KOSDAQMachinery267320

Naintech

₩2,830▲ 0.35%2026-10-02 close

Market Cap

₩161.9B

Turnover

₩7B

Volume

2.5M

Shares out.

57.4M

PER

—

PBR

1.4×

EPS

-₩87

Dividend Yield

0.00%

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

Report overview

Diversifying Beyond the Battery Chasm, Recovery Signals Still Unfolding

NainTech saw revenue roughly halve in 2025 amid a secondary battery order slowdown, but posted net profit in two consecutive quarters in the first half of 2026 while attempting a business shift toward glass substrate, sodium-ion battery, and thermoelectric equipment.

1
FY2025 consolidated revenue fell sharply to KRW 82.37bn from KRW 197.22bn a year earlier, with an operating loss of KRW 8.92bn
2
Net income attributable to owners turned positive in both Q1 2026 (KRW 0.98bn) and Q2 2026 (KRW 0.52bn), a shift from the large losses seen in 2025
3
The debt ratio dropped sharply from 396.1% in 2022 to 75.8% in 2025, indicating an improving capital structure
4
The company is pursuing a strategy to reduce reliance on secondary battery equipment through new businesses in glass substrate (FO-PLP), sodium-ion batteries, and thermoelectric elements
5
Individual order wins continue, including a KRW 25.4bn display equipment supply contract with LG Electronics

Business structure

NainTech is a KOSDAQ-listed machinery and equipment company that started as a display equipment maker in 2007 before entering the secondary battery equipment market in 2016.

Its core products are lamination and stacking equipment used in battery cell assembly, with LG Energy Solution as the primary customer; the company has also supplied equipment to overseas production lines including the NextStar Energy plant in Canada.

Its display segment supplies front- and back-end wet station equipment and OLED vacuum/N2 logistics equipment, with LG Display historically the key customer while Chinese display makers have grown in importance more recently.

As of 2022, product revenue mix was reported at 46.2% secondary battery, 26.8% display, 14.4% lithium-ion battery (subsidiary Talos), and 12.6% other, reflecting a structure anchored in battery and display equipment plus defense-oriented battery packs.

More recently the company has expanded into semiconductor back-end packaging, securing FO-PLP (fan-out panel level packaging) and glass substrate wet-process equipment technology, with a delivery track record to overseas semiconductor and glass core substrate companies between 2022 and 2024.

Subsidiaries include Talos, which makes defense battery packs; Energy11, a sodium-ion battery developer in which NainTech holds a 15.32% stake as the second-largest shareholder; and Yeonhwa Sinsomaterial, focused on secondary battery and rare-earth recycling.

The company is also cultivating thermoelectric-based smart cooling technology for AI server and HBM heat dissipation, unveiled at CES 2025, as a new growth driver.

Competitively, it co-develops and supplies battery assembly equipment alongside unlisted peer Sinjin Emtech, while in glass substrate and semiconductor packaging equipment it is among a small group of Korean firms, including Taesung Kiyeon, pioneering an early-stage market.

Earnings trend

Quarterly revenue · Operating profit

₩27.8B₩800M25Q2₩22.1B-₩1.4B25Q3₩16.6B-₩7B25Q4₩19.8B₩1.5B26Q1₩12.7B-₩500M26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩88.8B₩5.2B2022₩123B-₩3.1B2023₩197.2B₩4.6B2024₩82.4B-₩8.9B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩27.8B	₩800M	3.0%
2025Q3	₩22.1B	-₩1.4B	−6.1%
2025Q4	₩16.6B	-₩7B	−42.2%
2026Q1	₩19.8B	₩1.5B	7.4%
2026Q2	₩12.7B	-₩500M	−3.7%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩88.8B	₩5.2B	₩31,344,703	5.9%	0.1%	396.1%
2023	₩123B	-₩3.1B	₩8.9B	−2.5%	10.8%	186.9%
2024	₩197.2B	₩4.6B	-₩5.7B	2.3%	−7.6%	121.3%
2025	₩82.4B	-₩8.9B	-₩17.7B	−10.8%	−19.3%	75.8%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23

Earnings analysis

NainTech's consolidated revenue grew from KRW 88.82bn in 2022 to KRW 123.05bn in 2023 and KRW 197.22bn in 2024, before falling sharply to KRW 82.37bn in 2025.

Operating profit swung between profit and loss each year: a KRW 5.22bn profit in 2022, a KRW 3.10bn loss in 2023, a KRW 4.63bn profit in 2024, and an KRW 8.92bn loss in 2025, with the operating margin deteriorating to -10.8% in 2025.

Net income attributable to owners was near breakeven at KRW 0.03bn in 2022, turned to an KRW 8.87bn profit in 2023, then widened into losses of KRW 5.72bn in 2024 and KRW 17.70bn in 2025; the company attributed the 2025 loss to temporary cost increases from restructuring and new business investment along with derivative valuation losses tied to convertible bonds and redeemable convertible preferred stock.

