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JONBUR Research · Initiation

EM-Tech · 091120 · Electronic components

EM-Tech: Loss-making electronic components maker trades below book value after a sharp 3-month rebound

Why this report

Start of coverage: written when a reader opened this company and there was no report yet.

EM-Tech's share price closed at ₩5,980 on 2026-10-28, up 59.0% over three months but down 39.4% over one year, while filings show continued operating losses. The stock trades at 0.6x book value, and no model fair value estimate is available.

Written Oct 29, 2026 · Data as of Oct 28, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

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Thesis

The data supports a picture of a company whose revenue has partly recovered but which has not returned to profit. Revenue rose 22.4% in 2025 to ₩205.1B, yet operating losses continued at ₩19.9B, and the trailing twelve months to H1 2026 show a wider operating loss of ₩26.6B.

The share price has rebounded strongly from a 52-week low of ₩3,400 and sits below the high of ₩10,030. That move is not matched by improving earnings in the filings available, so the rebound looks driven by something the data does not explain. No news headlines are available.

The low price-to-book of 0.6x reflects the losses and negative returns on equity. The data cannot show whether book value is a reliable guide to the worth of the business.

Business overview

EM-Tech is a KOSDAQ-listed electronic components company, founded in 2001 and listed in 2007, with two co-CEOs (정승규, 이석근). It has 17,132,936 listed shares and a market capitalization of about ₩102.5B.

The revenue history shows a large swing. Revenue was ₩400.2B in 2021 and ₩415.8B in 2022, then fell 36.6% in 2023 to ₩263.5B and 36.4% in 2024 to ₩167.6B. It recovered to ₩205.1B in 2025. The company was profitable in 2021 and 2022, with operating margins of 9.3% and 8.2%, and has been loss-making since 2023.

A merger completion report was filed on 2026-07-24. The data gives no details of the merger.

Financial analysis

These figures come from filed financial statements. Trailing twelve-month revenue to H1 2026 was ₩187.5B, with an operating loss of ₩26.6B (margin -14.2%) and a net loss of ₩15.3B (margin -8.2%). Return on equity was -8.0%.

Annual results: the net loss was ₩44.5B in 2024 (ROE -19.7%) and ₩11.5B in 2025 (ROE -5.7%). Net income was ₩33.4B in 2022 and ₩34.5B in 2021.

On the balance sheet, liabilities to equity were 82.5%. Cash was ₩26.0B against borrowings of ₩115.1B. Free cash flow over the trailing period was negative ₩35.5B, so the company is consuming cash. Enterprise value is about ₩189.2B.

Valuation

The model estimate of fair value per share is not available (null), so no comparison with the ₩5,980 share price can be made.

Current multiples: price-to-book 0.6x, price-to-sales 0.5x. P/E and EV/EBITDA cannot be calculated because earnings are negative, and the dividend yield is 0.0%. Year-end P/B was 0.7x in 2025, 2.4x in 2024, 3.0x in 2023 and 1.4x in 2022, so the current level is at the low end of its own recent history.

The listed peers are far larger and mostly profitable. Their P/B ranges from 1.4x (LG Innotek) to 9.5x (Samsung Electro-Mechanics), and P/E from 13.1x to 96.8x. EM-Tech's discount to them is consistent with its losses and much smaller size, so the comparison is limited.

Catalysts

  • The merger completion report filed on 2026-07-24 may change the company's scale and results once it is reflected in later financial statements.
  • Investor relations events were filed on 2026-09-14 and 2026-10-19, which point to ongoing communication with investors.
  • Repeated 5%+ holding reports (2026-08-26 and 2026-09-15) and insider shareholding reports show changes in shareholder positions that may matter for ownership.
  • The amended half-year report filed on 2026-09-30 adds updated figures to the latest financial picture.
  • Revenue recovery seen in 2025 (+22.4%) would matter if it continues alongside narrower losses.

Risks

  • Operating losses have persisted since 2023, and the trailing operating margin of -14.2% is wider than the 2025 margin of -9.7%.
  • Free cash flow was negative ₩35.5B, while cash of ₩26.0B is small against borrowings of ₩115.1B.
  • Foreign ownership fell from 6.1% to 5.3% over 60 days, and 20-day flows show foreign net selling.
  • The share price has moved sharply, up 59.0% in three months but down 39.4% over a year, which signals high volatility.
  • No fair value model estimate or news headlines are available, so there is limited information to explain the price moves.

Closing view

The evidence is mixed. The share price rebound and the 0.6x price-to-book contrast with continued losses, negative free cash flow and borrowings well above cash. Revenue has partly recovered from 2024 but remains far below 2021 and 2022 levels. The effect of the July merger on future results is not visible in the data, and no model estimate is available. A reader should watch whether upcoming filings show narrower operating losses and improving cash flow before drawing conclusions about the business.

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).

Filings and data used

Report history

  1. Oct 29, 2026InitiationStart of coverage (reader request)EM-Tech: Loss-making electronic components maker trades below book value after a sharp 3-month rebound

Built only from jonbur's own data: prices and investor flows, filed financial statements and filings, and news headlines. Disclosed (filed) data is labelled as such. Written by AI and may contain mistakes.

This is not financial advice. The report does not recommend buying or selling anything.

Source: KRX statistical information