KOSDAQBatteries052420

Osung Advanced Materials

₩9,770▲ 0.10%2026-10-02 close

Market Cap

₩95.2B

Turnover

₩100M

Volume

10,000 shares

Shares out.

9.7M

PER

0.5×

PBR

0.2×

EPS

₩18,136

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

Display Unit Sale Funds Pivot to Offshore Wind

Osung Hi-Tech is fundamentally restructuring its business by selling the display materials unit that generated most of its revenue to a Chinese buyer and using the proceeds to join a consortium bidding for SK Oceanplant.

1
The company signed a deal to spin off and sell its display materials business, which accounted for the vast majority of revenue, to China's Hangzhou Chengshi New Materials.
2
Using the sale proceeds, the company joined the D-Ocean Asset Management consortium as a co-investor, and a share purchase agreement for SK Oceanplant was signed on August 31, 2026.
3
It also acquired control of KOSDAQ-listed RF Tech, expanding into the IT components business.
4
While revenue fell sharply in the first half of 2026, net income attributable to owners surged in the second quarter, reflecting one-off gains tied to the business transfer.
5
Most subsidiaries remaining after the divestiture generate limited revenue, leaving the establishment of a substantive new core business as a key task ahead.

Business structure

Osung Hi-Tech was founded in 1994 and listed on KOSDAQ in 2001 as a functional optical film specialist for flat panel displays, taking its current name after a 2018 spin-off.

It manufactured PET protective films, process protective films, and functional films at its Iksan plant, and antistatic interleaving paper and trays at its Hwaseong plant, with this display materials business accounting for about 84% of revenue in 2024 and rising to 90.7% in the third quarter of 2025.

However, on February 4, 2026, the company decided to transfer the entirety of this core business unit's assets, liabilities, contracts, workforce, and overseas goodwill to a newly established subsidiary, Osung Hi-Tech Technology, for 160 billion won.

On the same day, it signed a contract to sell 100% of that subsidiary's shares to China's Hangzhou Chengshi New Materials Technology for approximately 198.5 billion won, with the two sides also forming a 4:6 joint venture to operate production lines.

Using these proceeds as funding for new business ventures, the company formed a consortium with D-Ocean Asset Management and Noah Partners to pursue SK Oceanplant, and on August 31, 2026, a share purchase agreement was signed to acquire SK Ecoplant's 35.62% stake for 410 billion won.

In parallel, in February 2026 the company acquired control of KOSDAQ-listed RF Tech, a maker of smartphone chargers, data link cables, and 5G base station antennas, and absorbed formerly KONEX-listed NSM, adding antistatic (ESD) plastic products to its portfolio.

It also holds smaller subsidiaries including Cannabis Medical, which researches medical cannabis, Double Blossom Mukdong in rental housing, and firms in logistics brokerage and lending, though their revenue contribution remains minor.

As a result, the company is in a transition from a display materials manufacturer toward a diversified, investment-holding-style structure.

Earnings trend

Quarterly revenue · Operating profit

₩39.7B₩6.2B25Q2₩41.9B₩8B25Q3₩42.8B₩7.5B25Q4₩11.5B₩3.4B26Q1₩11.4B-₩2.4B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩117.1B₩12.9B2022₩104.9B₩12.7B2023₩146.4B₩22.2B2024₩165.7B₩30.1B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩39.7B	₩6.2B	15.7%
2025Q3	₩41.9B	₩8B	19.0%
2025Q4	₩42.8B	₩7.5B	17.5%
2026Q1	₩11.5B	₩3.4B	29.7%
2026Q2	₩11.4B	-₩2.4B	−20.8%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩117.1B	₩12.9B	₩2.8B	11.0%	1.4%	40.3%
2023	₩104.9B	₩12.7B	₩12.3B	12.1%	5.4%	27.3%
2024	₩146.4B	₩22.2B	₩12.2B	15.2%	5.1%	22.3%
2025	₩165.7B	₩30.1B	₩32.6B	18.2%	11.6%	21.4%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-05

Earnings analysis

According to confirmed consolidated results, revenue fell from 117.1 billion won in 2022 to 104.9 billion won in 2023, then recovered to 146.4 billion won in 2024 and 165.7 billion won in 2025.

The operating margin improved steadily from 11.0% in 2022 to 12.1% in 2023, 15.2% in 2024, and 18.2% in 2025, while net income attributable to owners jumped from 2.8 billion won in 2022 to 12.3 billion won in 2023, 12.2 billion won in 2024, and 32.6 billion won in 2025.

Operating cash flow was 31.8 billion won in 2022, 22.9 billion won in 2023, 34.2 billion won in 2024, and 28.0 billion won in 2025, broadly tracking reported profit levels.

