SIMPAC earns money along several axes: metal-forming presses that stamp out automotive and electronics parts, manganese ferroalloys and rolls used in steelmaking, and the trading (distribution) of non-ferrous metals such as copper. The result is a dual structure in which non-ferrous trading drives revenue scale while the presses supply the core of manufacturing profit. In December 2025 the company absorbed its former holding entity, SIMPAC Holdings, and in March 2026 it disclosed a corporate value-up plan featuring a ₩300-per-share dividend and high-dividend-company standing; at a P/B of 0.38x, a dividend yield of about 7.6%, and a payout ratio in the 80% range, it sits in cheap territory on both asset and dividend grounds. What stands out lately is that when the core press business keeps its profit steady, non-ferrous valuation losses ease, and the merger-nullity lawsuit is resolved, the cheap asset-and-dividend pricing gains traction; on the other side, net profit can swing sharply with metal prices, and the financial burden (an interest-coverage ratio below 1x and a debt ratio of 199%) together with the litigation variable can obscure those strengths.
At-a-glance assessment financial health · growth · profitability · valuation
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue rose 44.5% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 31.3% higher than a year earlier.
- ROE is 3.1% (controlling-interest basis). It is above the sector average.
- Operating margin is 3.9%.
Ownership & governance As of 2025-12-31
Largest shareholder SIMPAC Holdings 0% (corporate)
Controlling bloc incl. related parties 60.6%
With the controlling bloc holding 61%, control is very secure but the free float is thin.
🔎 In-depth analysis
- SIMPAC does not run a single business but earns money along several axes.
- First, the press division makes metal-forming presses (large machines that press sheet metal into shape) that stamp out automotive and electronics parts, selling them to domestic and overseas automakers and parts makers (with sales bases in China, the US, Mexico, and Turkey).
- Second, the ferroalloy and roll division makes manganese ferroalloy, which removes impurities and raises strength in the steelmaking process, along with rolls for papermaking and steelmaking.
- Third, the trading division distributes non-ferrous metals such as copper; of first-quarter 2026 revenue (₩315.3 billion), non-ferrous trading goods accounted for the largest share at ₩128.3 billion.
- On top of this come materials and services revenue such as auto parts and industrial machinery, scrap-steel processing, and zinc oxide (for rubber) made by a wet process that is unique to the company in Korea.
- In short, it is a dual structure in which non-ferrous distribution drives revenue scale while the presses supply the core of manufacturing profit.
- The recent close is ₩5,130 and the market cap is ₩335.4 billion.
- The price sits above its 20-day line (₩4,465) and below its 60-day line (₩5,190), so the short-term and medium-term trends diverge and should be read separately.
- The RSI (an auxiliary gauge that weighs upward against downward force over the past 14 days on a 0-100 scale) is 63.4, a neutral level.
- The one-month change is +15.8%, the three-month change is -1.2%, and the position versus the 52-week high is -23.2%.
- Relative strength against the KOSPI is 34 (1-99, converting return versus the index over the past year with recent periods weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 66% of all stocks by strength.
- Over the past three months it lagged the index by 22.8%.
- Chart reading is best done alongside trading volume and disclosure dates.
- On a confirmed annual (2025) basis, the P/E (how many times one year's earnings the price is) is 16.29x, the P/B (how many times per-share net assets the price is) is 0.50x, the ROE (how much is earned in a year on equity) is 3.1%, and the operating margin is 3.9%.
- The most striking figure is the P/B of 0.38x.
- This means the entire company trades below half the net assets carried on its books, clearly a cheap spot in terms of asset value.
- Added to this, the ₩300-per-share dividend equates to a yield of about 7.6% at the current price, showing that price is set low on both the asset and the dividend axes.
- That said, the debt ratio is 199% and the interest-coverage ratio is below 1x (0.66x), a structure in which operating profit alone does not fully cover interest, so financial headroom can hardly be called ample.
