Pamicell Flow Analysis — Between Doosan and ST Pharm; Daeduck Is Still Far Away

Mon, 18 May 2026 23:40:00 +0900

📚 Pamicell Reclassification Series Part 1: Doosan Electro BG AI CCL Material Re-evaluation / Part 2: AI CCL Material Transition and Industry Cycle / Part 3: 1Q26 Earnings Confirmation / AI Substrate·PCB Hub

On fundamentals, Pamicell is already an electronic materials company. In 1Q26, low-dielectric electronic materials revenue reached KRW 26.0bn — 71% of total revenue — with an OPM in the mid-30% range. Its KRX sector classification was also changed to Electronic Components Manufacturing as of 2026-05-04. Yet looking at the same two-week flow data, Daeduck Electronics gained +22.7% with KRW 64.8bn in net foreign + institutional buying, while Pamicell fell -17.9% on a mere KRW 1.6bn. Price correlation tells the same story: Doosan at 0.597, ST Pharm at 0.507, versus Daeduck Electronics at 0.259. The business has re-rated as an electronic materials name, but the stock remains anchored to biotech inertia. That reclassification gap is the source of alpha.

Key Summary

Pamicell is already a low-dielectric electronic materials company by business structure. In FY2025, low-dielectric electronic materials revenue reached KRW 64.7 billion — 56% of total revenue, up +118% YoY. In 1Q26, that figure rose to KRW 26.0 billion — 71% of total revenue, +57% YoY, with an OPM of ~35%. KRX sector classification was also reclassified on May 4, 2026 from “Basic Pharmaceutical Manufacturing” to “Electronic Components Manufacturing.” In other words, the fundamental transition to an electronic materials company is not in the verification stage — it is effectively confirmed.

However, looking at two weeks of flow data from May 4 through May 18, the market is not yet trading Pamicell as an AI substrate leader. Daeduck Electronics rallied +22.7% with combined foreign + institutional net buying of KRW 64.8 billion, representing 5.9% of trading volume. Pamicell, by contrast, fell -17.9% with only KRW 1.6 billion in foreign + institutional net buying — just 0.6% of trading volume. Price correlation is also telling: Doosan 0.597, ST Pharm 0.507, Kolon Industries 0.421 — while Daeduck Electronics sits at 0.259. Pamicell trades closer to “the group that was sold alongside ST Pharm and Kolon Industries.”

This divergence is the source of alpha. That said, divergence does not resolve on its own. The necessary conditions are: low-dielectric electronic materials revenue of KRW 26.0 billion or more sustained in 2Q26, OPM above 30%, confirmation of co-movement during strength in the AI substrate value chain (Daeduck Electronics, Doosan Electronics, Simtech, TLB, etc.), and foreign + institutional net buying expanding to 3% or more of trading volume.

The current view is Watchlist / Conditional Buy. Chasing new positions is inefficient; existing holdings can be maintained as long as earnings remain intact. Additional buying is best approached in tranches upon confirmation of flow reclassification.

1. Fundamentals vs. Flow Gap

The core of the Pamicell thesis is not “is low-dielectric electronic materials real?” That question has already been answered. The real question is when will the market re-rate Pamicell as an AI substrate upstream materials play and assign it a higher multiple?

Four fundamental indicators all confirm the electronic materials transition. First, revenue mix: low-dielectric electronic materials reached KRW 64.7 billion in 2025, representing 56% of total revenue, rising to KRW 26.0 billion and 71% of the mix in 1Q26. Second, growth: +118% in 2025, +57% in 1Q26. Third, profitability: 1Q26 OPM stands at approximately 35%, a healthy level. Fourth, KRX classification: effective May 4, 2026, the company was reclassified into the Electronic Components Manufacturing sector — the result of a scheduled sector review triggered by the shift in revenue composition.

Yet the stock market is trading it differently. The two-week flow picture from May 4 to May 18 is as follows.

