KOSDAQSemiconductors092600

NC&

₩2,530▼ 3.98%2026-10-02 close

Market Cap

₩12.7B

Turnover

₩200M

Volume

80,000 shares

Shares out.

PER

0.7×

PBR

0.3×

EPS

₩2,732

Dividend Yield

0.00%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q2–2026Q1) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close

Report overview

Restructuring Nears End, Core Profitability Is the Next Test

NC& swung to net profit in 2025 on a one-off gain tied to Nextchip's reclassification as an associate, while its core dashcam ODM business remains in the process of narrowing operating losses rather than turning profitable.

1
2025 consolidated revenue reached KRW 102.6 billion with an operating loss of KRW 17.5 billion, while owners' net income turned positive at KRW 12.5 billion
2
The net profit swing was driven mainly by a one-off disposal gain from Nextchip's shift from subsidiary to associate status rather than by operating improvement
3
The company exited administrative-issue designation after resolving its pre-tax loss ratio requirement, and completed a 5-for-1 share consolidation (par value from KRW 500 to KRW 2,500) in May 2026
4
In 1Q26, revenue was KRW 16.2 billion with the operating loss narrowing sharply to KRW 0.36 billion
5
A control transfer process for biotech unit NC-BIT is underway, and with Nextchip already deconsolidated, the company is pursuing a leaner, streamlined corporate structure

Business structure

Founded in 1997 and listed on KOSDAQ, NC& is a semiconductor and video-security company that spun off its autonomous-driving chip business into subsidiary Nextchip via a physical split in 2019, and absorbed ADAS software affiliate Baidas in 2023.

As of 1Q26, revenue composition consisted of dashcams and related products at 81%, SD cards and rear cameras at 10%, software at 6%, and video-security image-processing chips at 3%.

The company's core business is automotive dashcams (driving video recorders), with the largest share supplied on a B2B ODM basis to maker manufacturers primarily in the domestic and Japanese markets.

Alongside this, NC& is expanding direct exposure to overseas markets including Japan, Southeast Asia, and the United States through its own brand, Vueroid, and has recently been pushing a commercial-vehicle-focused lineup, Vueroid CV, targeting large trucks and specialty vehicles in the B2B commercial fleet market.

Former subsidiary Nextchip is a fabless designer of image-processing (ISP), video-transmission (AHD), and autonomous-driving SoC chips (the APACHE series); following three rounds of capital raising and share sales in 2025, NC&'s stake fell to roughly 23%, triggering a reclassification from subsidiary to equity-method associate.

Biotech affiliate NC-BIT, in which NC& holds a 70.18% stake and which produces hemostatic products, is undergoing a capital raise and extraordinary shareholders' meeting process to transfer control to an outside investor.

Through this series of restructuring steps, NC& has been shedding the chronic-loss subsidiary exposure that had weighed on results and refocusing its structure on the dashcam ODM and own-brand businesses.

In terms of competitive positioning, domestic video-security peers include Idis and TrueN, while in autonomous-driving chips, now-associate Nextchip is considered essentially the only domestic fabless designer covering ISP, AHD, and ADAS SoC chips together.

Earnings trend

Quarterly revenue · Operating profit

₩26.4B-₩5.4B25Q1₩24.5B-₩4.2B25Q2₩24.5B-₩6.6B25Q3₩27.1B-₩1.2B25Q4₩16.2B-₩400M26Q1

RevenueOperating profit

Annual revenue · Operating profit

₩92.6B-₩32.1B2022₩61.7B-₩35.7B2023₩89.7B-₩26.7B2024₩102.6B-₩17.5B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q1	₩26.4B	-₩5.4B	−20.6%
2025Q2	₩24.5B	-₩4.2B	−17.3%
2025Q3	₩24.5B	-₩6.6B	−27.1%
2025Q4	₩27.1B	-₩1.2B	−4.3%
2026Q1	₩16.2B	-₩400M	−2.2%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩92.6B	-₩32.1B	-₩22B	−34.7%	−39.8%	54.9%
2023	₩61.7B	-₩35.7B	-₩18.2B	−57.9%	−49.2%	129.5%
2024	₩89.7B	-₩26.7B	-₩18.7B	−29.8%	−104.5%	328.5%
2025	₩102.6B	-₩17.5B	₩12.5B	−17.1%	31.9%	55.1%

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

Annual revenue fell sharply from KRW 92.6 billion in 2022 to KRW 61.7 billion in 2023, before recovering to KRW 89.7 billion in 2024 and KRW 102.6 billion in 2025.

Operating losses persisted across all four years, at KRW -32.1 billion in 2022, KRW -35.7 billion in 2023, KRW -26.7 billion in 2024, and KRW -17.5 billion in 2025, showing a gradual narrowing trend.

