HPSP (403870) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
HPSP makes 'high-pressure hydrogen annealing (HPA)' equipment that removes remaining defects on semiconductor wafers by treating them at low temperature in a roughly 20-atmosphere hydrogen environment. Most of its revenue comes from this equipment plus parts and maintenance, and adoption has grown in the GAA structure of leading logic and in high-performance DRAM conversion processes, where the company has held a monopoly-like position that is hard to substitute. Recent filings center on shareholder returns and a patent dispute: a value-up voluntary disclosure and treasury-share acquisitions and disposals, along with a payout ratio of 55.7%, are notable, while in the high-pressure hydrogen annealing patent dispute with the latecomer Yesti, a May tribunal ruling invalidated one HPSP patent and a June patent court found 'no infringement by Yesti'. What stands out is that its hard-to-substitute monopoly position, a 52% operating margin, a 23.6% ROE, almost no debt, and returning more than half of earnings are strengths, with AI-led advanced-process transition as a favorable backdrop; the caution is that results hinge on effectively a single product and the monopoly moat has been put to the test by Yesti's market entry and the patent rulings.
This page organises public market and filing data for information purposes. It is not a recommendation to buy or sell, nor investment advice. Metrics labelled “forward” are our own unverified estimates. Please verify with the original DART filings and decide at your own responsibility.
30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Semiconductor Equipment” (Semiconductors & IT Components · Semiconductor & Display Equipment), a type typically read first through forward P/E.
Chip-equipment makers see orders surge and dry up with their customers' capital-spending cycles, so earnings can move sharply from here. Since future orders and profits drive the price more than past results, forward P/E, based on expected earnings, is the first lens.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 4.7% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 13.4% lower than a year earlier.
- ROE is 28.1% (total-net basis). It is above the sector average.
- Operating margin is 52.0%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2025-12-31
Largest shareholder Heat 2025 Holdings 39.23% (corporate)
Controlling bloc incl. related parties 39.23%
With the controlling bloc holding 39%, the ownership structure is stable.
🔎 In-depth analysis Reading
HPSP makes and sells 'high-pressure hydrogen annealing (HPA)' equipment that, in making semiconductors, removes defects left on wafers by treating them at low temperature in a high-pressure (about 20-atmosphere) hydrogen environment. Its product is effectively a single line of GENI-SYS chamber equipment, and most of its revenue comes from this equipment plus parts and maintenance. As process nodes grow finer, the need for this process - fixing defects at low temperature - increases, and adoption is rising especially in the GAA (gate-all-around) structure of leading logic and in high-performance DRAM conversion processes. Holding a monopoly-like position in this field that is hard to substitute has been the core of this company.
The latest close is ₩35,800 and the market capitalization is ₩2.9 trillion. The price sits below its 20-day moving average (₩37,712) and below its 60-day moving average (₩48,002). 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 44.2, a neutral level. The one-month change is -13.7%, the three-month change is -36.8%, and the position relative to the 52-week high is -57.1%. Relative strength versus the KOSDAQ is 67 (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 68% of all stocks. Over the past three months it lagged the index by 2.1%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Profitability is this company's greatest strength. The operating margin is about 52% and the net margin about 42%, remarkably high for a manufacturer, and ROE (how much is earned in a year on equity) is 23.6%. The debt ratio (debt relative to equity) is a very low 19.9%, the current ratio (cash-like assets versus debt due within a year) is 4.76x, and interest coverage exceeds 1,500x, placing financial stability at the very top tier. That said, the P/E ratio (how many times one year's earnings the price is) at 56.9x and the P/B (how many times book net asset value the price is) at 10.49x look high on the surface. These figures are calculated on 2025 results, a year in which earnings stepped back, so it should be viewed together with the fact that on this year's basis, with results rising again, the burden falls considerably.
Over five years, revenue and net profit grew sharply from ₩91.8 billion and ₩35.3 billion in 2021 to ₩179.1 billion and ₩80.4 billion in 2023, then passed through a stagnant, catch-your-breath phase in 2024-2025 with revenue between ₩173.0 billion and ₩181.4 billion and net profit between ₩72.7 billion and ₩86.3 billion. In 2025 revenue fell 4.7% and net profit 15.8%. In the first quarter of 2026, however, while revenue and operating profit each fell in the low teens percent under off-season effects, net profit rose 63.6%, the result of non-operating income such as financial income from a hefty cash pile. This year, a so-called 'low-first-half, high-second-half' recovery is expected, as the advanced-logic (GAA) and high-performance DRAM process conversion driven by AI adoption lifts equipment demand into the second half. Reflecting this flow, this year's net profit is drawn to recover comfortably above last year's ₩72.7 billion, and on that basis the valuation falls markedly below the surface P/E.
Recent filings center on shareholder returns and a patent issue. In late April it voluntarily disclosed a corporate value-up plan, and in May it reported treasury-share acquisitions and disposals several times. A payout ratio of 55.7%, returning more than half of earnings to shareholders, is also a feature of this company. On the other hand, the high-pressure hydrogen annealing patent dispute with the latecomer Yesti continued: a May tribunal invalidated one HPSP patent (a double-wall structure) and a June patent court found 'no infringement by Yesti' on a chamber-door-related patent. With Yesti stating that it would supply equipment to two global semiconductor customers in 2026, the long-standing monopoly setup has been put to the test.