Ticker	Proxy	2W Return	Foreign	Institutional	Foreign+Inst	Foreign+Inst / Turnover
Pamicell	Subject	-17.9%	+KRW 3.0B	-KRW 1.4B	+KRW 1.6B	+0.6%
ST Pharm	RNA/CDMO	-18.8%	+KRW 14.1B	-KRW 24.0B	-KRW 9.8B	-4.8%
Kolon Industries	Chemicals/Electronic Materials	-16.3%	+KRW 44.4B	-KRW 22.9B	+KRW 21.4B	+5.1%
Doosan	Doosan Electronics proxy	-6.6%	+KRW 32.1B	-KRW 87.1B	-KRW 55.0B	-3.7%
Daeduck Electronics	Substrate proxy	+22.7%	+KRW 18.1B	+KRW 46.8B	+KRW 64.8B	+5.9%

The key is the diametrically opposite pattern between Pamicell and Daeduck Electronics. If both were being read as part of the same “AI substrate/PCB value chain,” it would be difficult to see Pamicell fall -17.9% while Daeduck rallies +22.7% simultaneously. Foreign and institutional net buying of +KRW 1.6 billion — just 0.6% of turnover — is not sector-reclassification accumulation; it is stagnant, neutral flow. Daeduck, by contrast, shows a clear accumulation pattern: retail sold KRW 58.5 billion net while foreigners and institutions absorbed KRW 64.8 billion.

Fundamentals have shifted to electronic materials; positioning remains anchored in the weak bio/chemicals cohort. That gap is the central point of this piece.

2. 1Q26 Earnings

Pamicell’s 1Q26 was a record quarter. Revenue came in at KRW 36.7 billion, up +36% YoY. Operating profit was KRW 13.0–13.1 billion, up +56% YoY. OPM was approximately 35.4–35.6%. The key story is revenue mix. Low-dielectric electronic materials revenue reached KRW 26.0 billion, representing 71% of total revenue — up +57% from KRW 16.6 billion in the same period last year.

On an annual basis, the shift is even more pronounced.

Period	Total Revenue	Low-Dielectric Electronic Materials Revenue	Mix
FY2024	KRW 64.8B	KRW 29.7B	46%
FY2025	KRW 114.0B	KRW 64.7B	56%
1Q26 annualized	~KRW 146.8B	Based on 71% share	71%

In just eighteen months, the low-dielectric electronic materials share rose from 46% to 71% — a 25 percentage-point increase. This structural shift goes well beyond the notion of “a biotech company with an electronic materials option attached.” The profit center has fully migrated to electronic materials.

The margin improvement is also difficult to attribute solely to cyclical tailwinds. According to DS Investment Securities analysis, the 35.6% OPM in 1Q26 was driven by a higher share of high-margin curing agents relative to resins. In other words, product mix improvement — not unit price increases — is the key variable. This looks less like a one-time pricing effect and more like a structural step-up in the margin floor.

The electronic materials supply agreement signed with Doosan Electronic BG on May 8 further validates the reality of 2Q26 demand. The contract is valued at approximately KRW 8.07 billion, equivalent to 7.08% of recent revenue, covering the period from May 7 to July 31, 2026. While the single-contract value represents only a portion of quarterly revenue, what matters is that AI CCL demand is actually translating into firm purchase orders.

3. Supply & Demand: May 4–18

A closer look at flow data makes the market’s perception clearer. Over the same two-week period, the divergence between foreign and institutional behavior sends a stock-by-stock message.

Pamicell’s detailed flows: securities firms −₩1.1bn, investment trusts +₩0.1bn, private equity −₩1.0bn, pension funds +₩0.6bn. Pension funds provided only modest defense against selling by securities firms and private equity. There is no trace of systematic long-term institutional accumulation. Foreign buying of +₩3.0bn is meaningful but, at roughly 1% of traded value, falls short of a full-scale entry.

Daeduck Electronics is the mirror image. Securities firms +₩7.7bn, investment trusts −₩10.6bn, private equity +₩65.8bn, pension funds −₩13.1bn. The +₩65.8bn in private equity is the key figure — a clear event-driven / momentum buying pattern — and foreign buying of +₩18.1bn joined in. The market’s conviction capital is unambiguously flowing toward Daeduck Electronics.

