SNT Dynamics is a defense parts maker that produces automatic transmissions and powerpacks for the K2 tank; it developed the world's first 1,700-horsepower automatic transmission for tanks, localizing the powertrain, and also handles mortars and artillery as well as civilian automotive components. In March 2026 it secured a transmission-assembly supply contract with Hanwha Aerospace worth about ₩510.5 billion (83% of recent revenue) running through the end of 2028, and its preliminary Q1 results in April showed double-digit growth in both revenue and operating profit. The notable point is that, backed by a monopoly position in localized K2 tank transmissions, an effectively debt-free balance sheet, and a 5%-plus dividend, its valuation is low relative to defense peers; on the other hand, exports are still a small share, so quarterly results swing with the domestic defense delivery schedule, and R&D costs can weigh on near-term profitability.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 15.9% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 19.8% higher than a year earlier.
- ROE is 7.1% (controlling-interest basis). It is above the sector average.
- Operating margin is 12.0%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder SNT Holdings 42.27% (corporate)
Controlling bloc incl. related parties 45.28%
With the controlling bloc holding 45%, the ownership structure is stable.
🔎 In-depth analysis
- This company is a defense parts maker that produces transmissions and powerpacks for tanks.
- Its signature product is the domestically developed automatic transmission at the heart of the K2 tank.
- It developed the world's first tank automatic transmission with six forward and three reverse gears in the 1,700-horsepower class, which enabled a domestically made powerpack (a combined engine-and-transmission unit) from the fourth production batch of the K2 tank onward.
- Beyond transmissions, its defense products extend to artillery and weapon systems such as mortars and helicopter machine guns.
- On top of this, it also has a civilian automotive-parts business covering transmission components and drivetrain units for passenger and commercial vehicles.
- In other words, the root of its revenue is defense powertrains, with automotive parts next.
- The latest close is ₩32,650 and the market cap is ₩1.1 trillion.
- The price sits below its 20-day line (₩37,790) and below its 60-day line (₩46,116).
- Trading below both its short- and mid-term moving averages, the trend is subdued.
- The RSI (a gauge that compares upward and downward strength over the past 14 days on a 0-100 scale) is 33.6, a neutral level.
- The one-month change is -22.8%, the three-month change is -33.5%, and the price is -56.2% below its 52-week high.
- Its relative strength versus the KOSPI is 5 (on a 1-99 scale, computed from returns against the index over the past year with recent performance weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 96% of all stocks by strength.
- Over the past three months it lagged the index by 48.1%.
- Chart readings are best viewed alongside trading volume and the dates of disclosures.
- On last year's (2025) results, the P/E ratio (how many times one year's profit the share price is) is 17.63x and the P/B ratio (how many times book equity the share price is) is 1.25x.
- ROE (how much is earned in a year on equity) is 7.1%, still not high.
- There is a catch in this P/E, however: 2025 net profit (₩61.6 billion) fell sharply from 2024 (₩96.1 billion), so a P/E based on a year of depressed profit looks more expensive than it really is.
- The balance sheet is solid.
- The debt ratio (debt relative to equity) is a low 42%, the current ratio is 372%, and the interest-coverage ratio is 32x, so the debt burden is almost nonexistent.
- Net debt (total borrowings minus cash) is just ₩8.7 billion, effectively close to debt-free.
- EV/EBIT (enterprise value including debt divided by operating profit, an extended version of the P/E) is 13.7x, lower than the P/E, because with almost no debt the enterprise value is similar to the market cap.
- The dividend yield is a relatively high 5.2% (₩1,800 per share), and the payout ratio (the share of net profit paid out as dividends) is 67%.
- Over five years, revenue more than doubled from ₩336.0 billion to ₩712.0 billion, a trajectory of about 21% annual growth.
- Profit, however, has not been smooth.
- Operating profit surged to ₩110.5 billion in 2024, then gave some of it back to ₩85.5 billion in 2025.
- This pullback is the backdrop that makes the 2025 P/E look high.
- What matters is that the direction is turning up again.
- Q1 2026 revenue was ₩179.9 billion, a record quarterly high.
- Year on year, revenue rose +19.8% and operating profit +20.2%.
- In particular, domestic sales jumped 54% versus a year earlier on expanded defense deliveries.
- The localization of defense transmissions has begun to convert into actual revenue.
- With the fourth K2 tank production batch (150 units through 2028) and Poland export volumes structurally rising over the next few years, we expect 2026 profit to climb back above the weak 2025.
- Even though last year's P/E looks high, on this year's reviving profit the share price is actually on the cheaper side.
- The biggest event is the transmission-assembly supply contract signed with Hanwha Aerospace in March 2026.
- The contract is worth about ₩510.5 billion, a large volume equal to 83% of recent revenue, running through the end of 2028.
- It means several years of defense work were secured in advance.
- In April, the company disclosed preliminary Q1 2026 results, with both revenue and operating profit growing at double-digit rates.
- In May there were disclosures related to a treasury-share buyback, and in March it also held an IR event.
- In sum, this is a phase in which the results of defense localization are being confirmed through a large order and record quarterly results.