On a quarterly basis, results through late 2025 reflected normal operation of the display materials business, with revenue of 39.7 billion won and operating profit of 6.2 billion won in the second quarter of 2025, rising to 41.9 billion won revenue and 8.0 billion won operating profit in the third quarter, and 42.8 billion won revenue and 7.5 billion won operating profit in the fourth quarter.

However, revenue plunged to 11.5 billion won in the first quarter of 2026 with operating profit of 3.4 billion won, and in the second quarter revenue was 11.4 billion won with an operating loss of 2.4 billion won.

This appears to reflect the shrinking of the consolidated revenue base as the display materials business was transferred to a subsidiary.

In contrast, net income attributable to owners was 22.9 billion won in the first quarter of 2026 and surged to 133.0 billion won in the second quarter, a level completely disconnected from operating performance, most plausibly reflecting one-off gains related to the business transfer and subsidiary stake sale, details of which warrant further confirmation through future disclosures.

Summing the most recent four quarters from the third quarter of 2025 through the second quarter of 2026, net income attributable to owners totals approximately 176.7 billion won, underscoring how heavily one-off factors have shaped recent results beyond what the confirmed annual figures alone would suggest.

Industry analysis

The display optical film market has faced persistent pressure from oversupply and falling prices driven by aggressive capacity investment from Chinese producers, a dynamic that aligns with the company's stated rationale of selling at what it called an optimal window to realize value.

The shift of related customer businesses to China following LG Chem's 2020 sale of its LCD polarizer business is also cited as a background factor behind the restructuring.

In contrast, the offshore wind and shipbuilding sector the company is newly entering carries growth expectations tied to government special zone designations and overseas project wins such as in Taiwan, though the fact that SK Oceanplant's sale price came in below the levels paid at its original acquisition suggests the sector's fundamentals have not been as favorable as hoped.

In IT components, the acquired RF Tech produces smartphone chargers and 5G antennas and holds an order backlog, but the market has yet to clearly recognize this as a distinct growth story.

The SK Oceanplant acquisition structure, which involves a private equity fund, continues to face local community opposition, suggesting stakeholder conflicts from the industry realignment could persist for some time.

Outlook

The most important upcoming event is the closing of the SK Oceanplant stake acquisition, with disclosures indicating the transaction is scheduled to be completed by December 2026, at which point any change in controlling shareholder should be confirmed.

Regarding the Osung Hi-Tech Technology sale, 50% of the contract payment was received in June 2026 following Chinese authorities' approval of the outbound direct investment, while the remaining 40% installment and 10% final payment are conditioned on mutual agreement implementation and on production line startup and initial shipment proceeds, respectively, meaning full settlement will take more time.

For RF Tech, a separate retained-earnings settlement process remains outstanding, and its merger with subsidiary Ecovolt has proceeded, so the profitability recovery of these affiliates could affect future equity-method gains or losses.

The company has decided to buy back shares with plans to retire them upon completion, a shareholder-return measure that emerged amid the large cash inflows and whose progress warrants monitoring.

Market participants have suggested that the large cash proceeds from the business divestiture need to translate into shareholder returns and clearly defined new business investments to build market confidence, making transparency in capital deployment a key factor in future assessment.

Valuation

PER

0.5×

PBR

0.2×

ROE

50.4%

EPS

₩18,136

BPS

₩45,831

Dividend per share

₩0

The company's net asset base has expanded substantially in recent periods as gains tied to the business divestiture flowed through, and the market price has traded at a considerable discount to this enlarged equity base.

However, because this equity expansion stems from a one-off restructuring event rather than sustained operating strength, conventional net-asset-based valuation approaches warrant careful interpretation here.

When translating the most recent four quarters of earnings into a price-to-earnings relationship, the multiple appears far below historical trading ranges, but this too is heavily skewed by one-off gains and may not represent the earning power of a normalized business base going forward.

Dividends have not been paid recently, meaning shareholder returns currently depend more on the newly decided share buyback and cancellation plan than on dividend distributions.

Overall, current valuation metrics carry a transitional character that can only be fully reinterpreted once the business restructuring is completed and the performance of new ventures such as SK Oceanplant becomes tangible.

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 2026-09-05

Bull factors

Large cash reserves provide investment capacity

Through the sale of its display materials business and subsidiary stake, the company has secured or is set to secure roughly 200 billion won in cash, part of which has already been received as a contract payment.

This gives it resources to deploy toward new business acquisitions or investment in existing affiliates, while also helping keep the debt ratio at a relatively low level. That said, the direction and transparency of capital deployment remain a variable that will determine future credibility.

Entry opportunity into offshore wind and shipbuilding

SK Oceanplant operates an offshore wind substructure production base designated as a government special zone and has experience winning overseas projects including in Taiwan.

