KOSDAQSemiconductors105550

Edge Foundry

₩1,623▲ 1.06%2026-10-02 close

Market Cap

₩25.7B

Turnover

₩30,772,965

Volume

20,000 shares

Shares out.

15.7M

PER

—

PBR

0.3×

EPS

-₩1,299

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

Auto Sensor Losses Persist as Firm Pushes Into Defense

Edge Foundry, originally an automotive pedal-sensor maker, is expanding into thermal-imaging sensors and defense applications following its merger with Hanwha Intelligence, even as core operating losses and repeated capital raises continue.

1
The March 2025 merger with Hanwha Intelligence brought Hanwha Systems in as the second-largest shareholder, formally launching the thermal-imaging sensor business.
2
In December 2025 the company signed a roughly KRW 46 billion thermal-sensor supply contract with China's HK KEMEI Group, with deliveries scheduled from 2025 through 2028.
3
The company has posted operating losses for four consecutive years since 2022, with the 2025 operating loss widening to about KRW 15.5 billion.
4
The 2025 net profit was driven by a one-time equity remeasurement gain from the merger, while operating cash flow remained negative.
5
A roughly KRW 50.8 billion general public offering is underway, with a payment date of September 7, 2026, expected to dilute existing shareholders.

Business structure

Founded in 2006, Edge Foundry is a sensor specialist that manufactures automotive sensors and holds printed-electronics, electromagnetic-application, and infrared thermal-imaging technologies. The company changed its name from Truwin to Edge Foundry at an extraordinary shareholders' meeting in May 2024.

Its core products are the APS (accelerator pedal sensor), BPS (brake pedal sensor), and SLS (stop-lamp switch) used in autonomous and eco-friendly vehicles, supplied to Tier-1 automotive vendors after localizing sensors that were previously fully import-dependent, and it continues to supply global auto-parts makers and OEMs.

Its main customers are Kyungchang Industry, Donghee Precision, and Hyosung Jeonki, all Tier-1 partners of Hyundai and Kia. Its sensors are known to be used in vehicles such as the Genesis GV80, Ioniq5, and Kia EV6, mainly through Hyundai and Kia supply chains.

In 2021 the company set up a joint venture, Hanwha Intelligence, with Hanwha Systems to develop uncooled thermal-imaging sensor technology, and after absorbing this JV in March 2025, Hanwha Systems' Hanwha Intelligence shares converted into about 6.86 million Edge Foundry shares (10.69%), making it the company's second-largest shareholder.

This has broadened the business from automotive sensors alone into defense, robotics, drones, and security surveillance applications.

Although classified under the auto-parts sector on KOSDAQ, the company effectively runs a dual portfolio combining automotive sensors with semiconductor-based image-sensor design and manufacturing capability.

Earnings trend

Quarterly revenue · Operating profit

₩9.3B-₩4.6B25Q2₩9B-₩4.6B25Q3₩8.6B-₩4.2B25Q4₩8.9B-₩4.9B26Q1₩8.8B-₩6.1B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩36B-₩2B2022₩37B-₩4.8B2023₩37.3B-₩5.1B2024₩36.4B-₩15.5B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩9.3B	-₩4.6B	−49.6%
2025Q3	₩9B	-₩4.6B	−51.0%
2025Q4	₩8.6B	-₩4.2B	−48.8%
2026Q1	₩8.9B	-₩4.9B	−54.7%
2026Q2	₩8.8B	-₩6.1B	−68.7%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩36B	-₩2B	-₩5.4B	−5.7%	−8.0%	67.7%
2023	₩37B	-₩4.8B	-₩21.3B	−13.1%	−38.0%	85.8%
2024	₩37.3B	-₩5.1B	-₩18B	−13.6%	−23.4%	71.2%
2025	₩36.4B	-₩15.5B	₩15.7B	−42.7%	12.2%	37.9%

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

Annual revenue has been essentially flat in the KRW 36–37 billion range for four straight years: KRW 36.0 billion in 2022, KRW 37.0 billion in 2023, KRW 37.3 billion in 2024, and KRW 36.4 billion in 2025.

Operating losses, however, have steadily worsened — from KRW -2.0 billion (operating margin -5.7%) in 2022, to KRW -4.8 billion (-13.1%) in 2023, KRW -5.1 billion (-13.6%) in 2024, and a much larger KRW -15.5 billion (-42.7%) in 2025.

Net income turned positive at KRW 15.7 billion in 2025, but this reflects an optical effect from a one-time equity remeasurement gain of about KRW 23.9 billion recognized during the March 2025 absorption merger with Hanwha Intelligence, unrelated to any underlying operating improvement.

