PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩70 per share · Prices as of the 2026-10-02 close
TEMC CNS, which supplies semiconductor precursors and special gases alongside FAB equipment and secondary battery equipment, showed sharply swinging quarterly revenue and earnings in the first half of 2026.
Business spans chemical materials (precursors, special gases), semiconductor FAB equipment, and secondary battery equipment
2025 annual operating margin improved to 5.4% from 3.1% in 2024, but remains below the 13.8% level seen in 2022
After an operating loss in Q1 2026, Q2 2026 revenue recovered but net income to owners turned negative again
Largest shareholder is specialty gas maker TEMC (33.4% stake); subsidiaries include gas-supply equipment maker Jeil E&G and battery equipment maker YHT
Equipment segment shows order momentum including a chemical supply system contract with SK Hynix
TEMC CNS produces semiconductor process chemical materials together with semiconductor FAB equipment and secondary battery equipment; it was founded as Ocean Bridge in 2012, listed on KOSDAQ in 2016, and changed to its current name in 2024.
In the chemical materials segment it produces precursors such as HCDS, TiCl4 and BDEAS along with special gases such as Si2H6, where HCDS is used for insulation film formation, BDEAS as a sacrificial layer material in double-patterning for ultra-fine patterns, and TiCl4 in barrier-metal processes to prevent leakage current.
In the equipment segment, the company manufactures, installs, and maintains chemical central supply systems (C.C.S.S/S.S.S) that mix and sequentially supply multiple chemicals in set ratios.
For secondary batteries, it produces electrolyte supply systems and folding/inspection equipment, and its electrolyte supply system business reportedly holds more than a 30% global market share.
Subsidiaries include Jeil E&G (54.4% stake), which handles gas-supply equipment, and YHT (99.2% stake), which makes battery folding and inspection equipment.
Its largest shareholder is specialty gas maker TEMC (33.4% stake), and following a November 2023 acquisition, the company's revenue mix diversified from a chemical-material-centric base into semiconductor equipment and battery equipment.
Its main customers are semiconductor device makers, with which it maintains close collaboration on product development and quality control tailored to specific process conditions and specifications.
A defining feature of the business structure is exposure to two distinct demand cycles at once — the semiconductor cycle and the secondary battery investment cycle.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩52.4B | ₩4.2B | 8.0% |
| 2025Q3 | ₩31.1B | ₩1.1B | 3.6% |
| 2025Q4 | ₩51.8B | ₩800M | 1.6% |
| 2026Q1 | ₩23.3B | -₩3.6B | −15.5% |
| 2026Q2 | ₩55.9B | ₩96,735,632 | 0.2% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩165B | ₩22.8B | ₩14.4B | 13.8% | 15.2% | 32.9% |
| 2023 | ₩140.3B | ₩13.3B | ₩13B | 9.5% | 12.6% | 76.6% |
| 2024 | ₩193.5B | ₩5.9B | ₩9.5B | 3.1% | 8.5% | 39.8% |
| 2025 | ₩168B | ₩9B | ₩4.2B | 5.4% | 3.8% | 45.0% |
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 fell from KRW 164.9 billion in 2022 to KRW 140.3 billion in 2023, recovered to KRW 193.5 billion in 2024, then declined again to KRW 168.0 billion in 2025. The operating margin fell from 13.8% in 2022 to 9.5% in 2023 and 3.1% in 2024 before edging up to 5.4% in 2025.
Net income attributable to owners fell from KRW 14.4 billion in 2022 to KRW 13.0 billion in 2023 and KRW 9.5 billion in 2024, then declined further to KRW 4.2 billion in 2025.
On the cash flow side, operating cash flow was negative at KRW -8.3 billion in 2023 before improving to KRW 9.5 billion in 2024 and KRW 17.4 billion in 2025.
On a quarterly basis, revenue of KRW 52.4 billion and operating profit of KRW 4.2 billion in Q2 2025 fell to KRW 31.1 billion in revenue and KRW 1.1 billion in operating profit in Q3, before revenue recovered to KRW 51.8 billion in Q4 while operating profit stayed around KRW 0.8 billion.
In Q1 2026 revenue plunged to KRW 23.3 billion, producing an operating loss of KRW 3.6 billion and a net loss attributable to owners of KRW 0.13 billion.
Q2 2026 revenue rebounded to KRW 55.9 billion, the highest level in the recent quarterly window, yet operating profit stayed below KRW 0.1 billion and net income to owners slipped back into a loss of KRW 0.02 billion.
The disconnect between revenue recovery and profit improvement suggests structural factors such as revenue mix or one-off costs may still be at play.
The downstream memory semiconductor industry has a structural demand driver in that process-material consumption per wafer increases with finer process nodes and expanded 3D NAND investment.
At the same time, domestic semiconductor makers' supply-chain diversification policies, which accelerate material localization, are cited as a favorable backdrop for the company.
However, the 2025-2026 semiconductor down-cycle and delays in capital expenditure led to contraction in precursor and special gas demand as well as new FAB investment, which was directly reflected in results.
In the secondary battery segment, the company supplies equipment that functions as basic infrastructure for battery plants, offering a demand axis distinct from the semiconductor cycle that can help buffer earnings volatility.
Competitively, the chemical materials business competes with larger materials, parts and equipment makers as well as overseas precursor and special gas suppliers, while the equipment segment's key variable is its relationship with large domestic customers such as SK Hynix in the domestic chemical supply system market.
The business linkage with largest shareholder TEMC forms a combined materials-and-equipment supply structure, which is cited as a factor strengthening its position within the domestic materials, parts and equipment ecosystem.
The company disclosed in December 2025 that it signed a chemical supply system contract with SK Hynix, with a contract value of about KRW 14.5 billion, equivalent to roughly 7.5% of recent revenue, running from December 24, 2025 to January 31, 2026.
