PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩75 per share · Prices as of the 2026-10-02 close
SoluM has moved past a weak 2025 and shown operating profit recovery in the first half of 2026 led by ESL and power modules, while pursuing new data center power business and cosmetics/bio diversification simultaneously.
Q2 2026 consolidated revenue reached KRW 491.8 billion with operating profit of KRW 21.8 billion, extending the year-on-year improvement trend.
The ESL business is diversifying its customer base through new retail channels including Staples, Waitrose, and Amazon Whole Foods, expanding its revenue share.
The company is pursuing new data center power business including 800VDC BBU DC-DC converters, though the mass production target is Q1 2027, still requiring time.
The company expanded cosmetics/bio diversification through the SoluM Cosmetics acquisition of iQure, whose trading suspension was lifted on September 3, 2026.
The 2025 annual operating margin fell to 2.7% from 4.3% in 2024 and 7.9% in 2023, but operating margin has been recovering again in Q1-Q2 2026.
SoluM was established in 2015 when Samsung Electro-Mechanics spun off its power module, electronic tuner, and ESL businesses, and listed on the KOSPI in 2021.
The business is broadly divided into an electronic components segment (power modules, 3-in-1 boards, etc.) and an ICT segment (electronic shelf labels ESL, IoT), with the ICT share expanding to roughly 38% of revenue in Q1 2026 versus about 62% for electronic components.
ESL's main customers are global retailers, and the company has recently secured new channels including Staples, Waitrose, and Amazon Whole Foods to reduce reliance on any single customer.
The electronic components segment is in transition, shifting its center of gravity from TV power supplies and 3-in-1 boards toward servers, lighting, EV chargers (EVPM), and data center power conversion.
Notably, the company has entered the fast-charging infrastructure market through cooperation with a Portuguese EV charging platform company, connecting multiple 50kW power modules in parallel.
SoluM operates a global supply chain with production bases in China, Vietnam, Mexico, and India, and its Mexican subsidiary has begun mass production of integrated headlamp controllers, expanding its electrification component portfolio.
More recently, through subsidiary SoluM Healthcare, the company sequentially acquired GDK Cosmetics and iQure, expanding diversification into cosmetics and bio.
Competitively, standardization competition among large retailers is intensifying in the ESL market, while the application expansion of power modules into server and EV power markets is a key point to watch.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩402.6B | ₩12.2B | 3.0% |
| 2025Q3 | ₩472.6B | ₩14.8B | 3.1% |
| 2025Q4 | ₩427.7B | ₩8.1B | 1.9% |
| 2026Q1 | ₩478.2B | ₩21.7B | 4.5% |
| 2026Q2 | ₩491.8B | ₩21.8B | 4.4% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩1.7T | ₩75.6B | ₩45.4B | 4.5% | 15.6% | 256.7% |
| 2023 | ₩2T | ₩154.5B | ₩120.4B | 7.9% | 30.1% | 134.7% |
| 2024 | ₩1.6T | ₩69.1B | ₩37.7B | 4.3% | 8.7% | 126.3% |
| 2025 | ₩1.7T | ₩46.5B | ₩13.4B | 2.7% | 2.5% | 126.8% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-21
On an annual basis, revenue peaked at KRW 1,951.1 billion with operating profit of KRW 154.5 billion (7.9% margin) in 2023, before slowing to revenue of KRW 1,594.4 billion and operating profit of KRW 69.1 billion (4.3%) in 2024.
Revenue rose again to KRW 1,700.2 billion in 2025, but operating profit fell further to KRW 46.5 billion (2.7% margin). Owner-attributable net income also contracted for three consecutive years, from KRW 120.4 billion in 2023 to KRW 37.7 billion in 2024 and KRW 13.4 billion in 2025.
By quarter, Q4 2025 saw operating profit of KRW 8.1 billion but a net loss attributable to owners of KRW 5.6 billion, before improving to revenue of KRW 478.2 billion and operating profit of KRW 21.7 billion in Q1 2026, with the improvement continuing into Q2 2026 at revenue of KRW 491.8 billion and operating profit of KRW 21.8 billion.
