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
Sukgyung AT has sharply expanded production capacity with its new Gimje plant while pursuing multiple new growth businesses including solid-state electrolytes, SMR shielding materials, and semiconductor underfill, but its first-half 2026 results showed profitability pressured by early-stage fixed-cost burdens.
The Gimje third plant, completed in April 2025, secured production infrastructure for thermal materials, hollow silica, and solid-state electrolytes.
Full-year 2025 revenue reached KRW 17.5 billion with an operating margin of 22.2%, recovering from 14.6% in 2024 but still below 2022-2023 levels.
First- and second-quarter 2026 results were affected by increased fixed costs from the Gimje plant, including labor, depreciation, and insurance expenses.
SMR shielding materials (high-purity MgO), semiconductor HBM underfill, and solid-state electrolytes remain in customer evaluation or testing stages, with revenue contribution timing not yet confirmed.
The company maintains a no-dividend policy, directing capital primarily toward capital expenditure and R&D.
Sukgyung AT is a nano-material specialist established in 2000, holding four core nano technologies: particle control, dispersion, surface treatment, and raw material purification.
Its business spans bio-healthcare, electric-electronic materials, coating materials, and magnetic-material surface processing (contract processing).
Key products include dental contrast agents (YbF3), UV blockers and color pigments for cosmetics, toner additives for laser printers, and hollow silica for 5G/6G substrates.
As of the cumulative third quarter of 2024, bio-healthcare materials accounted for the largest revenue share at 44.60%, followed by magnetic surface treatment at 38.22%, coating materials at 10.55%, and electric-electronic materials at 6.63%.
Production sites include the headquarters and first plant in Ansan, Gyeonggi Province, the second plant in Yeongam, South Jeolla Province, and the third plant in Gimje, North Jeolla Province, completed in April 2025, with overseas operations in Japan and a Chicago office in the United States.
The Gimje plant serves as the production base for new growth materials such as thermal interface materials (TIM), solid-state electrolytes, and hollow silica, reportedly with annual production capacity of about 1,200 tons.
In a 2023 non-deal roadshow, the company outlined mid-to-long-term plans to raise the revenue share of new growth businesses such as 5G/6G substrate materials, eco-friendly toner additives, and cosmetic color pigments.
Competitively, the company pursues a strategy of localizing high-performance nano materials long dominated by Japanese suppliers, positioning itself as a domestic alternative source.
Given its B2B material-supply nature, public brand recognition remains limited, though the firm is recognized domestically as one holding the full set of nano particle control, dispersion, surface treatment, and purification technologies.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩5.1B | ₩1.4B | 27.8% |
| 2025Q3 | ₩3.4B | ₩400M | 10.6% |
| 2025Q4 | ₩4.1B | ₩68,050,108 | 1.7% |
| 2026Q1 | ₩4.6B | ₩1.3B | 28.0% |
| 2026Q2 | ₩5.2B | ₩1.3B | 24.7% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩12.3B | ₩4.7B | ₩4.3B | 38.1% | 14.4% | 12.0% |
| 2023 | ₩12.2B | ₩3.5B | ₩3.5B | 28.7% | 9.6% | 11.6% |
| 2024 | ₩13.8B | ₩2B | ₩4.3B | 14.6% | 10.9% | 23.5% |
| 2025 | ₩17.5B | ₩3.9B | ₩3.8B | 22.2% | 8.6% | 23.2% |
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
Consolidated revenue in 2025 reached KRW 17.5 billion, up 27% from KRW 13.8 billion in 2024, while operating profit rose sharply to KRW 3.9 billion from KRW 2.0 billion, lifting the operating margin from 14.6% to 22.2%.
This remains below the 38.1% margin recorded in 2022 and 28.7% in 2023, indicating that cost structure changes tied to new business investment continue to weigh on margins.
On a quarterly basis, second-quarter 2025 revenue was KRW 5.1 billion with operating profit of KRW 1.4 billion, yet net income attributable to owners was only KRW 89 million, showing a wide gap between operating and net profit.
In the third quarter of 2025, revenue fell 33% quarter-on-quarter to KRW 3.4 billion and operating profit dropped sharply to KRW 363 million, but net income attributable to owners jumped 822% quarter-on-quarter to KRW 820 million, an unusual divergence attributed to one-off gain items.
The company has indicated that reduced one-off expenses such as commission fees, together with one-off gains including a tax refund, affected net income.
