PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Prices as of the 2026-10-02 close
Assems posted record annual results in 2025 with revenue of KRW60.27 billion and operating profit of KRW12.0 billion, but revenue has slowed for three consecutive quarters from Q4 2025 through Q2 2026.
2025 consolidated revenue reached KRW60.27bn (+5.4% YoY), operating profit KRW12.0bn (+30.1% YoY) and owners' net income KRW8.82bn (+46.6% YoY), extending a four-year profit-improvement trend.
Quarterly revenue peaked at KRW15.11bn in Q3 2025 before declining for three straight quarters to KRW13.88bn (Q4 2025), KRW13.24bn (Q1 2026) and KRW12.21bn (Q2 2026).
The new Ultranet material has been adopted for Adidas's top-tier Copa soccer boot line and was trial-applied to a global brand's player-edition 2026 World Cup boot sample, as the company pursues broader adoption.
The portfolio spans automotive panoramic sunroof fabric supplied to Hyundai and Kia, plus eco-friendly new materials such as waterless-dyed yarn and anti-fungal film.
The stock trades below its net asset value per share and near the lower end of the PER band previously discussed in broker reports.
Assems was founded in 2003 and listed on KOSDAQ in 2022 as an eco-friendly hot-melt film adhesive specialist.
Its core solvent-free (liner-free) hot-melt film adhesive was the world's first of its kind to be commercialized, and the company supplies global sportswear brands including Nike, Adidas and New Balance through ODM and OEM arrangements.
As of 2024, revenue mix consisted of eco-friendly materials such as solvent-free film and functional coating yarn at 63.4%, automotive functional fabric at 28.5%, and other processing/equipment at 8.1%.
By end-market, footwear accounted for 68.4% of sales as of Q1 2025, automotive 29.5%, and other 2.1%, underscoring the dominance of footwear. In automotive, the company supplies panoramic sunroof functional fabric to Hyundai and Kia, emphasizing heat resistance, UV blocking and eco-friendly processing.
Production centers on R&D at its Busan headquarters, with manufacturing carried out through overseas subsidiaries in Vietnam, Indonesia and China, whose rising utilization rates have recently helped cost efficiency.
More recently, the company has expanded its portfolio into apparel and footwear with new products including the net-structured hot-melt material Ultranet, waterless-dyed yarn, and anti-fungal film.
Its 22-year relationship as an official Nike vendor and its history as the first to commercialize liner-free film are cited as core competitive advantages.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩14.5B | ₩2.9B | 20.0% |
| 2025Q3 | ₩15.1B | ₩3.8B | 25.4% |
| 2025Q4 | ₩13.9B | ₩1.1B | 7.6% |
| 2026Q1 | ₩13.2B | ₩2.4B | 18.3% |
| 2026Q2 | ₩12.2B | ₩2.2B | 18.2% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩53.1B | ₩8.7B | ₩7.3B | 16.4% | 12.7% | 68.6% |
| 2023 | ₩47.7B | ₩6B | ₩3.1B | 12.6% | 5.3% | 64.4% |
| 2024 | ₩57.2B | ₩9.2B | ₩6B | 16.1% | 9.3% | 59.9% |
| 2025 | ₩60.3B | ₩12B | ₩8.8B | 19.9% | 12.3% | 55.4% |
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
Annual revenue dipped to KRW47.73bn in 2023 from KRW53.05bn in 2022, then recovered to KRW57.17bn (+19.8%) in 2024 and grew further to KRW60.27bn (+5.4%) in 2025.
Operating margin improved for three straight years, from 12.6% in 2023 to 16.1% in 2024 and 19.9% in 2025, while owners' net income rose from KRW3.12bn in 2023 to KRW6.02bn in 2024 and KRW8.82bn in 2025.
This margin improvement reflects a combination of a growing share of higher-margin new products and lower production costs from rising overseas subsidiary sales weight. Quarterly patterns, however, have been uneven.
Revenue climbed from KRW14.55bn with operating profit of KRW2.91bn in Q2 2025 to a quarterly peak of KRW15.11bn revenue and KRW3.83bn operating profit in Q3 2025, before revenue fell to KRW13.88bn in Q4 2025 with operating profit plunging to KRW1.05bn (a 7.6% operating margin).
