KOSDAQElectronic Components365590

HiDeep

₩1,309▲ 2.43%2026-10-02 close

Market Cap

₩23.9B

Turnover

₩58,324,212

Volume

50,000 shares

Shares out.

18.4M

PER

-1.2×

PBR

7.8×

EPS

-₩1,100

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

Capital Impairment Resolved, Revenue Gap Persists

HiDeep escaped complete capital impairment through a 2026 rights offering, but mass-production revenue from its integrated touch-and-stylus solution has still not materialized four years after listing.

1
2025 revenue fell sharply year over year to KRW 1.77 billion, with an operating loss of KRW 11.73 billion and a net loss of KRW 14.80 billion, marking a fourth straight year of losses.
2
Equity turned negative in Q1 2026, resulting in complete capital impairment, before a roughly KRW 6.5 billion third-party rights offering in June — including the controlling shareholder's debt-to-equity conversion — replenished capital.
3
The company decided a 5-for-1 capital reduction without compensation in December 2025 to shrink paid-in capital, and shares resumed trading following relisting in January 2026.
4
Q1 and Q2 2026 revenue came to roughly KRW 21.9 million and KRW 25.0 million, respectively — levels at which quarterly revenue has effectively evaporated.
5
The gap between the 2025 revenue projection presented at the 2022 listing (about KRW 383.4 billion) and actual revenue (KRW 1.77 billion) reached roughly 99.5%.

Business structure

HiDeep is a fabless semiconductor company founded in 2010 that listed on KOSDAQ in 2022 through a merger with a special-purpose acquisition company.

The firm designs touch ICs, integrated touch-and-stylus ICs, and battery-free stylus pens for mobile-device UX/UI, while outsourcing manufacturing to foundry partners under a pure fabless model.

The company has stated it is pursuing phased market expansion, targeting smartphones, foldables and smartwatches as phase one, tablets and laptops as phase two, and automotive displays as phase three.

Early revenue came from touch ICs for smartwatches, and at listing the company expected follow-on revenue from smartphone ICs and stylus pens, which has yet to materialize at scale.

Its core technologies span stylus technology, touch technology for on-cell flexible OLED displays, and 3D Force Touch technology, backed by a large domestic and international patent portfolio.

According to the company, its integrated touch-and-stylus solution removes sensor films and eliminates the need for a battery, aligning with cost-reduction demands from device makers amid on-device AI adoption.

The competitive landscape includes numerous large global fabless touch-IC vendors, while domestically the company is often mentioned alongside touch-panel material and component suppliers such as UID and Finetek.

CEO Beom-gyu Ko is the controlling shareholder and, together with related parties, has historically held a substantial stake since listing.

Earnings trend

Quarterly revenue · Operating profit

₩300M-₩2.3B25Q2₩200M-₩2.3B25Q3₩200M-₩4.9B25Q4₩21,934,080-₩2.8B26Q1₩25,042,700-₩2.9B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩18.1B-₩2.3B2022₩10.5B-₩8.6B2023₩5.9B-₩9.1B2024₩1.8B-₩11.7B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩300M	-₩2.3B	−674.8%
2025Q3	₩200M	-₩2.3B	−1186.5%
2025Q4	₩200M	-₩4.9B	−2316.3%
2026Q1	₩21,934,080	-₩2.8B	−12856.4%
2026Q2	₩25,042,700	-₩2.9B	−11703.1%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩18.1B	-₩2.3B	-₩7B	−12.5%	−38.4%	109.5%
2023	₩10.5B	-₩8.6B	-₩9.4B	−82.2%	−60.9%	69.4%
2024	₩5.9B	-₩9.1B	-₩9.4B	−154.8%	−125.5%	144.2%
2025	₩1.8B	-₩11.7B	-₩14.8B	−664.1%	−662.0%	461.8%

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

On an annual basis, revenue contracted sharply for four consecutive years, from KRW 18.15 billion in 2022 to KRW 10.48 billion in 2023, KRW 5.89 billion in 2024, and KRW 1.77 billion in 2025.

The operating loss widened even as revenue shrank, expanding from KRW 2.27 billion in 2022 to KRW 8.61 billion in 2023, KRW 9.12 billion in 2024, and KRW 11.73 billion in 2025.

Net loss also grew from KRW 6.98 billion in 2022 to KRW 9.38 billion in 2023, KRW 9.44 billion in 2024, and KRW 14.80 billion in 2025, pushing the four-year cumulative net loss past KRW 40 billion.

Quarterly revenue moved gently from KRW 341.8 million in Q2 2025 to KRW 193.4 million in Q3 and KRW 212.6 million in Q4, before collapsing to roughly KRW 21.9 million in Q1 2026 and KRW 25.0 million in Q2 2026 — levels at which sales have effectively evaporated.

The operating loss, meanwhile, widened to KRW 4.92 billion in Q4 2025 and remained large at KRW 2.82 billion and KRW 2.93 billion in Q1 and Q2 2026, respectively.

