Micro Contact Solution Co., Ltd. 098120

Deep-value analysis — 098120 Micro Contact Solution Co., Ltd. (MCS), KOSDAQ

Analysis date: 08/25/2026 · Yahoo symbol: 098120.KQ · ISIN: KR7098120009 Reference price: … (data pack 08/25/2026, 09:00; previous close 38,850; intraday 15:14 KST 43,250) Shares: 8,312,766 (par value …) · Market cap: … (≈ …) 52-week range: … – … · Reporting currency = price currency = KRW (no conversion risk)

Primary sources: DART filings downloaded to SEC-Filings/098120/ — 사업보고서 FY2025 (rcpNo 20260319001387), 반기보고서 H1-2026 (20260814003233), 사업보고서 FY2023 (20240319000865), 분기보고서 Q1-2026 (20260522000401), 반기보고서 H1-2025 (20250814004332), 분기보고서 Q3-2025 (20251113000932). Data pack: rapoarte/deep/data-pack-098120.KQ-20260825.md. External checks: Naver Finance (A098120), FnGuide via Naver.

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Executive summary

Micro Contact Solution manufactures semiconductor test sockets (burn-in socket, module socket, test socket) — consumables that wear proportionally to the volume of memory chips tested — plus an "appliance" division of thermal protectors and industrial contactors built since 2023 in partnership with LS ELECTRIC. It's a real business, with 130 patents, a stated oligopolistic position in the domestic market (2-4 suppliers per product family), Samsung Electronics and SK hynix as customers, a balance sheet with no significant debt (gross debt …, cash + deposits 26,324 mil., i.e. net cash …) and a TTM ROIC of ~30%. It's not a bad company. The problem is the price.

The thesis, in one sentence: business quality has genuinely improved, but the figures the market is capitalizing today are memory-cycle peak, and the gap between reported profit and cash collected has opened to its widest in four years. In Q2-2026, the company reported … operating profit (margin 33.2%, versus 16.5% a year earlier) and 11,398 mil. attributable net profit — but the same quarter's operating cash flow was …, i.e. 2.3% of net profit. The gap went entirely into receivables (+18,755 mil. over six months) and inventory (+6,851 mil.). The accrual ratio (Sloan, (NI−CFO)/average assets) is … TTM, versus … in 2025 and … in 2023.

The macro context explains both sides. SK hynix reported 60.5 trillion KRW of operating profit at a 76% margin in Q2-2026, and Micron reported 196% y/y revenue growth with HBM capacity sold out through year-end. This is the most violent memory super-cycle ever recorded. Test sockets are volume consumables: demand rises with production, and MCS went from 48% utilization on its burn-in socket line in 2024 to 74% in 2025, with gross margin rising from 21.3% (2023) to 39.0% (Q2-2026). None of this is false. But none of it is normal either: in the five years before this cycle, the company's operating margin oscillated between 11.5% and 14.6%, and the stock lost over 60% twice (14,100→5,210 in 2022, 13,970→5,120 in 2024) on modest revenue variations.

Estimated value. I triangulate five models on a normalized owner-earnings base of … (details and the FCF bridge in the valuation chapter): DCF bear …/share, EPV Greenwald 19,897, own historical multiples 27,409, DCF base 28,423, DCF bull 50,978. Range 15,700 – …, median ≈ …. The Monte Carlo simulation across 20,000 scenarios gives a median intrinsic value of … and only a 9.0% probability the stock is undervalued at ….

Verdict: OVERVALUED at …; a business to watch, not to buy now. To be justified, the current price requires sustainable owner earnings of ~… (i.e. the current peak run-rate, made permanent) plus 9% annual growth for ten years. That's not a margin of safety, it's an extrapolation. The relevant entry point is the 24,000–… zone — exactly where the stock traded in June-July 2026, six weeks ago. Confirming signals to watch: DSO returning below 60 days at the Q3-2026 report (November 14), finished-goods inventory not accelerating, and the Appliance division's operating margin turning positive. A signal confirming the negative thesis: the domestic value fund AssetPlus Investment Management reduced its stake from 14.18% (March) to 11.15% (06/30/2026), continuously selling into the price rally.

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