Sundo Electric is an electrical-equipment company that makes switchgear, which takes in power at industrial sites and buildings and distributes it along multiple lines, and breaker-family products that cut off current in the event of a fault, so its revenue rides heavily on the flow of large facility investments and individual supply contracts. Across March to May 2026 it announced a run of supply contracts worth ₩3.5 billion, ₩3.5 billion, and ₩2.2 billion, securing more than ₩9.0 billion in combined contracts, and operating profit swung from two years of losses into the black, with an ROE of 14.8% and both P/E and P/B in a low zone relative to peers. What stands out now is that if the swing to profit and the supply contracts feed steadily through into quarterly results and the financial burden eases, the cheap valuation has room to find its worth; against that, with a debt ratio of 206% and interest coverage below 1x financial headroom is not ample, and a revenue decline and loss reappeared in Q1 2026, so cheapness and earnings volatility have to be weighed together.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 206.3%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue rose 59.2% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 31.1% lower than a year earlier.
- ROE is 14.8% (controlling-interest basis). It is above the sector average.
- Operating margin is 3.3%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Jeon Dong-jun 18.07% (individual)
Controlling bloc incl. related parties 31.21%
With the controlling bloc holding 31%, the ownership structure is stable.
🔎 In-depth analysis
- Sundo Electric makes electrical equipment that safely distributes and cuts off power.
- At the center of its business are switchgear, which takes in power at industrial sites and buildings and distributes it along multiple lines, and breaker-family products that cut off current when a fault occurs.
- Because such products go into new construction or replacement of factory, power-generation, and transmission-and-distribution facilities, revenue rides heavily on the flow of large facility investments and individual supply contracts.
- As a small company with a market capitalization of ₩63.9 billion, it is worth watching not only the business itself but also how a single disclosure such as a supply contract affects results and the share price.
- The latest close is ₩4,360 and market capitalization is ₩78.5 billion.
- The price sits below both the 20-day line (₩4,849) and the 60-day line (₩6,464).
- Trading beneath both its short- and medium-term moving averages, the trend is on the subdued side.
- The RSI (a supplementary gauge that weighs upward against downward force over the past 14 days on a 0-100 scale) is 42.3, a neutral level.
- The price is down 17.4% over one month but up 45.3% over three months, and stands 70.1% below its 52-week high.
- Relative strength versus the KOSPI is 59 (1-99, converting return against the index over the past year with more weight on recent performance; higher means stronger than the market), placing it in roughly the top 41% of all stocks by strength.
- Over the past three months it outpaced the index by 17.0%.
- Chart reading is best done alongside volume and disclosure dates.
- For the most recent full year (2025), revenue was ₩38.2 billion, operating profit ₩1.2 billion, and net profit ₩5.3 billion.
- The operating margin of 3.3% is not yet thick, but ROE (how much is earned in a year on shareholders' equity) is 14.8%, above the sector average.
- Net profit came in well above operating profit because non-operating factors were added, so the core-business margin is more accurately read from operating profit.
- The P/E ratio (how many times a year's profit the price represents) is 14.83x and the P/B (how many times book value the price represents) is 2.20x.
- These figures are below the sector median, so the price is diagnosed as cheap relative to profit and assets.
- Meanwhile, the debt ratio (borrowings against equity) is 206.3%, so borrowings somewhat exceed equity, and interest coverage (how many times operating profit can pay interest) is below 1x, meaning operating profit alone is tight for fully covering interest.
- In other words, this is a stock where the valuation is cheap but financial headroom is tight - two sides to view together.
- Over the longer arc, revenue swung considerably, from ₩41.6 billion in 2023 to ₩24.0 billion in 2024 and ₩38.2 billion in 2025.
- The more meaningful change is on the profit side: operating profit turned from losses of -₩7.2 billion in 2023 and -₩5.7 billion in 2024 to a profit of ₩1.2 billion in 2025.
- Revenue also added a recovery signal, up 59.2% from the prior year.
- That said, in the most recent quarter, Q1 2026, revenue was ₩5.1 billion, down 31.1% from the same period a year earlier, and operating profit of -₩0.5 billion and net profit of -₩0.9 billion put it back into a loss.
- For a business like this, where revenue is governed by large facility investments and individual supply contracts, quarter-to-quarter unevenness is natural.
- This year's annual revenue is estimated at about ₩28.1 billion, but that is a rough figure based on quarterly result ratios, so it needs re-confirming with incoming contracts and quarterly results.
- The key is whether the swing to profit confirmed in 2025 continues, and whether the Q1 weakness was temporary.
- Recent disclosures are all product supply contracts.
- On May 27, 2026 (₩2.2 billion), April 24 (₩3.5 billion), and March 30 (₩3.5 billion) it announced single sales / supply contracts in succession (all including amendments).
- For a small company, combined contracts of more than ₩9.0 billion are meaningful as they can form the basis for future revenue recognition.
- That said, the medium-term read changes with whether these contracts are one-off transactions or ones that can recur, so it is worth confirming the contract terms together with when they actually feed into revenue.
- The strengths are clear.
- Operating profit swung from two years of losses into the black, ROE is a healthy 14.8%, and both P/E and P/B are low versus the sector, so the valuation sits in a cheap zone.