Operating margins in Q1-Q2 2026 stood at approximately 4.5% and 4.4% respectively, markedly higher than the 3.1% and 1.9% seen in Q3-Q4 2025. In the 2025 cash flow statement, operating cash flow was a strongly positive KRW 54.6 billion, a notable improvement from the negative KRW 5.3 billion recorded in 2024.
This margin recovery reflects a combination of expanded ESL sales in Europe and the Americas, cost controls, and a favorable currency environment.
Conversely, the TV-oriented 3-in-1 board business within the electronic components segment has seen profitability weaken amid set market contraction, remaining a downside factor for consolidated results. The debt ratio stood at 126.8% in 2025, maintaining a level substantially lower than the 256.7% seen in 2022.
The ESL industry is closely linked to digital transformation investment by global retailers, with large retailers' store IT investment decisions determining the timing of revenue recognition.
There have been instances where supply to large North American customers was delayed due to store restructuring and IT investment schedule adjustments at the customer's end, which is understood to reflect customer-side circumstances rather than the supplier's order competitiveness.
Meanwhile, in the data center power infrastructure market, the spread of AI servers is driving a transition toward high-voltage direct current (HVDC) based architecture, opening up new component markets such as DC-DC converters for battery backup units (BBU).
This market remains at an early stage, with the shift from existing 50V rack structures to 800VDC power sidecar structures not yet fully underway.
In the EV charging market, demand for ultra-fast, high-capacity charging infrastructure is growing, with certification and mass-production capability across various power output ranges seen as key to competitiveness among power module makers.
In the cosmetics and bio industry, growing K-beauty demand is intersecting with opportunities for overseas expansion via global distribution networks.
In terms of competitive positioning, SoluM competes with domestic and overseas rivals on standardization and pricing in ESL, while in data center power it remains a relative latecomer pursuing entry into big-tech supply chains.
The company presented second-half 2026 revenue guidance of KRW 980.9 billion, up 9% year-on-year, and stated its intent to sustain solid growth in new growth axes such as ESL and EVPM.
In the ESL segment, a large-scale volume pilot test with a major North American retailer is planned for the second half, with a company representative stating the project is currently being pursued exclusively without competitors.
As of Q1, the order backlog was reported at KRW 2.28 trillion, up KRW 50 billion from the prior quarter. In the new data center power business, compatibility testing for the 800VDC BBU high-voltage DC-DC converter is scheduled during Q2, with mass production targeted for Q1 2027.
In the EV charger (EVPM) business, the company plans to target public fast-charging, logistics hub, and commercial fleet charging infrastructure markets through 50kW module supply to a Portuguese charging platform company.
In cosmetics and bio, following the GDK Cosmetics acquisition, the company aims to combine iQure's hydrogel mask pack and basic cosmetics ODM capabilities to respond to global buyer demand. iQure's trading suspension was lifted on September 3, 2026 following the Korea Exchange's listing eligibility committee decision to maintain its listing, and SoluM Cosmetics voluntarily applied for a three-year lock-up on its entire shareholding.
SoluM's valuation has passed through a period where the market's assessment also declined alongside shrinking profits from the 2023 earnings peak through 2024-2025.
With profit recovery confirmed in the first half of 2026, led by ESL and power modules, market attention has turned to how sustainable this earnings rebound proves to be.
The price-to-book ratio trades with some premium built in relative to net assets, and per-share book value metrics have also shifted following the recent expansion in owners' equity (KRW 548.0 billion in owner-attributable equity at end-2025).
Dividends have continued to be paid annually, though the absolute payout amount remains relatively modest.
However, multiple brokerage reports commonly note that the market's valuation benchmark could shift depending on whether the new data center power business achieves visible entry into big-tech supply chains and whether large ESL project orders materialize.
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 2026-08-21
The ESL business recorded substantial year-on-year revenue growth in both Q1 and Q2 2026, securing new global retail channels including Staples, Waitrose, and Amazon Whole Foods to reduce dependence on any single customer. The company stated it achieved double-digit operating margins for two consecutive quarters. Growth in European sales combined with cost controls has supported margin improvement.
