Openedges Technology does not fabricate chips itself but makes the design blocks (IP) that go inside chips and licenses them to manufacturers; it provides memory-subsystem IP such as DDR physical layers, controllers, NoC interconnect, and NPUs, earning license fees and per-chip royalties, so new adoptions and the timing of customers' chip mass production drive results. Across May and April, IP license supply contracts were signed in succession, one of them worth about ₩2.35 billion (23.5% of prior-year revenue), and in April it raised about ₩20.0 billion via third-party-allotment convertible preferred stock to shore up R&D and operating funds. What stands out lately is that with memory and NPU IP touching AI and high-performance computing demand and adoptions never letting up, there is leverage in which revenue attaches quickly if accumulated adoptions convert into mass-production royalties and the loss narrows; on the other hand, it is still at a stage where the operating loss is widening, quarterly revenue swings with the timing of license recognition, and the dilution from the fundraising process must be watched together.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 278.5%).
- The most recent full-year net result was a loss.
- Revenue rose 4.8% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 44.3% lower than a year earlier.
- ROE is -176.5% (controlling-interest basis). It is below the sector average.
- Operating margin is -180.0%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder Lee Sung-hyun 15.09% (individual)
Controlling bloc incl. related parties 21.73%
With the controlling bloc holding 22%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- This company is not a place that fabricates semiconductors itself; it makes the design blocks (IP, semiconductor design assets) that go inside chips, lends them to chip makers, and gets paid.
- Its mainstay is memory-subsystem IP, providing together the physical layer that connects DDR memory to the chip (DDR PHY), the controller that manages memory, the pathway along which data moves inside the chip (NoC interconnect), and the NPU (neural processing unit) IP that handles AI computation.
- Revenue splits between the license fee received when the design asset is first handed over, and the royalty received each time a chip containing that design is sold.
- In other words, once adopted into a customer's chip, revenue follows for a long stretch while that chip is in mass production, so new orders (adoptions) and the timing of customers' chip mass production drive results.
- The latest close is ₩10,930 and the market cap is ₩288.0 billion.
- The price sits below its 20-day line (₩12,379) and its 60-day line (₩15,783).
- 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 40.1, a neutral level.
- The one-month change is -16.3%, the three-month change is -27.3%, and the position versus the 52-week high is -49.9%.
- Relative strength versus KOSDAQ is 61 (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 39% of all stocks by strength.
- Over the past three months it lagged the index by 4.6%.
- 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) is 16.87x.
- That said, for an IP-development-stage company not yet earning meaningful profit, it is hard to judge "expensive or cheap" from a single prior-year confirmed metric like P/B alone.
- ROE is -176.5% and operating margin is -180.0%, so profit and loss are still at a loss stage, and while the debt ratio (debt versus equity) is on the somewhat high side at 278.5%, the current ratio is 121%, so it has the short-term capacity to cover debt due within a year.
- For a company like this, what shows the substance is how much of the accumulated adoptions carry over into revenue as license fees and mass-production royalties, rather than trailing (past 12 months) metrics.
- Over five years revenue moved from ₩5.2 billion in 2021 to ₩10.0 billion in 2022, ₩19.6 billion in 2023, ₩15.3 billion in 2024, and ₩16.1 billion in 2025 — peaking once in 2023, then adjusting, and recovering again by 4.8% in 2025.
- The operating result widened in loss from -₩11.1 billion (2021) to -₩28.9 billion (2025), because for an IP company, headcount and R&D spending rise first, before mass-production revenue ramps in earnest.
- Quarterly revenue is choppy depending on when licenses are recognized (there was even a quarter, the fourth quarter of 2023, when ₩13.8 billion was booked at once).
- First-quarter 2026 revenue was ₩2.7 billion, down 44.3% year on year, with an operating result of -₩9.0 billion; this too stems from a structure in which the gap between quarters is large depending on the revenue-recognition timing of big license contracts.
- So it is more accurate to view the annual trend and the accumulation of orders together rather than a single quarter.
- As for future earnings, the company has not disclosed an official outlook, so this write-up does not pin down future earnings in numbers.
- Recent disclosures show the company's business structure as it is.
- On May 27, April 23, and April 1, 2026, semiconductor design-asset (IP) license supply contracts were corrected and signed in succession, one of them worth about ₩2.35 billion, equal to 23.5% of prior-year revenue.
- It is a sign that new adoptions keep coming without a break.
- That said, because licenses can differ between the contract date and the revenue-recognition date, it is best to separately confirm which quarter's results these contracts actually fall into.
- On April 7 it raised about ₩20.0 billion via third-party-allotment convertible preferred stock to shore up R&D and operating funds during the loss period, which also brings the side effect of a rising share count (dilution) if conversion occurs.
- First-quarter confirmed results were disclosed via the May 15 quarterly report, and the company's own explanation was made public through a June 1 investor briefing (IR).
- The strength is that memory-subsystem and NPU IP touch AI and high-performance computing demand, and supply contracts (adoptions) keep coming without a break.
- Because IP, once adopted into a customer's chip, carries royalties for a long stretch while that chip is in mass production, there is leverage in which revenue attaches quickly the moment adoptions accumulate and cross over into mass production.
