Megatouch makes consumable precision parts such as test pins and clips that are fitted into battery and semiconductor inspection processes. In charge-and-discharge pins for the battery activation process it supplies essentially the entire volume to Korea's three major battery makers, and it also supplies pins for next-generation 4680 cylindrical batteries as well as interposers and pogo pins for semiconductor probe cards. In April 2026 it approved a roughly ₩11.4 billion third-party allotment capital increase, assigning the entire block to Whitston Materials Technology, an affiliate of a customer (a stake of about 28.6%), with the proceeds earmarked for expanding semiconductor pin capacity (₩8.0 billion in facility investment); first-quarter revenue rose +70% and the company swung to a profit. The point to watch now is that if battery and semiconductor inspection volumes keep rising and the semiconductor pin expansion feeds through to earnings, the appeal of a forward P/E in the 18x range (low versus peers in the 40–70x range) comes to life, while at the same time revenue is concentrated in a handful of large customers and can swing with their investment cycles, so the durability of the profit through the year and the equity dilution from new share issuance need to be weighed together.
At-a-glance assessment financial health · growth · profitability · valuation
- The most recent full-year net result was a loss.
- Revenue fell 18.4% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 69.7% higher than a year earlier.
- ROE is -5.5% (total-net basis). It is below the sector average.
- Operating margin is -9.7%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder TSE 56.95% (corporate)
Controlling bloc incl. related parties 57.14%
With the controlling bloc holding 57%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Megatouch makes and sells consumable, precision parts such as test pins and clips that go into the processes used to inspect batteries and semiconductors.
- One pillar of revenue is secondary batteries: it supplies charge-and-discharge pins used in the activation process that first charges and discharges a battery to wake up its performance, and it holds a position where it supplies essentially the entire volume of activation inspection pins to Korea's three major battery makers, while also supplying and developing pins for next-generation 4680 cylindrical batteries for domestic and overseas manufacturers.
- The other pillar is semiconductors, where it makes interposers for probe cards and pogo pins (contact terminals) for test sockets used when inspecting chips.
- In short, rather than finished equipment, the company sells consumable precision parts fitted into inspection equipment, so as customers' production and inspection volumes grow, pin replacement and deliveries grow with them.
- The latest close is ₩6,250 and the market cap is ₩181.7 billion.
- The price sits below the 20-day line (₩6,406) and below the 60-day line (₩6,820).
- Being under both the short- and mid-term moving averages, the trend is on the depressed side.
- RSI (a supplementary gauge that weighs upward versus downward force over the past 14 days on a 0–100 scale) is 48.6, a neutral level.
- The one-month change is -9.4%, the three-month change is +53.6%, and the position versus the 52-week high is -36.9%.
- Relative strength versus the KOSDAQ is 94 (1–99, converting the past year's return versus the index with more weight on recent periods; higher means stronger than the market).
- That places it in roughly the top 5% of all stocks by strength.
- Over the past three months it outpaced the index by 105.7%.
- Chart reading is best done together with volume and disclosure dates.
- Confirmed results for last year (2025) were a loss: revenue of ₩43.2 billion, an operating loss of ₩4.2 billion, and a net loss of ₩2.9 billion.
- Because last year's earnings were negative, the P/E ratio (how many times one year's earnings the price is) cannot be calculated, while the P/B (how many times the company's net assets the price is) is set at 3.47x.
- The debt ratio (debt relative to equity) is about 120% and the current ratio (assets that can be mobilized immediately versus debt due within a year) is 309%, so short-term funding conditions are on the ample side.
- What matters here is that looking only at the trailing (past 12-month) figures, which reflect last year's loss, can make the company's current condition look weaker than it really is.
- This company swung back to a profit from the first quarter of 2026, and the P/E based on this year's expected earnings is about 18x.
- Given that peers in the same inspection-parts industry trade in the 40–70x P/E range, this year's earnings-based valuation is on the low side, so it is hard to call it "expensive" from the trailing P/B figure alone.