Owners' net income, however, ran negative at KRW -22.0 billion, KRW -18.2 billion, and KRW -18.7 billion in 2022 through 2024 before swinging to a positive KRW 12.5 billion in 2025, a result driven by a one-off non-operating gain—the disposal gain recognized when Nextchip's ownership stake fell and it was reclassified as an associate.

On a quarterly basis, revenue in 1Q–3Q 2025 ran at KRW 26.4 billion, KRW 24.5 billion, and KRW 24.5 billion respectively, with operating losses of KRW -5.4 billion, KRW -4.2 billion, and KRW -6.6 billion continuing throughout.

In 4Q25, revenue rose to KRW 27.1 billion and the operating loss narrowed sharply to KRW -1.2 billion, while owners' net income posted a large positive swing to KRW 23.3 billion—again understood to be dominated by the non-operating, equity-revaluation-type gain from Nextchip's reclassification rather than core operations.

In 1Q26, revenue declined quarter-on-quarter to KRW 16.2 billion, but the operating loss narrowed further to KRW -0.36 billion, continuing the improvement trend, while owners' net loss of KRW -1.4 billion reflects the underlying run-rate once the one-off gain had faded.

Taken together, NC&'s recent results reflect two overlapping dynamics: a steady, multi-quarter narrowing of core operating losses, and a separate non-operating one-off gain stemming from changes in subsidiary ownership structure.

Industry analysis

The domestic dashcam market has already reached a high penetration rate and growth has plateaued, whereas markets such as Europe and Japan are seen as having comparatively lower penetration and therefore more room for expansion.

As a result, domestic ODM-centered players are diversifying portfolios toward overseas own-brand expansion and new B2B demand from commercial and logistics fleets.

In the video-security (CCTV/DVR) market, competition continues with domestic players such as Idis and TrueN, and NC& generates some revenue in this space based on its image-processing chip technology.

The autonomous-driving and ADAS chip segment is viewed as an area of expected medium-to-long-term demand growth as global automakers increase camera counts amid electrification and intelligence upgrades.

However, the segment's key player, Nextchip, is now classified as an associate of NC&, so its results are only indirectly reflected through equity-method gains or losses, and NC& itself is not a direct revenue participant in this segment.

The ADAS SoC market for automakers involves competition from large overseas fabless players, and valuations of small-cap domestic semiconductor names tend to react sensitively to related thematic news flow.

Outlook

Management has characterized 2025 as the year it laid the groundwork for business restructuring and financial stabilization, and describes 2026 as a year to focus on higher-value-added businesses, including expanding overseas sales and strengthening safety-solution offerings.

Specifically, the company is pursuing an increased share of its relatively higher-margin own brand, Vueroid, and targeting the US market with a new product, the Vueroid S1 Infinite.

In the commercial-vehicle segment, it is seeking to grow sales to large domestic logistics companies by expanding supply of the Vueroid CV, an intelligent safety device designed to reduce blind-spot risks for large trucks and specialty vehicles.

On the financial-structure side, following last year's deconsolidation of Nextchip, the company is also pursuing an external capital raise involving a change of control at biotech affiliate NC-BIT, with the aim of removing it from consolidated results as well.

Management has stated its intention to become a so-called 'clean company' through this cleanup of subsidiary-related risk, positioning itself to be evaluated by the market primarily on its core dashcam ODM and own-brand businesses.

That said, these are company-stated targets and ongoing procedures, and their actual realization and timing will need to be confirmed sequentially through future disclosures.

Valuation

PER

0.7×

PBR

0.3×

ROE

51.7%

EPS

₩2,732

BPS

₩7,514

Dividend per share

₩0

The current share price trades at a notable discount to net asset value, which can be read as reflecting the market's view of years of accumulated losses, equity volatility, and the fact that much of the recent net-income swing stemmed from a one-off item rather than structural improvement.

Because the recent net profit turnaround was driven largely by a non-operating gain tied to changes in subsidiary ownership structure rather than core-business improvement, this should be kept in mind when interpreting valuation metrics.

On dividends, no cash dividend has recently been paid, suggesting that resources are currently being directed toward balance-sheet repair and business restructuring rather than shareholder returns.

The 5-for-1 share consolidation, which changed the outstanding share count and per-share par value structure, also warrants care when comparing against historical metrics directly.

A more structural shift in market assessment would likely require confirmation that core operating profit has turned positive on a sustained basis.

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

Balance-sheet cleanup through subsidiary risk removal

With Nextchip's shift from subsidiary to associate and the ongoing control transfer at biotech unit NC-BIT, the chronic-loss subsidiary exposure that weighed on consolidated financials is being removed step by step.

In the process, the pre-tax loss ratio requirement was resolved, allowing the company to exit administrative-issue designation. Management has stated its intent to be evaluated by the market as a leaner, core-business-focused company as a result.

