KOSDAQChemicals027580

Sangboco

₩1,960▲ 0.77%2026-10-02 close

Market Cap

₩22.8B

Turnover

₩200M

Volume

80,000 shares

Shares out.

11.8M

PER

—

PBR

0.5×

EPS

-₩1,252

Dividend Yield

0.00%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close

Report overview

Revenue Decline, Losses Persist as New Businesses Remain Key

Sangbo has posted four straight years of revenue decline and two consecutive years of widening operating losses, leaving the revenue contribution of new businesses such as CNT, FCCL, and PPF as the key variable for its future earnings trajectory.

1
2025 revenue fell to KRW 50.1 billion, a fourth straight annual decline, while the operating loss widened to KRW 8.9 billion from KRW 8.0 billion a year earlier.
2
Both the first and second quarters of 2026 saw revenue shrink to around KRW 10 billion with operating losses continuing, showing no clear sign of recovery yet.
3
Equity attributable to owners fell for three straight years, from KRW 65.7 billion in 2022 to KRW 43.3 billion in 2025, while the debt ratio rose from 70.9% to 117.7%.
4
New businesses including CNT transparent electrode film, FCCL, and barrier film are underway, but their contribution to actual results appears limited so far.
5
The FY2025 audit opinion was unqualified for both standalone and consolidated statements, and a 4-for-1 share consolidation changed the par value from KRW 500 to KRW 2,500.

Business structure

Sangbo is a KOSDAQ-listed film materials maker producing optical films for displays, window films for automotive and architectural use, media films, and new-material films.

Its R&D organization is split into the ITS division, which studies optical films, and the CMS division, which covers automotive and architectural protective and heat-shielding films.

Core product lines include CD optical film, automotive and architectural window film, media and industrial film, quantum dot film, transparent electrode film, and graphene barrier film.

Optical film once accounted for a larger share of revenue, but the mix has since shifted toward automotive window film and paint protection film (PPF).

As a new growth driver, the company developed a flexible copper clad laminate (FCCL) for ultra-fast 5G antenna modules and FPCBs using its own proprietary lamination method, claimed as a world first, alongside automotive interior-display and exterior-lighting optical film, smart window film, quantum dot display film, and barrier film for electronic price displays (EPD).

Its Gimpo plant houses production equipment for carbon nanotube (CNT) transparent electrode film, which the company also commercialized as a claimed world first. Comparable peers cited in industry data include Miraenanotech, KNW, iComponent, LMS, and Sinhwa Intertek.

The company has previously restructured its portfolio by divesting a low-margin Chinese LCD film subsidiary and shifting focus toward automotive film, suggesting the business mix remains a work in progress.

Earnings trend

Quarterly revenue · Operating profit

₩15.2B-₩500M25Q2₩12.7B-₩2.1B25Q3₩10B-₩4.7B25Q4₩8.9B-₩3.4B26Q1₩10.2B-₩2.6B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩67.4B₩2.5B2022₩66.2B₩2.3B2023₩53.8B-₩8B2024₩50.1B-₩8.9B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩15.2B	-₩500M	−3.1%
2025Q3	₩12.7B	-₩2.1B	−16.6%
2025Q4	₩10B	-₩4.7B	−46.5%
2026Q1	₩8.9B	-₩3.4B	−38.1%
2026Q2	₩10.2B	-₩2.6B	−25.2%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩67.4B	₩2.5B	₩8.8B	3.8%	13.4%	70.9%
2023	₩66.2B	₩2.3B	₩400M	3.4%	0.7%	88.0%
2024	₩53.8B	-₩8B	-₩10.8B	−14.9%	−21.2%	106.2%
2025	₩50.1B	-₩8.9B	-₩12.9B	−17.8%	−29.7%	117.7%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23

Earnings analysis

Sangbo's consolidated revenue fell for four consecutive years, from KRW 67.4 billion in 2022 to KRW 66.2 billion in 2023, KRW 53.8 billion in 2024, and KRW 50.1 billion in 2025.

Operating profit also swung from gains of KRW 2.5 billion in 2022 and KRW 2.3 billion in 2023 to an operating loss of KRW 8.0 billion in 2024, which widened further to KRW 8.9 billion in 2025.

Net income attributable to owners followed the same pattern, moving from profits of KRW 8.8 billion in 2022 and KRW 0.4 billion in 2023 to losses of KRW 10.8 billion in 2024 and KRW 12.9 billion in 2025.

On a quarterly basis, revenue of KRW 15.2 billion and an operating loss of KRW 0.5 billion in the second quarter of 2025 gave way to a wider operating loss of KRW 2.1 billion on revenue of KRW 12.7 billion in the third quarter, before the fourth quarter saw revenue shrink further to KRW 10.0 billion while the operating loss jumped to KRW 4.7 billion and the net loss surged to KRW 7.4 billion, becoming the single largest driver of the full-year loss.

