TFE makes consumable back-end components used in the test step that screens finished semiconductors for proper operation, including test sockets, burn-in boards and COK parts. Because these parts must be replaced whenever a chip type changes, demand rises alongside chip production volumes. In 2025 the company earned revenue of ₩111.7 billion and operating profit of ₩19.1 billion (up 334% year over year) as earnings jumped sharply, and that momentum carried into the first quarter of 2026. It is building a ₩14.3 billion new plant in Hwaseong, funded through zero-coupon exchangeable bonds that carry no interest burden. What stands out lately is that if back-end semiconductor demand persists and the new plant translates into revenue, its low valuation relative to peers becomes a strength; on the other hand, because earnings dipped once in 2024, the durability of quarterly growth and the share dilution tied to exchangeable bonds and treasury-share disposal are points to watch together.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 51.8% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 46.8% higher than a year earlier.
- ROE is 16.6% (total-net basis). It is above the sector average.
- Operating margin is 17.1%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Moon Seong-ju 44.02% (individual)
Controlling bloc incl. related parties 60.98%
With the controlling bloc holding 61%, control is very secure but the free float is thin.
🔎 In-depth analysis
- TFE makes components for the test step that screens finished semiconductors to check whether they "work properly." Its core products are test sockets that connect a chip to test equipment to exchange electrical signals, burn-in boards used in high-temperature reliability testing to weed out defects, test boards, and COK, a key replacement part for test equipment.
- The company is expanding its products beyond memory into non-memory (logic) testing, and because these parts are consumables that must be bought anew each time a chip type changes, demand rises as semiconductor production grows.
- In other words, TFE is not a company that sells chips directly but a back-end component supplier that earns money by supplying parts used repeatedly to test chips.
- The latest closing price is ₩36,100 and market capitalization is ₩445.7 billion.
- The price sits below both the 20-day line (₩44,760) and the 60-day line (₩54,319).
- Trading below both the short- and mid-term moving averages, the trend is on the subdued side.
- The RSI (an auxiliary gauge that weighs upward versus downward force over the past 14 days on a 0-100 scale) is 35.4, a neutral level.
- The one-month change is -28.9%, the three-month change is -35.5%, and the position versus the 52-week high is -50.0%.
- Relative strength versus the KOSDAQ is 73 (1-99, computed from returns against the index over the past year with more recent weighting; higher means stronger than the market).
- That places it in roughly the top 27% of all stocks by strength.
- Over the past three months it lagged the index by 10.1%.
- Chart interpretation is best done alongside trading volume and disclosure dates.
- On a confirmed annual (2025) basis, the P/E ratio (how many times one year's earnings the price represents) is 24.62x and the P/B (how many times net assets the price represents) is 4.08x.
- However, this P/E is calculated on trailing earnings (a year already past), and since this company saw earnings fall sharply once in 2024 before jumping again in 2025, it is an earnings-inflection stock for which a single past year's figure is hard to use to judge cheap versus expensive.
- The real picture is closer to the forward estimate reflecting this year's expected earnings.
- On this year's expected earnings, the forward P/B is 4.08x, clearly lower than fellow semiconductor test-part makers (Leeno Industrial 42x, ISC 69x, TSE 65x).
- A high-growth company sitting at such a low forward P/E relative to peers can be read as a relatively undervalued signal rather than a burden.
- Profitability is sound, with ROE (how much is earned in a year on one's own money) at 16.6% and an operating margin at 17.1%, and the balance sheet is solid.
- Per the official 2025 year-end disclosure, total liabilities were ₩34.4 billion and total equity ₩109.2 billion, for a debt ratio (debt versus equity) of about 31.5% and a current ratio (assets soon to be converted to cash versus debt soon due) of 341%, so the debt burden is on the light side.
- Over five years, revenue moved from ₩72.0 billion in 2021 to ₩63.7 billion in 2022, ₩80.3 billion in 2023 and ₩73.6 billion in 2024 before jumping to ₩111.7 billion in 2025 (up 51.8% year over year).
