KOSDAQBatteries078600

DaejooElectronicMaterialsCo

₩108,600▲ 12.19%2026-10-02 close

Market Cap

₩1.7T

Turnover

₩59.9B

Volume

560,000 shares

Shares out.

15.7M

PER

126.1×

PBR

4.7×

EPS

₩671

Dividend Yield

0.12%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩100 per share · Prices as of the 2026-10-02 close

Report overview

Conductive Pastes Lead, Silicon Anode Waits Its Turn

Conductive pastes for MLCCs and chip components are driving top-line growth, pushing quarterly revenue above the KRW 100 billion mark for the first time, yet operating margins and net profit swing sharply from quarter to quarter due to capacity-related costs and convertible bond valuation effects.

1
Second-quarter 2026 revenue hit a record KRW 100.58 billion, but operating profit fell to KRW 6.78 billion from KRW 9.22 billion in the prior quarter, trimming the operating margin to 6.7%.
2
The growth engine has shifted from EV silicon anodes toward conductive pastes for data-center and chip-component applications. NH Investment & Securities noted first-quarter 2026 conductive-material revenue of KRW 61.0 billion, up 156% year on year.
3
The KRW 3.83 billion first-quarter 2026 net loss attributable to owners stemmed from derivative valuation losses tied to convertible bonds, decoupling reported net profit from operating trends.
4
The annual operating margin slipped from 13.4% in 2024 to 8.1% in 2025, and 2025 operating cash flow of KRW 10.95 billion trailed operating profit of KRW 20.69 billion, reflecting the funding burden of the expansion phase.
5
Sixth-generation silicon anode material, heterojunction solar cell paste and single-walled carbon nanotubes form a confirmed pipeline, but the timing of large-scale revenue recognition has not been fixed in disclosures.

Business structure

Daejoo Electronic Materials is a KOSDAQ-listed materials maker producing conductive pastes and powders, silicon anode materials for rechargeable batteries, and phosphors and polymers for electronics.

The conductive-materials business splits into pastes for multilayer ceramic capacitors (MLCCs), for chip components such as inductors and resistors, and for solar cells, with the Samsung Electro-Mechanics supply chain as its core axis.

NH Investment & Securities broke down first-quarter 2026 conductive-material revenue of KRW 61.0 billion into KRW 34.6 billion for chip components, KRW 14.8 billion for MLCCs and KRW 12.6 billion for solar cells, noting that the company is benefiting from spillover demand for data-center MLCCs and chip components via Samsung Electro-Mechanics, while silicon anode revenue in the same period was KRW 12.0 billion amid lingering off-season effects.

The silicon anode line is a silicon-oxide composite offering higher energy density than graphite; using chemical vapor deposition to curb silicon expansion, it was commercialized in 2019 in an LG Energy Solution battery.

Since then the company has widened its customer and application base toward the Panasonic supply chain, power-tool batteries and satellite batteries. In phosphors, the 2025 consolidation of its Chinese affiliate Shandong Daejoo brought production and supply of PIG products for automotive headlamps in-house.

New initiatives include satellite-oriented heterojunction solar cell materials targeting conversion efficiency above 26%, and paste technology that replaces silver powder with silver-coated copper powder to lower cost, plus high-purity single-walled carbon nanotubes that reinforce silicon anode performance.

The revenue mix therefore rests on two pillars: conductive materials sensitive to the electronic-component cycle, and silicon anodes governed by battery adoption rates in EVs and power tools.

Competition runs against Japanese and Chinese paste makers on one side and new silicon-anode entrants on the other, with high customer concentration a structural feature.

Earnings trend

Quarterly revenue · Operating profit

₩63.4B₩5.3B25Q2₩63.6B₩6B25Q3₩73.6B₩4.6B25Q4₩90.9B₩9.2B26Q1₩100.6B₩6.8B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩174.1B₩12B2022₩185B₩6.2B2023₩219.3B₩29.4B2024₩254.6B₩20.7B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩63.4B	₩5.3B	8.4%
2025Q3	₩63.6B	₩6B	9.4%
2025Q4	₩73.6B	₩4.6B	6.2%
2026Q1	₩90.9B	₩9.2B	10.1%
2026Q2	₩100.6B	₩6.8B	6.7%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩174.1B	₩12B	₩1B	6.9%	0.8%	171.7%
2023	₩185B	₩6.2B	₩700M	3.4%	0.4%	163.5%
2024	₩219.3B	₩29.4B	₩36.9B	13.4%	16.3%	170.6%
2025	₩254.6B	₩20.7B	₩20.7B	8.1%	8.1%	155.9%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04

Earnings analysis

Annual revenue rose for four straight years, from KRW 174.10 billion in 2022 to KRW 184.99 billion in 2023, KRW 219.32 billion in 2024 and KRW 254.61 billion in 2025, yet the profit path diverged from sales.