The pattern continued into 2026, with first-quarter revenue of KRW 8.9 billion, an operating loss of KRW 3.4 billion, and a net loss of KRW 2.7 billion, followed by a modest revenue recovery to KRW 10.2 billion in the second quarter that still carried an operating loss of KRW 2.6 billion and a net loss of KRW 2.6 billion.

Summing the most recent four quarters from the third quarter of 2025 through the second quarter of 2026, the net loss attributable to owners totals approximately KRW 14.1 billion.

On the balance sheet, equity attributable to owners fell from KRW 65.7 billion in 2022 to KRW 43.3 billion in 2025 while total liabilities held near KRW 46.6 billion to KRW 51.0 billion, pushing the debt ratio up from 70.9% to 117.7%.

Operating cash flow also flipped from an inflow of KRW 7.8 billion in 2023 to an outflow of KRW 7.2 billion in 2025, suggesting that shrinking revenue and widening losses have also weighed on cash generation.

Industry analysis

The display and optical film industry Sangbo operates in has historically grown alongside improving TV and mobile device picture quality, but has faced headwinds from global economic slowdown and weaker demand from automakers and electronics makers in recent years.

Indeed, for the nine months through the third quarter of 2025, the company's core window film and protective film segment saw revenue decline and rising cost pressure amid a global slowdown and weaker automotive demand.

That said, the paint protection film (PPF) market is said to be shifting into a growth phase as sales of premium vehicles expand, and the company is also working to extend its barrier film mass-production technology into products requiring high barrier characteristics, such as flexible OLED.

On the new-business front, one market research forecast put the global carbon nanotube (CNT) market growing at a 24.4% compound annual rate from roughly USD 876 million in 2021 to about USD 1.71 billion in 2026.

Sangbo carries a track record in this space as the claimed world-first commercializer of CNT transparent electrode film and is often cited within the related value chain, though it remains unclear when this market growth will translate into meaningful revenue contribution.

Competitively, the company is often compared with domestic optical and functional film makers such as Miraenanotech, LMS, and Sinhwa Intertek.

Outlook

The company has stated that it is actively pursuing new businesses including automotive-grade optical film for interior displays and exterior lighting, smart window film, quantum dot display film, and barrier film for electronic price displays (EPD).

FCCL, developed using a claimed world-first lamination method, has gone through reliability verification and mass-production preparation, but it has been confirmed that revenue was not yet reflected in results in the early stage of development, meaning the timing and scale of any future revenue contribution will need to be confirmed through subsequent disclosures.

On the governance and capital structure front, the March 2026 annual general meeting approved an articles-of-incorporation amendment and a 4-for-1 share consolidation, and following the listing of new shares, the par value changed from KRW 500 to KRW 2,500.

This was described as intended to stabilize the share price by adjusting the number of shares outstanding, and differs in nature from a capital-reduction-type reverse split.

On the financial side, continued revenue contraction and widening operating losses are occurring alongside declining equity and a rising debt ratio, making it worth watching whether earnings improve and whether any capital-raising or business restructuring disclosures emerge.

A shift in earnings direction would require simultaneous progress on new-business revenue visibility, a larger share of growth segments such as PPF and barrier film, and cost-structure efficiency, but the disclosed figures to date do not yet confirm that such a shift has occurred.

Valuation

PER

—

PBR

0.5×

ROE

-33.0%

EPS

-₩1,252

BPS

₩3,435

Dividend per share

₩0

Sangbo's shares trade at a discount to net asset value, which can be interpreted as the market not yet fully pricing in confidence about a future earnings recovery.

The company has not paid a cash dividend in its most recent fiscal years, suggesting priority has been placed on business restructuring and balance-sheet defense over shareholder returns.

Looking at the multi-year earnings pattern, the company moved from profitable years in 2022-2023 into loss-making years in 2024-2025, and has remained in loss territory through the first half of 2026.

The 4-for-1 share consolidation, which adjusted both the share count and par value, complicates any direct comparison of pre- and post-consolidation per-share figures and warrants caution when comparing across periods.

Ultimately, how the current share level should be assessed appears to hinge on the pace at which new-business revenue becomes visible and whether the core business returns to profitability.

PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-23

Bull factors

Diversified new-business portfolio

Sangbo is simultaneously pursuing multiple new businesses, including CNT transparent electrode film, FCCL, barrier film, and smart window film.

The company holds a technological track record including the world's first development of lamination-method FCCL and the world's first commercialization of CNT transparent electrode film.