Operating margin recovered to the high-teens in Q1 2026 (revenue KRW13.24bn, operating profit KRW2.42bn) and Q2 2026 (revenue KRW12.21bn, operating profit KRW2.22bn), yet revenue itself has declined for three consecutive quarters and remains below the Q3 2025 peak.
Combined owners' net income over the most recent four quarters (Q3 2025 through Q2 2026) totaled KRW6.50bn, a figure that appears more moderate when set against the full-year 2025 total of KRW8.82bn, suggesting new-product sales have yet to fully offset the recent slowdown at the quarterly level.
The adhesive materials industry Assems operates in is heavily shaped by structural shifts toward environmental compliance and seamless (non-sewn) production among global sportswear and apparel brands.
According to Daishin Securities research, the global seamless apparel market was estimated at roughly $4.25 billion in 2024 and is projected to grow at an 8.7% CAGR from 2026 to 2033, reaching about $8.75 billion by 2033.
Global brands such as Nike, Adidas and New Balance are intensifying ESG requirements including per-product carbon footprint disclosure and supply-chain carbon data management, raising the technical bar expected of material suppliers.
During the 2026 North American World Cup, soccer boot brand share showed Nike leading at 42.79%, followed by Adidas at 39.74% and Puma at 10.02%, indicating an oligopolistic structure where the top three brands together hold over 90% share.
Within this structure, Assems holds an exclusive vendor position in certain product lines such as liner-free film and Ultranet, seen as providing entry barriers versus competitors, but this also means results are closely tied to adoption decisions by a small number of major brands.
In the automotive fabric segment, growing adoption of panoramic sunroofs alongside the expansion of eco-friendly and electric vehicles is viewed as a favorable factor. Domestically, there are few listed peers with a comparable business structure, making direct valuation comparisons difficult.
The company expects new-product sales from waterless-dyed yarn, Ultranet and anti-fungal film to become substantial starting in 2026, viewing them as a growth driver in the eco-friendly materials segment.
It also expects the existing automotive sunroof business to maintain stable growth, and has stated plans to continue shareholder-friendly policies such as dividend expansion and share buybacks on this earnings base.
In practice, the company signed a share-buyback trust agreement with NH Investment & Securities in December 2025 aimed at share-price stabilization and shareholder value enhancement.
On the product side, Ultranet has been supplied for Adidas's top-tier Copa soccer boot line since last year and was trial-applied to a global brand's player-edition 2026 World Cup boot sample.
The company has stated it is developing a second-generation Ultranet that reduces weight and increases adhesive strength versus the existing film-type product, and is watching for expansion into other categories such as running and training shoes.
It has also completed shipment of Ultranet samples for two other models beyond the World Cup player boot to production sites in China and Italy.
Still, how much and when this new-product pipeline translates into actual revenue will depend on brand adoption decisions and mass-production timing, warranting confirmation through upcoming quarterly results.
Prior broker reports on Assems discussed a PER band of roughly 8 to 13 times between 2022 and 2025, and the multiple at which the stock currently trades sits close to the lower end of that band. The share price trades below its per-share net asset value, placing the price-to-book ratio under 1x.
Compared with the multi-year trend of steadily rising owners' net income without a loss year, the multiple the market currently assigns appears relatively conservative.
On dividends, the company has stated it plans to continue shareholder-return policies such as dividend expansion and share buybacks, but specific disclosed per-share dividend figures could not be confirmed.
How the valuation evolves will likely depend on the timing of new-product revenue contribution and confirmation of quarterly earnings stability, and no directional judgment is offered here.
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
Operating margin improved for three straight years, from 12.6% in 2023 to 16.1% in 2024 and 19.9% in 2025, driven jointly by a rising mix of high-margin new products and cost savings from higher overseas subsidiary utilization.
Owners' net income also jumped from KRW3.12bn in 2023 to KRW8.82bn in 2025, showing a clear profit-recovery trend.
The new Ultranet material has been supplied for Adidas's top-tier Copa soccer boot line since last year and was trial-applied to a global brand's player-edition 2026 World Cup boot sample.