Operating profit fell from KRW 11.97 billion in 2022 (6.9% margin) to KRW 6.21 billion in 2023 (3.4%), surged to KRW 29.35 billion in 2024 (13.4%), then eased to KRW 20.69 billion in 2025 (8.1%).

Net profit attributable to owners followed a similar arc: KRW 1.00 billion in 2022 and KRW 0.70 billion in 2023, a jump to KRW 36.87 billion in 2024, and KRW 20.66 billion in 2025.

Industry reporting attributed the 2025 profit decline to depreciation from new capital spending along with labor and utility costs lifting cost of goods sold.

Quarterly revenue traced a clear uptrend: KRW 63.42 billion in 2Q25, KRW 63.58 billion in 3Q25, KRW 73.58 billion in 4Q25, KRW 90.91 billion in 1Q26 and KRW 100.58 billion in 2Q26.

Operating profit, however, fell from KRW 9.22 billion in 1Q26 (10.1% margin) to KRW 6.78 billion in 2Q26 (6.7%), showing that revenue growth is not translating directly into margin gains.

The KRW 3.83 billion net loss attributable to owners in 1Q26 arose outside operations: the company disclosed on 15 May 2026 a derivative transaction loss of KRW 17.46 billion from valuation of convertible bonds, driven by the rising value of the conversion right on bonds issued in June 2024 as the share price advanced.

Second-quarter 2026 net profit attributable to owners returned to positive territory at KRW 4.27 billion, but on a first-half basis net profit remains heavily compressed relative to operating profit.

On cash, 2025 operating cash flow of KRW 10.95 billion was less than half the KRW 23.88 billion of 2024 and also below that year's operating profit, while total liabilities of KRW 402.33 billion and a debt-to-equity ratio of 155.9% underline the financial load of the build-out phase.

Industry analysis

The company's end markets have split into two very different tracks. One is the MLCC and chip-component market tied to AI data-center investment, where analysts see strong demand flowing down to paste suppliers.

In a May 2026 report, NH Investment & Securities said conductive-material revenue would grow to KRW 250 billion in 2026 and KRW 350.1 billion in 2027 and lead company-wide results, with visibility high because customers are asking for double current volumes by 2028.

The other track is EV battery materials, where silicon anode adoption speed and policy variables such as debate over reduced US EV tax credits act at the same time.

Silicon anodes beat graphite on energy density and fast charging, but low initial charge-discharge efficiency dilutes that density advantage, an issue the industry has long worked on; Daejoo is addressing it with a sixth-generation product lifting initial efficiency to 90% and delivering capacity above 2,000mAh/g.

As scale builds, silicon anode unit prices are generally expected to decline over the medium term, which supports adoption but pressures per-unit margins.

On competitive positioning, the company holds first-mover commercialization experience and a record of generational upgrades, yet new silicon-carbon composite entrants keep emerging at home and abroad, making the durability of its technology gap the key question.

In conductive materials, entrenched status within a major customer's supply chain is both a strength and a concentration risk, since any downturn in electronic components would pass straight through to revenue.

In cycle terms, conductive materials sit in an upswing while EV-related materials remain exposed to policy and demand uncertainty.

Outlook

On confirmed facts, the 2026 earnings path hinges on two variables: conductive-material volumes and new silicon anode adoption. On capacity, NH Investment & Securities said in a May 2026 report that it expects silicon anode capacity to expand from 3,000 tonnes in 2025 to 5,000 tonnes in 2026 and 27,000 tonnes by 2028.

On the product roadmap, sixth- and seventh-generation materials based on pure silicon and carbon composites are in development, with the sixth generation slated for mass production in 2026 and the seventh still in R&D.

Space and aerospace is emerging as a new application: the company said on 7 May 2026 that after supplying next-generation satellite battery silicon anode material to a North American private space company, it had additionally provided single-walled carbon nanotube samples.

