445180 — Purit Co., Ltd.

Deep-value analysis: Purit Co., Ltd. (퓨릿) — KOSDAQ 445180

Analysis date: August 25, 2026 · Price: KRW … (close 2026-08-25, KRX) · Market cap: KRW 148.5 bn (≈ USD 107 mil. at …/USD) · Shares: 17,189,188, no treasury · Reporting and trading currency: KRW (identical — no conversion needed in the bridge)

Primary sources. DART filings downloaded in full to SEC-Filings/445180/: FY2025 annual report (사업보고서, rcpNo 20260312000650), H1-2026 semi-annual report (반기보고서, rcpNo 20260813000473, filed 2026-08-13), FY2024 (20250313000946) and FY2023 (20240315000824) annual reports, Q1-2026 (20260514000083) and Q3-2025 (20251113000560) quarterlies, H1-2025 semi-annual (20250814001540). Data pack: rapoarte/deep/data-pack-445180.KQ-20260825.md. Quotes and control multiples: Naver Finance / KRX, 2026-08-25.

Methodological warning on the data pack. yfinance does not yet have the June 2026 quarter for this issuer — its series stops at 2026-03. All figures below for Q2-2026 and for TTM July 2025 – June 2026 are calculated by me from the semi-annual report filed with DART on 2026-08-13, not from the data pack. Where the data pack and the filing disagree, the filing takes priority (the data pack writes, for example, “SG&A Q4: … vs Revenue Q4: … — SG&A growing faster than revenue” — a self-contradictory phrase; SG&A actually fell, and the correct interpretation is in the Quality of Earnings section).

Executive summary (1 page: thesis, estimated value, verdict)

Purit is a refiner and synthesizer of ultra-high-purity organic solvents for the Korean semiconductor industry. It buys industrial-grade chemicals (PGME, PGMEA, EAM, ethanol — KRW 87.7 bn in purchases in 2025), distills and synthesizes them in distillation columns to “semiconductor grade” purity, and sells them as raw material for photoresist thinners. 76.1% of 2025 revenue is semiconductor chemicals, 13.5% industrial chemicals (including regeneration of DMSO and SBA waste), 3.5% display. The company has two plants in Angang-eup, Gyeongju, an annualized capacity of 73,000 t as of 2026-06-30 (up from 65,000 t at the end of 2025), 80.9% utilization, and 127 employees. It’s an industrial-spread business with a technical-qualification barrier, not a brand business.

Thesis. The market is paying 8.1× TTM earnings and 5.4× TTM EBIT adjusted for net cash for a business that has compounded revenue at ~8.8%/year since 2021, that has had operating-capital ROIC of 15… for four straight years, that carries no debt (KRW 166 mil., excluding leases) and that holds KRW 28.7 bn cash — 19.2% of market cap. The operating margin has climbed monotonically, from 9.4% (2021) to 14.2% (TTM), and Q2-2026 was the best quarter in the company’s history: revenue KRW 44.88 bn (… y/y), operating profit KRW 6.49 bn (… y/y). The engine is the localization of semiconductor materials in Korea — a structural tailwind, not a fad.

What offsets the cheapness. Three things, all verifiable in filings. First: 46.2% of 2025 revenue (KRW 65.8 bn) goes to related parties, of which 45.8% (KRW 65.3 bn) to a single company, ENF Technology, a member of the same 한국알콜산업 group; the auditor (태일회계법인, a small firm, not a Big4) named “related-party transactions” as the only key audit matter in both FY2024 and FY2025. Second: operating cash flow collapsed in H1-2026 to KRW 3.51 bn from KRW 9.69 bn in H1-2025 (…), while net profit rose 44.9% — a KRW 6.6 bn divergence fully explained by receivables and inventory. Third: Purit filed with DART, on 2024-12-20, a “횡령·배임혐의발생” notice (emergence of suspected embezzlement/breach of trust), followed by four progress filings (2025-03-07, 2025-10-10, 2025-12-24, 2026-01-02), without either the FY2024 or FY2025 annual report, or the H1-2026 semi-annual, mentioning any material litigation, sanction, or internal-control weakness. I could not retrieve the text of those notices (they are exchange-type filings, and the DART viewer doesn’t expose them through the route my scripts use; Korean-language web searches turned up nothing relevant). It remains an open hole in the file, and I treat it as such.

Estimated value. I triangulated five models on a base of normalized owner earnings of KRW 13.4 bn/year (not gross FCF — see the bridge). Result: an intrinsic-value range from ~KRW 7,900/share (bear DCF: 3% growth, r 12%) to ~KRW 19,200 (bull DCF: 10% growth, r 10.5%), with the median of the five models at ~KRW 10,480 and the base-case DCF at ~KRW 12,980. The Monte Carlo simulation over 20,000 scenarios gives a median intrinsic value of KRW 13,046 and a median margin of safety of …, with P10 at only … — meaning that in one pessimistic scenario out of ten the stock is practically at fair value, not cheap.

Verdict. Moderately undervalued, not grossly. The margin of safety is real, but it is concentrated in the assumption that the record margins of Q1-Q2 2026 are sustainable, and that assumption is attackable: the cost of PGME rose 26.3% in H1-2026 versus the 2025 average, while the selling price of semiconductor chemicals rose only 9.8%. If the spread compresses and profitability reverts to the three-year average (11.4% operating margin), the EPV value at an 11% cost of capital is KRW 9,004 — only 4.2% above the price. My conclusion: a small position, conditional on confirming the cash conversion at the Q3 report (November 14, 2026), and with governance treated as a permanent discount factor, not a temporary risk.