ST Pharm and Kolon Industries also provide useful comparisons. ST Pharm saw foreign buying of +₩14.1bn overwhelmed by institutional selling of −₩24.0bn, leaving a net foreign + institutional balance of −₩9.8bn — a sell-side bias of −4.8% relative to traded value. Kolon Industries attracted strong foreign buying of +₩44.4bn against institutional selling of −₩22.9bn, producing a net foreign + institutional balance of +₩21.4bn (+5.1% of traded value). Superficially that looks strong, yet the share price fell −16.3% — meaning foreign buying was insufficient to support the price.

Summing up Pamicell’s flow positioning: it is neither as clearly sold as ST Pharm nor as forcefully bid by foreigners as Kolon Industries — it sits in a stagnant neutral zone. The most telling signal remains the diametrically opposite pattern versus Daeduck Electronics. If both names were genuinely grouped within the same AI substrate value chain, the two stocks should have moved together. The fact that they did not is the clearest indicator of where market perception currently stands.

4. Price Co-movement

Return correlations are the most objective indicator of how the market categorizes a stock. The table below summarizes Pamicell’s daily return correlations with each peer.

Peer	Correlation
Doosan	0.597
ST Pharm	0.507
Kolon Industries	0.421
Daeduck Electronics	0.259

The highest correlation is with Doosan, but Doosan is a holding company / conglomerate proxy with significant noise. The more meaningful signal is ST Pharm 0.507 vs. Daeduck Electronics 0.259. This means Pamicell is moving nearly twice as closely with the RNA/CDMO category as with the AI substrate category.

Interpreted qualitatively, the market currently perceives Pamicell in the following order of association.

Rank	Market Perception	Interpretation
1	Doosan Group play	Doosan Electronics proxy
2	RNA/bio materials	Nucleoside · RNAi optionality
3	Chemical/electronic materials hybrid	Specialty chemicals
4	AI substrate upstream materials	Still the weakest signal

In other words, AI substrates are a fourth-tier association, and the −17.9% correction reflects the primary drag from weakness across categories 1–3.

For the market to meaningfully reclassify Pamicell as a Daeduck Electronics-type AI substrate upstream materials play, the following data points would need to shift. The correlation with Daeduck Electronics would need to rise above 0.4–0.5, while the correlation with ST Pharm would need to fall below 0.3. A recurring pattern of Pamicell posting +1–3% gains on days when Daeduck Electronics, Doosan Electronics, Simtec, and TLB rally would also need to emerge. That pattern has not yet formed.

5. Why Bio Inertia Persists

KRX sector reclassification is an administrative change, not an immediate shift in market perception. Although the reclassification to electronic components manufacturing took effect on May 4, market perception adjusts gradually through the following sequence:

KRX sector change
→ Portal/HTS sector update
→ News tag change
→ Research coverage sector change
→ Institutional basket change
→ Flow correlation shift

Pamicell is currently in the middle of this transition.

First, corporate identity inertia remains. In official press releases, Pamicell still describes itself as “a biopharmaceutical company that developed the world’s first stem cell therapy.” This reflects the coexistence of its Biomedical Division and Biochemical Division. As long as the company defines itself as both a bio and a chemical company, the market will see it that way too.

Second, the RNAi API optionality is real. In November 2025, the company obtained a patent for the manufacturing method of 2’-F-dU, a key raw material for RNAi-based gene therapies, and explicitly stated its intention to expand the nucleoside product line and strengthen its supply base in line with growth in the global RNAi therapeutics market. In other words, bio-related flows are not entirely irrational — though in terms of current earnings contribution, electronic materials remain the overwhelming core.

Third, data vendors and HTS theme tags change slowly. Some data vendors still describe Pamicell as a “company engaged in bio-pharma and chemical businesses,” and legacy bio theme tags such as Moderna and mpox remain attached. These tags influence short-term flows and retail investor search behavior, and they also affect algorithmic trading baskets. A full market perception reset following an administrative reclassification typically takes six to twelve months.

6. Position in the AI Substrate Value Chain

Viewing Pamicell as an AI substrate play is imprecise. The accurate description is AI substrate upstream materials supplier. A simplified view of the value chain is as follows.