On solar paste, NH Investment & Securities said in its May 2026 report that a heterojunction paste supply deal with a particular space company could add substantial solar-related revenue, though that remains a scenario contingent on a contract and has not been fixed in any disclosure.

On customers, NH Investment & Securities projected rapid growth in silicon anode demand based on Panasonic's expanding US share, new Porsche model launches and Samsung SDI's entry in power tools. These brokerage projections are not company guidance, and second-half 2026 results have yet to be finalized in disclosures.

What matters, then, is the durability of conductive-material revenue, utilization rates on new lines, and whether new applications move from sampling to contracts.

Valuation

PER

126.1×

PBR

4.7×

ROE

3.9%

EPS

₩671

BPS

₩18,152

Dividend per share

₩100

Earnings-based multiples are distorted because net profit attributable to owners over the last four reported quarters was heavily depressed by convertible bond derivative valuation losses, leaving the current multiple far from the band at which the shares historically changed hands.

In other words, today's earnings multiple is not purely a function of operating performance; an accounting valuation item has compressed the denominator.

On a net-asset basis, the stock trades at a premium to the average for KOSDAQ materials names, reflecting the growth expectations typically embedded in multiples for growth-materials companies.

A small cash dividend continues, but the yield sits well below the market average, consistent with a phase in which cash is directed toward capacity reinvestment rather than payouts.

For reference, brokerage price targets are third-party views rather than ours: on 15 May 2026 NH Investment & Securities said it maintained a Buy rating and raised its target price to KRW 200,000 from KRW 160,000, and on the same day Kiwoom Securities also maintained Buy and lifted its target from KRW 160,000 to KRW 200,000.

Whether the multiple proves justified will be settled after the fact by whether conductive-material margins settle in double digits and whether utilization climbs on the new silicon anode lines.

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 2026-09-04

Bull factors

Conductive Materials Rebuild Top-Line Muscle

Quarterly revenue expanded from KRW 63.42 billion in 2Q25 to KRW 100.58 billion in 2Q26, crossing the KRW 100 billion threshold for the first time.

NH Investment & Securities put first-quarter 2026 conductive-material revenue at KRW 61.0 billion, up 156% year on year, citing spillover from strong data-center MLCC and chip-component demand via Samsung Electro-Mechanics.

Having a revenue stream that works independently of the EV materials cycle reduces earnings volatility. That said, this pillar is tied to a customer's own cycle and pricing policy, limiting how independent it truly is.

Generational Upgrades Address the Core Technical Hurdle

Addressing the initial-efficiency weakness long flagged for silicon anodes, the company unveiled at InterBattery 2026 in March a sixth-generation product lifting initial efficiency to 90% with capacity above 2,000mAh/g.

The sixth and seventh generations are built on pure silicon-carbon composites, with the sixth slated for mass production in 2026. A commercialization track record and repeated generational transitions represent accumulated assets versus new entrants. Mass-production yields and customer qualification schedules nonetheless remain separate variables.

Expansion Into Space and Solar Applications

The company presented heterojunction solar technology for satellites capable of exceeding 26% conversion efficiency, noting it can substantially undercut the cost of conventional gallium-arsenide space cells and is drawing attention for satellite constellation projects.

It also said in May 2026 that it had supplied satellite battery silicon anode material to a North American private space firm and additionally provided single-walled carbon nanotube samples. Broadening from battery materials into electronic and energy materials can dilute dependence on a single end market.

However, activity remains at the sampling and early-supply stage, with no confirmed contract of meaningful scale identified.

Bear factors

Margin Volatility

Annual operating margins swung widely: 6.9% in 2022, 3.4% in 2023, 13.4% in 2024 and 8.1% in 2025. On a quarterly basis the margin retreated from 10.1% in 1Q26 to 6.7% in 2Q26, meaning profitability weakened in the very quarter revenue hit a record.

Industry reporting attributed the 2025 profit decline to higher costs including depreciation from new capital spending plus labor and utilities. With a larger fixed-cost base, any wobble in a given segment's volumes feeds quickly into margins.

Balance-Sheet Load in the Expansion Phase

Total liabilities stood at KRW 402.33 billion in 2025 with a debt-to-equity ratio of 155.9%, well above total equity of KRW 258.07 billion. Operating cash flow fell from KRW 23.88 billion in 2024 to KRW 10.95 billion in 2025, below that year's operating profit of KRW 20.69 billion.