- The strengths are clear.
- It holds a monopoly localization position in K2 tank transmissions, and a large supply contract fills its order book through 2028.
- The balance sheet is effectively debt-free and the dividend yield is a high 5%-plus.
- It is also positive that profit, weak last year, turned back to growth in 2026.
- Compared with other companies in the same defense sector trading at far higher P/E and P/B multiples, this company's valuation is on the low side.
- There are cautions too.
- Profit can swing quarter to quarter with the defense delivery schedule, and R&D costs can weigh on near-term profitability.
- With exports still a small share, results are heavily driven by domestic defense volumes.
- In sum, this is a name that is strong while defense localization volumes rise as planned, and weaker when delivery delays or R&D burdens grow.
🔎 Valuation vs peers Undervalued
Leading domestic listed defense companies, chosen to match the business reality of localized tank powertrains and defense parts.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hyundai Rotem | 22.77x | 5.69x | 25.01% |
| Hanwha Systems | 50.46x | 2.52x | 5.00% |
| LIG Defense & Aerospace | 60.26x | 10.68x | 17.72% |
Last year's 18.9x P/E reflects a year of depressed 2025 net profit, so it looks more expensive than it really is. Q1 2026 profit turned back to 20%-plus growth and defense volumes are structurally rising, so on this year's profit the valuation falls further. Compared with peers in the same defense sector - Hyundai Rotem (P/E 28, P/B 7), Hanwha Systems (P/E 58), and LIG (P/E 66) - this company's 18.9x P/E and 1.3x P/B are at a large discount. Given its growth trajectory, order visibility, and financial soundness, we judge it to be lowly valued as a defense growth name.
Price history Close · MA20 · MA60
The latest close is ₩32,650 and the market capitalization is ₩1.1 trillion. The price sits below its 20-day moving average (₩37,790) and below its 60-day moving average (₩46,116). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 33.6, a neutral level. The one-month change is -22.8%, the three-month change is -33.5%, and the position relative to the 52-week high is -56.2%. Relative strength versus the KOSPI is 5 (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 4% of all stocks. Over the past three months it lagged the index by 48.1%. 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 -48.14% / 6M -58.94% / 12M -71.98%
Key metrics vs sector median
Valuation
The P/E of 17.63x is above the sector median (7.76x). The P/B of 1.25x is above the sector median (0.56x).
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.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 9.8%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 7.1%, in line with the sector average (7.0%). The operating margin is 12.0%. The debt ratio is 41.7%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $322.1M | $407.2M | $471.9M | +15.88% ↓ slower |
| Operating profit | $27.6M | $73.2M | $56.6M | -22.67% ↓ slower |
| Net profit | $32.8M | $63.7M | $40.8M | -35.95% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $222.7M | $270.4M | $322.1M | $407.2M | $471.9M |
| Operating profit | $13.6M | $17.1M | $27.6M | $73.2M | $56.6M |
| Net profit | $39.1M | $15.2M | $32.8M | $63.7M | $40.8M |
| Revenue CAGR | 4-yr avg 20.66% | ||||
Revenue rose 15.9% year over year (2023 ₩486.0 billion → 2024 ₩614.5 billion → 2025 ₩712.0 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit fell 22.7% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 20.7%. The two-year revenue CAGR is 21.1%. In the most recent quarter (Q1 2026), revenue was 19.8% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The dividend yield, at 5.5%, is on the high side.
- Revenue grew 15.9% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-03-23UpdateSigned a transmission-assembly supply contract with Hanwha Aerospace. Contract value about ₩510.5 billion (83% of recent revenue), contract period 2026-03-23 to 2028-12-31.Secures defense transmission work through 2028 in advance. A key event that sharply raises medium-term revenue visibility. Source
- 2026-04-30EarningsDisclosed preliminary Q1 2026 results: consolidated revenue ₩179.9 billion (+19.8%), operating profit ₩21.3 billion (+20.2%), net profit ₩20.2 billion (+13.9%), a record quarterly high.The trickle-down from defense localization is showing up in results. Confirms a resumption of growth after the weak 2025. Source
- 2026-05-12FilingFiled the Q1 2026 quarterly report and a disclosure related to a treasury-share buyback.Confirms a shareholder-return stance (dividends and treasury shares). Together with a 5%-plus dividend yield, it supports the downside. Source
- 2026-03-04IRDisclosure of an IR event. Explains the progress of the defense business and results to the market.A venue to communicate directly on defense orders and localization progress. Improves access to information for investment judgment. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-29Corporate governance report
- 2026-05-12PeriodicQuarterly report
- 2026-05-12DividendCash/stock dividend decision (amended)
- 2026-05-12DividendCash/stock dividend decision
- 2026-05-08OwnershipOwnership-change filing
- 2026-04-30EarningsFair-disclosure notice
- 2026-04-10Disclosure
- 2026-04-01OwnershipOwnership-change filing
- 2026-03-23Single supply/sales contract
- 2026-03-13Disclosure
- 2026-03-04Disclosure
- 2026-03-04Disclosure
📖 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.