AI server / GPU / ASIC demand
→ High-speed signal transmission required
→ Demand for low-loss, low-dielectric CCL
→ CCL manufacturers such as Doosan Electronics benefit
→ Demand for low-dielectric resin and curing agent materials
→ Pamicell benefits

This position carries two implications.

First, there is no need for Pamicell to move in lockstep with PCB and substrate manufacturers such as Daeduck Electronics. PCB manufacturers sit at the finished-product stage, while Pamicell operates two tiers upstream at the materials level. Both the timing lag and the ASP mechanism differ accordingly.

Second, however, if the market expands its lens to encompass the entire AI substrate value chain, the correlation with Daeduck Electronics, Doosan Electronics, Simtech, and TLB should rise meaningfully. The current reading of 0.259 signals that this broadening of perspective has not yet occurred.

There are five choke points.

Bottleneck	Significance
Customer qualification	Process certification by end customers is critical for high-speed, high-frequency materials
Material formulation	Resin and curing agent composition and quality consistency
Process reproducibility	Maintaining uniform physical properties at mass-production scale
Capacity	Expansion timing is the key earnings lever when demand accelerates
Dual-sourcing risk	Multiple discount applied if customers secure alternative suppliers

DS Investment & Securities indicated that Doosan’s Electronics BG has hinted at additional demand upside, and projected that Pamicell could expand production volume by approximately 20–30% versus the current level through process improvements. Plant 3 is estimated to be completed in September 2026, with operations commencing in 2027. In other words, the current bottleneck is capacity, not cost reduction. If the expansion enters a full ramp-up from 2027, revenue could step up to the next level, at which point sustaining OPM becomes the single most critical validation variable.

7. Three Market Misjudgments

The first misjudgment is “Pamicell is still a biotech stock.” This is half right, half wrong. The company’s history and its RNAi option remain intact, but the center of earnings has already shifted to low-dielectric electronic materials. In 1Q26, electronic materials likely account for 71% of revenue and an even higher share of operating profit, given that a segment with ~35% OPM dominates the mix. The perception of “still a biotech” is being pulled by the inertia of the company’s legacy identity, and that perception could gradually unravel over the next 6–12 months.

The second misjudgment is “electronic materials growth has not yet been validated.” This one is simply wrong. With low-dielectric electronic materials revenue up +118% in 2025, +57% YoY in 1Q26, and OPM in the 35% range, both growth and profitability are already substantially validated. What still needs validating is not the growth itself, but how long it can be sustained and whether margins hold after capacity expansion — a meaningfully different question.

The third misjudgment is “Pamicell has to move in lockstep with Daeduck Electronics to count as an AI substrate play.” This is also an oversimplification. Pamicell is an upstream materials company, not a PCB manufacturer; there is no reason it must track Daeduck one-for-one. That said, whether the market re-classifies it as part of the broader AI substrate value chain can be confirmed by watching its co-movement with Daeduck Electronics, Doosan Electro-Materials, Simtech, and TLB. The current correlation of 0.259 is a signal that re-classification has not yet occurred — not that it will never happen.

Because all three misjudgments operate simultaneously, Pamicell’s multiple is stuck in an awkward middle ground — neither a true biotech multiple nor a true AI substrate multiple. Which category market perception ultimately converges on will determine the direction of the multiple over the next 6–12 months.

8. Valuation

Based on the May 18 closing price of KRW 16,630 and 60,017 thousand shares outstanding, market capitalization stands at approximately KRW 998.1 billion. Using DS Investment & Securities’ 2026F estimates of KRW 160.2 billion in revenue, KRW 57.7 billion in operating profit, 36% OPM, and EPS of KRW 987, the PER calculation is as follows.

2026F PER = KRW 16,630 / KRW 987 = 16.9x
Market cap / 2026F OP = KRW 998.1B / KRW 57.7B = 17.3x
DS target price KRW 26,000 implied PER = KRW 26,000 / KRW 987 = 26.3x

The implication is straightforward. The stock currently trades at roughly 17x 2026F PER. Compared to representative multiples in the AI substrate value chain — Daeduck Electronics at 27x PER, Simtech at 20x PER, and Samsung Electro-Mechanics at 40x 2027E PER — the discount is clear. At the same time, it carries a modest premium over the 12–15x PER average for chemical and materials stocks. In other words, the market is pricing Pamicell as “chemicals plus a small AI option.”

