KOSDAQElectronic Components038460

BioSmart

₩2,890▲ 2.48%2026-10-02 close

Market Cap

₩72.9B

Turnover

₩400M

Volume

120,000 shares

Shares out.

25.3M

PER

5.0×

PBR

0.5×

EPS

₩533

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

From IC Cards to Power Materials, Diversification Pays Off

BioSmart is showing simultaneous revenue growth and margin improvement anchored by its core smart-card business and subsidiary TC Materials' power-related copper materials unit, though quarterly earnings volatility remains high.

1
Consolidated revenue reached KRW 482.8bn in 2025 with operating profit of KRW 22.57bn, lifting operating margin to 4.7%.
2
Quarterly revenue hit consecutive record highs of KRW 145.3bn in Q1 2026 and KRW 167.6bn in Q2 2026.
3
Owners' net profit has stayed in the black for four consecutive quarters following a loss (-KRW 990mn) in Q2 2025.
4
The debt ratio has steadily declined from 157.0% in 2022 to 65.1% in 2025, indicating an improving balance sheet.
5
Subsidiary TC Materials completed a separate KOSDAQ listing in May 2025, increasing the group's capital-market visibility in power materials.

Business structure

Founded in 1971, BioSmart began as an IC card and smart card specialist that first manufactured and supplied MS cards domestically.

Since chairwoman Park Hye-rin took the helm, the company expanded via M&A into a holding-company-style group encompassing smart cards, pharmaceuticals, liquor payment systems, book publishing, diagnostic kits, and heavy electrical/copper products.

The core smart card segment covers IC card manufacturing for credit, transit, and securities cards, along with issuance equipment, card personalization services, and mailing systems. Pharmaceuticals are handled by Austin Pharm, liquor payment by Bonacamp, publishing by Sigongsa, and diagnostic kits by AMS Bio.

The heavy electrical/copper products business is run by subsidiary TC Materials, which produces oxygen-free copper continuous transposed conductors (CTC) and enamel copper wire supplied to major domestic power equipment makers including Hyosung Heavy Industries, LS Cable & System, and Hyundai Electric.

Media reports indicate this heavy electrical/copper products segment accounts for more than half of consolidated revenue, giving it outsized influence on group results.

TC Materials completed a separate KOSDAQ listing in May 2025 via a merger with Daishin Balance No.15 SPAC, and while BioSmart has repeatedly sold down its stake, it remains the largest shareholder.

Offsetting the growth ceiling of the mature smart card business by combining unrelated industries is a defining feature of the group's strategy.

Earnings trend

Quarterly revenue · Operating profit

₩120.8B₩4.2B25Q2₩125.5B₩7.6B25Q3₩124.2B₩5.1B25Q4₩145.3B₩10.1B26Q1₩167.6B₩5.1B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩391.8B₩10.2B2022₩456.2B₩10.1B2023₩484.3B₩20.2B2024₩482.8B₩22.6B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩120.8B	₩4.2B	3.5%
2025Q3	₩125.5B	₩7.6B	6.1%
2025Q4	₩124.2B	₩5.1B	4.1%
2026Q1	₩145.3B	₩10.1B	6.9%
2026Q2	₩167.6B	₩5.1B	3.1%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩391.8B	₩10.2B	₩700M	2.6%	0.7%	157.0%
2023	₩456.2B	₩10.1B	₩16.2B	2.2%	14.5%	113.8%
2024	₩484.3B	₩20.2B	₩100M	4.2%	0.1%	68.0%
2025	₩482.8B	₩22.6B	₩9B	4.7%	6.3%	65.1%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-22

Earnings analysis

Consolidated revenue was KRW 391.8bn in 2022, KRW 456.2bn in 2023, KRW 484.3bn in 2024, and KRW 482.8bn in 2025, showing a plateau in the high-KRW 400 billion range recently.

Operating profit, however, jumped from KRW 10.15bn in 2022 and KRW 10.09bn in 2023 to KRW 20.24bn in 2024 and further to KRW 22.57bn in 2025, lifting the operating margin from the 2.2-2.6% range to 4.2% and then 4.7%.