The company is developing a lighter, stronger-adhesion second-generation product and is watching for expansion into running and training shoes. Should these efforts translate into mass production and sales, they could contribute to portfolio diversification.
The company has stated it plans to continue shareholder-friendly policies such as dividend expansion and buybacks, and in December 2025 it signed a share-buyback trust agreement with NH Investment & Securities aimed at price stabilization and shareholder value enhancement. Such moves suggest room for expanded shareholder returns if the earnings base holds up.
Quarterly revenue peaked at KRW15.11bn in Q3 2025 and has since declined for three consecutive quarters, to KRW13.88bn in Q4 2025, KRW13.24bn in Q1 2026 and KRW12.21bn in Q2 2026.
Combined owners' net income over the trailing four quarters (KRW6.50bn) also appears more moderate compared with the full-year 2025 figure (KRW8.82bn), and new-product sales growth has yet to reverse this trend.
Q4 2025 operating profit fell sharply to KRW1.05bn from KRW3.83bn in Q3, pushing operating margin down to 7.6%. While margin recovered to around 18% in Q1-Q2 2026, this episode illustrates how earnings can swing sharply in a single quarter, underscoring the need to monitor future quarterly results.
A large portion of revenue depends on adoption decisions and order volumes from a small number of global brands including Nike, Adidas and New Balance.
Ultranet, the flagship new product, is also currently supplied mainly to specific models and specific brands, meaning strategy shifts or order reductions by these brand owners could directly affect results.
Footwear accounted for 68.4% of revenue as of Q1 2025, with heavy reliance on a handful of brands such as Nike, Adidas and New Balance within that segment. Changes in order policy or vendor structure at any of these brands could have a significant impact on results.
With production concentrated in overseas subsidiaries in Vietnam, Indonesia and China, the company is exposed to currency fluctuations and shifts in trade and tariff policy across these countries.
Just as rising overseas subsidiary utilization has recently supported cost improvement, a slowdown in utilization or a worsening tariff environment could pressure margins.
New products such as Ultranet, waterless-dyed yarn and anti-fungal film are still in the stage of expanding brand adoption and transitioning to mass production, so the timing and scale of actual revenue contribution could be delayed or smaller than planned. If related capacity expansion does not proceed as scheduled, this could also affect supply responsiveness.
The Q3 2026 quarterly report is due, and it will be worth checking whether the three-quarter revenue slowdown reverses and whether operating margin holds around the high-teens level.
It is worth monitoring progress on second-generation Ultranet development and adoption expansion into new categories such as running and training shoes, as well as related production capacity expansion.
After the marketing effect tied to the 2026 World Cup fades, this is a point to check follow-on order patterns from brand customers and whether other new products such as waterless-dyed yarn and anti-fungal film begin contributing to revenue.
Disclosures related to the fiscal-year 2026 dividend and any share buybacks will show whether the shareholder-return expansion plan the company has stated is actually implemented.
Assems is an eco-friendly adhesive materials company that posted record results with improving revenue and operating margin from 2022 through 2025, but it has also shown quarterly volatility, with revenue declining for three straight quarters from Q4 2025 through Q2 2026 and operating margin dropping sharply at one point in Q4 2025.
Efforts to expand adoption of new products—Ultranet, waterless-dyed yarn and anti-fungal film—across Adidas and other global brands are ongoing, but it remains unconfirmed when these will translate into stable quarterly revenue contribution.
Stable growth in the existing automotive sunroof fabric business and the company's stated plans for dividend expansion and share buybacks are cited as favorable factors.
On the other hand, heavy dependence on the footwear segment and a small number of global brands, along with FX and trade-policy risk tied to overseas production bases and execution risk around new-product ramp-up, warrant consideration.
From a valuation standpoint, the shares are observed trading near the lower end of previously discussed PER bands and below per-share net asset value, though this needs to be interpreted alongside the recent earnings volatility.
Upcoming Q3 results and the timing of new-product revenue contribution should provide a clearer basis for judging whether the recent slowdown is temporary or structural.
Report written 2026-09-05 · Data as of 2026-09-04
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