Shareholders' equity eroded rapidly year after year, from KRW 18.21 billion in 2022 to KRW 15.40 billion in 2023, KRW 7.52 billion in 2024, and KRW 2.24 billion in 2025, while the debt ratio swung from 109.5% in 2022 down to 69.4% in 2023 before surging to 144.2% in 2024 and 461.8% in 2025, signaling significant financial strain.

Operating cash flow was negative in every one of the four years, underscoring the company's inability to generate cash from core operations. The first half of 2026 continued this trajectory, meaning losses in the most recent four-quarter window from Q3 2025 through Q2 2026 have not narrowed.

Industry analysis

The touch IC and stylus industry has traditionally centered on smartphones and tablets, though analysts note the application scope is expanding toward foldable devices and automotive displays.

As on-device AI functionality proliferates across mobile devices, device makers are said to be increasingly focused on component cost reduction, which could create latent demand for integrated solutions that eliminate sensor films or separate batteries.

The global touch IC market has long been dominated by established large fabless semiconductor companies, and new entrants typically face lengthy performance validation and negotiation cycles before being adopted into a major smartphone maker's mass-production model.

Domestically, touch-panel material and component suppliers are often highlighted alongside HiDeep, though the company occupies a distinct niche focused on IC design and integrated stylus solutions.

The company has repeatedly pointed to differences between Samsung Electronics' stylus-enabled models — the Galaxy Note, Galaxy S Ultra, Z Fold, and Galaxy Tab — and Apple's stylus approach, maintaining that achieving cross-device compatibility is central to industry standardization.

Still, the absence of meaningful stylus-related revenue for four years since listing indicates that actual market entry has proceeded more slowly than originally anticipated.

Emerging applications such as automotive touchscreens are frequently cited as a growth driver, but no disclosed mass-production achievement by HiDeep in that segment has been confirmed.

Outlook

In a March 2026 statement, the company said its integrated touch-and-stylus solution had passed core performance evaluation and validation with a major global customer and that discussions with multiple customers were underway to secure mass-production models.

It acknowledged delays versus its original schedule but stated its goal was to secure a mass-production mobile-device model incorporating its technology from a major customer sometime in 2026.

On the financial side, a roughly KRW 6.5 billion third-party rights offering completed in June 2026 lifted the company out of complete capital impairment, with proceeds earmarked for operating funds (about KRW 3.09 billion) and debt repayment (KRW 3.5 billion), according to disclosures.

That offering included debt-to-equity conversion of existing loans from controlling shareholder CEO Beom-gyu Ko and a related party, plus additional cash injected by the CEO, underscoring continued heavy reliance on controlling-shareholder support.

The company previously carried out a government-funded project under the Ministry of Trade, Industry and Energy to develop an integrated touch-and-stylus controller SoC for on-cell flexible OLED displays, and any follow-on results or further support could serve as a reference point for commercialization progress.

Ultimately, whether earnings recover will hinge on the timing and scale of any finalized mass-production model with customers currently in discussion — a variable that remains unresolved.

Valuation

PER

-1.2×

PBR

7.8×

ROE

-232.8%

EPS

-₩1,100

BPS

₩164

Dividend per share

₩0

HiDeep has posted operating and net losses for four consecutive years and remained unprofitable through the first half of 2026, making earnings-based valuation metrics difficult to apply meaningfully.

Shareholders' equity shrank rapidly every year since 2022, briefly turned negative in Q1 2026, and then returned to positive territory following the June rights offering, meaning the share price relative to net assets is being formed against a backdrop of abruptly rebased capital.

Against this backdrop, the price-to-book ratio sits in an unusual position that is difficult to compare directly with historical multi-year trading ranges, and the repeated no-compensation capital reductions and rights offerings that diluted shareholder value should be weighed alongside any simple premium-or-discount reading versus net assets.

On the dividend front, no cash dividend has been paid, so no meaningful dividend-yield metric has formed, and the no-dividend status continues.

Investors appear to be in a position where, rather than relying on earnings metrics, they must judge changes in enterprise value through non-financial events such as the timing of any revenue recovery, confirmation of a customer's mass-production model, and the possibility of further capital raising.

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

Exit From Complete Capital Impairment

After equity turned negative in Q1 2026, a roughly KRW 6.5 billion rights offering in June — including the controlling shareholder's debt-to-equity conversion and additional cash injection — restored equity to positive territory.

This appears to be primarily an emergency measure to prevent an immediate escalation of delisting risk, but it does confirm the controlling shareholder's willingness to support the company with personal funds. However, this action does not by itself signal a recovery in underlying business profitability.

Company-Cited Performance Validation

The company has stated that its integrated touch-and-stylus solution has passed core performance evaluation and validation with a major global customer, while emphasizing its large patent portfolio and proprietary technology that requires neither a battery nor a separate sensor film.

The growing need for cost reduction among device makers amid the spread of on-device AI is cited as a backdrop that could support adoption of such technology. That said, meaningful time and negotiation variables remain between performance validation and actual mass-production adoption.