- At the same time, the points to examine are also clear.
- It is still in operating loss and at a stage where the loss is widening, and quarterly revenue swings widely with the timing of license recognition.
- The dilution in the fundraising process is another variable to watch together.
- In sum, it is a stock that is strong in a phase where accumulated adoptions convert into mass-production royalties and the loss narrows, and weak in a phase where the pace of adoptions turning into revenue is slow or further fundraising recurs.
- Rather than declaring it overvalued from trailing loss metrics alone, following the progress of adoptions turning into revenue is the way to view this company.
🔎 Valuation vs peers Inconclusive
The base classification (game/software) is a KSIC misclassification, so domestic semiconductor names close to the actual business of semiconductor design assets (IP) and fabless were set as peers.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| FADU | — | 186.30x | -391.69% |
| ITM Semiconductor | — | 2.14x | -98.92% |
(a) Like the true-peer loss-stage, growth-phase semiconductor names (FADU, ITM Semiconductor), net profit is negative, so it is hard to line them up by P/E, and P/B also varies widely company to company, limiting simple comparison. (b) The price against asset value (P/B 22.8x) is on the high side, appearing to be a premium zone with expectations priced in, but IP licensing has the trait of accumulated adoptions converting into future royalties, so it is hard to declare it overvalued from the current loss alone. (c) Prior-year confirmed results were a loss, so trailing metrics carry little meaning, and for a forward basis there is no official company outlook, leaving only a seasonality approximation of confirmed DART quarterly results as a reference. For these reasons, it is not declared either undervalued or overvalued, and judgment is left inconclusive.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩3.0 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩10,930 and the market capitalization is ₩288.0 billion. The price sits below its 20-day moving average (₩12,379) and below its 60-day moving average (₩15,783). 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 40.1, a neutral level. The one-month change is -16.3%, the three-month change is -27.3%, and the position relative to the 52-week high is -49.9%. Relative strength versus the KOSDAQ is 61 (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 61% of all stocks. Over the past three months it lagged the index by 4.6%. 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 -4.62% / 6M -14.49% / 12M -23.95%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 16.87x is above the sector median (1.58x).
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 -176.5%, below the sector average (5.0%). The operating margin is -180.0%. The debt ratio is 278.5%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $13.0M | $10.2M | $10.6M | +4.76% ↑ faster |
| Operating profit | -$10.5M | -$16.3M | -$19.2M | — |
| Net profit | -$9.8M | -$18.1M | -$20.0M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $3.4M | $6.6M | $13.0M | $10.2M | $10.6M |
| Operating profit | -$7.3M | -$16.7M | -$10.5M | -$16.3M | -$19.2M |
| Net profit | -$9.7M | -$16.7M | -$9.8M | -$18.1M | -$20.0M |
| Revenue CAGR | 4-yr avg 32.65% | ||||
Revenue rose 4.8% year over year (2023 ₩19.6 billion → 2024 ₩15.3 billion → 2025 ₩16.1 billion), and the three-year trend is 'mixed'. The pace of growth also quickened 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 32.6%. The two-year revenue CAGR is -9.5%. In the most recent quarter (Q1 2026), revenue was 44.3% lower 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.
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-27UpdateCorrected single-sale/supply contract for semiconductor design-asset (IP) license (about ₩2.35 billion, sized at 23.5% of prior-year revenue)Short term: confirmation that new adoptions continue. Medium term: need to check how the timing of license revenue recognition is reflected in later quarters' results. Source
- 2026-04-23UpdateCorrected disclosure of semiconductor design-asset (IP) supply contractShort term: the IP adoption flow continues. Medium term: whether the contract size and term connect to royalties is the key. Source
- 2026-04-07FilingAbout ₩20.0 billion raised via third-party-allotment convertible preferred stockShort term: shoring up R&D and operating funds during the loss period. Medium term: comes with the possibility of a rising share count (dilution) on conversion. Source
- 2026-05-15UpdateQ1 confirmed results disclosed via the quarterly report (2026.03) (revenue ₩2.7 billion, -44.3%)Short term: material confirming the confirmed results. Medium term: the annual trend and accumulation of orders must be viewed together. Source
- 2026-06-01IRCompany explanation made public through an investor briefing (IR)Short term: the company's official explanation channel. Medium term: material for directly checking business progress and adoption status. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Mainstay business (actual industry) | base : ·(KSIC 582) | (IP) | Confirmed | link |
| Nature and size of the supply contract | approx. — base disclosures | (IP) , approx. approx. ₩2.4 billion | Confirmed | link |
| 2026 annual revenue approximation | approx. ₩15.6 billion | — | Unverified | link |
| Latest-quarter (Q1 2026) revenue | ₩2.7 billion | — | Unverified | link |
Recent filings
- 2026-06-01Disclosure
- 2026-05-27Single supply/sales contract (amended)
- 2026-05-15Disclosure
- 2026-05-15Disclosure
- 2026-05-15Amended filing
- 2026-05-15Amended filing
- 2026-05-15PeriodicQuarterly report
- 2026-05-13OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-24OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-24OwnershipOwnership-change filing
- 2026-04-23Single supply/sales contract (amended)
- 2026-04-17OwnershipOwnership-change filing
📖 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.