KOSDAQChemicals445180

Purit

₩9,990▼ 1.09%2026-10-02 close

Market Cap

₩172.6B

Turnover

₩1.2B

Volume

110,000 shares

Shares out.

17.2M

PER

7.5×

PBR

1.2×

EPS

₩1,066

Dividend Yield

1.50%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩120 per share · Prices as of the 2026-10-02 close

Report overview

Material Diversification Amid Memory Upcycle

Purit has posted steady revenue and operating profit growth through 2025 centered on ultra-high-purity semiconductor chemicals, and extended that momentum into the first half of 2026 with record quarterly sales.

1
2025 revenue reached KRW 142.5bn (+16.3% YoY) and operating profit KRW 17.2bn (+23.3% YoY), with growth and profitability improving together.
2
Q2 2026 revenue hit a quarterly record of KRW 44.9bn, with the operating margin staying in the mid-14% range.
3
Equity expanded sharply after the IPO, bringing the debt ratio down from 67.1% in 2022 to 14.2% in 2025.
4
Expanding the share of higher-value synthesized materials such as EL and EEP for semiconductors is cited as a key driver of margin improvement.
5
The secondary-battery materials and recycling businesses, along with the planned third plant in Yesan, remain items whose progress needs continued monitoring.

Business structure

Founded in 2010, Purit began by recovering and refining waste organic solvents generated in semiconductor and display processes, then expanded into ultra-high-purity semiconductor chemicals after joining the Korea Alcohol Industry group in 2019.

Its core products are ultra-high-purity chemicals such as PGME, PGMEA, EEP and EL, which serve as raw materials for thinner used in the photolithography process, alongside display-grade EL materials and industrial chemicals used in automotive coatings and paints.

According to figures disclosed at the time of its IPO, 2022 revenue was split 53.1% semiconductor, 20.4% display, 23.7% industrial and 2.8% other, with semiconductor materials accounting for more than half.

Major customers include Korean memory chipmakers Samsung Electronics and SK Hynix, and the company also supplies photoresist raw material to DuPont, reflecting an ongoing customer diversification effort.

The company holds a comprehensive waste-recycling license obtained in 2014 and operates a recycling business that regenerates refined new liquid from waste solvent, giving it a distinctive business structure.

Its largest shareholder is Korea Alcohol Industry, which also supplies raw materials, and the combined stake of the largest shareholder and related parties exceeds half.

As a new growth area, the company has developed electrolyte additives and cathode-binder organic solvents for secondary batteries and is at the stage of supplying samples to customers.

Compared with large chemical companies, Purit is smaller in scale, but its refining and regeneration technology and track record as a qualified secondary vendor to memory makers act as an entry barrier.

Earnings trend

Quarterly revenue · Operating profit

₩35.4B₩4.2B25Q2₩36.9B₩5.3B25Q3₩36.4B₩4.4B25Q4₩37.8B₩6B26Q1₩44.9B₩6.5B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩137.4B₩14.3B2022₩120.5B₩12.8B2023₩122.5B₩14B2024₩142.5B₩17.2B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩35.4B	₩4.2B	11.9%
2025Q3	₩36.9B	₩5.3B	14.2%
2025Q4	₩36.4B	₩4.4B	12.1%
2026Q1	₩37.8B	₩6B	15.8%
2026Q2	₩44.9B	₩6.5B	14.5%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩137.4B	₩14.3B	₩11.6B	10.4%	29.8%	67.1%
2023	₩120.5B	₩12.8B	₩12.1B	10.7%	14.5%	19.1%
2024	₩122.5B	₩14B	₩11.8B	11.4%	12.7%	11.4%
2025	₩142.5B	₩17.2B	₩15.2B	12.1%	14.1%	14.2%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-05

Earnings analysis

Consolidated revenue in 2025 was KRW 142.5bn, up 16.3% from KRW 122.5bn in 2024, while operating profit rose 23.3% to KRW 17.2bn, lifting the operating margin from 11.4% to 12.1%. Net profit attributable to owners grew even faster, up 28.2% from KRW 11.8bn to KRW 15.2bn, with profit growth outpacing revenue growth.

Looking further back, 2023 revenue was KRW 120.5bn with operating profit of KRW 12.8bn and net profit of KRW 12.1bn, and 2022 revenue was KRW 137.4bn with operating profit of KRW 14.3bn and net profit of KRW 11.6bn, showing that after a plateau in 2022-2023 the company returned to a growth path from 2024.

On a quarterly basis, revenue of KRW 35.4bn and operating profit of KRW 4.2bn in Q2 2025 improved to revenue of KRW 36.9bn and operating profit of KRW 5.3bn (14.2% margin) in Q3, before margin softened somewhat to 12.1% in Q4 on revenue of KRW 36.4bn and operating profit of KRW 4.4bn.

