Jaram Technology is a fabless semiconductor company that only designs chips, with no factory of its own. Its core product is the XGS-PON chip, which links multiple subscribers over a single optical cable at 10Gbps in both directions, and it supplies optical-communications system chips for 5G base stations and ultra-high-speed internet networks to domestic telecom carriers and global equipment makers such as Nokia, while also expanding into on-device AI chips. In the first quarter of 2026 revenue surged +67.4% and the net loss narrowed from ₩6.8 billion to ₩250 million, signaling that earnings have passed a trough and turned upward; over the same period, repeated conversion requests on its first convertible bond series eased the debt burden but increased the share count. The point to watch is that as mass production feeds into revenue and profit and a return to profitability comes into view, the growth expectations embedded in a P/B of roughly 6x and a P/S of about 20x gain support and the case strengthens; but the company is still loss-making, with a debt ratio of 215.8% and share dilution from bond conversion, so it is a growth-inflection stock that weakens if mass production and orders are delayed.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 215.8%).
- The most recent full-year net result was a loss.
- Revenue fell 52.0% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 67.4% higher than a year earlier.
- ROE is -19.2% (total-net basis). It is below the sector average.
- Operating margin is -66.4%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder Baek Jun-hyun 30.25% (individual)
Controlling bloc incl. related parties 57.59%
With the controlling bloc holding 58%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Jaram Technology is a fabless semiconductor company that specializes only in chip design and owns no factory.
- Its main products are system chips for optical communications, the most important of which is the XGS-PON chip.
- This chip bundles multiple base stations and subscribers over a single optical cable, allowing data to be exchanged at 10 gigabits per second (10Gbps) in each direction, and it is used to connect 5G base stations and ultra-high-speed internet networks.
- The company supplies this chip both as a standalone part and in module (stick) form combined with optical components, delivering to domestic telecom carriers and global network-equipment makers such as Nokia.
- On top of this, it is broadening its design scope into areas such as RISC-V-based on-device AI chips.
- It is most accurate to understand this as a business that designs chips for communications infrastructure and sells them to equipment makers.
- The latest close is ₩21,100 and the market cap is ₩145.7 billion.
- The price sits below the 20-day line (₩26,238) and below the 60-day line (₩40,442).
- Trading below both the short- and mid-term moving averages, the trend is on the depressed side.
- RSI (a supporting gauge that measures upward versus downward strength over the past 14 days on a 0-100 scale) is 29.8, close to depressed territory.
- The 1-month change is -33.2%, the 3-month change is -53.9%, and the position versus the 52-week high is -65.4%.
- Relative strength versus KOSDAQ is 38 (1-99, converting return versus the index over the past year with more recent weight; higher means stronger than the market).
- That places it in roughly the top 62% of all stocks by strength.
- Over the past three months it lagged the index by 40.4%.
- Chart reading is best done alongside trading volume and the dates of disclosures.
- Because the company is still loss-making, no P/E ratio can be calculated; instead, the P/B (how many times the company's net assets the share price represents) is about 6x and the P/S (how many times a year's revenue the share price represents) is about 20x.
- High figures like these mean the market is pricing in not current earnings but revenue and profit expected to grow ahead.
- For a company whose earnings are inflecting, like Jaram, trailing P/E and P/B (based on last year's confirmed results) do not represent true value well, so it is better to look at revenue and profit trends from this year onward as mass production ramps up.
- Profitability metrics remain in loss territory, with ROE (how much is earned in a year on equity) at -19.2% and an operating margin of -66.4%, while the debt ratio (debt versus equity) is 215.8% and the current ratio is 104%.
- In short, the financial cushion is tight, but the fact that the loss is narrowing as revenue grows is the change that set the direction of earnings.
- Five-year revenue was uneven: ₩14.3 billion (2021) → ₩16.1 billion → ₩11.6 billion → ₩22.2 billion (2024) → ₩10.6 billion (2025), and operating and net profit swung between profit and loss.
- 2025 was a trough year, with revenue down 52% from the prior year as existing project sales dropped off, producing an operating loss of -₩7.1 billion and a net loss of -₩6.8 billion.
- Then first-quarter 2026 revenue reached ₩5.18 billion, up 67.4% year on year, a single quarter approaching half of all of last year's revenue (₩10.6 billion).
- The quarterly net loss also narrowed markedly to -₩250 million versus -₩6.8 billion for all of last year.
- This revenue jump is the result of the company entering mass production of its next-generation optical-communications chip (XGS-PON) and actual deliveries to network-equipment customers rising, as demand backed by 5G and optical-subscriber-network investment, along with new-product pricing and volume, began to show up in quarterly results.
- Once mass production settles, the fabless model lets margins accrue quickly on additional volume, so whether the revenue gain flows through to earnings improvement is the key to this year's growth.
- That said, the exact timing and scale of a return to profit can vary with mass-production volume and the quarter in which sales are recognized, so this year's forward P/E based on expected results becomes meaningful only after a return to profit is clear.
- Recent disclosures fall broadly into two strands.
- The first is the quarterly and annual reports, which confirm the first-quarter 2026 revenue surge and the narrowing loss.
- The second is the exercise of conversion rights on the first convertible bond series, which recurred in March-April 2026 along with a disclosure adjusting the conversion price, meaning previously issued convertible bonds are being converted into shares.
- In that case the company's debt burden eases, but the share count rises and existing shareholders' stakes are diluted, a double-edged effect.
- On top of this, large-holding reports were filed several times as major shareholders' stakes shifted.
