Sapien Semiconductor is a fabless company that handles only chip design without running its own factory, focusing on micro-display driver chips (backplanes) that switch the tiny screens of augmented-reality (AR) and extended-reality (XR) devices on and off at the pixel level. The barriers to entry are high, but because the market itself is only just opening up, revenue remains small. Sales came to about ₩17.3 billion in 2025, up sharply from about ₩8.0 billion a year earlier, yet spending on new chip development kept the full year in the red. Supply contracts continued through April and May 2026, and the Q1 report filed on May 14 confirmed the company's first quarterly profit. The strengths worth noting are that revenue has roughly doubled two years running and that the first quarterly profit, backed by supply contracts, gives concrete evidence of growth. On the other hand, the company is still loss-making on a full-year basis, a debt ratio of 245.7% and a current ratio below 100% leave short-term finances tight, and both P/B and the forward P/E are high, meaning growth expectations are already substantially priced in.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 245.7%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 90.7%).
- The most recent full-year net result was a loss.
- Revenue rose 116.6% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 332.9% higher than a year earlier.
- ROE is -37.2% (total-net basis). It is below the sector average.
- Operating margin is -26.4%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder Lee Myung-hee 30.84% (individual)
Controlling bloc incl. related parties 32.17%
With the controlling bloc holding 32%, the ownership structure is stable.
🔎 In-depth analysis
- Sapien Semiconductor is a fabless company that handles only chip design without operating its own factory.
- Its main product is the driver chip (backplane) that switches a micro-display on and off pixel by pixel, a core component for lighting up the tiny screens of glasses-style augmented-reality (AR) and extended-reality (XR) devices sharply.
- Because each individual cell of the screen has to be controlled precisely within a very small area, the barriers to entry are high; but since the market itself is only just opening up, revenue remains small.
- Sales reached about ₩17.3 billion in 2025, up sharply from about ₩8.0 billion a year earlier, yet the heavy cost of developing new chips kept the full year in the red.
- In short, it is best understood as an early-stage growth company that is just beginning to scale revenue by selling its technology.
- The latest close is ₩28,250 and the market cap is ₩233.2 billion.
- The price sits below the 20-day line (₩31,305) and the 60-day line (₩38,509).
- Trading below both the short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge comparing upward and downward strength over the past 14 days on a 0-100 scale) is 38.6, a neutral reading.
- The one-month change is -18.5%, the three-month change is -2.1%, and the position versus the 52-week high is -46.7%.
- Relative strength against the KOSDAQ is 77 (1-99, a weighting of the past year's return versus the index that gives more weight to recent performance; higher means stronger than the market), placing it in roughly the top 23% of all stocks by strength.
- Over the past three months it outpaced the index by 17.5%.
- Chart reading is best done alongside trading volume and disclosure dates.
- Because net profit is negative, a P/E ratio (how many times a year's earnings the price represents) cannot be calculated on last year's confirmed results.
- That said, this company is at an inflection point where revenue is growing fast and it is just turning profitable, so the future earnings trajectory reflects the real picture better than last year's figures.
- The P/B (how many times the company's net assets the price represents) is 18.12x, well above the semiconductor sector median (3.14x); this does not mean assets are thick, but rather that this is still an early-stage growth company with thin net assets, with expectations of future growth added on top of the price.
- The ROE (how much is earned in a year on equity) is -37.2% and the operating margin is -26.4%, so it is not yet profitable on a full-year basis.
- The debt ratio (debt to equity) is 245.7% and the current ratio (assets that can be turned into cash quickly against debt due within a year) is 90.7%, below 100%, so short-term liquidity is tight.
- Meanwhile the forward P/E comes out around 300x, a figure that reflects both the small earnings base of an early-stage growth company and the market's large growth expectations, meaning future earnings must grow rapidly to justify this price level.
- Annual revenue rose from about ₩3.2 billion in 2023 to about ₩8.0 billion in 2024 and about ₩17.3 billion in 2025, roughly doubling two years running (a two-year revenue CAGR of about 132%).
- Over the same period operating profit/loss went from -₩6.9 billion to -₩3.4 billion, halving the loss, before widening again somewhat on new chip investment.
- In the most recent quarter, Q1 2026, revenue surged to about ₩7.1 billion, up +332.9% year on year, and in that quarter the company turned its first profit, with operating profit of about ₩0.1 billion and net profit of about ₩0.36 billion.
- This growth follows the shift of AR/XR device screens toward higher resolution, which is lifting demand for driver chips that switch pixels on and off precisely, as Sapien Semiconductor has won a string of supply contracts and scaled up shipments.
- With the market only just opening in its early phase, there is room for revenue to accumulate faster as adoption widens, and the first quarterly profit is the starting point.
- That said, there is a seasonality with sales concentrated in the fourth quarter, so how far this year's profit accumulates is best gauged by following the quarterly results one by one.
- Recent disclosures center on single sales and supply contracts that support the reality of rising revenue.
- Supply-contract disclosures came out in April 2026 and again in May (an amendment); more important than the contracts themselves is confirming, through subsequent quarterly reports, which quarter the volume is booked as revenue and whether it is a one-off or a recurring order.
- The Q1 2026 report filed on May 14 is the official document confirming the first quarterly profit.
- Meanwhile, several reports of share changes by executives and major shareholders followed from late April onward; these are merely disclosures of the fact that holdings changed and should be seen separately from revenue and profit.