The DS target price of KRW 26,000 requires 26x 2026F PER — a multiple in line with AI substrate peers. Moving from the current 17x to 26x requires the market to reclassify Pamicell from a specialty chemicals stock to an AI CCL upstream materials play. If that reclassification occurs, the share price could rise +55% with no change in EPS whatsoever — upside driven purely by multiple expansion.

That said, multiple expansion does not happen on its own. A catalyst is needed. The single strongest catalyst would be 2Q26 results confirming both low-dielectric electronic materials revenue of KRW 26 billion or above and OPM of 30% or above simultaneously. If confirmed, it would prove that 1Q26 was not a peak but a base, and analyst coverage framing would shift accordingly.

9. Entry Guide

The stance is Watchlist / Conditional Buy. Chasing the stock at current levels is inefficient. Existing positions can be held until fundamentals deteriorate. Adding to positions is best approached in tranches once supply-demand reclassification is confirmed.

The five conditions for a tranche-buy are as follows.

Condition	Threshold
2Q26 low-dielectric electronic materials revenue	Maintained at KRW 26.0B or above
2Q26 OPM	Maintained at 30% or above
AI substrate value-chain co-movement	Rebounds alongside Daeduck Electronics, Doosan Electro-Materials, Simtech, and TLB on at least 3 up-days
Foreign + institutional net buying	At least 3% of daily turnover, sustained for 3 or more trading days
Decoupling on biotech down-days	Relative strength maintained even on weak days for ST Pharm and other RNA/CDMO names

If 3 or more of the 5 conditions are met, increasing the position is justified. All 5 met signals an aggressive buy zone.

By price level:

Price Range	Action	Condition
Below KRW 14,000–15,000	Aggressive tranche buying	PER 14–15×; majority of macro gates cleared
KRW 15,500–16,500	Hold OK / chasing is inefficient	Current range
Break above KRW 18,000	Trend buy possible	AI substrate co-movement signals start of reclassification
Break above KRW 20,000	Strong trend buy	Foreign + institutional turnover 5%+
Reach KRW 26,000	Begin taking profits	Near DS target price

Stop-loss: reduce exposure on a break below KRW 13,000; view thesis as weakening on a break below KRW 12,000 combined with 2Q26 OP below KRW 11.0B.

Invalidation conditions are equally clear. The thesis warrants re-evaluation if: 2Q26 low-dielectric electronic materials revenue falls to KRW 22.0B or below; OPM drops under 30%; margins are impaired by a shrinking share of high-margin curing agents; orders from Doosan Electro-Materials slow or are dual-sourced; or Plant 3 commissioning and ramp-up are delayed. Additional re-evaluation triggers include Pamicell consistently underperforming while the broader AI substrate value chain (Daeduck Electronics, Doosan Electro-Materials, etc.) is strong, or buy-side interest remaining confined to the biotech narrative while sell-side research coverage of the electronic materials segment fails to expand. If 2 or more of these conditions are met, the thesis must be revisited.

10. Position Within the Series and the Macro Gate

This post is a new chapter in the Pamicell Recognition Transition Series. Where earlier entries built the fundamental thesis for why Pamicell should be reclassified as an AI CCL upstream materials play, this installment uses supply-demand data to verify that the market has not yet made that reclassification. The next entry will follow after the 2Q26 earnings release to track whether the recognition gap has begun to close.

The connections to other series are equally clear. Within the eleven-stock AI back-end processing matrix, Pamicell sits one materials layer above the PCB and substrate names — Daeduck Electronics, Simtech, and HaeSeong DS. Clearing the seven macro gates outlined in the May 17 market overview post is a prerequisite for any new entry. The stocks covered in the NVIDIA Korea 2nd- and 3rd-tier value chain post belong to a different category: those are NVIDIA beta names, whereas Pamicell is an AI CCL upstream material. TLB occupies an adjacent position in the AI memory module space, but the two serve different functions — TLB is a module PCB supplier; Pamicell is a CCL materials supplier.