- One more point to note is that this P/E is a trailing figure using last year's net profit, which mixed in non-ferrous valuation gains and losses, as its denominator.
- So rather than judging cheap or expensive from the P/E number alone, the company reads more accurately when assets (P/B), the dividend, and the quality of earnings are viewed together.
- Five-year revenue grew from ₩613.0 billion in 2021 to ₩1.179 trillion in 2025, expanding especially fast over the past two years (₩640.8 billion in 2023 to ₩816.0 billion in 2024 to ₩1.179 trillion in 2025, +44.5% year on year).
- Operating profit also reached ₩46.0 billion in 2025, up 134.7% from the prior year for a clear recovery, and in the first quarter of 2026 the core business kept growing with revenue of ₩315.3 billion (+31.3%) and operating profit of ₩21.6 billion (+65.1%).
- As non-ferrous trading volume rose and press and ferroalloy demand held up, top line and operating-line profit grew together.
- Net profit, however, tells a different story.
- First-quarter net profit was ₩1.7 billion, down 77.6% from the same period a year earlier; the company attributed this to non-operating valuation losses from rising non-ferrous prices.
- With trading making up a large share, the key point is a structure in which metal prices shake net profit at a stage below operating profit.
- That this year's forward P/E is set higher than last year's trailing P/E (12.5x) fits the same picture: even with operating profit firm, net profit may be pressed down once as non-ferrous valuation gains and losses normalize, rather than simply carrying last year's level forward, and the price appears to reflect this in advance.
- In short, growth's center of gravity lies in top line and operating profit, and net profit is the variable tied to metal prices.
- The past year's disclosures read along two lines.
- One is structural realignment.
- On December 12, 2025, the company absorbed its former holding entity SIMPAC Holdings (new shares listed 2026-01-02), fusing the operating company and the holding entity into one body; capital rose from ₩5.0 billion to ₩32.7 billion and the largest-shareholder composition also changed.
- The other is capital deployment.
- In March 2026 it voluntarily disclosed a corporate value-up plan featuring a ₩300-per-share cash dividend and high-dividend-company standing, formalizing its shareholder-return direction, and in April it committed ₩35.4 billion (of a total fund commitment of about ₩75.5 billion) as a limited partner to a private-equity fund (Zeno Value-Up Private Equity LP), receiving in exchange a call option on the target investment shares.
- Meanwhile, on May 11, 2026, a party opposed to the merger filed a merger-nullity suit, so a dispute over the legal validity of last year's merger is under way.
- In sum, a trend of strengthening shareholder returns sits alongside the variable of the merger dispute.
- This is a stock whose strengths and variables are relatively clear-cut.
- On the strength side, revenue and operating profit recovered quickly and the core business kept growing into the first quarter, and at a P/B of 0.38x the price is below half of net assets, a cheap spot on asset value.
- Add a dividend yield of about 7.6%, a payout ratio in the 80% range, and high-dividend-company standing, and shareholder returns are also generous.
- Looking at assets and the dividend alone, the undervalued character is clear.
- On the variable side, net profit swings sharply with non-ferrous metal prices through valuation gains and losses, so a recovery in operating profit cannot be assumed to flow straight through to net profit and dividend funding; with an interest-coverage ratio below 1x and a debt ratio of 199%, financial headroom is not ample even as the company actively deploys capital, such as the private-equity commitment; and a suit contesting the nullity of last year's merger remains.
- In sum, this is a stock where the cheap asset-and-dividend pricing gains traction when core press profit holds steady, non-ferrous valuation losses subside, and the merger dispute is resolved; conversely, when metal prices swing hard or the litigation and capital-spending burdens come to the fore, net-profit volatility obscures those strengths.