- This is a moment when business momentum (XGS-PON mass production) and capital-structure change (bond conversion) are proceeding at the same time.
- The strengths are clear.
- The company has a distinct growth theme in next-generation optical-communications chips, and with mass production beginning in 2026 quarterly revenue is actually rising fast while the loss has narrowed sharply (Q1 revenue +67.4%, net loss from -₩6.8 billion to -₩250 million for the quarter).
- In other words, the numbers are signaling that earnings have passed a trough and turned upward.
- Points to watch together include the fact that the company is still loss-making, the 215.8% debt ratio and tight current ratio, and the rise in share count (dilution) from bond conversion.
- A valuation of roughly 6x P/B and 20x P/S is a price that already embeds much of the expectation that mass production feeds into revenue and profit, so as the revenue ramp and a return to profit come into view the basis for that valuation gets filled in and the case strengthens; conversely, if mass production and orders are delayed or the loss persists, that expectation empties out and the case weakens.
- In conclusion this is a company whose value is essentially the speed of its growth inflection: strong as long as quarterly revenue and earnings head up, and weak if that flow stalls, tied directly to earnings progress.
🔎 Valuation vs peers Overvalued
KOSDAQ fabless chip designers that only design chips with no factory, selecting communications, SoC and semiconductor-IP design houses with a similar market cap and business character as the peer set.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Anapass | 59.27x | 2.13x | 3.60% |
| Telechips | 0.00x | 1.07x | -43.11% |
| Chips&Media | 42.91x | 3.01x | 7.01% |
Against the peer set of Anapass (P/B 2.67), Telechips (P/B 1.36) and Chips&Media (P/B 3.64), Jaram Technology's P/B of 6.06x and P/S of 20.3x are distinctly higher. Because it is loss-making, comparison by P/E is difficult in itself, and trailing metrics based on last year's confirmed results have large limitations in a period where revenue is inflecting. This high valuation reflects, ahead of time, the future expectation that 2026 mass production leads to profit as planned, and the company's official mass-production schedule and quarterly earnings trend (revenue recovery, narrowing loss) are the basis for it. Therefore, looking only at current figures, it is clearly at a premium versus peers and hard to see as cheap. Whether that premium is justified, however, hinges on the pace of the mass-production ramp and the timing of the return to profit, so it is better viewed conditionally than asserted.
Price history Close · MA20 · MA60
The latest close is ₩21,100 and the market capitalization is ₩145.7 billion. The price sits below its 20-day moving average (₩26,238) and below its 60-day moving average (₩40,442). 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 29.8, near oversold territory. The one-month change is -33.2%, the three-month change is -53.9%, and the position relative to the 52-week high is -65.4%. Relative strength versus the KOSDAQ is 38 (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 38% of all stocks. Over the past three months it lagged the index by 40.4%. 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 -40.41% / 6M -38.64% / 12M -48.20%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 4.08x is above the sector median (2.10x).
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
The operating margin is -66.4%. The debt ratio is 215.8%, so the financial structure is somewhat high.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $7.7M | $14.7M | $7.1M | -51.99% ↓ slower |
| Operating profit | -$1.4M | $242,217 | -$4.7M | -2033.06% |
| Net profit | -$840,944 | $1.3M | -$4.5M | -445.07% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $9.5M | $10.7M | $7.7M | $14.7M | $7.1M |
| Operating profit | $193,480 | $134,510 | -$1.4M | $242,217 | -$4.7M |
| Net profit | $775,721 | $409,166 | -$840,944 | $1.3M | -$4.5M |
| Revenue CAGR | 4-yr avg -7.16% | ||||
Revenue fell 52.0% year over year (2023 ₩11.6 billion → 2024 ₩22.2 billion → 2025 ₩10.6 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 2033.1% year over year. Over the 5 years on record, revenue compound annual growth (CAGR) is -7.2%. The two-year revenue CAGR is -4.3%. In the most recent quarter (Q1 2026), revenue was 67.4% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 52.0% year over year (3-year trend: mixed).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-15EarningsFirst-quarter 2026 report filed. Revenue of about ₩5.18 billion, up 67.4% year on year; quarterly net loss of -₩250 million, sharply narrower than the prior full-year loss.Short term: revenue recovery and a narrowing loss signal the early stage of the mass-production ramp. Medium term: the timing and pace of the return to profit are what justify the valuation. Source
- 2026-04-29FilingExercise of conversion rights on the first convertible bond series. Conversion requests recurred through March-April, and a conversion-price adjustment was disclosed on April 30.Short term: eased debt burden. Medium term: new-share issuance increases the share count and dilutes existing shareholders. Source
- 2026-03-18Earnings2025 annual report filed. Revenue of about ₩10.6 billion (-52% year on year), operating loss of about -₩7.1 billion, and net loss of about -₩6.8 billion confirm an earnings trough.Short term: weak confirmed results. Medium term: a trough tied to the end of existing projects, suggesting a transition into 2026 new-product mass production. Source
- 2026-06-02FilingLarge-holding report (general) filed. Disclosure of changes in major shareholders' holdings.Short term: a supply-and-demand variable. Medium term: ownership-structure changes warrant monitoring. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-02OwnershipOwnership-change filing
- 2026-05-15PeriodicQuarterly report
- 2026-04-30Disclosure
- 2026-04-29Disclosure
- 2026-04-28OwnershipOwnership-change filing
- 2026-04-06OwnershipOwnership-change filing
- 2026-04-01Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-24Disclosure
- 2026-03-18PeriodicAnnual business report
- 2026-03-12Audit report
- 2026-03-11Disclosure
📖 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.