- Revenue moved from ₩50.1 billion in 2023 to ₩53.0 billion in 2024 to ₩43.2 billion in 2025, falling 18.4% last year, leaving a mixed three-year trend.
- Earnings also swung, from a net profit of ₩5.0 billion in 2024 to a net loss of ₩2.9 billion in 2025.
- On a quarterly basis, however, the mood has clearly changed.
- Cumulative revenue in the first quarter of 2026 was ₩15.9 billion, up 69.7% year on year, with operating profit of ₩1.94 billion and net profit of ₩2.00 billion marking a swing back to profit.
- In effect, a single quarter more than surpassed the full-year net loss of last year (-₩2.9 billion).
- The backdrop to this trend is clear.
- There is fixed demand from supplying essentially the entire volume of activation inspection pins to Korea's three major battery makers, and as battery and semiconductor inspection volumes recover, replacement and delivery of consumable pins are rising alongside.
- In addition, a customer affiliate has joined as an equity investor and is expanding semiconductor pin capacity, so the company is building the production capacity to absorb rising inspection volumes.
- The forward P/E of about 18x based on this year's expected earnings reflects results normalized back to profit; simply extending last year's loss year is not appropriate.
- The center of recent disclosures is the roughly ₩11.4 billion third-party allotment capital increase decided in April 2026.
- It issued 3,115,362 new shares at ₩3,660 each and assigned the entire block to Whitston Materials Technology, an affiliate of a customer (a stake of about 28.6%), and stated that the proceeds would be used as ₩8.0 billion in facility funds (CNC and automation equipment to expand semiconductor pin capacity, 2026–2027) and ₩3.4 billion in operating funds.
- In that a customer affiliate is participating directly with capital and moving into a semiconductor pin expansion, this goes beyond simple financing and signals the direction of the business.
- The new shares listed on May 22, and in May–June there followed a series of ownership-change reports by executives and major shareholders.
- That said, the fact that new share issuance somewhat dilutes existing shareholders' stakes should be weighed as well.
- The strengths are distinct.
- There is a fixed-demand base from supplying essentially the entire volume of activation inspection pins to Korea's three major battery makers, and in the first quarter of 2026 results turned around with revenue up +70% and a swing to profit.
- On top of this, a customer affiliate has joined with capital to jointly push a semiconductor pin expansion, building a picture in which rising inspection volumes are absorbed by expanded capacity.
- The forward P/E in the 18x range based on this year's expected earnings, set low versus the same inspection-parts industry (40–70x), is a signal that can be read on the undervalued side.
- On the other hand, there are points to check.
- Because revenue is concentrated among a few large battery and semiconductor customers, results can swing with those customers' utilization rates and investment cycles.
- Also key is whether the profit shown in the first quarter continues steadily through the year and whether the expansion investment connects to actual revenue.
- In sum, it is appropriate to view this as a stock that is strong in a phase where battery and semiconductor inspection volumes rise and the semiconductor pin expansion feeds through to earnings, and weaker in a phase where a customer slowdown in investment or the one-off nature of the profit is confirmed.
🔎 Valuation vs peers Inconclusive
In keeping with the substance of the business—precision inspection parts (test pins, sockets, probe components) rather than finished equipment—the peer set is companies that specialize in semiconductor test components.
| 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% |
The peer set (Leeno Industrial, ISC, TSE) works in the same area of making inspection parts and trades at P/B of 7–10x and ROE in the 10–21% range. Megatouch's P/B of 4.32x is lower than the peer set, which can be seen as a discount stemming from profitability metrics being depressed by last year's loss and from its smaller scale. On a trailing basis using confirmed earnings through last year it was in the red, so the P/E cannot be calculated and it looks expensive, but the profit is at an inflection point turning from loss to gain, so it is hard to conclude from trailing figures alone. On a forward basis with this year's earnings normalized the assessment could differ, so until the first-quarter profit is confirmed to continue through the year, we do not conclude undervalued or overvalued and hold the judgment.
