PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩400 per share · Prices as of the 2026-10-02 close
Korchip, a maker of supercapacitors and small secondary batteries, posted sharply improved revenue and operating profit in Q2 2026 on the back of expanding AI data-center orders.
Q2 2026 revenue reached KRW 17.996bn and operating profit KRW 4.41bn, a sharp sequential jump that lifted the quarterly operating margin to 24.5%
The 2025 full-year operating margin fell to 3.0% from 12.7% in 2023, but has been recovering on a quarterly basis through 2026
Korchip's MLCC distribution and supercapacitor partnership with Samsung Electro-Mechanics dating back to 1992 is drawing renewed attention amid AI-chip capacitor supply issues
The lithium titanate (LTO) prismatic battery has finalized customer specifications, with production line construction underway for second-half ramp-up
Korea Investment & Securities stated in a late-April 2026 report that Korchip was entering a period of earnings normalization
Founded in 1994, Korchip acquired the DLC (double-layer capacitor) business unit from Samsung Electro-Mechanics in 2002, securing core technology for ultra-small supercapacitors.
Its flagship products are ChipCellCarbone, a carbon-based secondary battery, and ChipCell LTO, a lithium-based secondary battery, used for real-time clock and memory backup functions in smart meters, automotive infotainment, digital signage, drones, and CCTV systems.
The company also runs an MLCC and passive-component distribution business as a Samsung Electro-Mechanics partner, providing a stable cash flow base. Its customer roster includes major domestic and global names such as Samsung Electronics, LG Electronics, Amazon, Epson, Brother, and DJI.
More recently, Korchip has expanded into AI data centers, electric vehicles, and automation equipment where power stability is critical, shifting its business model from single-component supply toward customized, integrated power solutions.
As a new growth initiative, the company is adding large-capacity pouch-type ChipCell LTO products to become a systems-level partner for high-output industrial energy storage.
Its distribution partnership with Samsung Electro-Mechanics, in place since 1992, is cited as underpinning a leading domestic position in small and ultra-small supercapacitors.
In terms of competitive landscape, the high-performance capacitor and MLCC market is dominated by a handful of players including Samsung Electro-Mechanics and Japan's Murata and Taiyo Yuden, positioning Korchip uniquely as both a distribution partner to these firms and an in-house manufacturer.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩8.6B | ₩500M | 5.5% |
| 2025Q3 | ₩9.7B | ₩66,050,495 | 0.7% |
| 2025Q4 | ₩11.4B | ₩100M | 1.3% |
| 2026Q1 | ₩12.1B | ₩1.1B | 8.9% |
| 2026Q2 | ₩18B | ₩4.4B | 24.5% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2023 | ₩32.9B | ₩4.2B | ₩4.8B | 12.7% | 20.9% | 63.6% |
| 2024 | ₩33.4B | ₩2.9B | ₩3.2B | 8.7% | 6.1% | 17.4% |
| 2025 | ₩38.3B | ₩1.1B | ₩2.8B | 3.0% | 5.1% | 20.4% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04
Korchip's consolidated revenue rose steadily from KRW 32.91bn in 2023 to KRW 33.37bn in 2024 and KRW 38.28bn in 2025, but profitability deteriorated clearly over the same period.
Operating profit fell for three straight years, from KRW 4.19bn (12.7% margin) in 2023 to KRW 2.90bn (8.7%) in 2024 and KRW 1.14bn (3.0%) in 2025, while owner net income also declined from KRW 4.80bn to KRW 3.23bn to KRW 2.85bn.
Total equity grew to KRW 55.80bn in 2025 from KRW 52.80bn a year earlier, and the debt ratio stayed low at 20.4%, indicating financial soundness was preserved even as margins compressed.
On a quarterly basis, Q3 2025 (revenue KRW 9.73bn, operating profit KRW 0.66bn) and Q4 2025 (revenue KRW 11.37bn, operating profit KRW 1.48bn) were notably weak, with margins of just 0.7% and 1.3%, respectively, before profitability rebounded sharply in Q1 2026 (revenue KRW 12.05bn, operating profit KRW 10.69bn... [figure as provided]) and Q2 2026 delivered the strongest quarter in recent years with revenue of KRW 17.996bn, operating profit of KRW 4.41bn, and owner net income of KRW 3.49bn.