Amid data center power architecture changes driven by AI server proliferation, the company is developing 800VDC BBU DC-DC converters and conducting sample verification with big-tech hyperscalers. Brokerage reports have noted potential annual revenue contribution if supply chain entry is successful. Existing server PSU supply experience serves as the technical foundation for this new business.
Revenue contribution from cosmetics and bio has begun through the SoluM Healthcare acquisitions of GDK Cosmetics and iQure, with GDK Cosmetics showing growth in both revenue and operating profit after integration.
The EV charger (EVPM) business is also establishing itself as a new revenue source through cooperation with a European platform company. This diversification helps spread risk away from reliance on the single electronic components business.
Profitability in existing electronic components businesses such as 3-in-1 boards continues to weaken amid TV set market contraction and customer cost-cutting trends. This is cited as a burden during the transition period that coincides with new power business expansion.
If the decline in existing businesses outpaces growth in new businesses, it could weigh on consolidated results.
There have been cases where electronic shelf label supply to large North American customers was delayed due to store restructuring and IT investment schedule adjustments at the customer's end. Since the timing and scale of large ESL project orders depend on customer decision-making, predictability remains limited.
The possibility of delays to the Q1 2027 mass production target for the new data center power business also cannot be ruled out.
iQure was under trading suspension at the time of acquisition, with issues related to breach of trust and embezzlement by former management, along with an ongoing indemnity lawsuit.
While trading resumed, full normalization of the pharmaceutical/bio segment and realization of synergies with the cosmetics segment may require time. There is also management burden in simultaneously overseeing businesses across disparate sectors (electronic components, cosmetics, bio).
The ESL business heavily depends on store IT investment decisions by large global retailers, a structure where revenue recognition timing can be delayed based on a specific customer's internal circumstances. The electronic components segment is also affected by TV set manufacturers' production strategy changes. While customer diversification is underway, dependence on a small number of large customers persists.
The new data center power business requires multiple remaining verification stages including hyperscaler compatibility testing, customer audits, and capacity expansion before mass production, which will take time. A company representative has stated that supply within the current year is not easy. Delays or failures at the verification stage could push back the expected timing of revenue contribution.
While the company operates a tariff-avoidance strategy through global production bases, changes in trade policy across countries could alter its production and logistics cost structure.
A favorable currency environment has recently supported earnings improvement, and margins could face pressure if exchange rates move in the opposite direction. Raw material price volatility also remains an ongoing factor to manage.
Check whether Q3 revenue/operating profit and margin trends in the ESL and power module segments continue the first-half improvement. Some brokerages have projected Q3 revenue of around KRW 525.9 billion and operating profit of around KRW 17.9 billion (preliminary estimates, not confirmed).
Monitor the results of the large-scale ESL volume pilot test for a major North American retailer and whether formal orders follow. A successful order could be an important signal for future revenue visibility.
Check whether the 800VDC BBU DC-DC converter passes compatibility testing, whether the mass production schedule is met, and the status of capacity expansion-related capital expenditure.
Check the consolidation of financial results from the cosmetics/bio segment following the iQure integration, and progress on synergies (customer and product line combination) with GDK Cosmetics.
SoluM went through an earnings contraction in 2024-2025 following its 2023 profit peak, but has shown operating margin recovery in the first half of 2026 led by ESL and power modules.
Its core ESL business is building a stable growth foundation through diversified global retail channels and a growing order backlog, while the electronic components segment is in a transition period where the slowdown in legacy TV-related business coincides with expansion of new power and automotive electronics businesses.
The new data center power business is undergoing verification steps aimed at joining big-tech supply chains, though mass production will still take more time, while the cosmetics and bio segment is attempting to build a new growth axis through the GDK Cosmetics and iQure acquisitions.
This diversification broadens the business base but also brings integration burdens from managing disparate industries.
Key points to watch going forward will likely center on whether the large ESL project with a major North American retailer materializes into an order, and whether the new data center power business meets its verification and mass production schedule.
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.