Operating cash flow has in fact deteriorated over time, moving from positive KRW 3.6 billion in 2022 to KRW -3.3 billion in 2023, KRW -3.1 billion in 2024, and KRW -12.5 billion in 2025.

On a quarterly basis: 2025Q2 revenue was KRW 9.25 billion with an operating loss of KRW 4.59 billion and net income of KRW 5.58 billion (boosted by the one-time merger gain); 2025Q3 revenue KRW 8.95 billion, operating loss KRW 4.56 billion, net loss KRW 6.73 billion; 2025Q4 revenue KRW 8.61 billion, operating loss KRW 4.20 billion, net income KRW 2.69 billion; 2026Q1 revenue KRW 8.88 billion, operating loss KRW 4.86 billion, small net income of KRW 0.92 billion; and 2026Q2 revenue KRW 8.83 billion with a much wider operating loss of KRW 6.06 billion and a net loss ballooning to KRW 17.23 billion.

Summed over the trailing four quarters (2025Q3–2026Q2), net income attributable to owners totaled roughly negative KRW 20.4 billion, underscoring significant quarter-to-quarter earnings volatility.

Industry analysis

The company operates in two structurally different markets.

The automotive electronics sensor market benefits from steady demand growth tied to EV and eco-friendly vehicle adoption, but individual components like pedal sensors carry low importance in overall vehicle value, leaving the business exposed to pricing pressure and downstream industry cycles.

The thermal (infrared) sensor market, by contrast, is estimated at about USD 1.19 billion in 2025, projected to grow to USD 1.69 billion by 2030 at a 7.2% compound annual growth rate, with expanding applications in defense, drones, security, and automotive electronics.

In the United States, tightening security regulations, including mandatory certification requirements from the Security Industry Association (SIA), have been narrowing the market position of Chinese-made products, and in this environment Edge Foundry's thermal-sensor technology, designed and produced entirely domestically, has drawn attention as a substitute.

On competitive positioning, one analyst noted that U.S. digital-imaging sensor company Teledyne saw its share price rise roughly fivefold after acquiring thermal-sensor maker FLIR, drawing a comparison to a similar downstream-market expansion path.

That said, Edge Foundry's thermal-imaging segment remains in an early mass-production phase, with absolute revenue still far smaller than its automotive-sensor business.

Outlook

Among the company's confirmed forward-looking developments is the roughly KRW 46.1 billion thermal-sensor supply agreement signed with China's HK KEMEI Group on December 11, 2025, structured as purchase-order-based deliveries running from December 10, 2025 through December 31, 2028.

However, thermal-imaging camera revenue was only KRW 447 million in 2024, KRW 240 million in 2025, and KRW 62 million in the first quarter of 2026 — still marginal relative to total revenue and on a declining trend, so the timing of any meaningful revenue contribution from the new contract remains to be seen.

On the technology roadmap, the company completed mass-production development of its QVGA (320x240) thermal sensor in the second half of 2024 and began full-scale production in 2025, while targeting completion of a VGA (640x480) sensor in the second half of 2026.

Capital for related equipment is being raised through the ongoing 2026 rights offering, with about KRW 5 billion earmarked for QVGA facilities and about KRW 10 billion for VGA facilities.

On the defense side, the company has manufactured Hanwha Systems' 'Quantum Red' thermal engine module on an OEM basis, and in March 2025 signed an exclusive license agreement plus an additional OEM supply contract for a sniper-rifle AI thermal scope program.

From October 21 to 24, the company is scheduled to participate in the 8th Korea Police World Expo (KPEX 2026) at Songdo Convensia in Incheon, an event to watch for new security-sector partnerships.

Valuation

PER

—

PBR

0.3×

ROE

-16.7%

EPS

-₩1,299

BPS

₩7,200

Dividend per share

₩0

The current share price trades at a discount to the company's net asset value, a pattern consistent with persistent operating losses and a steadily rising share count driven by repeated rights offerings and convertible bond issuances.

On the earnings side, the company posted a net profit in 2025, but this was attributable to a one-time equity remeasurement gain from the merger, and the trailing four-quarter sum has swung back into a net loss.

The company pays no dividend, so market attention centers less on income appeal and more on the growth narrative in defense and security applications versus the recovery of cash generation in the core automotive-sensor business.

Some research houses, including Value Finder, offered a positive view on defense and global market expansion around the time of the March 2025 merger, but that assessment is now well over six months old and cannot serve as a basis for judging the current valuation.

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

Expansion Into Defense and Security Markets

Building on uncooled thermal-imaging sensor technology acquired through the Hanwha Intelligence merger, the company is broadening applications into defense, drones, and security surveillance.