- Operating profit recovered sharply from ₩4.4 billion in 2024 to ₩19.1 billion in 2025 (up 334.0%), and net profit from ₩1.5 billion to ₩18.1 billion.
- The company stated directly in its DART filing that this rebound stemmed from "an improvement in the semiconductor business cycle." This growth is not a one-off flash: in the most recent quarter (Q1 2026) it continued, with revenue of ₩32.3 billion (up 46.8%), operating profit of ₩3.3 billion (up 12.0%) and net profit of ₩3.4 billion (up 31.3%).
- The reason this year's expected earnings run this high is clear: test parts are consumables that must be bought anew whenever a chip type changes, so demand grows as memory and non-memory production recovers and rises, and Q1 revenue already climbed nearly 47% year over year, showing that trend in actual numbers.
- On top of that, the company is expanding capacity with a new plant in Banwol-dong, Hwaseong, so if demand holds, the added capacity can flow through to revenue.
- The forward P/E on this year's expected earnings forming below peers reflects exactly this earnings-growth expectation.
- Looking at the disclosure flow on a fact basis, first, the February 9, 2026 disclosure of a change in the profit-and-loss structure confirmed 2025 revenue of ₩111.7 billion and operating profit of ₩19.1 billion (up 334% year over year), verifying the sharp earnings rebound in numbers.
- As the next stage of growth, a new-facility investment to build a ₩14.3 billion plant in Banwol-dong, Hwaseong is under way (targeted completion June 16, 2026), and to fund it the company in January issued ₩10.5 billion of zero-coupon exchangeable bonds backed by treasury shares.
- In other words, it arranged the expansion funds without an interest burden.
- In February it paid part of its treasury shares as employee bonuses, and in May it held several IR sessions alongside the quarterly report to explain its results and business status directly.
- No dividend was paid in 2025 either.
- This is a stock with clear strengths.
- Its business in consumable semiconductor-test parts benefits directly from rising chip production, its 2025 revenue and earnings actually jumped sharply, and that momentum continued into Q1 2026.
- On a solid balance sheet with a light debt burden, it is expanding capacity via a new plant, and the fact that a single company supplies the entire range of test parts is a differentiator.
- Points to keep an eye on together are that, since earnings dipped once in 2024 before recovering, the continuation of quarterly growth needs confirming, and that if the shares outstanding rise from exchangeable-bond conversion and treasury-share disposal, per-share value could be somewhat diluted.
- In sum, if back-end semiconductor demand persists and the new plant translates into revenue, its low valuation relative to peers can stand out as a strength; conversely, if quarterly growth cools or the cycle slows again, it could lose the momentum that expectation implies.
🔎 Valuation vs peers Fairly valued
Compared directly against makers of test parts with the same business substance, such as semiconductor test sockets and burn-in boards.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Leeno Industrial | 35.11x | 7.30x | 20.78% |
| ISC | 53.55x | 5.60x | 10.46% |
| TSE | 64.81x | 6.33x | 9.77% |
| Micro Contact Solution | 10.56x | 2.19x | 20.77% |
(a) Among fellow test-part makers, TFE's P/E of 28.4x and P/B of 4.71x are lower than Leeno Industrial, ISC and TSE (P/E of 42-69x) but higher than the smaller Micro Contact Solution (P/E of 11x), placing it in the middle of the peer set. (b) Relative to the large front-runners there is a discount, which can be seen as reflecting its still-small market cap (₩514.3 billion) and results track record; conversely, its top-of-peer revenue growth rate and upper-mid ROE are factors that narrow the discount. (c) The current P/E is a trailing value calculated on last year's confirmed earnings, which is a limitation for this company given its 2024 earnings plunge followed by a 2025 rebound, and the forward P/E on a seasonality approximation is somewhat lower than trailing. All told, it sits in the middle of the peer set as "neither cheap nor expensive," so we view it as within a fair range.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩37.5 billion | approx. ₩4.1 billion | approx. ₩3.8 billion |
Price history Close · MA20 · MA60
The latest close is ₩36,100 and the market capitalization is ₩445.7 billion. The price sits below its 20-day moving average (₩44,760) and below its 60-day moving average (₩54,319). 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 35.4, a neutral level. The one-month change is -28.9%, the three-month change is -35.5%, and the position relative to the 52-week high is -51.5%. Relative strength versus the KOSDAQ is 73 (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 73% of all stocks. Over the past three months it lagged the index by 10.1%. 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 -10.07% / 6M +6.79% / 12M +23.53%
Key metrics vs sector median
Valuation
The P/E of 24.62x is above the sector median (18.61x). The P/B of 4.08x is above the sector median (1.63x).
