TSE: Profits surge in H1 2026 as shares rise 454.0% over one year

Thesis

The data supports a sharp step-up in earnings. Trailing operating margin is 22.2% versus 11.5% in 2025, and trailing ROE is 25.6% versus 10.4%. The share price has risen far faster than the numbers, from a 52-week low of ₩45,800 to ₩308,000, close to the 52-week high of ₩336,000.

What the data does not show is why earnings jumped, since no news headlines, guidance or segment details are provided. Free cash flow of ₩14.5B is small relative to ₩104.7B of trailing net income, so cash conversion is a point to watch. Investor flow, foreign ownership and short-selling data are not available.

Business overview

TSE (티에스이) is listed on KOSDAQ in the medical and precision devices sector. It was founded on 1995-08-31 and listed on 2011-01-05, with 11,061,429 shares outstanding and co-CEOs Kim Cheol-ho and Kim Myung-jin. Market capitalization is about ₩3.4T and enterprise value about ₩3.3T.

Annual revenue was ₩307.7B in 2021, ₩339.3B in 2022, ₩249.1B in 2023, ₩348.1B in 2024 and ₩428.9B in 2025. The data gives no breakdown of products or customers.

Financial analysis

All figures come from filed financial statements (DART). Trailing revenue through H1 2026 is ₩567.7B, operating income ₩125.7B (22.2% margin) and net income ₩104.7B (18.4% margin).

For 2025, revenue was ₩428.9B (up 23.2%), operating income ₩49.2B (11.5% margin) and net income ₩38.2B. In 2024 revenue grew 39.7% to ₩348.1B, with operating income of ₩39.9B and net income of ₩42.5B. In 2023 revenue fell 26.6% and the company posted an operating loss of ₩2.4B. In 2021 and 2022 operating margins were 17.8% and 16.7%.

The balance sheet looks light on debt: borrowings are ₩2.8B against cash of ₩116.7B, and liabilities to equity is 35.7%. Trailing free cash flow is ₩14.5B. The July 2026 filings include a convertible bond issue decision, but the data gives no size or terms.

Valuation

At the current price, the P/E is 32.6, P/B is 7.2 and P/S is 6.0. The dividend yield is 0.1%. EV/EBITDA is not available.

At year-end 2025 the P/E was 16.7 and P/B 1.6, so both multiples have roughly doubled or more since then. Earlier year-end multiples are not available.

Peer multiples are not available. The listed peers by market cap are Kctech (₩2.3T), Park Systems (₩2.1T), Classys (₩1.9T), DI (₩1.2T) and Curiox Biosystems (₩875.3B), so TSE is larger than all of them by market value.

Catalysts

• The half-year report filed on 2026-08-14 showed trailing operating income of ₩125.7B, and the next periodic filing will show whether this level holds.
• A convertible bond issue decision on 2026-07-10 and a securities issuance result disclosure on 2026-07-22 may affect the share count and funding.
• Investor relations events on 2026-06-26 and 2026-09-02 show active communication with the market, though their content is not in the data.
• Repeated 5%+ holding reports (2026-05-11, 2026-07-01, 2026-09-14) and insider shareholding reports, including one on 2026-10-12, point to changes in major holders.
• The share price is up 18.2% in one month and 23.0% in three months, near the 52-week high of ₩336,000.

Risks

• The valuation has expanded quickly, with P/E rising from 16.7 at year-end 2025 to 32.6 and P/B from 1.6 to 7.2, leaving less room if earnings slow.
• Earnings have been volatile, including a 26.6% revenue decline and an operating loss in 2023.
• Trailing free cash flow of ₩14.5B is much lower than net income of ₩104.7B.
• The convertible bond issue could dilute existing shareholders if converted, though terms are not in the data.
• Investor flows, foreign ownership, short interest and peer multiples are not available, so market positioning and relative valuation cannot be assessed.

Closing view

The filed numbers show a clear improvement, with margins and returns well above recent years and very little debt. The share price has moved much further than the financials, and the multiples are now far higher than at the end of 2025. Missing information on the drivers of growth, cash conversion, the convertible bond terms, peer multiples and investor flows limits how far the data can explain the move. The evidence is mixed: strong recent results alongside a stretched valuation and a history of volatile earnings.

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, 2026InitiationTSE: Profits surge in H1 2026 as shares rise 454.0% over one year