SYTS combines a tanning business that processes animal hides into leather fabric with a business that makes leather goods for shoes, bags, and apparel from that fabric. From a single material — leather — it supplies fabric and parts to many downstream industries such as footwear, bags, automobiles, furniture, and leisure sports, so margin management and diversifying customers decide results. In February 2026, annual revenue of ₩174.7 billion, operating profit of ₩18.4 billion, and net profit of ₩24.0 billion were confirmed, and a March voluntary disclosure of a corporate-value enhancement plan and a June decision on a treasury-share acquisition trust contract laid out a direction for shareholder returns. What stands out lately is that a P/B of 0.35x versus book value, a dividend yield above 4%, a treasury-share trust, and a balance sheet with a light debt burden and thick liquidity clearly support the downside; but on this year's normalized earnings — with last year's one-off recovery gone — it is hard to call cheap on the earnings yardstick alone, so the key is whether one can wait for the point at which core margins firm at the bottom.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 8.7% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 14.8% lower than a year earlier.
- ROE is 5.3% (controlling-interest basis). It is above the sector average.
- Operating margin is 10.6%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Heo Jun-hong 45% (individual)
Controlling bloc incl. related parties 57.32%
With the controlling bloc holding 57%, control is very secure but the free float is thin.
🔎 In-depth analysis
- SYTS combines a tanning business that processes animal hides into leather fabric with a business that makes leather goods for shoes, bags, and apparel from that fabric.
- That is, starting from a single material — leather — it supplies fabric and parts to many downstream industries such as footwear, bags, automobiles, furniture, and leisure sports.
- The industry diagnosis the company itself gave is that the sector is structurally challenging, with a price offensive from Chinese leather products and deteriorating profitability, which means this is a business where margin management and diversifying customers decide results more than revenue scale.
- As a mid-to-small cap with a market capitalization of ₩158.7 billion, it is worth watching not only changes in the business itself but also how a single disclosure such as treasury shares or dividends affects the share count and the balance sheet.
- The most recent close is ₩53,900, with a market capitalization of ₩161.7 billion.
- The price sits above its 20-day line (₩53,515) and below its 60-day line (₩55,848).
- The short- and medium-term trends diverge, so direction should be read separately.
- The RSI (a supplementary indicator that weighs upward versus downward force over the past 14 days on a 0-100 scale) is 50.3, a neutral level.
- The one-month change is +8.8%, the three-month change is -9.6%, and the position versus the 52-week high is -13.8%.
- Relative strength versus the KOSPI is 29 (1-99, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 72% of all stocks by strength.
- Over the past three months it lagged the index by 27.8%.
- Chart interpretation is best done alongside trading volume and disclosure dates.
- Recent annual (2025) revenue is ₩174.7 billion, with operating profit of ₩18.4 billion and net profit of ₩24.0 billion.
- The operating margin of 10.6% is solid given the tough conditions in leather, and ROE (how much is earned in a year on equity) of 5.3% is above the peer average.
- The balance sheet is especially firm.
- Short-term assets overwhelm short-term debt to the point of a current ratio reaching 3,256%, and an interest-coverage ratio of 9.5x leaves ample room to service interest.
- The debt-to-equity ratio of 104.6% looks high on the number alone, but with a large share of non-interest-bearing items rather than interest-bearing borrowings, the real burden is small.
- In looking at valuation, one thing must be distinguished.
- On last year's results, the P/E (how many times a year's earnings the price represents) is 6.75x and the P/B (how many times book value the price represents) is 0.36x, and the P/B in particular is about a third of book value, so it trades very cheaply against assets.
- That said, the ₩24.0 billion net profit in 2025 includes a recovery portion boosted by non-core gains, so the predicted P/E converted to this year's normalized earnings rises.
- That is, asset value is clearly undervalued, but on earnings value it is a two-faced stock that is hard to declare cheap versus peers on this year's basis.
- The multi-year trend is not in one direction.
- Revenue moved ₩179.3 billion in 2023 → ₩191.3 billion in 2024 → ₩174.7 billion in 2025, up and down, and net profit fell nearly in half from ₩21.6 billion in 2023 to ₩11.0 billion in 2024 before recovering sharply to ₩24.0 billion in 2025.
- That ₩24.0 billion figure is a result that includes a recovery portion added by non-operating gains, as seen in a net margin of 13.7% that exceeds the core margin (operating margin 10.6%).
- This year's predicted earnings (net profit ₩8.4 billion, operating profit ₩7.9 billion, revenue ₩159.9 billion) are set below last year's precisely because that temporary recovery portion drops out and results normalize to the level of the core business's strength, and the first-quarter results support that direction.
- First-quarter 2026 revenue was ₩41.3 billion, -14.8% year over year, and operating profit was ₩2.1 billion, -57.1%, with pressure on both downstream demand and prices.
- In short, this year's picture is a year in which last year's one-off recovery normalizes, not a phase in which revenue climbs back onto a growth path.
- Still, this is closer to a process of profit finding its footing on top of core margins than of the business breaking down, and the sector pressure of Chinese price competition is the variable that will decide the pace of the margin recovery.
- The disclosure flow is concentrated on confirming results and shareholder returns.
- On February 5, 2026, a change-in-profit-structure disclosure confirmed annual revenue of ₩174.7 billion, operating profit of ₩18.4 billion, and net profit of ₩24.0 billion, and this figure is the reference point for last year's results.
- On March 27, the company itself put forward a corporate-value enhancement plan (voluntary disclosure), presenting its own direction on the share price and capital policy.
- Most recently, on June 12, it decided to sign a treasury-share acquisition trust contract, a return measure to buy back its own shares with cash and give them back to shareholders.
- Whether thick cash-equivalent assets and a stable balance sheet support such return decisions is the key when reading the disclosures.