While the build-out proceeds, depreciation and working-capital needs rise together, so revenue growth need not translate into cash generation. The form and terms of any funding, and their effect on shareholder value, also warrant monitoring.

Non-Operating Items Distorting Net Profit

The KRW 3.83 billion net loss attributable to owners in 1Q26 reflected accounting valuation effects rather than weak operations. On 15 May 2026 the company disclosed a KRW 17.46 billion derivative transaction loss from convertible bond valuation, equal to 6.77% of equity.

Separately, Meritz Securities was disclosed to have exercised a put option on KRW 5.6 billion of the eighth-series convertible bonds issued in June 2024, leaving both bond-related gains or losses and potential dilution in play.

Because the sign of the valuation item flips with the share price, net profit alone is a poor gauge of underlying performance.

Risk factors

Policy and End-Demand Risk

The largest end market for silicon anodes is EV batteries, and debate over trimming or ending US EV tax credits shapes the demand outlook across Korea's battery-materials supply chain. Shifts in tariffs and subsidy eligibility pass through to materials orders via customers' expansion and utilization plans.

If policy change translates into genuine demand contraction, utilization on newly added lines could take longer to recover. What matters is not the policy text itself but customer order volumes and utilization data.

Customer Concentration Risk

Conductive materials rely heavily on a position within one large electronic-component maker's supply chain, and silicon anodes are concentrated among a small number of battery cell customers.

NH Investment & Securities noted the company maintains an oligopolistic position in pastes for Samsung Electro-Mechanics' MLCCs and chip components, producing a spillover effect - which conversely implies a sharper revenue hit if that customer destocks.

Progress on diversification should be tracked through the quarterly segment mix. Single-customer concentration figures in periodic reports are worth checking.

Competition and Pricing Risk

Silicon anode unit prices have long been discussed as declining over the medium term as scale builds - supportive for adoption but a drag on margins. At the same time, continued attempts at entry with silicon-carbon composite materials at home and abroad could narrow the technology gap.

Conductive materials likewise compete with Japanese and Chinese paste makers, and swings in metal input prices such as silver feed directly into costs and inventory valuation. How broadly the cost-competitiveness technology replacing silver with silver-coated copper is actually deployed is a key question.

What to watch next

Mid-November 2026
Third-quarter 2026 results. Watch whether the operating margin, which fell to 6.7% in 2Q26, recovers, and whether conductive-material revenue sustains the growth pace seen in 1Q26.
Fourth quarter 2026
Actual ramp-up of new silicon anode lines and year-end capacity. The point of interest is how closely realized capacity matches the 5,000-tonne figure NH Investment & Securities projected for 2026 in its May 2026 report.
4Q 2026 to 1H 2027
Whether space-oriented heterojunction solar paste and satellite battery materials convert into contracts. Activity is currently at the sampling and early-supply stage, so a formal supply-contract disclosure would be the dividing line for the new business.
March 2027
The 2026 annual business report. It will disclose the segment revenue mix, single-customer dependence, remaining convertible bond balance and derivative valuation gains or losses, and the dividend decision in one document.
March 2027
Product announcements at battery exhibitions such as InterBattery 2027. The actual mass-production status of the sixth-generation material slated for 2026 and progress on the seventh generation will indicate execution against the technology roadmap.

Overall view

Daejoo Electronic Materials' recent results lay bare a shift in its growth engine. Revenue rose steadily from KRW 174.10 billion in 2022 to KRW 254.61 billion in 2025, and quarterly revenue topped KRW 100 billion for the first time at KRW 100.58 billion in 2Q26.

Yet the operating margin slid from 13.4% in 2024 to 8.1% in 2025, and from 10.1% in 1Q26 to 6.7% in 2Q26, showing that revenue expansion has not yet settled into stable profitability.

The 1Q26 net loss attributable to owners came from a non-operating source - convertible bond derivative valuation losses - so operating results and net profit should be read separately.

Operationally, conductive materials tied to data-center demand are carrying near-term earnings, while silicon anodes sit in a preparatory phase of sixth-generation products, capacity additions and customer and application expansion.

The bullish factors are secured conductive-material volumes, generational technology upgrades and expansion into space and solar applications; the bearish ones are margin volatility, a 155.9% debt-to-equity ratio alongside reduced operating cash flow, customer concentration and policy uncertainty.

The checkpoints that will tip the balance are whether conductive-material growth persists and margins recover in the next quarterly report, and whether new applications move to the contract stage; this material is for information purposes and contains no 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.