From a macro gate perspective, Pamicell is currently in Scenario C, meaning it could absorb a significant blow if further risk-off materializes. Two reasons underpin this view. First, as a mid-cap with a market capitalization below KRW 1 trillion, it is more vulnerable to foreign-investor selling pressure. Second, its fundamentals are sound but positioning has stagnated, which means a deteriorating macro environment could apply an additional discount by marking it as a name lacking supply-demand conviction.

Accordingly, rather than aggressively buying at current prices, the rational approach is to build a full position after clearing three to four macro gates and confirming 2Q26 earnings results.

11. Frequently Asked Questions

“Is Pamicell really an AI substrate play?"

That’s the wrong question. The right question is: “When will the market recognize Pamicell as an AI substrate upstream materials company?” By fundamental metrics, it already qualifies. Revenue +71%, OPM 35%, and the KRX sector reclassification are all confirmed. By flow metrics, not yet. Correlation with Daeduck Electronics stands at 0.259; with ST Pharm, 0.507. That gap is the source of alpha. Buying before the market updates its perception captures multiple expansion upside; buying after means you’re simply riding EPS growth.

“Why shouldn’t I buy right now?"

Three reasons. First, the fact that AI substrate multiples are not yet priced in means the timing of reclassification is undefined — it could take six months or eighteen. Second, there is a non-zero probability that 1Q26 represents peak earnings. Conviction in the base case is low until 2Q26 results are verified. Third, buying a mid-cap before the macro gate has cleared produces unfavorable risk asymmetry. That is the rationale for scaling in gradually.

“Does Pamicell have to move in lockstep with Daeduck Electronics to qualify as an AI substrate stock?"

No. Pamicell is an upstream materials supplier, not a PCB manufacturer. The time-lag dynamics and ASP mechanisms differ, so daily co-movement is not required. However, for the market to recognize it as part of the same value chain, the monthly return correlation needs to rise to roughly 0.4–0.5. The current reading of 0.259 is a strong signal that the market does not yet place them in the same category. Quarterly changes in correlation should be tracked closely.

“What happens if 2Q26 results disappoint?"

That is precisely where the invalidation condition sits. If 2Q26 low-dielectric electronic materials revenue comes in at or below KRW 22 billion, or OPM falls below 30%, the market interpretation that 1Q26 was the peak will harden. In that scenario, a PER of 17x becomes the justifiable multiple and the KRW 26,000 price target disappears. The stock could de-rate into the KRW 12,000–14,000 range. Accordingly, 2Q26 earnings are not merely a catalyst — they are a binary test of the entire thesis.

12. One Final Line

By business fundamentals, Pamicell is already a low-dielectric electronic materials company. In 1Q26, low-dielectric electronic materials revenue reached KRW 26.0 billion, representing 71% of total revenue, with an OPM of 35.6% and YoY growth of +57%. KRX sector classification also changed to Electronic Components Manufacturing effective May 4. On a fundamental basis, the transition to an electronic materials identity is not a hypothesis under validation — it is a conclusion already confirmed.

However, the two-week flow-of-funds picture from May 4 through May 18 tells a different story. Daeduck Electronics rose +22.7% and absorbed KRW +64.8 billion in combined foreign and institutional net buying, while Pamicell fell -17.9% and attracted only KRW +1.6 billion. Price co-movement correlations over the same period stand at 0.597 for Doosan, 0.507 for ST Pharm, 0.421 for Kolon Industries, and 0.259 for Daeduck Electronics. The market is still trading Pamicell as an RNA/bio + chemicals hybrid, and has not yet reclassified it as an AI substrate upstream materials play.

This reclassification gap is the source of alpha. A multiple expansion from 17x to 26x PER alone implies +55% upside. Yet the gap does not close on its own. Corporate identity inertia, the tangible optionality of the RNAi pipeline, and lagging data-vendor and HTS tagging all work simultaneously to slow the reclassification process. After an administrative sector reassignment, a full market perception shift typically takes six to twelve months.