- The recent run of supply contracts is also a sign the business is not standing still.
- The cautions have to be viewed together too.
- The debt ratio is high at 206% and interest coverage is below 1x, so financial headroom is not ample, and a revenue decline and loss reappeared in Q1 2026.
- In sum, if the swing to profit and the supply contracts feed steadily through into quarterly results and the financial burden eases, the cheap valuation has room to find its worth; conversely, if weakness like Q1's drags on, even a low P/E may not be supported by results.
- It is right to weigh the cheapness together with the volatility of earnings.
🔎 Valuation vs peers Undervalued
A peer group of neighboring market caps within the electrical equipment sector.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Poled | — | — | — |
| THN | 1.50x | 0.46x | 30.56% |
| Powernet | 6.27x | 0.63x | 9.98% |
Within electrical equipment, a public-data peer group of nearby market capitalizations was looked at first. The current P/E ratio (how many times a year's profit the price represents) is 14.83x and the P/B (how many times book value the price represents) is 2.20x. That said, because smaller-cap stocks are heavily affected by earnings swings and financing disclosures, no firm conclusion was drawn 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 | ₩28.1 billion | — | — |
| Next quarter | Q2 2026 | ₩7.3 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩4,360 and the market capitalization is ₩78.5 billion. The price sits below its 20-day moving average (₩4,849) and below its 60-day moving average (₩6,464). 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 42.3, a neutral level. The one-month change is -17.4%, the three-month change is +45.3%, and the position relative to the 52-week high is -70.1%. Relative strength versus the KOSPI is 59 (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 59% of all stocks. Over the past three months it outpaced the index by 17.0%. 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 +17.04% / 6M -9.80% / 12M -37.89%
Key metrics vs sector median
Valuation
The P/E of 14.83x is below the sector median (19.17x). The P/B of 2.20x is in line with the sector median (2.15x).
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 10.1%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 14.8%, above the sector average (2.0%). The operating margin is 3.3%. The debt ratio is 206.3%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $27.6M | $15.9M | $25.3M | +59.15% ↑ faster |
| Operating profit | -$4.8M | -$3.8M | $827,785 | — |
| Net profit | -$10.9M | $6.5M | $3.5M | -45.93% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $45.9M | $42.4M | $27.6M | $15.9M | $25.3M |
| Operating profit | -$15.5M | -$7.5M | -$4.8M | -$3.8M | $827,785 |
| Net profit | -$20.8M | -$9.5M | -$10.9M | $6.5M | $3.5M |
| Revenue CAGR | 4-yr avg -13.82% | ||||
Revenue rose 59.2% year over year (2023 ₩41.6 billion → 2024 ₩24.0 billion → 2025 ₩38.2 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Over the 5 years on record, revenue compound annual growth (CAGR) is -13.8%. The two-year revenue CAGR is -4.3%. In the most recent quarter (Q1 2026), revenue was 31.1% 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.
- ROE of 14.8% points to solid profitability.
- Revenue grew 59.2% year over year, a sign of growth.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-05-27Contract[Amended] Single sales / supply contract signed: contract value ₩2.2 billionThe contract value and term are central to future revenue recognition. Whether it is a one-off or a repeatable transaction determines the medium-term read. Source
- 2026-04-24Contract[Amended] Single sales / supply contract signed: contract value ₩3.5 billionThe contract value and term are central to future revenue recognition. Whether it is a one-off or a repeatable transaction determines the medium-term read. Source
- 2026-03-30Contract[Amended] Single sales / supply contract signed: contract value ₩3.5 billionThe contract value and term are central to future revenue recognition. Whether it is a one-off or a repeatable transaction determines the medium-term read. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩4,360 | ₩4,360 | Confirmed | link |
| Latest quarterly results | revenue ₩5.1 billion, operating profit -₩0.5 billion | revenue ₩5.1 billion, operating profit -₩0.5 billion | Confirmed | link |
| Annual results | revenue ₩38.2 billion, operating profit ₩1.2 billion | revenue ₩38.2 billion, operating profit ₩1.2 billion | Confirmed | link |
| Contract disclosure source text | []ㆍapprox. : approx. ₩2.2 billion | []ㆍapprox. : approx. ₩2.2 billion | Confirmed | link |
| Contract disclosure source text | []ㆍapprox. : approx. ₩3.5 billion | []ㆍapprox. : approx. ₩3.5 billion | Confirmed | link |
| Contract disclosure source text | []ㆍapprox. : approx. ₩3.5 billion | []ㆍapprox. : approx. ₩3.5 billion | Confirmed | link |
| Outlook box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-06-01Corporate governance report
- 2026-05-27Single supply/sales contract (amended)
- 2026-05-15OwnershipLargest-shareholder ownership change report
- 2026-05-15OwnershipOwnership-change filing
- 2026-05-13PeriodicQuarterly report
- 2026-04-28Disclosure
- 2026-04-28Disclosure
- 2026-04-24Single supply/sales contract (amended)
- 2026-03-31Disclosure
- 2026-03-30Single supply/sales contract (amended)
- 2026-03-27Shareholders' meeting notice
- 2026-03-23Disclosure
📖 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.