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 10.4%, 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 16.6%, above the sector average (7.0%). The operating margin is 17.1%. The debt ratio is 131.5%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $53.2M | $48.8M | $74.1M | +51.77% ↑ faster |
| Operating profit | $6.1M | $2.9M | $12.6M | +334.00% ↑ faster |
| Net profit | $7.4M | $962,574 | $12.0M | +1146.71% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $47.7M | $42.2M | $53.2M | $48.8M | $74.1M |
| Operating profit | $7.2M | $4.3M | $6.1M | $2.9M | $12.6M |
| Net profit | $6.5M | $4.5M | $7.4M | $962,574 | $12.0M |
| Revenue CAGR | 4-yr avg 11.63% | ||||
Revenue rose 51.8% year over year (2023 ₩80.3 billion → 2024 ₩73.6 billion → 2025 ₩111.7 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit rose 334.0% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 11.6%. The two-year revenue CAGR is 17.9%. In the most recent quarter (Q1 2026), revenue was 46.8% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- ROE of 16.6% points to solid profitability.
- Revenue grew 51.8% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-02-09Earnings2025 consolidated revenue of ₩111.7 billion, operating profit of ₩19.1 billion (up 334%) and net profit of ₩18.1 billion confirmed. The company cited the cause of the change as "revenue and profit growth from an improving semiconductor business cycle."Confirms in official numbers that earnings rebounded sharply from the 2024 trough. Still, as a single-year surge, whether growth persists must be verified in subsequent quarters. Source
- 2026-04-30FilingNew-facility investment of ₩14.3 billion for a new plant in Banwol-dong, Hwaseong (20.1% of equity). The purpose is to expand product capacity as the business grows, with targeted completion June 16, 2026.The expansion is the foundation for future shipping capacity, but its actual revenue contribution takes time until confirmed through operation and orders. Source
- 2026-01-13FilingDecision to issue ₩10.525 billion of unsecured private-placement exchangeable bonds (0% coupon, exchange price ₩42,100, backed by 250,000 treasury shares). The fund purpose is "facility funds."It raised the new-plant funds without an interest burden, but if exchange is requested the held treasury shares could be released into the market, raising the free float (a dilution factor). Source
- 2026-02-10FilingDecision to dispose of 48,200 treasury shares (worth about ₩2.08 billion) as employee bonuses. Treasury shares held before disposal were 357,918 (about 3% of shares issued).As a use of treasury shares for the nature of employee compensation, the short-term financial impact is limited, but it is part of the flow of treasury shares gradually moving into the market. Source
- 2026-05-19IRHeld an IR session. Explained results and business status directly right after filing the quarterly report (2026.03).The company holds IR sessions regularly to disclose the basis for its results. Disclosures and IR materials can be used as primary information sources. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 consolidated revenue | ₩111.7 billion | ₩111,742,413,458 | Confirmed | link |
| 2025 consolidated operating profit | ₩19.1 billion | ₩19,055,611,474 | Confirmed | link |
| Debt ratio (debt versus equity) | 131.5% | approx. 31.5% | Mismatch | link |
| 2025 dividend | (DPS null) | — | Confirmed | link |
| Seasonality-approximated annual operating profit | ₩15.8 billion | — | Unverified | link |
Recent filings
- 2026-05-19Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-13Disclosure
- 2026-05-13Shareholders' meeting notice
- 2026-05-11Disclosure
- 2026-04-30Amended filing
- 2026-04-03Disclosure
- 2026-04-02Disclosure
- 2026-04-02Material-fact report
- 2026-03-31Disclosure
- 2026-03-31Shareholders' meeting notice
- 2026-03-30Amended 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.