In the fourth quarter of 2025, revenue was KRW 4.1 billion and operating profit shrank to just KRW 68 million, yet net income reached KRW 1.2 billion, again reflecting the impact of non-operating factors.
Moving into 2026, first-quarter revenue was KRW 4.6 billion with operating profit of KRW 1.3 billion, and second-quarter revenue was KRW 5.2 billion with operating profit of KRW 1.3 billion; revenue grew gradually, but the company attributed pressure on profitability to rising fixed costs including labor, depreciation, and insurance following the full-scale start-up of the Gimje plant.
Over the trailing four quarters (third quarter 2025 through second quarter 2026), combined revenue was roughly KRW 17.2 billion and net income attributable to owners roughly KRW 4.5 billion, showing considerable quarter-to-quarter volatility but a gradual annual growth trend in both revenue and net income.
On the cash flow side, operating cash flow remained positive every year from 2022 to 2025, ranging between KRW 3.0 billion and KRW 5.5 billion, while the debt ratio stayed stable within a range of 11.6% to 23.5%.
The functional nano-material industry in which Sukgyung AT operates serves highly diverse downstream sectors including semiconductors, displays, secondary batteries, cosmetics, and medical materials, meaning individual customer adoption and quality approval have a more direct impact on revenue than any single industry cycle.
The company is positioned as a domestic supplier holding the full set of nano particle control, dispersion, surface treatment, and purification technologies, aiming to replace materials long dominated by Japanese suppliers in high-performance material markets.
Notable examples include replacing a legacy toner additive material flagged for carcinogenicity concerns in Europe with a tin oxide (SnO2)-based alternative, and localizing a burn-improvement toner additive previously monopolized by Japanese suppliers, reflecting a strategy of responding to regulatory shifts and supply chain realignment.
Newer application areas such as 5G/6G communications, semiconductor packaging, and next-generation solid-state batteries remain at an early commercialization stage, where competitive advantage depends on patent coverage and the speed of passing customer qualification tests.
Underfill material for semiconductors is currently under evaluation with major Japanese customers, an early stage that has not yet translated into revenue.
Shielding material for small modular reactors (SMRs), based on high-purity magnesium oxide replacing the hazardous beryllium oxide, is classified as a potential market that could generate substantial demand if adopted in SMR design phases.
However, most of these new businesses target revenue contribution from 2026-2027 onward, placing the company at an early or pre-commercialization stage of these industry cycles at present.
The company has stated that its Gimje third plant established a mass-production system for new growth products including thermal interface materials (TIM), solid-state electrolytes, and hollow silica, and that it continued expanding customer evaluations and commercialization efforts into 2026.
Underfill material for semiconductor packaging is undergoing evaluation testing with major Japanese customers, with the company noting parallel efforts to secure additional customers.
Regarding solid-state electrolytes, the company completed patent filings in the United States and Japan for borate-based solid electrolytes and has built a dedicated clean room to advance performance and process stabilization.
A Shinhan Investment & Securities analyst projected in a November 2025 report that the solid-state electrolyte material could reach mass production by 2027 following customer testing, and assessed that the high-purity magnesium oxide material for SMRs could generate large per-order revenue if adopted in SMR design phases expected around 2027.
The same report noted that a large-particle silica material for cosmetics had secured orders of about 27 tons and that, after localizing a burn-improvement toner additive previously monopolized by Japan, the company was pursuing overseas market expansion.
These are securities-firm estimates as of the November 2025 report date, and actual timing and scale will depend on future disclosures and confirmed orders.
The company outlined a mid-to-long-term goal at a 2023 roadshow to raise the revenue share of new businesses to 60% of total sales, though the latest progress toward that specific target has not been separately confirmed.
At the current price, the stock trades at a substantial multiple of trailing four-quarter net income, which can be interpreted as partly reflecting growth expectations tied to new businesses such as solid-state electrolytes, SMR materials, and semiconductor underfill that have not yet translated into confirmed revenue.
It also trades at a premium relative to net assets, a pattern commonly observed among KOSDAQ-listed nano-material and material-localization names. The company pays no dividend, maintaining a capital allocation structure that prioritizes facility investment such as the Gimje plant and R&D over shareholder returns.
While the operating margin improved in 2025 from the prior year, it has not yet returned to 2022-2023 levels, suggesting the current valuation embeds both expectations for and uncertainty around the pace of margin recovery.