The conclusion is therefore clear. Chasing the stock on new positions is inefficient. Existing holders can maintain positions until earnings deteriorate. Additional accumulation is best approached in tranches once three or more of five conditions are satisfied: (1) 2Q26 low-dielectric electronic materials revenue holds at or above KRW 26.0 billion; (2) OPM stays at or above 30%; (3) at least three rallies in tandem with strength in the AI substrate value chain; (4) sustained foreign and institutional net buying exceeding 3% of daily turnover; and (5) decoupling from biotech on weak-bio days. Clearing a majority of the seven macro gates is also a prerequisite.

Pamicell is not “a beaten-down biotech.” It is “a candidate AI low-dielectric materials stock that the market has yet to classify correctly.” Until reclassification is confirmed through fund flows, a conditional accumulation approach is more appropriate than a full-scale position build-up. 2Q26 earnings are the binary test for the thesis. The market’s verdict today is cold. Pamicell sits between Doosan and ST Pharm — and Daeduck Electronics remains a long way off.

This article is intended solely for research and commentary purposes and does not constitute investment advice. Pamicell 1Q26 results (revenue KRW 36.7 billion, operating profit KRW 13.0–13.1 billion, OPM 35.4–35.6%, low-dielectric electronic materials KRW 26.0 billion representing 71% of total, YoY +57%) are sourced from the company’s press release and DS Investment & Securities materials. Full-year 2025 results (revenue KRW 114.0 billion, operating profit KRW 34.3 billion, low-dielectric electronic materials KRW 64.7 billion, YoY +118%, representing 56% of total) are sourced from company materials. The KRX sector reclassification (2026/05/04, from Basic Pharmaceutical Substance Manufacturing to Electronic Components Manufacturing, reason: periodic sector review triggered by shift in revenue-mix composition) is sourced from KIND disclosures. Flow-of-funds data for 5/4–5/18 (Pamicell -17.9%, foreign+institutional net buy KRW +1.6 billion; Daeduck Electronics +22.7%, KRW +64.8 billion; ST Pharm -18.8%, KRW -9.8 billion; Kolon Industries -16.3%, KRW +21.4 billion; Doosan -6.6%, KRW -55.0 billion) are sourced from Naver Finance daily foreign/institutional net trading records and the user-provided Research OS local database, and may vary depending on the reference time. Price co-movement figures (Doosan 0.597, ST Pharm 0.507, Kolon Industries 0.421, Daeduck Electronics 0.259) are daily return correlation coefficients calculated over the same period. The May 18 closing price (KRW 16,630), shares outstanding (60,017 thousand shares), and market cap (approximately KRW 998.1 billion) are sourced from market data. DS Investment & Securities 2026F estimates (revenue KRW 160.2 billion, operating profit KRW 57.7 billion, OPM 36%, EPS KRW 987, target price KRW 26,000) are sourced from DS Investment & Securities and may differ from other brokers’ estimates. The 2026F PER of 16.9x, market cap/OP of 17.3x, and target-price-implied PER of 26.3x are calculated based on the above estimates. The supply contract with Doosan Electronics BG for electronic materials (disclosed 2026/05/08, approximately KRW 8.07 billion, 7.08% of recent revenue, contract period 2026/05/07–07/31) is sourced from company disclosures. The November 2025 acquisition of a patent for the 2’-F-dU manufacturing process is sourced from the company’s press release. The 20–30% production capacity increase from process improvements, the third plant completion in September 2026 with production start in 2027, and the estimated capacity of KRW 200.0 billion are sourced from DS Investment & Securities materials and may differ from official company announcements. The characterization of the company as defining itself as “the world’s first developer of a stem cell therapeutic” is sourced from official company introduction materials. The five accumulation conditions, entry price ranges, and invalidation criteria represent the analyst’s framework and carry no guarantee. The estimated reclassification timeline of six to twelve months and the multiple expansion estimate of +55% are analyst scenarios and may differ materially from actual outcomes. Global macro conditions (U.S. interest rates, oil prices, FX, VIX, foreign investor flows) may exert additional influence on the share price. This analysis may prove incorrect. Data reference date: May 18, 2026 KST.

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