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Wavice · 289930 · Semiconductors

Wavice: Trailing Profit Far Above Operating Earnings as Shares Trade Near Book Value

Why this report

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

Wavice, a KOSDAQ semiconductor company with a market cap of ₩96.0B, reported trailing net income of ₩52.1B on revenue of ₩39.1B, while operating income was only ₩1.4B. The shares closed at ₩7,300, down 11.1% over one year and well below the 52-week high of ₩24,650.

Written Oct 22, 2026 · Data as of Oct 21, 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 small company whose revenue has grown but whose core profitability is thin. Trailing net income of ₩52.1B is about 36 times operating income of ₩1.4B, which implies large non-operating gains. The data does not say what caused them, so the headline P/E of 1.8 and ROE of 74.6% should be read with caution. Free cash flow is negative at ₩15.4B, and borrowings of ₩20.0B exceed cash of ₩7.5B. On the positive side, a new ₩5.1B supply contract was filed on 2026-10-21, and the shares trade at 0.9 times book value. Foreign ownership fell from 9.8% to 6.3% over 60 days, while the short balance is low at 0.1%.

Business overview

Wavice is classified in the semiconductor sector and listed on KOSDAQ on 2024-10-25. It was founded on 2017-05-02 and has 13,149,010 listed shares. Annual revenue was ₩29.4B in 2024 and ₩40.7B in 2025, growth of 38.5%. Trailing revenue to H1 2026 is ₩39.1B. Recent filings show new facility investment, a decision on acquiring tangible assets, several 5%+ holding reports and insider shareholding reports. A headline from Edaily reports a supply contract for LAH third mass-production components worth ₩5.1B.

Financial analysis

These figures come from filed financial statements. In 2024 the company had an operating loss of ₩4.9B and a net loss of ₩5.5B (operating margin -16.5%). In 2025 operating income turned positive at ₩627M (margin 1.5%) and net income was ₩1.8B, with ROE of 4.2%. For the trailing twelve months to H1 2026, revenue is ₩39.1B, operating income is ₩1.4B (margin 3.7%), and net income is ₩52.1B (net margin 133.1%, ROE 74.6%). Liabilities to equity are 47.6%. Cash is ₩7.5B against borrowings of ₩20.0B. Free cash flow is -₩15.4B, which fits with the filed facility investments.

Valuation

On trailing figures the shares trade at a P/E of 1.8, P/B of 0.9 and P/S of 2.5. Enterprise value is ₩108.4B. EV/EBITDA is not available, and the dividend yield is 0.0%. The low P/E depends on the unusually large net income, which is not matched by operating earnings. At the 2025 year-end, P/E was 61.5 and P/B was 2.2, so current multiples are far lower than that. Peers show P/E of 5.8 (SK hynix), 13.1 (DB HiTek), 15.1 (Hana Micron) and 10.2 (Jeju Semiconductor), and P/B from 1.9 to 40.8, but they are much larger companies. No valuation model estimate per share is available for Wavice (fair value model is null), so there is no comparison with the ₩7,300 share price.

Catalysts

  • A major sales or supply contract was filed on 2026-10-21, matching the reported ₩5.1B LAH component deal.
  • Filings on new facility investment (corrected on 2026-09-07) and the acquisition of tangible assets could change capacity and cash needs.
  • The next periodic report will show whether operating income keeps improving from the 3.7% trailing margin.
  • Repeated 5%+ holding and insider shareholding reports suggest ownership changes worth watching.

Risks

  • Net income is far above operating income, so the earnings quality and whether the gains can recur are unclear from the data.
  • Free cash flow is -₩15.4B and borrowings of ₩20.0B exceed cash of ₩7.5B.
  • Operating margin is only 3.7%, and the company posted an operating loss as recently as 2024.
  • Foreign ownership fell from 9.8% to 6.3% in 60 days, and 20-day foreign net selling was ₩625M.
  • The shares are down 5.6% over one month and 11.1% over one year, and sit far below the 52-week high.

Closing view

The data shows a small semiconductor company with growing revenue and a recent return to operating profit, but with thin margins and negative free cash flow. The very low P/E and high ROE come from net income that is mostly not explained by operations, so they are a weak guide to value. A new supply contract and ongoing investment are visible, yet the data does not show how much they will add to earnings. With no model estimate available, the evidence is mixed and calls for close attention to future filings.

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 22, 2026InitiationStart of coverage (reader request)Wavice: Trailing Profit Far Above Operating Earnings as Shares Trade Near Book Value

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