinued losses are a burden in the short term. Revenue is at a record, but a recovery in profitability is still incomplete. Source
- 2026-04-29FilingCapital increase at a subsidiary (overseas production entity) decided — funding for the overseas battery-foil businessSupports medium-term growth investment, but in the early expansion phase it increases cash outflows and financial burden. Source
- 2026-05-28UpdateDecision to provide debt guarantees to others — parent-company guarantee of subsidiary borrowingSupports subsidiary financing, but in a phase of financial strain the company also takes on risk in the nature of a contingent liability. Source
- 2026-05-21FilingDecision to acquire other companies' shares and equity securities (amended filing) — equity transactions related to business realignmentPart of the restructuring toward selling copper foil and concentrating on battery foil, a process in which the asset composition changes. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-29Corporate governance report
- 2026-05-28Disclosure
- 2026-05-21Amended filing
- 2026-05-14PeriodicQuarterly report
- 2026-04-29Disclosure
- 2026-04-29Paid-in capital increase
- 2026-04-29Disclosure
- 2026-04-28Paid-in capital increase
- 2026-04-28Disclosure
- 2026-04-28Amended filing
- 2026-04-28Disclosure
- 2026-04-28EarningsFair-disclosure 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.