In 2026, margin expanded again to 15.8% in Q1 with revenue of KRW 37.8bn and operating profit of KRW 6.0bn, and Q2 revenue climbed to a record KRW 44.9bn with operating profit of KRW 6.5bn.

However, the Q2 2026 operating margin of 14.5% was slightly below Q1, suggesting revenue growth outpaced margin expansion in that period. Over the most recent four quarters (Q3 2025 through Q2 2026), owners' net profit totaled roughly KRW 18.3bn, already exceeding the full-year 2025 figure of about KRW 15.2bn.

Operating cash flow rose steadily from KRW 12.8bn in 2023 to KRW 14.9bn in 2024 and KRW 22.3bn in 2025, indicating improving cash conversion of earnings.

Following the inflow of IPO proceeds, equity expanded from KRW 38.7bn in 2022 to KRW 107.5bn in 2025, sharply reducing the debt ratio from 67.1% to 14.2% over the same period.

Industry analysis

Purit's main end-market, the memory semiconductor industry, is seen as being in a utilization-recovery phase driven by growing HBM demand for AI servers.

NH Investment & Securities analyst Yang Jung-hyun stated in a March 2026 report that the company expects 2026 revenue of KRW 163.6bn (+14.8% YoY) and operating profit of KRW 21.5bn (+25.0% YoY), benefiting from the 2025-2027 memory upcycle and expanding market share of higher-value-added products.

The same report noted that roughly 80% of Purit's revenue comes from semiconductor materials and, because it supplies general-purpose materials, the company can benefit regardless of whether DRAM or NAND leads a given cycle.

On NAND specifically, the report suggested that the shift to V9 NAND would be completed progressively from the second half of 2026, with a full improvement in NAND wafer input beginning in earnest in 2027.

The company has steadily diversified its customer base by expanding the share of localized materials such as EEP and EL within existing customers, and has also worked to reduce reliance on domestic large-cap customers by supplying photoresist raw material to DuPont.

Compared with larger chemical materials companies, Purit's revenue scale is smaller, but its waste-recovery and refining technology along with its qualification track record as a secondary semiconductor vendor are viewed as barriers to entry.

At the same time, the company's small market capitalization and free-float ratio have been cited as factors limiting institutional investor participation.

Outlook

The company's growth axis is shifting from existing refined products toward a higher share of synthesized products such as EL and EEP, with NH Investment & Securities noting that synthesized products carry higher margins than refined products, so both revenue growth and margin improvement can be expected.

The same report added that a new product launch is also expected in the second half, estimating that while nothing specific has been disclosed, it is likely to be a synthesized material localizing a product currently 100% import-dependent, similar to semiconductor-grade EEP and EL.

As disclosed around the time of its IPO, Purit had presented a plan to build a roughly 10,000-pyeong third plant in Yesan, South Chungcheong Province, aiming for capacity about 2.5 times current levels; the current stage of this expansion needs to be confirmed through future disclosures.

The secondary-battery materials segment remains at the stage of supplying electrolyte additives and cathode-binder organic solvent samples to customers, leaving both acceleration and delay of mass production timing possible.

In the semiconductor segment, 2027 is flagged as an important inflection point given the overlap of new DRAM fab (P4, M15X, Y1) ramp-ups and the NAND V9 transition.

The recycling business requires a comprehensive waste-treatment license that acts as an entry barrier, so whether new supply contracts materialize in this area is a point worth watching for further customer diversification.

Valuation

PER

7.5×

PBR

1.2×

ROE

17.1%

EPS

₩1,066

BPS

₩6,805

Dividend per share

₩120

Purit's share price has fluctuated alongside its earnings improvement since listing on KOSDAQ, and it continues to trade against the backdrop of an ongoing profit recovery through the most recent quarters.

NH Investment & Securities, using its own estimates as of late March 2026, noted that based on its estimates as of March 27, Purit's 2026 PER was 8.1 times, adding that the company sits in the middle of a memory semiconductor upcycle, while semiconductor materials peers average 15.3 times and some names command around 20 times.

This, however, reflects one brokerage's estimate at a specific point in time rather than a broad market consensus.

Relative to net assets, the share price has moved alongside the expansion of the company's equity base, and the firm has maintained a policy of paying a modest annual cash dividend, with a dividend payout that is reportedly on the lower side relative to industry peers.

The small free float and market capitalization are also cited as characteristics relevant to institutional demand and should be weighed when interpreting valuation levels. Investors are advised to weigh the pace of earnings recovery together with the progress of new businesses in forming their own view of valuation.