The Q2 2026 operating margin of 24.5% stands in sharp contrast to the 3.0% full-year 2025 figure, signaling a clear direction of earnings recovery. Combined owner net income over the trailing four quarters (Q3 2025 through Q2 2026) reached KRW 6.98bn, already well above the full 2025 annual figure of KRW 2.85bn.
The turnaround appears linked to expanding supercapacitor orders tied to AI data centers alongside increased orders from existing customers and new customer inflows.
That said, the 2025 margin decline was attributed to hiring and R&D expenses tied to a new plant and the ChipCell Lithium business launch, so whether these upfront investment costs are one-off or recurring will need to be confirmed in coming quarters.
The AI-semiconductor and data-center power/capacitor market has reportedly experienced ongoing shortages of high-capacity MLCCs and next-generation capacitors amid surging GPU and high-performance server demand.
Only a handful of companies, including Samsung Electro-Mechanics and Japan's Murata and Taiyo Yuden, are known to be capable of stably producing high-performance MLCCs. Samsung Electro-Mechanics is expanding capacity, including a new plant investment in the Philippines, to meet rising orders from global Big Tech firms.
Within this landscape, ultra-small, high-performance silicon capacitors built on silicon wafers are gaining attention as power-stabilization components inside high-performance semiconductor packages such as AI server GPUs and HBM, with Samsung Electro-Mechanics having signed a silicon-capacitor supply contract worth roughly KRW 1.557 trillion with a major global customer.
Korchip is cited in this context as a supply-chain company with potential indirect benefit, given its more-than-30-year role as a distribution and collaboration partner for Samsung Electro-Mechanics' MLCC business.
It should be noted, however, that Korchip itself is a manufacturer of ultra-small/small supercapacitors and small secondary batteries, not a direct producer or supplier of cutting-edge silicon capacitors.
At the same time, rising prices for raw materials such as ceramics and palladium have been flagged as an industry-wide cost pressure.
Korchip is pursuing an integrated solution strategy for the AI data-center market that goes beyond simple component supply, combining supercapacitors with various power-related product lines tailored to individual customers, which the company expects will serve as a differentiating factor given technical specifications comparable to global competitors.
On the new-business front, expansion of lithium titanate (LTO) batteries is a core pillar; the prismatic battery has already had product specifications finalized with customers, and full-scale order intake is expected once second-half production line construction is complete.
Application areas are also expanding into automated guided vehicles (AGVs) and defense, alongside data centers, where high output and high reliability are required, while mid-to-large supercapacitors have entered the pre-mass-production stage, further diversifying the product portfolio.
A company representative stated that "supercapacitor orders have increased sharply as new demand centered on AI data centers rapidly grows." Korea Investment & Securities stated on April 30, 2026 that Korchip had completed proactive cost recognition from the prior year and would enter an earnings normalization phase this year.
In addition, given that Samsung Electro-Mechanics has secured a large silicon-capacitor supply contract running from 2027 through 2028, whether its distribution partner Korchip benefits indirectly remains a variable to be confirmed going forward.
Korchip's price-to-earnings ratio has, based on past broker estimates, traded at a modest premium to the KOSDAQ market average, and the current level appears close to the upper end of its historical trading range.
Its price-to-book ratio is also situated in a range that reflects a meaningful premium to net asset value, which can be interpreted as the market partially pricing in expectations for the pace of future earnings recovery.
On dividends, the company has consistently paid a per-share cash dividend, but given its growth-stock characteristics, dividend yield itself is not typically highlighted as a core investment attraction.
The fact that the 2025 operating margin fell to 3.0% before showing a clear quarterly recovery through 2026 is an important variable for valuation interpretation, and since recent quarterly results diverge from the annual trend, confirmation of subsequent quarterly results could influence how the valuation is read.
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
Successive sharp increases in revenue and operating profit in Q1 and Q2 2026 were driven by expanding supercapacitor orders tied to AI data centers. The company stated that expanded orders from existing customers and inflows of new customers occurred simultaneously.
Its shift from single-component supply to an integrated solution model is also cited as a positive factor for deepening customer relationships.
Korchip has served as Samsung Electro-Mechanics' MLCC distribution partner since 1992 and acquired the DLC business unit in 2002 to secure in-house supercapacitor manufacturing technology.
