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
Waps has continued a clear recovery from its 2022 net loss, with both revenue and profit rising in 2025 across its three core business lines of functional materials, automotive interior materials, and exterior building materials.
2025 consolidated revenue reached KRW 43.17bn and operating profit KRW 5.55bn, up 26.7% and 79.6% year-on-year respectively
The company turned from a net loss in 2022 to three consecutive years of net profit through 2023-2025, continuing its earnings recovery
Business diversified across lithium-ion separator materials (Korea R&D, Vietnam production), golf ball materials, and automotive synthetic leather/exterior building materials
Quarterly operating margin in H1 2026 fluctuated between roughly 7.5% and 13.3%, showing quarter-to-quarter variability
Debt ratio improved from 90.8% in 2024 to 81.4% in 2025, showing a strengthening financial structure
Waps is a polymer advanced materials company founded in Busan in 2001, operating a headquarters in Busan alongside production facilities in Cheongju and Yangsan, plus a Vietnamese subsidiary.
Its business is organized around three pillars: functional materials, automotive interior materials, and exterior building materials.
Within functional materials, lithium-ion separator materials and golf ball materials serve as core products, with the separator business developing and producing raw materials in Korea while final products are manufactured in Vietnam.
The golf ball material business, developed in-house, supplies to major global golf ball manufacturers, giving the company a track record in a sports materials segment known for high barriers to entry.
The automotive interior materials segment supplies synthetic leather and interior materials to major parts suppliers, benefiting from growth in electric vehicle demand.
The exterior building materials business leverages proprietary materials development in a construction market that requires both functionality and design.
The company has stated that it has built vertically integrated systems from raw materials to final products in the automotive synthetic leather and exterior building materials segments to secure price and quality competitiveness.
This portfolio spanning battery, automotive, sports, and construction end-markets is noted for reducing dependence on any single business line.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩12.1B | ₩1.6B | 13.0% |
| 2025Q3 | ₩12.9B | ₩1.9B | 14.9% |
| 2025Q4 | ₩10.1B | ₩1.6B | 15.4% |
| 2026Q1 | ₩10.2B | ₩800M | 7.5% |
| 2026Q2 | ₩10.9B | ₩1.4B | 13.3% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩34B | -₩1.1B | -₩8.5B | −3.2% | −25.3% | 83.5% |
| 2023 | ₩36.2B | ₩2.6B | ₩1B | 7.1% | 2.9% | 97.7% |
| 2024 | ₩34.1B | ₩3.1B | ₩1.2B | 9.1% | 3.2% | 90.8% |
| 2025 | ₩43.2B | ₩5.5B | ₩4.1B | 12.9% | 10.2% | 81.4% |
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
Waps' consolidated revenue rose from KRW 34.03bn in 2022 to KRW 36.23bn in 2023, KRW 34.07bn in 2024, and then to KRW 43.17bn in 2025.
Operating profit improved for three consecutive years, moving from a loss of KRW 1.10bn in 2022 to KRW 2.57bn in 2023, KRW 3.09bn in 2024, and KRW 5.55bn in 2025, lifting the operating margin from -3.2% in 2022 to 12.9% in 2025.
Net profit attributable to owners swung from a large loss of KRW 8.50bn in 2022 to profits of KRW 1.00bn in 2023 and KRW 1.20bn in 2024, before expanding to KRW 4.10bn in 2025.
On a quarterly basis, revenue and operating profit peaked in the window at KRW 12.91bn and KRW 1.92bn respectively in Q3 2025, before moderating to KRW 10.06bn revenue and KRW 1.55bn operating profit in Q4 2025, and further to KRW 10.20bn revenue and KRW 0.77bn operating profit in Q1 2026, then recovering to KRW 10.90bn revenue and KRW 1.45bn operating profit in Q2 2026.
The relatively lower operating margin in Q1 2026 illustrates quarter-to-quarter earnings variability. On the cash flow side, operating cash flow was negative at KRW -5.41bn in 2023 before recovering to KRW 5.94bn in 2024 and KRW 4.37bn in 2025, showing a more stable cash generation profile.
The debt ratio has gradually declined from 97.7% in 2023 to 90.8% in 2024 and 81.4% in 2025. Overall, the pattern points to a structural recovery phase combining revenue growth with improving profit margins.
The chemicals/advanced materials sector Waps operates in is characterized by diversified end-markets. The lithium-ion separator business is tied to growing electric vehicle and battery demand, with the localization trend in battery materials cited as a driver of related growth.
The golf ball materials market is expected to see moderate growth driven by the popularization of golf and rising participation among amateur and junior players, with market research noting the golf ball segment is projected to maintain steady growth in coming years.
The automotive interior materials segment is linked to growth rates in the global automotive market, particularly the electric vehicle segment, and is embedded in the OEM supply chain through major parts suppliers.
Exterior building materials represent a traditional application of chemical materials closely tied to domestic and overseas construction cycles.
In terms of competitive positioning, Waps is mentioned alongside several KOSDAQ-listed small and mid-cap automotive interior/materials companies, each competing based on differing customer bases and product lines.
