Nextchip designs and sells system semiconductors that process video signals, using a fabless model in which it handles only the design and owns no factory of its own. Its mainstays are video-processing chips for automotive cameras and video-transmission chips for security and CCTV, positioning it in a field where demand grows as vehicle cameras and driver-assistance features spread. On December 24, 2025 it disclosed a supply contract worth ₩7.1 billion (22.0% of recent annual revenue), followed in January 2026 by a first-tranche convertible bond (₩18.9 billion, conversion price ₩10,802) and the December 2025 listing of new shares from a rights offering, which topped up operating and investment funds while also increasing the share count. What stands out is that three straight years of revenue growth and three straight years of narrowing operating losses are appearing together, with the price down 64% from its high in a recovery phase - a strength - while operating and net income are still in the red, the debt ratio is a high 321%, and the rights offering and convertible bond can dilute shares; the key is to confirm, quarter by quarter, that revenue growth and a narrowing loss continue together.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 321.1%).
- The most recent full-year net result was a loss.
- Revenue rose 22.9% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 34.8% higher than a year earlier.
- ROE is -87.9% (total-net basis). It is below the sector average.
- Operating margin is -32.6%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder NC&Co 23.01% (corporate)
Controlling bloc incl. related parties 24.72%
With the controlling bloc holding 25%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- Nextchip designs and sells system semiconductors that process video signals (using a fabless model that handles only the design and owns no factory of its own).
- Its mainstays are video-processing chips for automotive cameras and video-transmission chips for security and CCTV, positioning it in a field where demand grows as cameras that show a vehicle's surroundings multiply and driver-assistance features spread.
- With a market cap of ₩83.5 billion, it is not especially large, so it is worth watching how a single filing affects both results and the share count alongside the progress of the business.
- The latest closing price is ₩2,185 and the market cap is ₩71.9 billion.
- The price sits below both the 20-day line (₩2,808) and the 60-day line (₩4,318).
- Trading beneath both its short- and mid-term moving averages, the trend is subdued.
- The RSI (an indicator comparing upward and downward momentum over the past 14 days on a 0-100 scale) is 28.5, close to oversold territory.
- The price is down 35.3% over one month and 38.9% over three months, and stands 69.5% below its 52-week high.
- Its relative strength versus the KOSDAQ is 44 (on a 1-99 scale that weights recent one-year returns against the index more heavily toward the present; higher means stronger than the market).
- That places it in roughly the top 57% of all stocks by strength.
- Over the past three months it has lagged the index by 25.8%.
- Chart readings are best interpreted alongside trading volume and the dates of filings.
- Recent annual revenue was ₩39.7 billion, with an operating loss of ₩12.9 billion and a net loss of ₩16.0 billion, so the company is still loss-making.
- With an operating margin of -32.6%, ROE (how much it earns in a year on its equity) of -87.9%, and a debt ratio (debt relative to equity) of 321.1%, both profitability and financial stability are clearly weak.
- Because earnings are negative, the P/E ratio (how many times one year's earnings the price represents) cannot be calculated, and the P/B (how many times book value the price represents) is 3.96x.
- For a company running continued losses, though, it is hard to conclude on value from last year's confirmed figures alone.
- If revenue is growing quickly while the loss narrows, what really drives value is how fast the loss closes, more than today's ratios.
- So rather than flatly labeling a P/B of 4.60x as expensive, it is reasonable to watch alongside it the point at which earnings turn positive.
- Revenue climbed steadily over the past three years - ₩24.5 billion in 2021, ₩12.9 billion in 2022, ₩16.2 billion in 2023, ₩32.3 billion in 2024, and ₩39.7 billion in 2025 (+22.9% in 2025, +99.7% in 2024).
- Revenue in the latest quarter, Q1 2026, also rose 34.8% year on year to ₩11.7 billion, so double-digit growth is continuing this year as well.
- The more important change is in the loss.
- The operating loss narrowed each year, from ₩27.4 billion in 2022 to ₩22.5 billion in 2023, ₩18.4 billion in 2024, and ₩12.9 billion in 2025, with the net loss closing in the same direction.
- The pattern of growing revenue while shrinking losses, now in its third year, is this company's core growth story.
- As long as the demand axis of automotive cameras and spreading driver-assistance features stays alive, the pace of loss reduction could quicken as the revenue scale approaches breakeven.
- On December 24, 2025 the company disclosed a single supply contract.
- At ₩7.1 billion, equal to 22.0% of recent annual revenue, the timing and period of revenue recognition, and whether the transaction is one-off or repeatable, shape the medium-term picture.
- On January 12, 2026 there was a filing related to a first-tranche convertible bond (bond amount ₩18.9 billion, conversion price ₩10,802), which must be viewed together with its funding purpose and future changes to the share count.
- And on December 11, 2025 a rights offering was fully paid in at 100%, with the new shares listed on December 24.
- Because rights offerings and convertible bonds have two sides - topping up operating and investment funds while increasing the share count - the point to confirm is whether the funds raised actually flow through to revenue and a narrower loss.
- Nextchip is an automotive and security video-semiconductor company in a recovery phase of rising revenue and shrinking losses.
- The strengths are clear.
- Three straight years of revenue growth and three straight years of narrowing operating losses are appearing together, and the price is down 64% from its high, a level where expectations have fallen sharply.
- The cautions are just as clear.