This long-standing relationship is drawing renewed attention amid shortages of high-performance MLCCs and silicon capacitors for AI semiconductors. It should be noted, however, that this is an indirect relationship rather than a direct supply contract.
The lithium titanate (LTO) prismatic battery has finalized product specifications with customers and is progressing through second-half production line construction, while mid-to-large supercapacitors have also entered the pre-mass-production stage.
Application industries are broadening to include data centers, automated guided vehicles, and defense, diversifying the product portfolio. If these new products move into full-scale production and order intake, there is room for the revenue base to expand.
The 2025 operating margin fell sharply to 3.0% from 12.7% in 2023, attributed to hiring and R&D costs tied to a new plant and new-business initiatives. While quarterly results have shown recovery through 2026, the possibility that upfront investment costs recur, reintroducing margin volatility, cannot be ruled out. Rising raw material prices are also a factor that could pressure margins.
Operating margins were compressed at just 0.7% and 1.3% in Q3 and Q4 2025, respectively, while Q1 and Q2 2026 saw a sharp rebound. Given this degree of quarter-to-quarter variation, whether the recent strong results reflect structural improvement or temporary factors will need confirmation in subsequent quarters. As a small-cap stock, earnings swings also tend to be reflected immediately in the share price.
Korchip's stock price has repeatedly shown large short-term swings in reaction to Samsung Electro-Mechanics' major supply contracts or AI-semiconductor-related news flow.
This means that supply-and-demand factors riding on supply-chain themes can be reflected in the price independent of Korchip's own actual earnings changes. Such theme-driven trading carries the risk of reduced correlation with underlying fundamentals.
Rising prices for key raw materials such as ceramics and palladium have reportedly added to manufacturing cost burdens across the industry. Korchip itself has seen recent margin deterioration attributed to increased labor and R&D costs tied to a new plant and new-business initiatives. If this cost structure persists, margin recovery could remain limited even as revenue grows.
The lithium titanate (LTO) prismatic battery and mid-to-large supercapacitors are still at the production line construction or pre-mass-production stage, so any delay in the planned schedule could push back the expected timing of revenue contribution.
Next-generation products such as ultra-small solid-state batteries also remain at an early development and evaluation stage, leaving uncertainty around commercialization timing.
Korchip's revenue appears increasingly reliant on a small number of large customers such as Samsung Electronics and LG Electronics, along with AI data-center-related projects. Any shift in a specific customer's order volume or project timing could have an outsized impact on results.
As the revenue structure shifts toward systems-level solutions, risks tied to changing contract terms also warrant consideration.
The Q3 2026 quarterly report is due to be disclosed — key to confirming whether Q2's sharp earnings improvement continues or was a temporary factor.
Whether LTO prismatic battery production line construction is completed and initial orders are secured — a gauge for the timing of new-business monetization.
Whether mid-to-large supercapacitors enter mass production — confirming whether product portfolio diversification translates into actual revenue contribution.
Commencement of Samsung Electro-Mechanics' large silicon-capacitor supply contract (2027-2028) — a point to check for possible indirect benefit to distribution partner Korchip.
Korchip is an electronics-component maker combining supercapacitor and small secondary battery manufacturing with MLCC distribution for Samsung Electro-Mechanics; from 2023 to 2025, revenue grew even as the operating margin declined markedly from 12.7% to 3.0%, marking a period of profit erosion.
However, Q1 and Q2 2026 results showed a marked improvement, driven by expanding supercapacitor orders tied to AI data centers, signaling a change in direction.
The more-than-30-year partnership with Samsung Electro-Mechanics is drawing renewed attention amid supply-chain issues around high-performance capacitors for AI semiconductors, though this represents an indirect relationship rather than a direct supply contract, warranting caution against over-extrapolation.
New businesses such as the LTO prismatic battery and mid-to-large supercapacitors remain at an early production stage, with the timing and scale of revenue contribution still to be confirmed through future quarterly results.
From a valuation standpoint, the recent earnings recovery appears to be partly reflected in market expectations, and upcoming quarterly results are likely to be the key gauge of whether this momentum is sustainable.
Investors will want to monitor both whether the earnings improvement proves structural and whether new-business production timelines are met.
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.