W-SCOPE Chungju Plant makes the "separator," one of the four key materials in a lithium-ion battery, a thin film that keeps the positive and negative electrodes from touching directly while letting only lithium ions pass through, supplying it to EV and ESS battery-cell makers for revenue. First-quarter 2026 revenue rebounded 162.8% year on year and the operating loss narrowed, and while the shares trade below book equity at a P/B of 0.35x, a debt ratio of 217.5% and a current ratio of 36.4% leave short-term financial capacity tight, with the company plugging the gap by issuing convertible bonds. What stands out lately is that if an EV and ESS demand recovery feeds through into rising separator shipments and a shrinking loss, the low P/B stands out as an undervaluation appeal; conversely, if the recovery is slow or the losses drag on and repeated fundraising follows, the financial and dilution burden takes the lead.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 217.5%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 36.4%).
- The most recent full-year net result was a loss.
- Revenue fell 65.6% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 162.8% higher than a year earlier.
- ROE is -18.1% (controlling-interest basis). It is below the sector average.
- Operating margin is -115.2%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder W-SCOPE Corporation 34.76% (corporate)
Controlling bloc incl. related parties 35.51%
With the controlling bloc holding 36%, the ownership structure is stable.
🔎 In-depth analysis
- W-SCOPE Chungju Plant's flagship product is the "separator," one of the four core materials in a lithium-ion battery.
- A separator is a thin film with fine pores punched into it that keeps the positive and negative electrodes from touching directly to prevent short circuits and fires, while allowing only lithium ions to move through.
- Among these, the company makes the more uniform-surfaced, higher-safety "wet" separator and supplies it to battery-cell makers for EVs and energy storage systems (ESS).
- Because revenue is directly linked to the utilization rates of battery-cell customers and to EV sales volume, the full picture comes into view only when the downstream battery and finished-vehicle demand cycle is viewed alongside the company's own results.
- The latest close is ₩8,540 and the market cap is ₩289.0 billion.
- The price sits below its 20-day line (₩10,735) and its 60-day line (₩14,461).
- Trading below both the short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a gauge that scores upward versus downward force over the past 14 days on a 0-100 scale) is 30.4, a neutral level.
- The one-month change is -30.7%, the three-month change is -45.4%, and the position versus the 52-week high is -58.6%.
- Relative strength versus KOSDAQ is 88 (1-99, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 11% of all stocks by strength.
- Over the past three months it lagged the index by 22.1%.
- Chart reading is best done alongside trading volume and disclosure dates.
- On a confirmed annual (2025) basis, net profit was in the red, so a P/E ratio cannot be computed.
- The P/B (share price versus net assets per share) is 0.32x, meaning the market cap is only about 35% of book equity.
- This means the share price is set below the company's net assets, a clear undervaluation signal from an asset-value standpoint.
- ROE is -18.1% and operating margin is -115.2%, but these figures are all based on confirmed 2025 results (trailing, the past year) when demand had collapsed.
- In other words, the current negative profitability is closer to the result of hitting the bottom of the cycle than to the company's permanent capacity.
- Financial stability needs separate attention: the debt ratio (debt versus equity) is 217.5%, more than double equity, and the current ratio (assets readily convertible to cash within a year versus debt due within a year) is 36.4%, so short-term funding capacity is on the tight side.
- In sum, it is cheap against assets, but profitability and short-term finances are at a stage of confirming recovery, and it is more accurate to view the latest quarterly trend alongside the past year's figures.
- Over five years revenue grew from ₩185.5 billion in 2021 to ₩257.5 billion in 2022 and ₩305.0 billion in 2023, then plunged from ₩322.1 billion in 2024 to ₩110.8 billion in 2025 (about -39.7% a year over the last two years).
- Operating profit likewise deepened into loss, from profits in 2021-2023 (₩40.5 billion, ₩58.0 billion, ₩46.4 billion) to -₩70.9 billion in 2024 and -₩127.6 billion in 2025.