- This is a stock where strengths and weaknesses divide clearly.
- The strong condition is assets and returns.
- A P/B of 0.35x versus book value is very undervalued against asset value, and a dividend yield above 4% (payout ratio 25%) together with the treasury-share trust contract show that a channel for cash strength to flow back to shareholders is open.
- A financial structure with a light debt burden and overwhelming liquidity is also a factor that supports the downside.
- Conversely, the condition to watch is the normalization of earnings.
- With the one-off recovery portion mixed into last year's net profit dropping out, this year's normalized-earnings predicted P/E is hard to call cheap versus peers on this earnings yardstick alone.
- As the first-quarter decline in revenue and operating profit shows, the pace of recovery in core demand is the key.
- So if one values asset value and dividends and returns and can wait for the point at which core margins firm at the bottom, the appeal is clear; whereas if one expects immediate earnings growth or earnings-based undervaluation this year, it reads as a stretch that requires patience.
🔎 Valuation vs peers Overvalued
A comparison set of leather and footwear names with nearby market capitalization.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hwaseung Enterprise | — | 0.40x | -6.26% |
| JS Corporation | 4.45x | 0.65x | 14.52% |
| Chokwang Leather | 36.29x | 0.72x | 2.00% |
We looked first at a public-data comparison set of leather and footwear names with nearby market capitalization. The current P/E (how many times a year's earnings the price represents) is 6.75x, and the P/B (how many times book value the price represents) is 0.36x. That said, lower-market-cap names are heavily affected by earnings swings and financing disclosures, so we did not draw firm conclusions from metrics based on last year's confirmed results alone. The basis for the outlook box is a DART seasonality approximation.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩159.9 billion | ₩7.9 billion | ₩8.4 billion |
| Next quarter | Q2 2026 | ₩42.1 billion | ₩1.9 billion | ₩1.9 billion |
Price history Close · MA20 · MA60
The latest close is ₩53,900 and the market capitalization is ₩161.7 billion. The price sits above its 20-day moving average (₩53,515) and below its 60-day moving average (₩55,848). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 50.3, a neutral level. The one-month change is +8.8%, the three-month change is -9.6%, and the position relative to the 52-week high is -13.8%. Relative strength versus the KOSPI is 29 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 28% of all stocks. Over the past three months it lagged the index by 27.8%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -27.78% / 6M -37.00% / 12M -58.57%
Key metrics vs whole-market median
Valuation
The P/E of 6.75x is below the whole-market median (13.81x). The P/B of 0.36x is below the whole-market median (1.15x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is 5.3%, in line with the whole-market average (5.0%). The operating margin is 10.6%. The debt ratio is 104.6%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $118.8M | $126.8M | $115.8M | -8.69% ↓ slower |
| Operating profit | $11.7M | $13.3M | $12.2M | -7.75% ↓ slower |
| Net profit | $14.3M | $7.3M | $15.9M | +117.57% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $128.6M | $118.5M | $118.8M | $126.8M | $115.8M |
| Operating profit | $24.1M | $10.9M | $11.7M | $13.3M | $12.2M |
| Net profit | $22.0M | $10.0M | $14.3M | $7.3M | $15.9M |
| Revenue CAGR | 4-yr avg -2.58% | ||||
Revenue fell 8.7% year over year (2023 ₩179.3 billion → 2024 ₩191.3 billion → 2025 ₩174.7 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 7.8% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is -2.6%. The two-year revenue CAGR is -1.3%. In the most recent quarter (Q1 2026), revenue was 14.8% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- The dividend yield, at 4.3%, is on the high side.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 8.7% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-03-27UpdateCorporate-value enhancement plan (voluntary disclosure): original company plan confirmedThis is material the company itself put forward as a plan. If it contains numbers, we treat it as a primary basis for the outlook box; if not, we treat it only as directional material. Source
- 2026-02-05EarningsChange of 30% or more (15% for large corporations) in revenue or profit structure: annual revenue ₩174.7 billion, operating profit ₩18.4 billion, net profit ₩24.0 billionThis is recent confirmed or preliminary results material. We check whether it is in the same direction as the annual trend and whether there are one-off factors. Source
- 2026-06-12UpdateMaterial-fact report (decision to sign a treasury-share acquisition trust contract): return terms confirmedThis is a disclosure related to cash returns or changes in the share count. We check whether earnings strength and cash flow support it. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩53,900 | ₩53,900 | Confirmed | link |
| Latest quarterly results | revenue ₩41.3 billion, operating profit ₩2.1 billion | revenue ₩41.3 billion, operating profit ₩2.1 billion | Confirmed | link |
| Annual results | revenue ₩174.7 billion, operating profit ₩18.4 billion | revenue ₩174.7 billion, operating profit ₩18.4 billion | Confirmed | link |
| Original outlook/plan disclosure text | : | : | Confirmed | link |
| Original results disclosure text | revenue30%: revenue ₩174.7 billion · operating profit ₩18.4 billion · net profit ₩24.0 billion | revenue30%: revenue ₩174.7 billion · operating profit ₩18.4 billion · net profit ₩24.0 billion | Confirmed | link |
| Original shareholder-return disclosure text | : | : | Confirmed | link |
| Outlook box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-06-01Large-business-group status disclosure
- 2026-06-01Corporate governance report
- 2026-05-22Disclosure
- 2026-05-22Shareholders' meeting notice
- 2026-05-15OwnershipOwnership-change filing
- 2026-05-15OwnershipLargest-shareholder ownership change report
- 2026-05-15PeriodicQuarterly report
- 2026-04-30OwnershipLargest-shareholder ownership change report
- 2026-04-20Disclosure
- 2026-03-27Disclosure
- 2026-03-27Disclosure
- 2026-03-27Shareholders' meeting notice
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.