The company's proprietary technology and track record with global customers in high-barrier specialty materials such as lithium-ion separators and golf ball materials are cited as relative differentiators.
According to company disclosures and IR materials, Waps has stated that earnings improvement continues in its functional materials segment, including lithium-ion separators and golf ball materials, while the automotive interior materials segment has benefited from expanded synthetic leather and interior material supply tied to electric vehicle market growth.
Disclosed figures showed revenue up 34.0%, operating profit up 96.6%, and net profit up 204.0% year-on-year on a cumulative basis through Q3 2025, indicating a pronounced recovery during that period.
The company maintains a structure in which its Vietnamese subsidiary handles final production of lithium-ion separator materials, making future capacity management a point to monitor if related demand expands further.
However, no specific capacity expansion plans or major new investment announcements were confirmed as of the search date.
The golf ball materials segment is expected to contribute steady revenue based on its existing track record of supply to major global manufacturers, supported by moderate growth projected for the golf equipment market itself.
The exterior building materials segment remains an area where performance may fluctuate depending on domestic and overseas construction cycle trends.
Waps' share price relative to net asset value trades in a range below book value, a pattern that is not uncommon among small and mid-cap materials names currently in an earnings recovery phase.
The shift from a large net loss in 2022 to three consecutive years of profit from 2023 onward provides important context for valuation assessment.
However, given that quarterly operating margins have fluctuated between roughly 7% and 13%, the durability of the recent earnings improvement remains an important variable for future assessment.
On the shareholder return side, no dividend has been confirmed based on recent disclosures, suggesting that priority has been placed on profit reinvestment and balance sheet improvement (declining debt ratio) rather than direct shareholder returns.
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
Following a large net loss in 2022, the company posted net profit for three consecutive years from 2023 to 2025, marking a clear improvement in earnings quality. Operating margin also rose from -3.2% in 2022 to 12.9% in 2025, with profitability recovery accompanying revenue growth. Whether this trend continues remains a key point to watch.
The business is diversified across lithium-ion separators (battery), golf ball materials (sports), and automotive interior materials (electric vehicles), reducing dependence on any single industry cycle. Since each business follows a different demand cycle, a portfolio diversification effect can be expected.
The debt ratio declined from 97.7% in 2023 to 81.4% in 2025, and operating cash flow turned from negative in 2023 to positive in both 2024 and 2025. Financial stability appears to be gradually improving.
Operating profit dropped sharply to KRW 0.77bn in Q1 2026 from KRW 1.55bn in the prior quarter, before recovering to KRW 1.45bn in Q2, showing significant quarter-to-quarter deviation. This can act as a factor reducing earnings predictability.
As a small-cap KOSDAQ stock, sell-side coverage is limited and the level of detailed segment-level disclosure, such as precise revenue breakdowns by business line, is relatively low. This can constrain information accessibility needed for investment decisions.
No dividend has been confirmed based on recent disclosures, limiting the contribution from a shareholder return perspective. Profits appear to be allocated primarily toward reinvestment and balance sheet improvement.
Automotive interior materials are sensitive to the automotive/EV market cycle, while exterior building materials react to domestic and overseas construction cycles. A slowdown in these end-markets could simultaneously affect revenue and profit.
With final production of lithium-ion separator materials taking place at the Vietnamese subsidiary, the company has exposure to KRW/USD exchange rate movements and changes in the Vietnamese production environment.
As a chemical materials company, fluctuations in petrochemical-based raw material prices can directly affect cost structures, potentially contributing to the quarterly operating margin volatility observed.
Check for Q3 2026 earnings disclosure — whether the profit recovery seen from Q1 to Q2 2026 continues into Q3 will be a key point to watch
Check DART filings and IR materials for any new supply contracts or capacity expansion announcements related to the lithium-ion separator or golf ball materials segments
Check for the annual business report (confirmed full-year FY2026 results) — verify whether revenue and operating profit growth versus 2025 has continued
Monitor how changes in EV production plans by major auto parts suppliers and OEMs affect demand in the automotive interior materials segment
Waps is a small-cap advanced materials company with exposure to multiple growth industries through three business pillars: functional materials (lithium-ion separators and golf ball materials), automotive interior materials, and exterior building materials.
Following a large net loss in 2022, the company posted net profit for three consecutive years from 2023 through 2025, with revenue and operating margin improving in tandem, while the financial structure has also gradually stabilized through a declining debt ratio and normalized operating cash flow.
However, quarterly volatility exists, as seen in the sharp decline in Q1 2026 operating profit versus the prior quarter followed by recovery in Q2, meaning the durability of the recent earnings improvement warrants continued monitoring.
From an industry perspective, favorable factors such as battery material localization, moderate growth in the golf equipment market, and rising automotive interior material demand coexist with traditional chemical materials risks including construction cycles, foreign exchange, and raw material costs.
With no confirmed dividend, priority appears to be placed on balance sheet improvement and reinvestment rather than shareholder returns.
Investors may wish to monitor upcoming quarterly earnings releases and any segment-specific new contract or capacity expansion disclosures to assess the durability of the recovery trend.
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.