- A late-March filing on stock options (a scheme granting employees the right to buy shares at a set price) was aimed at securing talent and providing motivation, and it is worth keeping in mind that the share count could rise if they are exercised later.
- The strengths are clear.
- Revenue has roughly doubled two years running, the company turned its first quarterly profit in Q1 2026, and it handles high-barrier driver chips in the just-opening market for AR/XR micro-displays.
- With supply contracts arriving one after another, the basis for growth is also confirmed in the numbers.
- At the same time there are points to watch.
- The company is still loss-making on a full-year basis, a debt ratio of 245.7% and a current ratio below 100% leave short-term finances tight, and both P/B and the forward P/E are high, meaning growth expectations are already substantially priced in.
- In sum, this company is strong when the supply contracts and quarterly profit carry through to a full-year profit, funding pressure eases, and revenue growth is sustained; conversely, if the profit slips back into losses or growth visibly slows, the high expectations may weigh on the price.
- Which way it goes is best judged by directly confirming the next quarter's results and how the supply contracts are reflected in revenue.
🔎 Valuation vs peers Inconclusive
The position was gauged by comparing it against fabless design houses that run no factory of their own alongside established, profitable materials and back-end firms within semiconductors; on-site figures were checked with tools/peers.py.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| FADU | — | 186.30x | -391.69% |
| Hana Materials | 26.13x | 2.16x | 8.28% |
| SFA Semicon | — | 1.73x | -4.05% |
Even within semiconductors, profitable materials and back-end firms (Hana Materials at a P/B of 3.1x, SFA Semicon at 2.5x) trade at multiples close to asset value, whereas Sapien Semiconductor's P/B of 24.15x is far above them. This reflects a mix of a P/B that looks large because this is an early-stage growth company with thin net assets and profit still small, and a premium from added market expectations. Fellow fabless firm FADU has an even more extreme P/B, showing that such early-stage growth fabless names cannot be lined up by P/B alone. Last year's confirmed results were in the red, so trailing metrics lose meaning, and the only forward basis is a seasonality approximation rather than an official company forecast; so rather than declaring it undervalued or overvalued at this point, it is more reasonable to judge after confirming the durability of the first profit and how the supply contracts show up in revenue.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩9.3 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩28,250 and the market capitalization is ₩233.2 billion. The price sits below its 20-day moving average (₩31,305) and below its 60-day moving average (₩38,509). 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 38.6, a neutral level. The one-month change is -18.5%, the three-month change is -2.1%, and the position relative to the 52-week high is -46.7%. Relative strength versus the KOSDAQ is 77 (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 77% of all stocks. Over the past three months it outpaced the index by 17.5%. 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 +17.50% / 6M -11.43% / 12M +9.40%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 18.12x 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 -26.4%. The debt ratio is 245.7%, so the financial structure is somewhat high.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $2.1M | $5.3M | $11.5M | +116.61% ↓ slower |
| Operating profit | -$4.6M | -$2.3M | -$3.0M | — |
| Net profit | -$8.7M | -$11.3M | -$3.2M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $2.1M | $5.3M | $11.5M |
| Operating profit | — | — | -$4.6M | -$2.3M | -$3.0M |
| Net profit | — | — | -$8.7M | -$11.3M | -$3.2M |
| Revenue CAGR | 2-yr avg 132.22% | ||||
Revenue rose 116.6% year over year (2023 ₩3.2 billion → 2024 ₩8.0 billion → 2025 ₩17.3 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 3 years on record, revenue compound annual growth (CAGR) is 132.2%. The two-year revenue CAGR is 132.2%. In the most recent quarter (Q1 2026), revenue was 332.9% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- Revenue grew 116.6% year over year, a sign of growth.
Points to watch
- Debt is somewhat higher than equity (debt ratio 245.7%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 90.7%).
- 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
- 2026-05-27UpdateAmended single sales and supply contract disclosure - a routine amendment notifying of changes or supplements to the supply contract termsIn the short term it is material that raises revenue visibility, but because it is an amendment, one should confirm via the quarterly report how the contract size and term changed and when the revenue is recognized. Source
- 2026-05-14EarningsQ1 2026 quarterly report - revenue of about ₩7.1 billion (+332.9% year on year), first quarterly operating and net profitThe most important document over the medium term, it is the starting point for whether the first quarterly profit carries through to a full-year profit. The heavy fourth-quarter weighting in the seasonality should be considered alongside it. Source
- 2026-04-07UpdateSingle sales and supply contract signed - disclosure of a new supply contractAs a contract underpinning revenue growth, the points to watch are whether it leads to recurring orders and which quarter it is booked as revenue. Source
- 2026-03-30FilingStock option grant filing - aimed at securing talent and providing motivationThe effect on current profit and loss is small, but since the share count could rise on future exercise, potential dilution of per-share value is a point to keep in mind. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 annual revenue | approx. ₩17.3 billion (₩17,312,155,993) | approx. ₩17.3 billion | Confirmed | link |
| Q1 2026 revenue | approx. ₩7.1 billion (₩7,133,778,231), +332.9% | approx. ₩7.1 billion | Confirmed | link |
| Latest close and market cap | ₩28,250 | — | Unverified | link |
| 2026 annual revenue (approximate) | approx. ₩135.3 billion | — | Unverified | link |
Recent filings
- 2026-05-27Single supply/sales contract (amended)
- 2026-05-14PeriodicQuarterly report
- 2026-05-12OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-29OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-28OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-27OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-27OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-27OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-27OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-27OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-07Single supply/sales contract
- 2026-03-30Disclosure
📖 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.