If the consortium in which Osung Hi-Tech is a co-investor completes the acquisition, the company would gain an opportunity to expand from a simple materials manufacturer into an energy infrastructure-related business, with specific development plans such as local hiring and supplier partnership already outlined.

Profit recovery and improving operating margin trend

Looking at the period before the restructuring, the operating margin improved every year from 2022 onward, and net income attributable to owners moved from a loss to a profit and then grew steadily.

Operating cash flow also stayed broadly in line with reported profit levels each year, indicating the accounting quality of past earnings was not weak. This can be viewed as a baseline of operational strength to reference once the business stabilizes.

Bear factors

Loss of core cash cow and a gap in business substance

After transferring the display materials business that accounted for over 90% of revenue, most of the continuing operations left at the company are small affiliates, and separate-entity operating profit has reportedly shrunk significantly.

Remaining businesses such as medical cannabis research, rental housing, logistics brokerage, and lending contribute only marginally to overall revenue, making a gap in the earnings base unavoidable until a new core business takes hold. This has fed market concerns that the company could become a shell in all but name.

Uncertainty surrounding the SK Oceanplant acquisition

The SK Oceanplant acquisition involves a private equity fund, and political and social variables remain, including opposition from the local community around the plant site and calls to revoke the special zone designation.

After the negotiation period was extended multiple times before the sale agreement was signed, further procedures are still needed before closing, and some observers note friction could arise even after closing during the exercise of control and pursuit of synergies.

If the acquisition does not proceed as planned, both the capital committed and the direction of the new business strategy could require reassessment.

Earnings interpretation risk from one-off gains

The large net income attributable to owners in the second quarter of 2026 occurred alongside an operating loss, suggesting it likely reflects non-recurring disposal-related gains.

In future quarters, results could reverse sharply once such one-off factors fade, and the headline net income figure alone is difficult to use as a gauge of sustainable earning power. Further disclosure detailing the breakdown of this profit and loss is needed.

Risk factors

Business restructuring risk

As the sale of the core business unit and the acquisition of new ventures proceed simultaneously, the timing and scale of capital deployment may not unfold exactly as planned.

The installment and final payments for the Osung Hi-Tech Technology sale are conditioned on Chinese approval and production line startup, meaning actual receipt could be delayed. If the restructuring drags on, the company's earnings base could remain weak in the interim.

Equity-method and affiliate risk

RF Tech's subsidiary RF Bio underwent a separate stake sale, and RF Tech itself is undergoing a merger process with subsidiary Ecovolt, making the affiliate structure fairly complex.

If these affiliates underperform, it could negatively affect the company's results through equity-method gains or losses, and market questions about the justification for the control premium paid during the acquisition could persist.

Community and regulatory risk

In the region where SK Oceanplant is located, opposition to the sale to a private equity fund has continued, with even the revocation of the special zone designation being raised.

This could lead to additional negotiation and cost burdens for plant operations and local cooperation even after the acquisition closes, and any reduction in special-zone incentives could affect the overall investment plan.

What to watch next

By December 2026 (scheduled)
Confirm whether the SK Oceanplant stake acquisition closes and whether the change in controlling shareholder is finalized.
During Q4 2026 (upon disclosure)
Check the timing and amount of the 40% installment payment for the Osung Hi-Tech Technology sale to verify whether the cash inflow plan is being executed.
Around November 2026 (Q3 results expected)
Review third-quarter results to see how the revenue and profit structure of the remaining businesses is taking shape after the display business transfer.
During the second half of 2026
Monitor the completion of the decided share buyback and its subsequent cancellation to verify follow-through on shareholder returns.

Overall view

Based on confirmed financial statements, Osung Hi-Tech was a display materials company that showed steadily improving revenue and operating margins with a stable profit trend from 2022 through 2025, but in 2026 it stands at a critical juncture, having sold that core business to Chinese capital and pivoted toward entirely different new ventures including the SK Oceanplant acquisition and control of RF Tech.

Results for the first half of 2026 show a sharp revenue decline and a shift to an operating loss occurring alongside a large surge in net income attributable to owners, indicating that one-off factors tied to the restructuring have had an outsized impact.

Bullish factors include the investment capacity from the large cash proceeds and the opportunity to enter the offshore wind and shipbuilding sector, while bearish factors include the gap in business substance left by the loss of the core cash cow and the community and regulatory risks surrounding the SK Oceanplant acquisition.

Going forward, the closing of the SK Oceanplant deal, the receipt of remaining sale proceeds, and the normalization of remaining affiliates' performance will be key variables in assessing the company's real business foundation.

Investors should continue to track the progress of each event and the transparency of capital deployment rather than focusing solely on the headline net income figure. This report is intended for informational purposes and does not include a buy or sell recommendation.

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.