TEMC directly synthesizes and refines rare gases such as neon, krypton, and xenon, along with specialty gases like carbon monoxide and diborane, that go into semiconductor lithography, etching, and deposition processes. Rather than buying finished product, it localizes production from the raw-material extraction stage, so it can manage costs stably even when international gas prices swing; it also runs semiconductor equipment and secondary-battery equipment businesses. On March 19 the business report confirmed 2025 revenue of ₩279.7 billion and operating profit of ₩24.8 billion, with revenue down but the operating margin improved, on May 15 the Q1 report confirmed a cumulative earnings decline, and in May the acquisition of another company's shares and an exercise of conversion rights were disclosed. What stands out lately is the contrast: the entry barrier of localizing rare-gas raw materials, a large memory-customer base, the margin management that grew earnings even as 2025 revenue fell, and both last year's and this year's expected P/E being below the peer set (20-34x) are strengths, while quarterly earnings volatility, a debt-to-equity ratio of 213.8%, and share dilution from the exercise of conversion rights should be viewed together.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 213.8%).
- Revenue fell 9.8% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 21.4% lower than a year earlier.
- ROE is 8.1% (controlling-interest basis). It is above the sector average.
- Operating margin is 8.9%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Yoo Won-yang 24.08% (individual)
Controlling bloc incl. related parties 32.73%
With the controlling bloc holding 33%, the ownership structure is stable.
🔎 In-depth analysis
- TEMC makes and sells rare gases and specialty gases used in semiconductor lithography, etching, and deposition processes.
- It directly synthesizes and refines rare gases such as neon (Ne), krypton (Kr), and xenon (Xe) and specialty gases such as carbon monoxide (CO) and diborane (B2H6), and alongside gases it also runs semiconductor equipment and secondary-battery equipment businesses.
- The company's core is that it localized rare gases not by buying finished product but from the raw-material extraction stage.
- Thanks to this, even when international gas prices swing, it has a structure that can manage costs more stably than firms that rely solely on outside sourcing.
- Its main customers are the two large domestic memory makers (Samsung Electronics and SK Hynix) and overseas semiconductor firms, so revenue is tied directly to semiconductor capital spending and fab-utilization trends.
- The latest close was ₩9,270 and the market cap is ₩203.2 billion.
- The price sits below the 20-day line (₩13,225) and below the 60-day line (₩16,982).
- Trading below both its short- and mid-term moving averages, the trend is on the soft side.
- RSI (a supplementary gauge that scores the balance of up-days and down-days over the past 14 days on a 0-100 scale) is 30.9, a neutral reading.
- The one-month change is -42.5%, the three-month change is -33.0%, and the position versus the 52-week high is -66.7%.
- Relative strength against KOSDAQ is 80 (on a 1-99 scale, computed from the past year's return versus the index with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 19% of all stocks by strength.
- Over the past three months it lagged the index by 12.6%.
- Chart reading is best done alongside volume and the dates of disclosures.
- On last year's confirmed figures (FY2025), the P/E (how many times one year's earnings the price represents) is 12.42x and the P/B (how many times net assets the price represents) is 1.00x.
- Compared with Soulbrain (P/E 34x, P/B 2.56x) and Hansol Chemical (P/E 20x, P/B 2.70x), which share the same end-market (semiconductor materials), TEMC sits below the peer set on both an earnings and a net-asset basis.
- Its profitability metric ROE (how much is earned in a year on equity) is 8.1%, above the sector average (4.0%), with an operating margin of 8.9%.
- The debt-to-equity ratio is 213.8%, so debt somewhat exceeds equity, but with a current ratio of 159.8% and interest coverage of 3.8x it has the short-term payment ability and interest-covering capacity in place.
- One point to note is that the P/E above is computed on last year's earnings (trailing).
- The forward P/B on this year's expected earnings is 1.00x, similar to or slightly below last year's level, so the low valuation relative to the peer set holds on this year's basis as well.
- Over five years, revenue jumped from ₩90.2 billion in 2021 to ₩351.7 billion in 2022, then moved unevenly to ₩200.8 billion in 2023, ₩310.2 billion in 2024, and ₩279.7 billion in 2025.
- Earnings show the same grain, indicating a company whose revenue and profit move with the semiconductor cycle and gas supply-demand.
- In the most recent confirmed year, 2025, revenue fell 9.8% year over year, yet operating profit rose 26.1% and net profit 23.9%.
- That earnings rose in a year revenue fell reads as the result of localized raw materials holding down costs and lifting margins.
- That said, the most recent quarter, Q1 2026, showed cumulative revenue of ₩49.5 billion (-21.4%) and operating profit of ₩0.1 billion (-97.9%), so with sizable quarter-to-quarter swings, how this year's earnings build quarter by quarter is a point to keep checking.
- Four official events stand out in the 2026 flow.
- On March 19 the FY2025 business report confirmed annual revenue of ₩279.7 billion and operating profit of ₩24.8 billion - a year in which revenue fell but the operating margin improved.
- On May 15 the quarterly report confirmed that Q1 cumulative earnings fell sharply.
- On May 22 a disclosure on a decision to acquire another company's shares and equity securities showed it moving to broaden its business by buying an outside company's stake, and on May 27 a disclosure of the exercise of conversion rights on its first tranche of convertible bonds saw part of the bonds convert into shares.
- It is worth watching together the quarterly earnings flow of the core gas business, the outcome of the new equity investment, and the share-count increase from conversion (which needs to be reflected when reading per-share metrics).
- The strengths are clear.