Owners' net profit has been volatile: a modest KRW 721mn profit in 2022, a jump to KRW 16.18bn in 2023, a near-breakeven KRW 127mn in 2024, and a recovery to KRW 9.01bn in 2025.

On a quarterly basis, owners' net profit swung to a loss of KRW 988mn in Q2 2025 before turning profitable again at KRW 4.01bn in Q3 and KRW 3.76bn in Q4, then peaking at KRW 4.66bn in Q1 2026.

However, in Q2 2026 revenue set a new quarterly record at KRW 167.6bn while net profit fell sharply to KRW 1.05bn, illustrating a period where revenue growth did not translate into proportional profit growth.

Operating profit also nearly halved from KRW 10.07bn in Q1 2026 to KRW 5.12bn in Q2 2026, underscoring pronounced quarter-to-quarter margin swings. Operating cash flow fluctuated at KRW 6.29bn in 2022, KRW 1.17bn in 2023, and KRW 3.71bn in 2024 before surging to KRW 24.07bn in 2025, indicating improved cash generation.

The debt ratio declined for four straight years from 157.0% in 2022 to 113.8% in 2023, 68.0% in 2024, and 65.1% in 2025, supporting a trend toward a more stable balance sheet.

Industry analysis

The domestic smart card/IC card manufacturing industry is classified as mature, with the structural challenge of stagnant plastic card demand amid the spread of mobile and NFC payments. In contrast, the power equipment materials market that the heavy electrical/copper products segment serves is in a growth phase.

Reports indicate that KOREA Electric Power Corporation's 11th Long-Term Transmission and Substation Facility Plan calls for large-scale power infrastructure investment through 2038 to meet electricity demand from data centers and semiconductor clusters.

Against this backdrop, demand for materials such as oxygen-free copper continuous transposed conductors (CTC) used in ultra-high-voltage transformers and submarine cables has drawn attention, with subsidiary TC Materials counting major domestic power equipment makers such as Hyosung Heavy Industries, LS Cable & System, and Hyundai Electric among its customers.

However, this market is sensitive to copper price swings and its performance is tied to the order cycles of large power equipment manufacturers.

At the group level, disparate businesses—smart cards, pharmaceuticals, diagnostic kits—coexist with differing industry cycles, making it difficult to attribute overall performance to any single sector's conditions.

Outlook

There is no confirmed evidence that the company has issued a formal annual revenue guidance, so the future earnings path needs to be gauged through segment-level trends.

TC Materials' separate KOSDAQ listing has given that business independent capital market access, which could be used to fund future capacity expansion or additional investment.

Whether copper materials demand persists through the ongoing power grid investment cycle is likely to be a key variable for group performance going forward. The smart card segment is expected to continue serving as a relatively stable cash generator, though its contribution as a growth driver appears limited.

The remaining segments—diagnostic kits, pharmaceuticals, and others—are estimated to contribute less to overall results than the heavy electrical/copper products segment, meaning their individual performance has a comparatively smaller impact on group-wide figures.

Given the pattern of raising cash and improving the balance sheet through affiliate stake sales, additional stake adjustments or M&A-related disclosures cannot be ruled out going forward.

Valuation

PER

5.0×

PBR

0.5×

ROE

9.4%

EPS

₩533

BPS

₩5,939

Dividend per share

₩0

The price-to-book ratio trades below 1x, placing the stock in a discount range relative to net asset value. On the earnings side, owners' net profit—which was near breakeven in 2024—recovered in 2025, and profitability has remained positive over the most recent four quarters (Q3 2025 through Q2 2026).

That said, the wide quarter-to-quarter earnings swings make it difficult to describe a stable earnings band. No recent dividend payment history was confirmed, limiting the appeal from a dividend-yield perspective.

It is also worth noting that market capitalization has tended to move in tandem with fluctuations in the listed equity value of subsidiary TC Materials since its listing.

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 2026-08-22

Bull factors

Exposure to Expanding Power Grid Investment

Its subsidiary TC Materials has been securing major domestic power equipment companies as clients in the copper materials market for ultra-high-voltage transformers and submarine cables.

