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JONBUR Research · Initiation

Silicon 2 · 257720 · Retail & Trade

Silicon 2: Rapid Revenue Growth and High Margins, but Shares Down 19.8% in a Month

Why this report

Start of coverage: one of the 300 largest companies, written once its financial statements were in.

Silicon 2 (KOSDAQ: 257720) has grown revenue from ₩131.0B in 2021 to ₩1.12T in 2025, with trailing twelve-month revenue at ₩1.35T as of H1 2026. The share price closed at ₩34,900 on 2026-10-12, down 19.8% over one month and 24.6% over one year, while the trailing P/E is 9.7.

Written Oct 13, 2026 · Data as of Oct 12, 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 story of very fast growth and strong profitability. Revenue growth was 107.5% in 2023, 101.7% in 2024 and 61.4% in 2025, and operating margin rose from 6.7% in 2021 to 18.7% on a trailing basis. Return on equity is 46.5%, and the balance sheet carries little debt.

What the data does not settle is why the shares have fallen. No news headlines are provided, and investor flow, foreign ownership and short balance data are not available. Growth is also slowing from its earlier pace, and the trailing free cash flow of ₩10.8B is small next to net income of ₩220.9B. Recent filings point to capital raising and capital spending, but the data gives no amounts or purposes for them.

Business overview

Silicon 2 is listed on KOSDAQ in the Retail & Trade sector. It was founded on 2002-01-19 and listed on 2021-09-29. The CEO is listed as 김성운. It has 61,171,908 listed shares and a market capitalization of about ₩2.13T at the latest close. Enterprise value is about ₩2.05T. The data gives no breakdown of products, customers or regions, so we cannot describe the business beyond the numbers.

Financial analysis

These figures come from filed financial statements (DART). Revenue rose from ₩131.0B in 2021 to ₩165.3B in 2022, ₩342.9B in 2023, ₩691.5B in 2024 and ₩1.12T in 2025. Operating income over the same years went from ₩8.8B to ₩14.2B, ₩47.8B, ₩137.6B and ₩205.4B. Net income reached ₩168.6B in 2025.

Operating margin was 18.4% in 2025, below 19.9% in 2024. ROE was 46.9% in 2025 and 60.9% in 2024.

On a trailing basis to H1 2026, revenue is ₩1.35T, operating income ₩253.0B (18.7% margin) and net income ₩220.9B (16.3% margin). Cash is ₩82.3B against borrowings of just ₩13.8M, and liabilities are 40.0% of equity. Free cash flow is ₩10.8B, much lower than reported profit.

Valuation

At the current price the trailing P/E is 9.7, P/B is 3.1 and P/S is 1.6. At the end of 2025 the P/E was 14.0 and the P/B 5.2, so both multiples are lower now. EV/EBITDA and dividend yield are not available.

Among the listed peers, P/E ranges from 5.5 (Youngone) to 52.3 (ISC), with POSCO International at 11.6, Shinsegae at 17.3 and Samsung C&T at 19.1. Silicon 2's P/E sits in the lower part of that range. Its P/B of 3.1 is above most peers, which are mostly between 0.5 and 1.4, with ISC at 7.0.

Our simple five-year discounted cash flow model could not produce a fair value range, so no bear, base or bull value per share is available to compare with the ₩34,900 price. The share price is 37.8% below its 52-week high of ₩56,100 and 16.9% above its low of ₩29,850.

Catalysts

  • A rights offering (paid-in capital increase) decision was filed on 2026-08-18, and results of a third-party allotment of redeemable convertible preferred shares were filed on 2026-09-15.
  • Filings on 2026-09-09 and an amendment on 2026-10-07 concern acquisition of property, plant and equipment, which may affect future capacity and cash needs.
  • An extraordinary shareholders' meeting was held, with results filed on 2026-10-01.
  • Two 5%+ holding reports (2026-08-27 and 2026-09-18) and an insider shareholding report (2026-09-08) show changes in major ownership.
  • An investor relations event was held on 2026-09-08.

Risks

  • Growth has slowed from 107.5% in 2023 to 61.4% in 2025, and the data does not show whether it will keep slowing.
  • Trailing free cash flow of ₩10.8B is small compared with net income of ₩220.9B, which suggests profits are not turning into cash at the same rate.
  • Issuing convertible preferred shares and raising capital could dilute existing shareholders, though the terms are not in the data.
  • The shares have fallen 19.8% in one month and 24.6% in one year, and with no flow, short-selling or news data the reasons are unclear.
  • Operating margin slipped from 19.9% in 2024 to 18.4% in 2025, and return on equity fell from 60.9% to 46.9%.

Closing view

The filed numbers show a company that has grown quickly, earns high margins and returns, and carries almost no debt. The market has marked the shares down, and the P/E has fallen to 9.7 from 14.0 at the end of 2025. Against that, growth is slowing, free cash flow is thin relative to profit, and recent filings show capital raising and capital spending whose details are not in the data. Our model could not produce a fair value range, and flow and news data are missing, so the evidence is incomplete and does not point clearly in one direction.

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 13, 2026InitiationStart of coverage (300 largest)Silicon 2: Rapid Revenue Growth and High Margins, but Shares Down 19.8% in a Month

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