On a quarterly basis, Q2 2025 revenue of KRW 27.75bn and operating profit of KRW 0.84bn were offset by an KRW 8.32bn net loss driven by derivative valuation losses, while Q3 2025 revenue of KRW 22.11bn and an operating loss of KRW 1.36bn nonetheless flipped to a KRW 2.51bn net profit.

Q4 2025 was the weakest quarter, with revenue of KRW 16.61bn, an operating loss of KRW 7.01bn, and a net loss of KRW 9.41bn, reflecting bad debt expenses from clearing long-outstanding receivables combined with full expensing of personnel and R&D costs tied to a large North American project.

Q1 2026 marked a return to profitability with revenue of KRW 19.79bn (up 24.5% year-on-year), operating profit of KRW 1.47bn, and net income of KRW 0.98bn, and Q2 2026 sustained a second consecutive profitable quarter with net income of KRW 0.52bn despite an operating loss of KRW 0.47bn on revenue of KRW 12.72bn.

Quarterly revenue itself fluctuated—KRW 27.75bn, KRW 22.11bn, KRW 16.61bn, KRW 19.79bn, then KRW 12.72bn—so a clear sustained recovery in top-line scale has not yet been confirmed.

On the cash flow side, operating cash flow turned positive at KRW 7.81bn in 2025 despite the net loss, which can be interpreted as reflecting non-cash items such as bad debt expenses and derivative valuation losses.

Industry analysis

The industry consensus is that secondary battery equipment makers broadly experienced order declines and earnings contraction in 2024-2025 amid the electric vehicle demand slowdown, or so-called chasm, and the resulting pace adjustment in battery makers' capital spending.

An industry source noted that while many battery supply chain firms posted declining results last year and this year, demand is expected to recover as global automakers roll out next-generation EV models going forward.

Research firm SNE Research projects the EV battery market will grow from roughly $196bn in 2025 to $401bn by 2030 and $616bn by 2035, an annual growth rate exceeding 10%, suggesting the mid- to long-term growth trajectory remains intact.

At the same time, rising power demand from AI data center expansion is elevating ESS investment as a new growth axis, while in semiconductor back-end packaging, both Samsung Electronics and TSMC have adopted FO-PLP technology in their next-generation roadmaps, accelerating growth in glass substrate-related equipment demand.

Research firm DSCC projects the FO-PLP-inclusive glass substrate semiconductor market to grow at an annual rate of 29%, reaching roughly KRW 4.27tn by 2030.

NainTech is positioned as a company diversifying into glass substrate, sodium-ion battery, and thermoelectric businesses to defend its portfolio during the battery equipment capacity downturn, and in doing so has expanded collaboration with peer supply chain firms such as PNT.

Outlook

The company has stated it intends to make 2026 the year of a genuine turnaround, outlining plans in a February disclosure to commercialize new businesses in earnest, expand ESS-related revenue, streamline its cost structure, and shift toward a profitability-focused order strategy.

In practice, it disclosed a KRW 25.4bn single sale and supply contract for display manufacturing equipment with LG Electronics in mid-2026, showing that individual order wins continue.

In the sodium-ion battery segment, it signed an agreement with PNT in July 2026 to jointly pursue core technology development, pilot line construction, mass-production verification, and commercialization, while also planning to expand into ESS, industrial storage, and electric two-wheeler applications.

Subsidiary Energy11 has stated it aims to supply sodium battery cells to a major US customer in the first half of 2026 through discussions with value-chain partners, making the actual timing and start of shipments a point to be confirmed going forward.

In semiconductor packaging, the company has completed technology development and testing of FO-PLP and glass substrate wet-process equipment and is reviewing related production capacity expansion, though no specific large-scale order disclosure has yet been confirmed.

Marking the company's 20th anniversary, the CEO emphasized that last year's difficulties were used as an opportunity to expand R&D investment and transform the business, pointing to the Q1 2026 return to profit as a result.

That said, since Q2 revenue declined again from Q1, the durability of the recovery will need to be reconfirmed through subsequent quarterly results.

Valuation

PER

—

PBR

1.4×

ROE

-5.9%

EPS

-₩87

BPS

₩1,576

Dividend per share

₩0

NainTech has been in a phase where conventional earnings-based valuation metrics are difficult to apply given the net losses that persisted through 2025, though a shift from loss to modest profit has been observed over two consecutive quarters in the first half of 2026.

Its price-to-book ratio trades at a level that carries a certain premium over net asset value, which can be interpreted as reflecting a mix of past earnings volatility and expectations around new businesses.

The sharp improvement in the debt ratio since 2022 is worth noting as a reference point for the stability of the underlying net asset value. No dividend has been paid in the most recent fiscal year, so dividend-yield-based valuation comparisons do not apply.

Under these conditions, market views on valuation are likely to differ depending on how the timing of a secondary battery industry recovery and the pace at which new businesses such as glass substrate and sodium-ion battery equipment translate into visible revenue are assessed.

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

Bull factors

Diversification into Semiconductor, ESS, and Materials

The company is broadening its portfolio beyond secondary battery equipment into glass substrate (FO-PLP), sodium-ion batteries, thermoelectric elements, and rare-earth recycling.