Multi-quarter narrowing of core operating losses

The operating loss narrowed from KRW -5.4 billion in 1Q25 to KRW -1.2 billion in 4Q25, and further to KRW -0.36 billion in 1Q26. This suggests that efforts to improve profitability through greater own-brand Vueroid and overseas ODM exposure are being reflected in actual results. The steady narrowing of losses over successive quarters is a fact confirmed across multiple periods.

Room for growth in overseas markets and new commercial-vehicle demand

Dashcam penetration in overseas markets such as Europe and Japan is reported to be lower than in Korea, leaving room for improvement in Vueroid's brand penetration rate abroad. The company is also pursuing expanded sales to large domestic logistics companies through its commercial-vehicle-specific Vueroid CV lineup. These new channels could serve as a factor broadening the core business's revenue base.

Bear factors

Core business remains loss-making

The company posted a consolidated operating loss in each of the four years from 2022 through 2025, and the operating loss continued in 1Q26 as well. The net income swing to positive territory was driven by a one-off item, and the operating margin (-17.1% in 2025) remains in negative territory. Confirming a genuine core-business turnaround will require watching additional quarterly results.

Questions over the sustainability of the profit turnaround

A significant portion of the 2025 turnaround in owners' net income stemmed from a non-operating, one-off disposal gain tied to the decline in Nextchip's ownership stake. This type of gain is not something that recurs annually, and once it faded in 1Q26, the company reverted to a net loss of KRW -1.4 billion. Whether the quality of earnings shifts toward an operating basis going forward is the key thing to watch.

Indirect risk from ongoing equity-structure restructuring

With NC&'s stake in Nextchip reduced to roughly 23%, the company's control and the scope of equity-method income or loss recognition have both narrowed.

Because the NC-BIT sale also involves a change of control, the possibility of different-than-expected terms or delays during the restructuring process cannot be ruled out. Further equity-structure changes could also occur if additional stake sales or capital raises related to subsidiaries take place.

Risk factors

Listing maintenance / regulatory risk

NC& was previously designated an administrative issue after its pre-tax loss ratio exceeded 50% of equity in two of the most recent three fiscal years. While the 2025 earnings improvement is reported to have resolved this requirement, that outcome was substantially driven by a one-off gain.

If core-business losses persist without a repeat of such one-off gains, the possibility of similar financial-requirement issues resurfacing cannot be ruled out.

Execution risk from ongoing restructuring

Multiple restructuring steps are proceeding simultaneously, including Nextchip's deconsolidation and the control transfer at NC-BIT. These procedures can see their schedules change depending on regulatory consultation or market conditions, and may conclude on different terms than expected.

Depending on the timing and manner in which restructuring outcomes are reflected in the financial statements, future earnings volatility could increase.

Industry and competitive risk

The domestic dashcam market is reported to already have high penetration and to be approaching maturity, with price competition in the ODM model likely to persist. Expanding the own brand overseas is also a challenge that entails building local distribution networks and bearing marketing costs.

Thematic supply-and-demand flows related to autonomous-driving chips can affect the share price, but this can move independently of the actual revenue base.

What to watch next

Mid-November 2026
Around the 3Q26 report filing deadline, it will be important to check whether operating profit turns positive and whether the revenue recovery continues.
Around the 3Q26 report disclosure
Disclosures around this period should clarify whether NC-BIT has been deconsolidated and whether the control transfer process has been completed, allowing a check on progress toward a cleaner balance sheet.
During the second half of 2026
Follow-up news on Vueroid's sales performance in the US and European markets, and on expanded supply of the commercial Vueroid CV to large domestic logistics firms, should be monitored.
Ongoing disclosure monitoring
Should associate Nextchip disclose any new large-scale contracts with automakers, it would be worth checking the indirect impact through equity-method gains or losses.

Overall view

NC& achieved a net profit turnaround in 2025, driven by a one-off gain tied to Nextchip's reclassification as an associate, and this outcome also helped the company exit administrative-issue designation.

That said, consolidated operating results remained in the red continuously from 2022 through 1Q26, although the magnitude of losses has shown a steady narrowing trend across several quarters.

Following Nextchip's deconsolidation, the company has stated its plan to also divest biotech affiliate NC-BIT and reposition itself as a leaner company centered on dashcam ODM and the own-brand Vueroid business.

The relatively low dashcam penetration in overseas markets and new commercial-vehicle demand could serve as opportunities to broaden the revenue base, while the maturity of the domestic market and ODM price competition remain headwinds.

Given that the net-profit turnaround relied heavily on a one-off factor, whether core operating results actually sustain a profitable trend over the coming quarters will be the key point to watch.

As the restructuring phase nears completion, subsequent earnings and disclosures will need to be tracked to confirm the substance of these changes.

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.