Jeju Semiconductor: Sharp Earnings Jump and a Share Price Up 254.8% Over One Year

Thesis

The data supports a strong earnings turnaround. Trailing revenue to H1 2026 is ₩673.1B, more than double the full-year 2025 figure of ₩302.2B, and net income is ₩230.7B versus ₩39.5B. The share price has risen 254.8% in a year, so much of the improvement appears to be reflected already, though the data cannot say how much. The trailing P/E of 12.1x is below the year-end 2025 P/E of 23x, which suggests earnings have grown faster than the price. Against that, free cash flow is negative at ₩47.5B and the P/B of 6.2x is high relative to some peers. The history shows earnings were volatile before 2025, so the sustainability of current margins is not something the data can confirm.

Business overview

Jeju Semiconductor is a KOSDAQ-listed semiconductor company founded in 2000 and listed in 2005, with 34,442,833 listed shares. At ₩80,900 per share on 2026-10-12, market capitalization is about ₩2.79T. The 52-week range runs from ₩17,480 to ₩138,000, so the price is well below its high but far above its low. It is co-led by two CEOs, 박성식 and 조형섭. Annual revenue was ₩193.3B in 2021, ₩175.0B in 2022, ₩145.9B in 2023, ₩162.3B in 2024 and ₩302.2B in 2025. The data gives no product or customer detail.

Financial analysis

These figures come from filed financial statements (DART). Trailing revenue as of H1 2026 is ₩673.1B, operating income ₩216.8B and net income ₩230.7B, for an operating margin of 32.2% and a net margin of 34.3%. Return on equity is 73.1%. For 2025, revenue grew 86.2% to ₩302.2B, operating income was ₩35.9B (11.9% margin) and ROE was 19.2%. Earlier operating margins were 5.9% in 2024, 12.2% in 2023, 16.1% in 2022 and 10.4% in 2021. On the balance sheet, liabilities to equity is 63.6%, cash is ₩114.0B and borrowings are ₩74.6B. Free cash flow is negative ₩47.5B, which means earnings are not yet converting into cash on a trailing basis.

Valuation

The current P/E is 12.1x, P/B 6.2x and P/S 4.1x, with enterprise value of ₩2.75T. At year-end 2025, P/E was 23x and P/B 4x, so the P/E has fallen while the P/B has risen. EV/EBITDA and dividend yield are not available. Peers show a wide spread: SK hynix at 7.2x P/E and 4.5x P/B, DB HiTek at 16.9x and 2.4x, HanaMicronInc at 18.8x and 5.8x, and Fadu at 59.6x P/B with no P/E. Jeju's P/E sits within the peer range, and its P/B is at the upper end apart from Fadu. Shinsung E&G has no multiples in the data.

Catalysts

• The half-year report filed on 2026-08-13 provided the trailing figures showing a 32.2% operating margin, and later filings may show whether this is sustained.
• A decision on an increase in short-term borrowings was filed on 2026-09-23, which may relate to funding needs given negative free cash flow, though the filing details are not in the data.
• A 5%+ holding report was filed on 2026-10-07, indicating a change in a significant shareholder position, with no further detail available.
• An extraordinary shareholders' meeting result was filed on 2026-07-30 after several amended notices from June to July, though the agenda is not described in the data.

Risks

• Free cash flow is negative ₩47.5B on a trailing basis despite high reported profit.
• Earnings have been volatile, with revenue falling in 2022 and 2023 and margins ranging from 5.9% to 32.2%.
• The share price rose 254.8% in a year and sits below the 52-week high of ₩138,000, showing large price swings.
• The P/B of 6.2x is high relative to several peers, so the valuation depends on sustained high returns.
• Investor flows, foreign ownership, short balance and news headlines are not available, so sentiment and positioning cannot be assessed.

Closing view

The filed numbers show a dramatic improvement in revenue, margins and returns, and the P/E has compressed as earnings caught up with the price. At the same time, cash generation is negative, borrowings are rising per the recent filing, and the company's own history shows margins have varied widely. With no flow, short or news data, the evidence supports a picture of strong but unproven earnings momentum rather than a settled conclusion.

Model estimate of fair value

The valuation model has no estimate for this company yet (not enough data, or no positive value with the base case).

Report history

1. Oct 13, 2026InitiationJeju Semiconductor: Sharp Earnings Jump and a Share Price Up 254.8% Over One Year