With Samsung Electronics and TSMC adopting FO-PLP in their next-generation packaging roadmaps, the related equipment market is projected to grow quickly, giving room for NainTech's existing wet-process technology to be applied.

Demand for thermoelectric cooling solutions tied to AI data center expansion is also cited as a new potential revenue source. That said, each new business remains at an early commercialization stage, so revenue contribution still needs to be confirmed.

Sharp Decline in Debt Ratio, Improved Financial Structure

The debt ratio fell sharply from 396.1% in 2022 to 75.8% in 2025, and operating cash flow was positive at KRW 7.81bn in 2025 despite the net loss. Equity attributable to owners also grew from KRW 26.26bn in 2022 to KRW 91.77bn in 2025, expanding the capital base. This can be viewed positively in terms of securing financial capacity for future new business investment.

Return to Profit in First Half of 2026

Net income attributable to owners was positive in both Q1 and Q2 2026, marking a shift away from the large losses seen throughout 2025.

The company attributes this to expanded R&D investment and a business transformation, and individual order wins have continued, including the KRW 25.4bn supply contract with LG Electronics.

That said, quarterly revenue itself declined again in Q2 versus Q1, so the durability of the recovery requires further confirmation.

Bear factors

Sharp Contraction in Revenue Scale

Consolidated revenue in 2025 fell to KRW 82.37bn, less than half of the KRW 197.22bn recorded in 2024. Quarterly revenue has also contracted from KRW 27.75bn to as low as KRW 12.72bn most recently, showing that declining secondary battery equipment orders directly affect overall revenue scale. Until new business revenue ramps up meaningfully, overall top-line recovery could remain limited.

Earnings Volatility from One-off Costs

Operating profit and net income moved in opposite directions in both 2024 and 2025, with non-operating factors such as derivative valuation losses tied to convertible bonds and redeemable convertible preferred stock, along with bad debt expenses, weighing heavily on net income.

Such items could recur depending on share price movements or asset quality assessments, adding uncertainty to earnings forecasting.

Uncertain Commercialization Timing for New Businesses

New businesses such as sodium-ion batteries, glass substrate, thermoelectric elements, and rare-earth recycling remain at the technology development and pilot stage, and specific goals such as Energy11's battery cell supply to a US customer have not yet been confirmed in revenue.

If new business revenue visibility is delayed, dependence on a recovery in the core battery and display equipment businesses could increase further.

Risk factors

Customer Concentration

Revenue is concentrated among a small number of large customers such as LG Energy Solution and LG Electronics, so any pace adjustment or delay in their capacity expansion can directly translate into order declines. The sharp revenue drop in 2025 was linked to reduced investment from downstream customers.

New Business Execution Risk

Sodium-ion batteries, glass substrate (FO-PLP), thermoelectric elements, and rare-earth recycling are mostly at an early technology development or pilot stage, leaving the timing and scale of any transition to mass production and large-scale orders uncertain.

If planned target timelines slip, the investment burden of these new businesses could show up before any offsetting revenue.

Capital Structure and Dilution Risk

The company has a history of raising funds through convertible bonds and redeemable convertible preferred stock, and derivative valuation losses tied to share price increases were a major factor behind the widened net loss in 2025.

Any further issuance of convertible instruments or preferred stock, or conversion into shares, could again result in equity dilution or earnings volatility.

What to watch next

Mid-November 2026
The Q3 2026 quarterly report will show whether the profit-turnaround seen in the first half of 2026 continues into Q3 and whether revenue scale expands again.
Q4 2026
Progress on the sodium-ion battery pilot line construction agreement signed with PNT in July 2026, and whether results of mass-production verification are disclosed, should be monitored.
Second half of 2026
Whether subsidiary Energy11's targeted sodium battery cell supply to a US customer actually begins, and whether there is any delay versus the previously stated timeline, should be checked.
Second half of 2026 through 2027
The timing of revenue recognition and progress on the KRW 25.4bn display equipment supply contract signed with LG Electronics should be confirmed through future disclosures.
Second half of 2026
Any disclosure of additional orders for FO-PLP and glass substrate equipment should be checked to gauge the pace at which new business revenue becomes visible.

Overall view

NainTech saw revenue and earnings retreat sharply in 2025 as a direct result of the secondary battery chasm, but has shown signs of passing a trough by posting small net profits in two consecutive quarters in the first half of 2026.

A sharp decline in the debt ratio and improved operating cash flow are confirmed as positive changes on the financial structure side.

At the same time, the company continues efforts to move away from its battery-equipment-heavy structure through new businesses in glass substrate, sodium-ion batteries, and thermoelectric elements, though most of these remain at an early commercialization stage with uncertain timing for revenue contribution.

The structure in which non-operating factors, such as derivative valuation losses tied to convertible bonds and redeemable convertible preferred stock, can significantly swing net income is a variable that warrants continued observation.

Going forward, Q3 results, progress on the sodium-ion battery pilot line, and disclosures of individual order wins will be important in assessing whether the recovery proves durable.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

Show 18 more articles and sources

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.