- Operating and net income are still in the red, the debt ratio is a high 321%, and the recent rights offering and convertible bond can dilute shares.
- In short, this is a phase where the recovery story gains force if the pace of loss reduction holds and new contracts and automotive-camera demand flow through to revenue, and one where high debt and the burden of additional financing can resurface if growth stalls or the loss reduction halts.
- Rather than concluding one way or the other, the best way to view this stock is to confirm quarter by quarter that revenue growth and a narrowing loss are improving together.
🔎 Valuation vs peers Overvalued
Public-data peers with adjacent market caps within semiconductors.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| AL Tech | — | 0.83x | -9.67% |
| KRM | — | 1.52x | -19.96% |
| Ajin Extec | 102.41x | 2.08x | 2.03% |
The comparison starts with public-data peers of similar market cap within semiconductors. The current P/E ratio (how many times one year's earnings the price represents) cannot be confirmed, and the P/B (how many times book value the price represents) is 3.96x. That said, smaller-cap names are heavily swayed by earnings volatility and funding-related filings, so no firm conclusion was drawn from last year's confirmed results alone. The outlook box is based on a DART seasonality approximation.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩57.7 billion | — | — |
| Next quarter | Q2 2026 | ₩12.6 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩2,185 and the market capitalization is ₩71.9 billion. The price sits below its 20-day moving average (₩2,808) and below its 60-day moving average (₩4,318). 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 28.5, near oversold territory. The one-month change is -35.3%, the three-month change is -38.9%, and the position relative to the 52-week high is -69.5%. Relative strength versus the KOSDAQ is 44 (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 44% of all stocks. Over the past three months it lagged the index by 25.8%. 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 -25.76% / 6M -31.13% / 12M -58.81%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 3.96x 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 -32.6%. The debt ratio is 321.1%, so the financial structure is somewhat high.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $10.7M | $21.4M | $26.3M | +22.95% ↓ slower |
| Operating profit | -$14.9M | -$12.2M | -$8.6M | — |
| Net profit | -$17.7M | -$13.7M | -$10.6M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $16.2M | $8.5M | $10.7M | $21.4M | $26.3M |
| Operating profit | -$8.9M | -$18.2M | -$14.9M | -$12.2M | -$8.6M |
| Net profit | -$14.3M | -$18.2M | -$17.7M | -$13.7M | -$10.6M |
| Revenue CAGR | 4-yr avg 12.83% | ||||
Revenue rose 22.9% year over year (2023 ₩16.2 billion → 2024 ₩32.3 billion → 2025 ₩39.7 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 56.7%. In the most recent quarter (Q1 2026), revenue was 34.8% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- Revenue grew 22.9% year over year, a sign of growth.
Points to watch
- Debt far exceeds equity (debt ratio 321.1%).
- 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.
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2025-12-24ContractSingle supply contract signed: contract value ₩7.1 billion, 22.0% of recent revenueThe contract value and term are central to how revenue will be recognized. Whether it is a one-off or a repeatable transaction shapes the medium-term reading. Source
- 2026-01-12UpdateAcquisition of bonds before maturity after issuing convertible bonds (including overseas convertible bonds) (first tranche): bond-related amount ₩18.9 billion, conversion price ₩10,802A filing to view together with its funding purpose and the change in share count. Where a facility or operating purpose is stated, the key is whether the investment is actually carried out and linked to revenue. Source
- 2025-12-11UpdateSecurities issuance result (voluntary disclosure) (rights offering): the rights offering (public offering of forfeited shares after allocation to existing shareholders) resolved at the initial board meeting on September 2, 2025 has been fully paid in at 100% as described above. 2. Future schedule - scheduled new-share listing date: December 24, 2025. * Related filing 2025-12-05 rights offering or stock-related matterA filing to view together with its funding purpose and the change in share count. Where a facility or operating purpose is stated, the key is whether the investment is actually carried out and linked to revenue. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩2,185 | ₩2,185 | Confirmed | link |
| Latest quarterly results | revenue ₩11.7 billion, operating profit -₩2.4 billion | revenue ₩11.7 billion, operating profit -₩2.4 billion | Confirmed | link |
| Annual results | revenue ₩39.7 billion, operating profit -₩12.9 billion | revenue ₩39.7 billion, operating profit -₩12.9 billion | Confirmed | link |
| Contract filing source text | ㆍapprox. : approx. ₩7.1 billion · revenue 22.0% | ㆍapprox. : approx. ₩7.1 billion · revenue 22.0% | Confirmed | link |
| Financing filing source text | : ₩18.9 billion · ₩10,802 | : ₩18.9 billion · ₩10,802 | Confirmed | link |
| Financing filing source text | : 2025 09 02 100% . 2. - : 2025 12 24 ※ 2025-12-05 | : 2025 09 02 100% . 2. - : 2025 12 24 ※ 2025-12-05 | Confirmed | link |
| Outlook box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-05-15PeriodicQuarterly report
- 2026-03-26Shareholders' meeting notice
- 2026-03-20OwnershipOwnership-change filing
- 2026-03-17Disclosure
- 2026-03-17PeriodicAnnual business report
- 2026-03-17Audit report
- 2026-03-16Disclosure
- 2026-03-10Disclosure
- 2026-03-10Shareholders' meeting notice
- 2026-02-25Shareholders' meeting notice
- 2026-02-10OwnershipOwnership-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.