Research related to largest shareholder TEMC referenced a roughly KRW 48.4 billion chemical supply system contract tied to subsidiary TEMC CNS, with delivery estimated to begin in Q2 2026 and the customer's new site ramp-up projected for Q2 2027, according to an April 2026 news article citing NH Investment & Securities research.
The same analysis assessed that if revenue from the SK Hynix M15X follow-on project and the first tranche of Yongin semiconductor cluster orders is recognized, annual equipment revenue could grow further year over year.
In the secondary battery segment, the electrolyte supply system business's high global market share means future revenue could be influenced by whether battery makers resume capacity expansion investment.
That said, as shown by the Q1 2026 operating loss and the thin margin in Q2, the impact of delayed semiconductor capital spending on results is still playing out, and the key variables going forward are the timing at which equipment orders convert into recognized revenue and the pace of utilization recovery in the chemical materials segment.
The current share price sits in a range below the company's disclosed net asset value per share. On the earnings side, however, net income over the most recent four quarters (Q3 2025 through Q2 2026) has shrunk considerably, so the price-to-earnings multiple calculated on that basis tends to look relatively elevated.
This reflects a smaller earnings denominator since 2025 rather than a pure price premium, and is largely a function of the delayed earnings recovery. On the dividend side, the disclosed per-share dividend amount is modest, keeping the dividend yield at a low level.
Taken together, the stock shows a discount on a book-value basis alongside a relatively high multiple on recent earnings — two indicators pointing in different directions — and whether the earnings recovery proves durable is likely to shape how this valuation gap is read going forward.
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
The shift to finer semiconductor processes and expanded 3D NAND investment is a structural factor increasing precursor and special gas usage per wafer. The company produces core precursors such as HCDS, TiCl4 and BDEAS along with Si2H6 special gas, maintaining close collaboration with semiconductor device makers. Domestic material localization policy also serves as a favorable business environment.
The company signed a chemical supply system contract with SK Hynix in December 2025, and research has referenced a roughly KRW 48 billion chemical supply system contract along with expectations tied to SK Hynix's M15X follow-on project and Yongin cluster volumes.
Equipment revenue expansion is cited as a factor that could increase overall revenue volume beyond the materials segment. That said, the timing of revenue recognition and its ultimate scale require confirmation through future disclosures.
The electrolyte supply system business reportedly holds a global market share above 30%, giving the company a demand axis separate from the semiconductor cycle. Through subsidiary YHT, it also produces secondary battery folding and inspection equipment, diversifying its business portfolio. Whether battery makers resume capacity expansion could affect revenue in this segment.
Q1 2026 revenue plunged to KRW 23.3 billion, producing an operating loss, and while revenue recovered to KRW 55.9 billion in Q2, operating profit stayed below KRW 0.1 billion.
The fact that revenue recovery and profit recovery did not occur together suggests further scrutiny of cost structure or revenue mix is warranted. The high earnings volatility makes quarter-to-quarter forecasting difficult.
The operating margin fell from 13.8% in 2022 to 9.5% in 2023 and 3.1% in 2024, only partially recovering to 5.4% in 2025. A return to the double-digit margin levels seen previously has not yet been confirmed. Net income attributable to owners has also declined every year since 2022.
As a relatively small-cap KOSDAQ stock, price volatility can increase around earnings releases or order-related news. Net income over the most recent four quarters has shrunk considerably, so valuation metrics based on that period require careful interpretation. The limited liquidity typical of a small-cap stock is also worth considering.
If delays in semiconductor capital spending or a down-cycle persist, demand for precursors and special gases as well as equipment orders could contract further. Q1 2026 results can be viewed as an instance where this risk materialized. Memory prices and customer utilization trends are key variables.
Revenue is understood to be relatively concentrated on large semiconductor customers such as SK Hynix. Changes in a specific customer's investment plans or order delays could directly affect results. The pace of customer diversification also warrants observation.
If battery makers slow capacity expansion investment, it could negatively affect revenue in the electrolyte supply system and folding/inspection equipment segments. Slower EV demand growth or adjustments to battery makers' investment timing are cited as related risks.
If both the semiconductor and secondary battery segments weaken simultaneously, the diversification buffer effect could be limited.
Check Q3 2026 quarterly report disclosure — the key point to watch is whether Q2's revenue recovery translates into profit improvement.
The customer's new site ramp-up timing referenced in research; progress on related chemical supply system revenue recognition should be monitored.
Monitor for disclosures of new orders or supply contracts tied to the SK Hynix M15X follow-on project and the Yongin semiconductor cluster.
Check for new orders in the secondary battery electrolyte supply system and folding/inspection equipment segments, as well as signs of battery makers resuming capacity expansion investment.
TEMC CNS is a materials, parts and equipment company that operates semiconductor precursor and special gas businesses alongside FAB equipment and secondary battery equipment, maintaining a combined materials-and-equipment supply structure linked to largest shareholder TEMC.
Annual results have generally shown shrinking operating margins and net income since 2022, and while the operating margin improved slightly in 2025, net income declined further.
In the first half of 2026, an operating loss in Q1 and a revenue recovery in Q2 appeared as conflicting signals, reflecting expanded earnings volatility.
The SK Hynix-related supply contract and equipment order momentum, along with the high market share in secondary battery electrolyte supply systems, stand as bullish factors, while delayed semiconductor capital spending and the slow margin recovery should be weighed as bearish factors.
On valuation, the stock currently shows conflicting signals — a discount on a book-value basis alongside a relatively high multiple on recent earnings. Going forward, Q3 results and the timing at which equipment orders convert into recognized revenue are likely to be the key variables shaping the earnings trajectory.
Report written 2026-09-05 · Data as of 2026-09-04
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