- As EV demand slowed for a stretch and battery-customer utilization fell, separator shipments fell with them.
- The important change shows up in the most recent quarter.
- First-quarter 2026 revenue rose 162.8% year on year to ₩42.9 billion, so on a revenue basis it likely passed the bottom.
- Operating profit was still a loss at -₩20.5 billion, but the loss was smaller than the -₩30.4 billion of the first quarter a year earlier.
- Because rising shipments spread fixed costs across a wider revenue base, the company appears to have entered the path of revenue recovery leading to a narrower loss and then to a profit turnaround.
- That said, because the company has not disclosed a numeric official outlook for this year's results, the "direction" of recovery is confirmed in quarterly results, but the "timing of the profit turnaround" needs more quarters to pin down.
- Recent disclosures pivot on two things.
- One is signs of an earnings recovery.
- Through a fair-disclosure of preliminary consolidated operating results on May 11 and the quarterly report on May 15, it was confirmed that first-quarter revenue rose sharply year on year and the operating loss narrowed.
- The other is fundraising.
- After a convertible-bond (CB) issuance decision on April 7, corrections followed on April 30 and May 11, and on May 6 the issuance outcome of the sixth CB was voluntarily disclosed.
- A convertible bond is debt that can turn into shares, so it secures operating funds while carrying the two-sided effect of possibly diluting existing shareholders as share count rises later.
- Also noted are the April 30 disclosure of an investor briefing (IR), showing the company communicating directly with the market, and the March 27 annual general meeting and outside-director appointment disclosure.
- The strengths are clear.
- The company sits in the position of making a core material for EV and ESS batteries, so it is placed to see shipments recover first when downstream demand turns.
- Indeed, first-quarter 2026 revenue rebounded 162.8% year on year and the loss narrowed, and the shares trade far below book equity at a P/B of 0.35x.
- On an asset-value basis it is amply in a cheap zone.
- At the same time, there are points to watch together.
- Operating and net profit are still in the red; with a debt ratio of 217.5% and a current ratio of 36.4%, short-term financial capacity is tight; and filling that gap with convertible bonds adds the possibility of dilution.
- In the end this is a stock that leans toward the low P/B standing out as an undervaluation appeal "if the EV and ESS demand recovery keeps feeding into rising separator shipments and a shrinking loss," and toward the financial and dilution burden taking the lead "if the demand recovery is slow or the losses drag on and repeated fundraising follows." Following three things together — the pace of revenue recovery, the size of the quarterly loss reduction, and whether further CBs appear — makes the judgment clearer.
🔎 Valuation vs peers Inconclusive
The closest peer by business substance is SK IE Technology, which likewise makes lithium-ion battery separators, with Chunbo and CIS taken as supplementary peers in the battery-material and equipment space. Figures were computed on the site's uniform basis (current price).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| SK IE Technology | — | 0.50x | -8.13% |
| Chunbo | — | 1.02x | -13.64% |
| CIS | 20.28x | 1.15x | 5.66% |
(1) Position versus peers: SK IE Technology, with the same separator core business, has a P/B of 0.45x, while W-SCOPE Chungju Plant trades even lower at 0.35x, cheaper even within the peer group. (2) Premium/discount: it is a clear discount to book equity, but this partly reflects the fundamental weakening of a revenue plunge and losses, so it cannot simply be called "cheap." (3) Limits of trailing and the forward basis: the current P/B and ROE are based on 2025 confirmed results when demand had collapsed, so they fail to capture the inflection where first-quarter 2026 revenue rebounded 162.8%. With no numeric official outlook from the company, only a DART seasonality approximation (annual revenue of about ₩166.3 billion) can be referenced and profit cannot be estimated, so until a profit turnaround and financial stability are confirmed, it is left inconclusive rather than declared undervalued or overvalued.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩53.0 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩8,540 and the market capitalization is ₩289.0 billion. The price sits below its 20-day moving average (₩10,735) and below its 60-day moving average (₩14,461). 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 30.4, a neutral level. The one-month change is -30.7%, the three-month change is -45.4%, and the position relative to the 52-week high is -58.6%. Relative strength versus the KOSDAQ is 88 (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 89% of all stocks. Over the past three months it lagged the index by 22.1%. 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 -22.06% / 6M +60.66% / 12M +13.92%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 0.32x is below the sector median (2.15x).