Since several new businesses are proceeding in parallel, the entire portfolio is not halted even if one specific business is delayed.

Exposure to growing PPF and barrier film segments

There is an assessment that the paint protection film (PPF) market is transitioning into a growth phase due to expanding sales of high-end vehicles. Based on its mass-production technology for barrier film, Sangbo is expanding its business scope into products requiring high barrier properties, such as flexible OLED.

Amid the slowdown in sales of window film, its previous mainstay, these growth segments may serve as alternative revenue sources.

Unqualified audit opinion and share-count stabilization

The 2025 fiscal year audit opinion was confirmed as unqualified for both standalone and consolidated financial statements, lowering immediate accounting reliability risk.

At the 2026 annual general shareholders' meeting, a 4-to-1 stock consolidation was approved, attempting stock price stabilization through adjustment of outstanding shares. This shows that no negative event has immediately occurred in terms of financial statement reliability and governance.

Bear factors

Four consecutive years of revenue decline

Consolidated revenue declined for four consecutive years, from KRW 67.4 billion in 2022 to KRW 50.1 billion in 2025. Revenue in Q1 and Q2 of 2026 also remained at low levels of KRW 8.89 billion and KRW 10.22 billion, respectively, compared to past quarters. With core business growth stagnant, new business revenue has not yet been able to offset this.

Widening operating losses and weaker cash generation

Operating loss expanded from KRW 8.03 billion in 2024 to KRW 8.91 billion in 2025, and the loss continued into the first half of 2026. Operating cash flow turned from an inflow of KRW 7.78 billion in 2023 to an outflow of KRW 7.18 billion in 2025, indicating growing pressure not only in earnings but also in cash flow. As losses accumulate, the need for additional fundraising may increase.

Shrinking equity and rising debt ratio

Total equity attributable to controlling shareholders declined for three consecutive years, from KRW 65.68 billion in 2022 to KRW 43.31 billion in 2025. Over the same period, the debt-to-equity ratio rose from 70.9% to 117.7%.

In a structure where capital continues to shrink, financial buffer capacity could be depleted more quickly if additional losses occur.

Risk factors

Financial soundness

Consecutive operating losses and net losses in 2024-2025 have led to a continued trend of shrinking capital and rising debt-to-equity ratio. In 2025, operating cash flow also turned to a net outflow, showing simultaneous deterioration in both earnings and cash flow.

If this trend continues, additional financial measures such as capital raising or asset sales may become necessary.

Delay in new-business commercialization

It has been confirmed that FCCL, being in its early development stage, has not yet contributed revenue to results, so the possibility that commercialization timing for new businesses such as CNT and FCCL may be delayed beyond expectations cannot be ruled out.

If investment and R&D spending related to new businesses precede while revenue recovery is delayed, this could become an additional burden on profitability. The fact that the revenue proportion of new businesses is not clearly disclosed separately also makes it difficult for outsiders to assess progress.

Weaker end-market demand

The window film and protective film segments, the company's mainstay products, are understood to have been affected by the global economic slowdown and decreased demand in the automotive market.

If demand recovery in downstream industries such as display and automotive is delayed, the timing of revenue rebound could also be delayed accordingly. If accompanied by rising cost burdens, even if revenue recovers, the pace of profitability improvement could be slower still.

What to watch next

Mid-November 2026
Check the 2026 third-quarter report for signs of a revenue rebound or a narrowing operating loss.
Q4 2026 through early 2027
Continue monitoring IR materials and disclosures for signs that FCCL, CNT, and barrier film businesses are beginning to contribute visible revenue.
Around March 2027
When the FY2026 annual report is filed, check the audit opinion, whether the company returns to annual profitability, and the trend in equity and the debt ratio.
Ongoing, as disclosed
Monitor for any future disclosures related to capital raising, asset sales, or other balance-sheet improvement measures.

Overall view

Sangbo shifted from profitability in 2022 to losses in 2024-2025 and has remained in loss territory through the first half of 2026. Revenue has declined for four consecutive years, and equity has shrunk while the debt ratio has risen and operating cash flow flipped to a net outflow, adding to balance-sheet pressure.

On the other hand, multiple new businesses -- CNT transparent electrode film, FCCL, PPF, and barrier film -- are being pursued simultaneously, the FY2025 audit opinion was confirmed as unqualified, and the capital structure was reorganized through a 4-for-1 share consolidation.

However, the scale and timing of revenue contribution from these new businesses have not yet been clearly confirmed in disclosures, leaving whether the core business recovers alongside new-business commercialization as the key question for future results.

Investors should watch upcoming quarterly results and new-business disclosures for further developments before forming a judgment.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

Show 18 more articles and sources

Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.