This is a stock with clear strengths and cautions. The strengths are the monopoly-like position in hard-to-substitute high-pressure hydrogen annealing equipment, an operating margin reaching 52% and a 23.6% ROE, an almost debt-free balance sheet, and shareholder returns of more than half of earnings. On top of this, the advanced-process transition led by AI is a favorable backdrop for medium- to long-term demand. The cautions are clear too: results hinge on effectively a single product, and that product's monopoly moat could weaken from Yesti's market entry and the patent rulings. In sum, if the advanced-process transition revives in the second half as expected and impairment of the monopoly position is limited, both results and valuation work strongly, but if latecomer competition quickly eats into share, the high margin and premium could be pressed down.
🔎 Valuation vs peers Fairly valued
Compared against the group of front-end semiconductor equipment (deposition and surface-treatment) makers.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Jusung Engineering | 173.72x | 10.57x | 6.05% |
| Wonik IPS | 54.09x | 4.63x | 8.66% |
| PSK | 44.70x | 6.19x | 17.57% |
A surface P/E of 56.9x and P/B of 13.4x look high because they are on 2025 results, when earnings stepped back, but this has the limitation of not reflecting the earnings inflection. On a forward basis that reflects this year's recovery from the advanced-process transition, the valuation burden falls clearly, and in that case the multiple drops even below peer equipment makers such as Jusung Engineering, Wonik IPS, and PSK. On top of this, HPSP's margins and ROE being the highest in the peer group justify a premium. That said, the possibility that the monopoly moat weakens from Yesti's market entry and the patent rulings caps the premium at the upper bound, so overall it is viewed as 'fair'.
Price history Close · MA20 · MA60
The latest close is ₩35,800 and the market capitalization is ₩2.9 trillion. The price sits below its 20-day moving average (₩37,712) and below its 60-day moving average (₩48,002). 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 44.2, a neutral level. The one-month change is -13.7%, the three-month change is -36.8%, and the position relative to the 52-week high is -57.1%. Relative strength versus the KOSDAQ is 67 (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 68% of all stocks. Over the past three months it lagged the index by 2.1%. 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 -2.10% / 6M +15.00% / 12M +32.43%
Key metrics Computed vs sector median
Valuation
The P/E of 40.55x is below the sector median (54.09x). The P/B of 10.06x is above the sector median (6.19x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
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) Estimate
Model output — not a price target. This is what the formula returns under the assumptions below, not a view on where the share price should go.
DCF (discounted cash flow) estimate — discount rate 11.0%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.377x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 28.1%, above the sector average (18.0%). The operating margin is 52.0%. The debt ratio is 34.1%, so the financial structure is stable.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $125.8M | $127.4M | $121.5M | -4.65% ↓ slower |
| Operating profit | $66.9M | $66.0M | $63.2M | -4.30% ↓ slower |
| Net profit | $56.5M | $60.6M | $51.0M | -15.78% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $64.5M | $111.9M | $125.8M | $127.4M | $121.5M |
| Operating profit | $31.8M | $59.8M | $66.9M | $66.0M | $63.2M |
| Net profit | $24.8M | $46.4M | $56.5M | $60.6M | $51.0M |
| Revenue CAGR | 4-yr avg 17.18% | ||||
Revenue fell 4.7% year over year (2023 ₩179.1 billion → 2024 ₩181.4 billion → 2025 ₩173.0 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 4.3% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 17.2%. The two-year revenue CAGR is -1.7%. In the most recent quarter (Q1 2026), revenue was 13.4% lower than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- ROE of 28.1% points to solid profitability.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 4.7% year over year (3-year trend: mixed).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-04-30IRAnnounced a corporate value-up plan via voluntary disclosureFormalizes shareholder returns and medium- to long-term targets, presenting the direction of capital deployment. Favorable to investor sentiment over the medium term. Source
- 2026-05-29FilingDisclosure of treasury-share disposal result (part of executing shareholder returns)Reaffirms the shareholder-return stance alongside the high payout ratio. Affects near-term supply-demand. Source
- 2026-05-15EarningsFirst-quarter 2026 report filed (revenue and operating profit down, net profit up)Off-season shrank the top line, but non-operating income lifted net profit. A second-half recovery is the key. Source
- 2026-05-13UpdateMultiple filings on executive and major-shareholder holdings of specified securities and related sharesItems related to shareholding changes and stock compensation; the free float and dilution factors need checking. Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-05-29TreasuryTreasury-stock disposal decision
- 2026-05-26OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-22OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-15PeriodicQuarterly report
- 2026-05-13TreasuryMaterial-fact report
- 2026-05-13Disclosure
- 2026-05-13Shareholders' meeting notice
- 2026-05-13Amended filing
- 2026-05-13Amended filing
- 2026-05-11TreasuryTreasury-stock disposal decision
- 2026-04-30Disclosure
- 2026-04-03OwnershipOfficers'/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.