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 -18.1%, below the sector average (2.0%). The operating margin is -115.2%. The debt ratio is 217.5%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $202.1M | $213.5M | $73.4M | -65.59% ↓ slower |
| Operating profit | $30.7M | -$47.0M | -$84.6M | — |
| Net profit | $35.5M | -$47.9M | -$107.4M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $122.9M | $170.6M | $202.1M | $213.5M | $73.4M |
| Operating profit | $26.8M | $38.5M | $30.7M | -$47.0M | -$84.6M |
| Net profit | -$6.6M | $36.6M | $35.5M | -$47.9M | -$107.4M |
| Revenue CAGR | 4-yr avg -12.09% | ||||
Revenue fell 65.6% year over year (2023 ₩305.0 billion → 2024 ₩322.1 billion → 2025 ₩110.8 billion), and the three-year trend is 'mixed'. The rate of decline widened 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 -12.1%. The two-year revenue CAGR is -39.7%. In the most recent quarter (Q1 2026), revenue was 162.8% 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
- Debt is somewhat higher than equity (debt ratio 217.5%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 36.4%).
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 65.6% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-05-11EarningsFair-disclosure of preliminary consolidated Q1 2026 operating results — revenue of about ₩42.9 billion, up sharply year on year, with operating profit still in loss (loss smaller than in Q1 a year earlier).A short-term positive signal that revenue, which had collapsed on downstream battery-demand slowdown, may have passed its bottom. Whether it turns to profit, however, requires separate confirmation (a medium-term watch point). Source
- 2026-05-15FilingQ1 2026 quarterly report filed — a periodic disclosure that lets confirmed figures of the preliminary results and the financial position (debt ratio, liquidity) be checked together.Primary verification material that confirms and supplements the preliminary results. Alongside the short-term revenue recovery, short-term funding capacity (current ratio of 36.4%) must be checked together (medium-term impact). Source
- 2026-05-06FilingVoluntary disclosure of the issuance outcome of the sixth convertible bond (CB) — a disclosure noting that the previously decided CB issuance was actually completed.A short-term positive for securing operating funds, and at the same time a medium-term burden as later share conversion could raise the share count and dilute existing shareholders. Source
- 2026-04-07FilingMaterial-fact report on the decision to issue convertible bonds — a CB issuance decided to raise operating and facility funds during a loss period (later corrected on April 30 and May 11).It shows the intent to raise funds during a loss period, but comes with rising debt and potential dilution, making it a medium-term risk to weigh together with financial structure and per-share value. Source
- 2026-04-30IRDisclosure of an investor briefing (IR) — notice of a session for the company to explain its business and results directly to market participants.A short-term information event that provides data through the company's official channel and lets one check the company's view on the progress of the demand recovery and its funding plans. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 revenue | ₩42.9 billion | DART | Confirmed | link |
| 2025 annual operating result (loss) | operating profit -₩127.6 billion, net profit -₩162.1 billion | DART | Confirmed | link |
| Fact of convertible bond issuance | 2026 4~5 CB | DART | Confirmed | link |
| 2026 annual revenue approximation | approx. ₩166.3 billion | — | Unverified | link |
Recent filings
- 2026-05-15PeriodicQuarterly report
- 2026-05-11Material-fact report (amended)
- 2026-05-11OwnershipOwnership-change filing
- 2026-05-11EarningsFair-disclosure notice
- 2026-05-06Disclosure
- 2026-04-30Material-fact report (amended)
- 2026-04-30Disclosure
- 2026-04-30EarningsEarnings disclosure
- 2026-04-07Material-fact report
- 2026-03-31OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-27Disclosure
- 2026-03-27Shareholders' 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.