Blog

DEEP RESEARCH · ILJIN DIAMOND

Iljin Diamond: Downstream Transition and Hidden Value

A value report across industrial diamond, CMP pad conditioners, hydrogen storage vessels, and silicon-anode optionality

Published: 2026-03-02 · Advanced materials, hydrogen, and semiconductor valuation analysis · Naver Blog

Investment decisions are your own responsibility. This material is research and is not a recommendation to buy or sell.

0. Bottom line first

I view the 2025 consolidated operating loss as reflecting growth pains at subsidiary Iljin Hysolus more than impairment of Iljin Diamond’s core materials business. Separating the standalone materials business, the 59.6% stake in Iljin Hysolus, and the low P/B versus net assets suggests possible mispricing below liquidation-style value.

Source image for Iljin DiamondSource image for Iljin Diamond downstream industries

1. Business structure and moat

Official fact: The source says Iljin Diamond developed Korea’s first and the world’s third industrial synthetic diamond with KIST in 1987, and became one of the top three global industrial-diamond producers alongside Element Six and Hyperion.

Cash cow

Industrial diamond

Saw grit, wheel grit, and powder are consumables tied to downstream utilization.

High value

PCD·PCBN

Customer-specific, higher-margin materials used in aerospace, automotive precision machining, and semiconductor CMP.

Expansion

Cemented carbide and nano materials

The chain expands into PCB micro-drills, dental tools, and battery anode materials.

Iljin Diamond value chainFrom raw-material synthesis to sintering and final machining
HPHT/CVDSynthesis·coating
SinteringPCD·PCBN
MachiningDrills·conditioners
ApplicationsSemis·hydrogen·battery
Vertical integration creates cost control and customer switching costs.

2. Downstream industries

CMP pad conditioners become more important as semiconductor scaling, 3D NAND layer growth, and GAA adoption increase process steps. The source cites the global CMP diamond pad conditioner market growing from about USD 740mn in 2024 to more than USD 1.04bn in 2030, with about 5.9-6.59% CAGR.

On hydrogen, Iljin Hysolus is the option on hydrogen fuel tanks and storage/distribution infrastructure. The source frames Hyundai’s new NEXO, hydrogen storage and distribution, commercial vehicles, and charging infrastructure as long-term variables.

For batteries, the key point is adding battery-material manufacturing and sales to the articles of incorporation in 2025. Silicon anodes connect to energy-density improvement, but should still be treated more as valuation optionality than proven revenue.

3. Q·P·C earnings frame

AxisSource logicMetric to check
QVolume recovery from semiconductor CMP and hydrogenCMP customer qualification, hydrogen vessel shipments
PHigher-value PCD·PCBN·CVD mixStandalone operating margin and product mix
CFixed-cost relief and production-base efficiencyConsolidated loss reduction and utilization

4. Valuation

Official fact: The source gives 2025 standalone revenue of KRW 63.4bn, normalized standalone operating-profit capacity of KRW 12-15bn, and core business value of KRW 150-180bn using a 12x lower-end target P/E based on Asahi Diamond. It values the 59.6% Iljin Hysolus stake at about KRW 240bn in market terms, or KRW 120-140bn after a 40-50% discount.

ComponentSource valueNote
Core businessKRW 150-180bnLower-end Target P/E of 12x
Iljin Hysolus stakeKRW 120-140bnAfter 40-50% conservative discount
Fair intrinsic valueAt least KRW 300-350bn+Including non-operating net assets
Market capKRW 197-217bnLate-February 2026 share-price band of KRW 13,800-15,640
P/B0.4x rangeDiscount versus consolidated equity of KRW 539bn

5. Final view

The source’s view is Strong Buy. The practical checks are whether consolidated losses narrow, high-value CMP products grow, Iljin Hysolus hydrogen-vessel demand recovers, and the battery-material business becomes tangible.

Sources

Naver original