- They are the entry barrier of localizing rare gases from the raw material up, a stable customer base in large memory makers, and the margin management that grew earnings even as 2025 revenue fell.
- On valuation, last year's P/E of 16.6x and this year's expected P/E of about 17.0x are both below the peer set (20-34x), so on both net assets and earnings it sits below the peer set.
- Points to consider together are quarterly earnings volatility (the sharp Q1 2026 earnings drop), the 213.8% debt-to-equity ratio, and share dilution from the exercise of conversion rights.
- In sum, this is a company that is strong when semiconductor utilization holds up and rare-gas demand and prices are favorable, as the localized cost structure feeds through to margins, but whose volatility widens when the cycle and gas supply-demand are weak and quarterly earnings are pressured.
- Even accounting for that volatility, though, the current valuation being on the low side versus the peer set is the starting point when looking at this stock.
🔎 Valuation vs peers Inconclusive
Among specialty and electronic-materials chemicals for semiconductors, we compared names close in business character. Soulbrain and Hansol Chemical share the same end-market (semiconductor manufacturing) as gas-materials maker TEMC in that they handle semiconductor-process materials (etchants, precursors, specialty materials).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Soulbrain | 29.03x | 2.17x | 7.49% |
| Hansol Chemical | 18.76x | 2.56x | 13.63% |
| TEMC | 12.42x | 1.00x | 8.09% |
(a) Position versus the peer set: the P/B of 2.1x is below Soulbrain (3.25x) and Hansol Chemical (2.97x), so on a net-asset basis it sits below the peer set. ROE of 8.1% is similar to Soulbrain (7.5%) and below Hansol Chemical (13.6%). (b) Premium/discount: on a net-asset basis it looks discounted versus the peer set, but this may reflect the company's smaller size (market cap ₩414.7 billion) than the peers and its greater earnings volatility. (c) Limits of trailing: the last-year confirmed P/E of about 26x does not reflect the inflection in which Q1 2026 operating profit fell to ₩0.1 billion, essentially to breakeven. This year's earnings on a seasonality approximation are a very low value extending the Q1 weakness, so converted to a forward basis the P/E instead looks much higher. With last year's trailing and the seasonality forward thus pointing in opposite directions, it is hard to firmly call it undervalued or overvalued before a recovery in quarterly earnings is confirmed.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩32.9 billion | approx. 8,491 | approx. ₩0.8 billion |
Price history Close · MA20 · MA60
The latest close is ₩9,270 and the market capitalization is ₩203.2 billion. The price sits below its 20-day moving average (₩13,225) and below its 60-day moving average (₩16,982). 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 30.9, a neutral level. The one-month change is -42.5%, the three-month change is -33.0%, and the position relative to the 52-week high is -66.7%. Relative strength versus the KOSDAQ is 80 (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 81% of all stocks. Over the past three months it lagged the index by 12.6%. 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 -12.55% / 6M +32.08% / 12M +25.33%
Key metrics vs sector median
Valuation
The P/E of 12.42x is below the sector median (14.79x). The P/B of 1.00x is in line with the sector median (0.97x).
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)
DCF (discounted cash flow) estimate — discount rate 9.8%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 8.1%, above the sector average (4.0%). The operating margin is 8.9%. The debt ratio is 213.8%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $133.1M | $205.6M | $185.4M | -9.84% ↓ slower |
| Operating profit | $14.0M | $13.1M | $16.5M | +26.07% ↑ faster |
| Net profit | $15.0M | $8.5M | $10.6M | +23.88% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $59.8M | $233.1M | $133.1M | $205.6M | $185.4M |
| Operating profit | $8.4M | $35.3M | $14.0M | $13.1M | $16.5M |
| Net profit | $6.9M | $27.7M | $15.0M | $8.5M | $10.6M |
| Revenue CAGR | 4-yr avg 32.70% | ||||
Revenue fell 9.8% year over year (2023 ₩200.8 billion → 2024 ₩310.2 billion → 2025 ₩279.7 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit rose 26.1% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 32.7%. The two-year revenue CAGR is 18.0%. In the most recent quarter (Q1 2026), revenue was 21.4% lower 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.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 9.8% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-05-27FilingPart of the bonds converted into shares via exercise of conversion rights on the first tranche of convertible bondsA factor that increases shares outstanding and dilutes existing shareholders' stakes. Per-share metrics (EPS, BPS) must reflect the increase in shares when interpreted. Source
- 2026-05-22FilingDecision to acquire another company's shares and equity securities - business diversification via acquiring an outside company's stakeAn attempt to broaden the business into semiconductor-related areas beyond the core gas business. Whether the acquired company's results are consolidated and whether the investment is recouped need medium-term confirmation. Source
- 2026-05-15EarningsQ1 2026 quarterly report - revenue ₩49.5 billion and operating profit ₩0.1 billion confirm a sharp earnings dropConfirms a short-term slowdown in earnings power. Because the last-year-based P/E may understate current earnings power, whether quarterly earnings recover is the key point to watch. Source
- 2026-03-19Earnings[Amended] 2025 business report - annual revenue ₩279.7 billion and operating profit ₩24.8 billion confirmedRevenue fell from the prior year but the operating margin improved. The confirmed reference baseline for results with large five-year volatility. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-27Disclosure
- 2026-05-22Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-07OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-07OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-07OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-07OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-30Disclosure
- 2026-04-30OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-26Shareholders' meeting notice
- 2026-03-19PeriodicAnnual business report (amended)
- 2026-03-18PeriodicAnnual business 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.