Diversified Application Roadmap

The company has laid out an expansion strategy that does not rely on a single application, targeting smartphones, foldables and smartwatches as phase one, tablets and laptops as phase two, and automotive displays as phase three.

An industry environment in which automotive touchscreen markets are cited as a growth driver dovetails with this roadmap. That said, this remains a planning-stage narrative, and no specific revenue realization timeline has been confirmed.

Bear factors

Stylus Revenue Unrealized for Four Years

At its 2022 listing, the company expected stylus-related revenue to begin in 2023, but three years later this had still not materialized, and no such revenue has been confirmed through 2026 either.

The gap between the 2025 revenue forecast presented in the 2022 prospectus (about KRW 383.4 billion) and actual revenue (KRW 1.77 billion) reached roughly 99.5%. This repeated, large-scale gap between projections and actual results raises questions about the reliability of the company's business planning.

Quarterly Revenue Has Effectively Evaporated

Q1 and Q2 2026 revenue came to just KRW 21.9 million and KRW 25.0 million, respectively, shrinking to a level at which business revenue has effectively evaporated. At the same time, operating losses remained large at KRW 2.82 billion and KRW 2.93 billion, respectively, regardless of revenue scale. This points to a structural issue in which fixed-cost burdens vastly outstrip the decline in revenue.

Repeated Capital Restructuring and Shareholder Dilution

The company decided a 5-for-1 capital reduction without compensation in December 2025, and in 2026 experienced complete capital impairment followed by a third-party rights offering.

Various funding tools were mobilized in the process, including the controlling shareholder's debt-to-equity conversion and prior convertible bond issuance. Repeated capital restructuring carries structural risk that can dilute the value of existing shareholders' stakes.

Risk factors

Liquidity and Further Funding Risk

The company has a history of relying on short-term loans and personal capital injections from its controlling shareholder and related parties to sustain its balance sheet, and in April 2025 it issued a zero-coupon convertible bond worth KRW 10 billion.

With revenue having effectively evaporated and operating cash flow persistently negative, the possibility of needing further external funding cannot be ruled out. Any such funding could again result in dilution of existing shareholders.

Listing Maintenance Requirement Risk

Under the tightened KOSDAQ delisting regime that took effect in 2026, a share price below KRW 1,000 or a market capitalization below the KRW 20 billion listing-maintenance threshold sustained for a set period can lead to designation as an administrative issue and eventual delisting proceedings.

Given that the current share price sits near this threshold, monitoring any related exchange disclosures going forward warrants attention. That said, this report could not confirm whether the company had received a specific administrative-issue warning notice at any particular point.

Customer Adoption Uncertainty

The company has repeatedly cited passing performance evaluations and ongoing discussions with multiple customers, but no case has yet been disclosed in which this led to a confirmed mass-production model.

Given the multi-year history of schedule delays relative to plan, the possibility that the 2026 target of securing a mass-production model could face further delay cannot be ruled out. This remains a key factor heightening uncertainty around the timing of any revenue recovery.

What to watch next

Around November 2026 (Q3 report filing deadline)
Check whether Q3 2026 earnings show revenue breaking out of the extremely low first-half level (roughly KRW 20 million per quarter) and whether the operating loss narrows.
During the second half of 2026 (company-stated target)
Whether the company's stated goal of securing a mass-production model with a major customer is actually confirmed via disclosure is a key event for gauging any revenue recovery.
Ongoing from September 5, 2026
Investors should periodically check for any Korea Exchange disclosures regarding administrative-issue designation concerns tied to KOSDAQ listing-maintenance criteria (share price below KRW 1,000 or market cap below KRW 20 billion).
From Q4 2026 onward
Whether new disclosures emerge regarding additional rights offerings, convertible bond issuance, or controlling-shareholder loans will be important for assessing financial stability and the extent of shareholder dilution.

Overall view

HiDeep navigated a complete capital impairment crisis in the first half of 2026 through a rights offering backed by the controlling shareholder's personal funds, but the core of its business — revenue — has shrunk to roughly KRW 20 million per quarter, effectively stalling.

The ambitious revenue projections presented at its 2022 listing have missed by a wide margin for four consecutive years, and the 'passed performance evaluation' status the company has repeatedly touted for its integrated touch-and-stylus solution has yet to translate into actual sales.

On the balance-sheet side, repeated no-compensation capital reductions and rights offerings have reset the capital base multiple times, leaving a history of dilution for existing shareholders.

Bullish factors include the controlling shareholder's continued willingness to provide funding, a patent-backed technology base, and potential cost-reduction demand driven by on-device AI, while bearish factors include core revenue unrealized for four years, a heavy fixed-cost burden, and uncertainty tied to listing-maintenance requirements.

Investors appear to be in a position where, rather than relying on earnings metrics, they must gauge the company's direction through non-financial events — whether revenue actually recovers, whether a customer's mass-production model is confirmed via disclosure, and whether further funding is required. This report is intended for informational purposes only and does not constitute a buy or sell recommendation.

Sources

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

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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.