Wontech makes medical devices used in aesthetic skin treatments. It earns money from its radiofrequency (RF) device 'Oligio', ultrasound (HIFU) devices, the picosecond laser 'Picocare', and consumable tips that are replaced with each procedure, with roughly 70% of revenue coming from exports. In 2025 it posted record results with revenue of ₩156.8 billion and operating profit of ₩51.7 billion, and in the first quarter of 2026 the export share rose to 77.5% while the gross margin improved to 71.1%. The notable point recently is that overseas direct sales and consumables revenue support earnings as a strength, while operating profit was held down in the near term as the company sharply increased selling and administrative expenses on new hiring and global marketing early this year.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 36.1% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 7.6% higher than a year earlier.
- ROE is 22.4% (controlling-interest basis). It is above the sector average.
- Operating margin is 33.0%.
- P/B is high versus peers, a stretch on an asset basis.
Ownership & governance As of 2025-12-31
Largest shareholder Kim Jong-won 31.73% (individual)
Controlling bloc incl. related parties 51.94%
With the controlling bloc holding 52%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Wontech makes and sells aesthetic medical devices used in hospitals and dermatology clinics.
- Its mainstays are 'Oligio', which uses radiofrequency (RF) to stimulate deep skin layers and promote collagen regeneration; HIFU devices that use ultrasound; and 'Picocare', a picosecond laser for removing pigment and tattoos.
- Its 2025 revenue breakdown was RF/HIFU at ₩58.9 billion (about 38%), lasers at ₩49.5 billion (about 32%), and consumables such as the tips used up in each procedure at ₩37.8 billion (about 24%).
- Because selling a device once brings recurring consumables revenue afterward, the core of this business is that consumables revenue accumulates as the installed base grows.
- About 70% of revenue comes from overseas, and the company is widening direct sales through its subsidiaries in the United States, Thailand, Japan and China.
- The share price is ₩5,480, below the 20-day, 60-day and 120-day moving averages (₩6,009, ₩7,213 and ₩7,477 respectively).
- The recent trend is downward, with returns of -33.6% over six months, -17.6% over three months and -24.1% over one month.
- It also sits about 59% below its 52-week high.
- The RSI (an indicator that gauges recent upward and downward strength on a 0-100 scale) is 36.6, closer to depressed than overheated.
- In other words, the current price reflects more of the recent concern over depressed earnings than expectations of improvement.
- Start with valuation (a yardstick for whether the current price is expensive relative to earnings and assets).
- The P/E ratio (how many times one year's earnings the price represents) is 13.9x, and the P/B (how many times book equity the price represents) is 3.1x.
- Profitability is solid: ROE (how much is earned in a year on equity) is 22.4% and the operating margin is 33.0%, both above the peer average.
- The balance sheet is in a net-cash position: net debt (total borrowings less cash; negative means net cash) is -₩13.1 billion, so cash exceeds debt.
- Reflecting debt makes the picture better still.
- EV/EBIT (enterprise value divided by operating profit — a debt-inclusive counterpart to the P/E) is 9.9x, lower than the P/E.
- The FCF yield (actual cash generated relative to market cap — the higher, the more attractive the cash generation) is a high 9.5%.
- In short, net cash and strong cash generation underpin the valuation.
- The trailing P/B looks somewhat high, but this company is better judged by its earnings power and cash flow than by its assets.
- The big-picture growth trend points up and to the right.
- Over the past five years revenue rose from ₩51.1 billion (2021) to ₩156.8 billion (2025), an average annual growth of 32%.
- In 2025 revenue rose 36.1%, operating profit 48.6% and net profit 21.0%, a record.
- Exports drove the growth: in the first quarter of 2026 the export share rose to 77.5% and the gross margin improved from 64.2% to 71.1%.
- In that same first quarter, however, revenue growth was a modest 7.6%, and operating profit fell from ₩14.5 billion to ₩11.2 billion.
- The reason profit fell was investment, not weaker demand.
- Selling and administrative expenses rose 83.8% on new hiring and building out an executive structure, and advertising expenses rose 229.9% on expanded global marketing and the company's own events (Wave).
- The fact that the gross margin actually rose supports this.
- For the rest of this year it is reasonable to see exports and direct sales lifting revenue while earnings recover.
- By our own estimate, 2026 net profit is around ₩40.0 billion, and the forward multiple on that basis is about 12x, actually lower than on last year's figures.
- Recent disclosures fall into two streams: shareholder returns and financing.
- On shareholder returns, the company newly signed a trust agreement to buy back treasury shares and continued disposing of and canceling treasury stock.
- Cancelling treasury shares reduces the number of shares outstanding and raises the portion belonging to shareholders.
- On financing, in May 2026 it issued ₩75.0 billion of privately placed, unsecured convertible bonds (bonds that can be converted into shares) with a 0% coupon rate.
- The proceeds are used for ₩50.0 billion of operating funds and ₩25.0 billion of debt repayment, with a conversion price of ₩8,270.
- In return for having no interest burden, if the bonds are later converted into shares the share count rises and existing holders' stakes can be diluted, a point to watch.
- Since the treasury buyback and cancellation coincided with the convertible bond issuance, the net dilution effect will depend on the future scale of cancellation and whether conversion occurs.
- In sum, Wontech is a growing aesthetic medical-device company whose earnings are supported by exports and consumables.