Concrete examples include the roughly KRW 46 billion supply contract with China's HK KEMEI and its emergence as a 'de-China' alternative at the ISC WEST exhibition in the U.S. Defense partnerships are also deepening, including an OEM contract with Hanwha Systems for a sniper-rifle scope program.

Strategic Relationship With Hanwha Systems

Hanwha Systems became the company's second-largest shareholder after the merger and has also engaged in governance through auditor and board-level appointments. The exclusive license and OEM production agreement for the Quantum Red brand represents a structural relationship that could underpin defense-related revenue.

Cooperation with a major defense company may also ease entry barriers in terms of credibility and certification.

Established Automotive Sensor Base

The company has localized automotive sensors such as pedal sensors and continues to supply Hyundai and Kia's Tier-1 vendors, providing a base level of revenue during the investment phase for new businesses. Demand for related components continues to be supported by the expansion of electric and eco-friendly vehicles.

Bear factors

Operating Losses Widening for Four Straight Years

The company has recorded operating losses every year from 2022 through 2025, with the loss widening rather than narrowing. The 2025 operating loss of KRW 15.5 billion was more than seven times the 2022 figure of KRW 2.0 billion. Revenue has stagnated in the KRW 36–37 billion range while cost burdens have grown.

Net Profit Was Driven by a One-Time Item

The 2025 swing to net profit was an accounting effect tied to a one-time equity remeasurement gain from the merger, while operating cash flow actually deteriorated further.

After a slim profit in the first quarter of 2026, the company swung back to a large net loss of about KRW 17.2 billion in the second quarter, making it difficult to confirm any fundamental improvement in results.

Dilution Pressure From Repeated Capital Raises

Over the past three years the company has raised capital seven separate times through convertible bonds and equity offerings, and in 2026 it is conducting another general public offering of about KRW 50.8 billion. Repeated new share issuance continues to dilute existing shareholders.

Risk factors

Financial Stability

The interest coverage ratio has remained negative for several consecutive years, meaning operating profit is insufficient to cover interest expenses. The stand-alone current ratio also runs below 100%, pointing to ongoing short-term liquidity pressure.

Some analyses note that the improved debt ratio largely reflects a one-time capital boost from the merger rather than a structural change.

Share Dilution and Fundraising

The roughly KRW 50.8 billion general public offering underway in 2026 includes the issuance of 11 million new shares, resulting in meaningful dilution for existing shareholders.

The company has disclosed that continued operating losses make it difficult to generate cash internally, raising the possibility of needing further external fundraising.

Risk of Delayed Commercialization

Thermal-imaging camera revenue remains marginal relative to total sales and has shown a declining trend. If development of the VGA-class sensor or the actual revenue recognition from new large contracts is delayed or does not proceed as planned, expectations for the new business may fail to translate into results.

What to watch next

September 7, 2026
This is the payment date for the ongoing roughly KRW 50.8 billion general public offering; confirming completion of the fundraising and the resulting new-share listing will be important.
October 21–24, 2026
Participation in the Korea Police World Expo (KPEX 2026) at Songdo Convensia in Incheon should be watched for any new partnerships in the police and security sector.
Second half of 2026
Progress on the company's stated goal of completing development of a VGA-class (640x480) thermal sensor, along with related equipment investment, should be checked.
Around November 2026 (Q3 earnings expected)
The Q3 2026 quarterly report should clarify whether the large net loss seen in Q2 was a one-off item and whether the operating-loss trend is continuing.
From Q4 2026
It will be important to track when actual purchase orders and revenue recognition begin under the roughly KRW 46 billion supply contract with HK KEMEI.

Overall view

Edge Foundry is at a transitional stage, seeking to diversify its business structure by grafting thermal-imaging and defense ventures onto a long-stagnant automotive sensor revenue base.

Deepening cooperation with Hanwha Systems, the large supply contract with HK KEMEI, and partnership-building efforts through exhibitions in the U.S. and Korea all provide concrete evidence of this expansion.

However, operating losses have widened for four consecutive years, and the 2025 net profit was driven by a one-time merger-related gain rather than any improvement in core profitability.

The company swung back to a large net loss in the second quarter of 2026, and concerns over financial stability have also surfaced, including a negative interest coverage ratio and weakening liquidity metrics.

With a roughly KRW 50.8 billion rights offering currently underway, completion of the fundraising, the extent of shareholder dilution, and the timing of actual revenue contribution from new businesses will be key variables shaping future results.

Before forming any investment view, continued monitoring of the thermal-imaging segment's revenue contribution and any improvement in the balance sheet is warranted.

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.