If KEPCO's large-scale investment cycle under its long-term transmission and substation facility plan continues, the company could benefit from expanded demand for related materials. This segment is known to account for more than half of consolidated revenue, giving it significant leverage on group earnings.

Improving Balance Sheet

The debt ratio has declined for four consecutive years, from 157.0% in 2022 to 65.1% in 2025. Operating cash flow also increased significantly to KRW 24.07 billion in 2025 compared to the previous three years, indicating improved cash generation capacity. This can be interpreted positively in terms of future investment capacity and financial flexibility.

Diversified Business Portfolio

The company has a business structure spanning several unrelated industries, including smart cards, heavy electric equipment/copper products, pharmaceuticals, and diagnostic kits, which may limit the impact of a slowdown in any single sector on the group's overall performance.

Recurring cash recovery through the sale of affiliate stakes demonstrates the group's ability to secure financial liquidity.

Bear factors

Net Profit Volatility

Net income attributable to controlling shareholders fluctuated significantly year to year: KRW 720 million in 2022, KRW 16.18 billion in 2023, KRW 130 million in 2024, and KRW 9.01 billion in 2025.

On a quarterly basis, it also showed low predictability, sharply falling from KRW 4.66 billion in Q1 2026 to KRW 1.05 billion in Q2. One-off factors, such as gains or losses from the disposal of affiliate stakes, may have influenced net income.

Stagnant Growth in Core Business

The smart card manufacturing business is classified as a mature industry domestically and faces demand stagnation issues due to the spread of mobile payments. Overall top-line growth also appears stagnant, with consolidated revenue slightly declining from KRW 484.3 billion in 2024 to KRW 482.8 billion in 2025.

Risk of Reduced Consolidation Contribution from Stake Sales

Biosmart has repeatedly sold shares in TC Materials, reducing its stake over time. If the stake continues to decline, the segment's contribution to consolidated earnings could shrink further. There have also been cases in the industry where past share sale prices were criticized as undervalued.

Risk factors

Raw Material Price Risk

Since the heavy electric equipment/copper products business uses copper as its core raw material, fluctuations in international copper prices directly affect costs and profitability. Sharp swings in copper prices could increase quarterly margin volatility.

Governance Complexity

The Biosmart group has a structure comprising numerous affiliates, a mix of listed and unlisted companies. Recurring intra-group equity transactions and subsidiary stake sales may raise concerns among minority shareholders regarding information asymmetry.

Limited Business Synergy

There is an assessment that combining loosely related businesses—smart cards, pharmaceuticals, diagnostic kits, and heavy electric equipment/copper products—results in limited synergy across segments. Weak performance in a specific business unit could also weigh on the group's overall valuation.

What to watch next

Mid-to-late November 2026
Expected timing for Q3 2026 consolidated earnings release; worth checking whether the Q2 pattern of revenue growth alongside profit deceleration persists.
Q4 2026
TC Materials' standalone results and equity-method impact should be checked to track changes in the heavy electrical/copper products segment's revenue contribution.
Upon future disclosure
Any future disclosure of additional orders or supply contracts tied to the long-term transmission and substation facility plan would provide a basis for assessing order momentum in the power materials business.
Upon future disclosure
Watch for any disclosure of further TC Materials stake sales or affiliate-related M&A by BioSmart, which would signal potential changes in the consolidated earnings structure.

Overall view

BioSmart is a diversified group combining a mature core smart card business with a growth-phase power-related copper materials business through subsidiary TC Materials.

While operating margin has improved since 2024 and the debt ratio has declined for four straight years, showing clear balance sheet progress, owners' net profit has swung widely year to year and quarter to quarter, making it hard to predict.

In the first half of 2026, revenue set consecutive quarterly records, yet Q2 net profit fell sharply, illustrating a phase where revenue and profit growth have decoupled.

TC Materials' separate listing changed the group structure by allowing the power materials business to be valued independently by the market, but BioSmart's stake has continued to decline, warranting attention to the future direction of its consolidation contribution.

Key variables likely to affect future performance and valuation include raw material prices, the power grid investment cycle, and changes in affiliate ownership structure. This report presents no investment recommendation or target price and is intended for informational purposes only.

Sources

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

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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.