- Its strengths are clear: high profitability with ROE of 22.4% and an operating margin of 33%, net cash and a 9.5% cash-generation rate, and overseas growth with the export share up to 77%.
- Its valuation is also low compared with leading peers, so on a forward basis it reads as undervalued.
- The cautions are equally clear.
- First, if this year's front-loaded marketing and hiring investment continues, the near-term recovery in operating profit could be slower than expected.
- Second, if the convertible bonds convert into shares, dilution occurs.
- Third, aesthetic medical devices are sensitive to the economy and consumer sentiment, so growth could slow if overseas demand wavers.
- Ultimately this is a stock that is strong when export expansion and an earnings recovery are confirmed together, and weaker if the investment burden drags on or overseas demand cools.
🔎 Valuation vs peers Undervalued
Peers were chosen by actual business — 'energy-based aesthetic medical devices (laser, RF, ultrasound) and procedure consumables' — rather than by simple industry code; Classys is the most direct peer (RF/ultrasound aesthetic devices plus consumables), while Pharma Research and Hugel are adjacent peers addressing the same aesthetic-medical market in different ways.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Classys | 24.77x | 5.91x | 23.86% |
| Pharma Research | 19.44x | 4.66x | 23.95% |
| Hugel | 20.61x | 3.06x | 14.82% |
Classys, the closest in business substance, trades at a P/E of 24.8x and a P/B of 5.9x, and Pharma Research at a P/E of 19.4x and a P/B of 4.7x, whereas Wontech is markedly lower at a P/E of 13.9x and a P/B of 3.1x. Its growth (revenue +36%) and profitability (ROE 22.4%) are at similar levels to theirs. The trailing P/B looks somewhat high, but given the net cash and strong cash generation it is better judged by earnings and cash flow than by an asset multiple. In particular, on a forward basis reflecting this year's net-profit estimate the multiple falls further, widening the discount to peers. That said, the possibility of convertible-bond dilution and the economic sensitivity of aesthetic medical-device demand are also weighed as discount factors.
Price history Close · MA20 · MA60
The latest close is ₩5,480 and the market capitalization is ₩490.9 billion. The price sits below its 20-day moving average (₩6,009) and below its 60-day moving average (₩7,212). 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 36.6, a neutral level. The one-month change is -24.1%, the three-month change is -17.6%, and the position relative to the 52-week high is -58.9%. Relative strength versus the KOSDAQ is 49 (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 49% of all stocks. Over the past three months it outpaced the index by 5.6%. 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 +5.64% / 6M -18.44% / 12M -50.67%
Key metrics vs sector median
Valuation
The P/E of 13.94x is below the sector median (22.72x). The P/B of 3.12x is above the sector median (1.61x).
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 1.133x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 22.4%, above the sector average (5.0%). The operating margin is 33.0%. The debt ratio is 138.0%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $76.6M | $76.4M | $103.9M | +36.08% ↑ faster |
| Operating profit | $30.5M | $23.1M | $34.3M | +48.57% ↑ faster |
| Net profit | $25.7M | $19.3M | $23.3M | +20.98% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $33.8M | $54.0M | $76.6M | $76.4M | $103.9M |
| Operating profit | $6.9M | $17.7M | $30.5M | $23.1M | $34.3M |
| Net profit | $11.3M | $8.9M | $25.7M | $19.3M | $23.3M |
| Revenue CAGR | 4-yr avg 32.38% | ||||
Revenue rose 36.1% year over year (2023 ₩115.6 billion → 2024 ₩115.3 billion → 2025 ₩156.8 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit rose 48.6% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 32.4%. The two-year revenue CAGR is 16.5%. In the most recent quarter (Q1 2026), revenue was 7.6% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- ROE of 22.4% points to solid profitability.
- Revenue grew 36.1% 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
- 2026-05-14FilingDecided to issue ₩75.0 billion of privately placed, unsecured convertible bonds with a 0% coupon rate; use of proceeds ₩50.0 billion operating funds and ₩25.0 billion debt repayment, conversion price ₩8,270.Secures growth and direct-sales funds without an interest burden, but there is a possibility of dilution if the shares are later converted (medium term). Source
- 2026-05-13EarningsFiled the first-quarter 2026 report: revenue ₩40.2 billion (+7.6%), gross margin 71.1%, operating profit ₩11.2 billion (lower on expanded investment-type SG&A).Exports and margin improvement raised the quality of revenue, while the drop in profit was due to marketing and hiring investment (near term). Source
- 2026-05-12DividendDisclosed key details of a treasury-share acquisition trust agreement, part of a shareholder-return policy of buying back and cancelling treasury stock.Buying back and cancelling treasury shares reduces the floating share count and raises the portion belonging to shareholders (near to medium term). Source
- 2026-04-16FilingReported the results of a treasury-share disposal, part of a shareholder-return and compensation policy using treasury stock.The net dilution effect varies with the mix of treasury-share disposal, cancellation and use (medium term). Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-22Disclosure
- 2026-05-20PeriodicQuarterly report (amended)
- 2026-05-14Material-fact report
- 2026-05-13Disclosure
- 2026-05-13PeriodicQuarterly report
- 2026-05-12TreasuryMaterial-fact report
- 2026-05-06OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-30Disclosure
- 2026-04-17OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-16TreasuryTreasury-stock disposal decision
- 2026-04-10OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-10OwnershipOfficers'/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.