Price history Close · MA20 · MA60
The latest close is ₩6,250 and the market capitalization is ₩181.7 billion. The price sits below its 20-day moving average (₩6,406) and below its 60-day moving average (₩6,820). 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 48.6, a neutral level. The one-month change is -9.4%, the three-month change is +53.6%, and the position relative to the 52-week high is -36.9%. Relative strength versus the KOSDAQ is 94 (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 95% of all stocks. Over the past three months it outpaced the index by 105.7%. 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 +105.73% / 6M +103.38% / 12M +43.56%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 3.47x is above the sector median (2.15x).
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 -5.5%, below the sector average (2.0%). The operating margin is -9.7%. The debt ratio is 119.6%, so the financial structure is moderate.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $33.2M | $35.1M | $28.7M | -18.40% ↓ slower |
| Operating profit | -$167,465 | $2.6M | -$2.8M | -204.45% |
| Net profit | -$58,464 | $3.3M | -$1.9M | -156.70% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $33.2M | $35.1M | $28.7M |
| Operating profit | — | — | -$167,465 | $2.6M | -$2.8M |
| Net profit | — | — | -$58,464 | $3.3M | -$1.9M |
| Revenue CAGR | 2-yr avg -7.14% | ||||
Revenue fell 18.4% year over year (2023 ₩50.1 billion → 2024 ₩53.0 billion → 2025 ₩43.2 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 204.5% year over year. Over the 3 years on record, revenue compound annual growth (CAGR) is -7.1%. The two-year revenue CAGR is -7.1%. In the most recent quarter (Q1 2026), revenue was 69.7% higher 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.
- Revenue fell 18.4% year over year (3-year trend: mixed).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-04-28FilingIssuance of a roughly ₩11.4 billion third-party allotment capital increase — 3,115,362 new shares at ₩3,660 each assigned in full to a customer affiliate (Whitston Materials Technology), with funds to be used as ₩8.0 billion in facility funds to expand semiconductor pin capacity and ₩3.4 billion in operating fundsShort term: dilution of existing stakes from new share issuance. Mid term: the customer affiliate's capital participation and the semiconductor pin expansion lay a base for expanded demand and capacity. Source
- 2026-04-28FilingSecurities issuance result (voluntary disclosure) — the third-party allotment capital increase result is confirmed and payment is completeShort term: secures resources for expansion and operations. Mid term: whether the facility investment is executed is the key to connecting to future results. Source
- 2026-05-15EarningsFirst-quarter 2026 quarterly report — cumulative revenue of ₩15.9 billion (+69.7% year on year), with operating profit of ₩1.94 billion and net profit of ₩2.00 billion marking a swing to profitMid term: results showing the inflection from a full-year 2025 loss to normalized quarterly profit. Source
- 2026-06-02FilingReport on holdings of specified securities by executives and major shareholders — reflecting major-shareholder stake changes after the new shares from the capital increase listedShort term: material for confirming changes in governance and major-shareholder composition. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| First-quarter 2026 cumulative revenue | ₩15,876,751,275 | (2026.03) | Confirmed | link |
| Third-party allotment capital increase size | 3,115,362 · ₩3,660 · approx. ₩11.4 billion | — | Confirmed | link |
| Full-year 2025 revenue and profit/loss | revenue ₩43.2 billion · ₩4.2 billion · ₩2.9 billion | FY2025 | Confirmed | link |
| Estimated 2026 full-year net profit | self-estimate | — | Unverified | link |
Recent filings
- 2026-06-02OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-18OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-18OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-18OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-18OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-15PeriodicQuarterly report
- 2026-04-29OwnershipOwnership-change filing
- 2026-04-29OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-29OwnershipOwnership-change filing
- 2026-04-29OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-28Paid-in capital increase
- 2026-04-28Material-fact report (amended)
📖 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.