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 2026-09-05

Bull factors

Memory Upcycle and Higher-Value Product Mix

Recovering customer utilization rates driven by growing AI server memory demand are translating into higher demand for Purit's materials. Expanding the share of synthesized products such as EL and EEP is cited as a factor that could support higher margins than refined products.

The improvement in quarterly operating margins to the mid-14% to 16% range from Q1 2026 onward supports this trend. Some views suggest additional demand upside if the 2027 NAND V9 transition overlaps with this cycle.

Improved Financial Structure and Cash Generation

Equity expanded significantly following the IPO, lowering the debt ratio from 67.1% in 2022 to 14.2% in 2025. Operating cash flow also grew steadily from KRW 12.8bn in 2023 to KRW 22.3bn in 2025, reflecting improved cash conversion of earnings. This supports the company's financial capacity to fund future capital investment or new business expansion.

Customer Diversification and New Business Pipeline

Beyond a revenue base centered on Samsung Electronics and SK Hynix, the company has expanded supply to overseas customers such as DuPont, advancing customer diversification. New product development in secondary-battery electrolyte additives and cathode-binder solvents has reached the sample-supply stage.

The recycling business benefits from a license-based entry barrier, placing it in an area of relatively lower competitive intensity.

Bear factors

Low Liquidity and Small Market Capitalization

The company's small market cap and low free float have been cited as factors limiting institutional investor interest. This is pointed to as a structural factor that can amplify share price volatility and make it harder for corporate value to be fully reflected in market pricing. The supply-demand instability typical of small-cap KOSDAQ names should also be considered.

Customer Concentration and Cyclical Dependence

A significant portion of revenue is tied to the utilization rates and investment cycles of a small number of large domestic semiconductor customers. A slowdown in the memory cycle could directly affect material demand and margins.

There have been instances, such as Q4 2025, where margins softened quarter-over-quarter, underscoring the need to watch for quarter-to-quarter volatility.

Timing Uncertainty in New Business Execution

New businesses such as secondary-battery materials and the planned third-plant expansion remain at the sample-supply or planning stage, leaving the specific timing of mass production or plant startup uncertain.

If plans are delayed or customer qualification takes longer than expected, the anticipated timing of revenue contribution could also be pushed back. The recycling business may also carry upfront costs related to licensing and infrastructure investment.

Risk factors

Industry Cycle Risk

If the memory semiconductor cycle slows faster than expected or customers adjust investment plans, demand for materials could decline. A delay in the NAND V9 transition or new fab ramp-up schedules could also push back the demand expansion currently anticipated for around 2027. This is a factor that could affect both revenue growth and the pace of margin improvement.

Raw Material and Currency Risk

Raw material supply conditions and price volatility directly affect production costs for chemical materials. Given the export component of sales, exchange rate fluctuations are also a variable that can affect results.

Whether the raw-material procurement structure with largest shareholder Korea Alcohol Industry is maintained is another factor worth continued observation.

Regulatory and Licensing Risk

The recycling business operates on the basis of a comprehensive waste-treatment license, so changes in related regulations or license renewal issues could arise. Tightening environmental and safety regulations related to chemical handling could also become a cost factor. The possibility of delays in the permitting process for a new plant site cannot be ruled out.

What to watch next

Around mid-November 2026
The Q3 2026 quarterly report is expected around this time, allowing confirmation of whether the revenue and margin improvement trend seen through Q2 continues.
During the second half of 2026
It is worth checking whether the new synthesized material launch mentioned by brokerages becomes concrete and is confirmed through official disclosure or IR communication.
Second half of 2026 through 2027
The progress stage (construction start, operation timing) of the planned third plant expansion in Yesan, and whether secondary-battery materials move into mass production, need to be checked through disclosures.
From 2027 onward
Whether the completion of the NAND V9 transition and the ramp-up of new DRAM fabs (P4, M15X, Y1) translate into actual increases in material shipment volumes should be tracked through quarterly results.

Overall view

Purit posted double-digit growth in revenue, operating profit and net profit from 2024 to 2025, and continued that momentum into the first half of 2026 with a record quarterly revenue figure.

Its financial structure has also improved substantially following equity growth after the IPO, keeping the debt ratio at a low level.

The core growth driver is the recovery in utilization rates at memory semiconductor customers combined with an expanding share of higher-value synthesized materials such as EL and EEP, a factor consistently noted across brokerage reports.

At the same time, the small market capitalization and low liquidity, dependence on a handful of large customers, and the still-early stage of new businesses such as secondary-battery materials and recycling are bearish factors that must be weighed together.

Concrete timelines for the third-plant expansion and new product launches will need continued confirmation through future disclosures. Investment judgment should be made by readers themselves after weighing these bullish and bearish factors in combination.

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.