Because the timing and scale of revenue contribution from new businesses remain unconfirmed, the appropriateness of the current trading multiple may be reassessed depending on how quickly actual orders and mass-production results 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 Gimje third plant, completed in April 2025, reportedly secured annual production capacity of about 1,200 tons for new growth materials including thermal interface materials (TIM), hollow silica, and solid-state electrolytes.
This significant capacity increase could serve as a foundation for revenue growth if new-product orders materialize in scale. However, the plant remains in an early ramp-up stage where fixed-cost burdens have appeared first.
The company is simultaneously pursuing multiple new businesses, including high-purity magnesium oxide shielding materials for SMRs, underfill for semiconductor HBM packaging, solid-state electrolytes, large-particle silica for cosmetics, and a localized toner additive.
This diversified structure means the company is not reliant on a single product, leaving room for progress in other areas even if one business is delayed. Each initiative has reached concrete stages such as customer evaluation or patent filing.
Operating cash flow remained consistently positive between KRW 3.0 billion and KRW 5.5 billion each year from 2022 to 2025, while the debt ratio stayed stable within a range of 11.6% to 23.5%.
Equity has grown each year even amid new business investment, indicating a financial base with low reliance on external funding.
Results in the first and second quarters of 2026 showed profitability pressured by rising fixed costs, including labor, depreciation, and fire insurance premiums, following the full-scale start-up of the Gimje third plant.
Revenue rose only modestly, and operating margin improvement was limited; this cost burden could persist until new products begin contributing meaningfully to revenue.
Between the second and fourth quarters of 2025, a wide and recurring gap appeared between operating profit and net income attributable to owners.
For example, in the third quarter of 2025, operating profit fell sharply quarter-on-quarter even as net income rose 822%, a divergence attributed to one-off factors such as a tax refund. Net income fluctuations driven by such one-off items can reduce the predictability of reported results.
Solid-state electrolytes target mass production by 2027, SMR materials are premised on adoption in a 2027 design phase, and semiconductor underfill remains at the customer evaluation stage.
None of these represent confirmed orders but rather ongoing projects, and the possibility of schedule delays or failure to pass quality qualification cannot be ruled out.
New businesses such as semiconductor underfill are reportedly under evaluation with a small number of major Japanese customers.
Given the company's B2B material-supply structure, confirmed revenue depends heavily on specific customers' quality approval, and any delay or failure in approval could push back the entire commercialization schedule.
With fixed costs such as depreciation and labor having risen following the Gimje plant start-up, a failure to expand new-product orders as planned could result in both lower utilization and profitability erosion. First-half 2026 results can be viewed as an instance where this fixed-cost burden materialized first.
As a small-cap KOSDAQ stock, trading volume and share price have tended to swing significantly around thematic news related to secondary batteries, solid-state technology, and SMRs. When the timing of earnings releases and thematic news diverges, short-term price volatility can widen.
Third-quarter 2026 results are expected to be disclosed around this time; it will be important to check whether fixed-cost pressure from the third plant eases and operating margin recovers.
It will be worth checking the outcome of Japanese customer evaluations for HBM underfill material and whether additional customers are secured.
This is a period to monitor for disclosures of additional orders for new products such as large-particle cosmetic silica and refrigerator insulation material for appliance makers.
This is the targeted timeframe for the start of solid-state electrolyte mass production and potential adoption in SMR design projects, and actual progress should be tracked.
Sukgyung AT significantly expanded its production capacity with the completion of the Gimje third plant in April 2025 and has broadened its growth potential by simultaneously pursuing several new businesses including solid-state electrolytes, SMR shielding materials, semiconductor underfill, and cosmetic materials.
While 2025 results showed improvement in both revenue and operating margin from the prior year, the first half of 2026 revealed profitability pressure from rising fixed costs tied to the new plant's start-up.
On a quarterly basis, recurring gaps between operating profit and net income point to a structure where one-off factors must be examined alongside core results. Most new businesses target revenue contribution from 2026-2027 onward, making them ongoing projects rather than confirmed achievements at this stage.
Financially, the company has maintained steady cash generation and a stable debt ratio, suggesting it retains the financial capacity to sustain continued investment.
Ultimately, the future direction of earnings appears to hinge on how quickly the third plant's utilization normalizes and on the timing of customer evaluations and confirmed orders for its new businesses. This report is provided for informational purposes only and does not constitute a buy or sell recommendation.
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.