🔎 Valuation vs peers Inconclusive
With no suitable pure listed comparison for press-forming machinery, the peer set was drawn from ferroalloy, steel-materials, and non-ferrous-distribution names whose revenue mix overlaps (base values computed at the current price).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Poongsan | 11.71x | 0.75x | 6.40% |
| POSCO Steeleon | 16.50x | 0.73x | 4.44% |
| POSCO Holdings | 35.79x | 0.42x | 1.18% |
(a) Position versus peers: the P/B of 0.44x is the lowest in the peer set, clearly undervalued territory relative to net assets. The P/E of 14.3x is similar to Poongsan (14.1x) and lower than POSCO Steeleon and POSCO Holdings. (b) Premium/discount: the discount is pronounced on asset and dividend grounds, but an ROE of 3.1%, no higher in profitability than peers, is itself part of the basis for that discount. (c) Limits of the trailing P/E and the forward basis: last year's confirmed P/E used net profit that mixed the end-2025 merger and non-ferrous valuation gains and losses in its denominator, so it hardly shows the company's normal earnings power as is. With no official numeric outlook from the company, a DART seasonality-approximated forward operating profit (about ₩130.7 billion) kept for reference also has low reliability because loss-making quarters were excluded. This is a stretch where assets are cheap but the quality and durability of earnings still need confirming, so rather than committing to one side, the call is left as Inconclusive.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩444.7 billion | approx. ₩14.7 billion | approx. ₩4.8 billion |
Price history Close · MA20 · MA60
The latest close is ₩5,130 and the market capitalization is ₩335.4 billion. The price sits above its 20-day moving average (₩4,465) and below its 60-day moving average (₩5,190). 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 63.4, a neutral level. The one-month change is +15.8%, the three-month change is -1.2%, and the position relative to the 52-week high is -23.2%. Relative strength versus the KOSPI is 34 (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 34% of all stocks. Over the past three months it lagged the index by 22.8%. 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 -22.78% / 6M -34.83% / 12M -55.84%
Key metrics vs sector median
Valuation
The P/E is 16.29x. The P/B is 0.50x. That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
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 3.1%, above the sector average (2.0%). The operating margin is 3.9%. The debt ratio is 199.0%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $424.7M | $540.9M | $781.4M | +44.48% ↑ faster |
| Operating profit | $15.0M | $13.0M | $30.5M | +134.69% ↑ faster |
| Net profit | -$11.1M | $5.6M | $13.6M | +143.39% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $406.3M | $445.5M | $424.7M | $540.9M | $781.4M |
| Operating profit | $70.5M | $78.8M | $15.0M | $13.0M | $30.5M |
| Net profit | $60.2M | $50.5M | -$11.1M | $5.6M | $13.6M |
| Revenue CAGR | 4-yr avg 17.76% | ||||
Revenue rose 44.5% year over year (2023 ₩640.8 billion → 2024 ₩816.0 billion → 2025 ₩1.2 trillion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 134.7% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 17.8%. The two-year revenue CAGR is 35.6%. In the most recent quarter (Q1 2026), revenue was 31.3% 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 5.9%, is on the high side.
- Revenue grew 44.5% 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
- 2025-12-12FilingAbsorbed former holding entity SIMPAC Holdings (merger date 2025-12-12, new shares listed 2026-01-02). Capital rose from ₩5.0 billion to ₩32.7 billion, and the operating and holding structures were unified into one company.Over the medium term, the dual holding-and-operating structure disappears, simplifying consolidated results and the ownership structure. Trading volume and the share price moved sharply right after the merger. Source
- 2026-02-25EarningsIn 2025, consolidated revenue rose +44.2% and operating profit +101.9%, but non-operating valuation losses from rising non-ferrous prices left pre-tax profit -24.4% and net profit -4.6%. Core strength and non-operating losses diverged.In the short term, this shows a structure in which the operating-profit recovery does not carry fully through to net profit. With trading making up a large share, metal prices are the crux of net-profit volatility. Source
- 2026-03-11DividendDecided a ₩300-per-share cash dividend. The 2025 payout ratio was about 80%, with distributed profit of ₩16.5 billion, up 52.1% from the prior year.Over the medium term, a factor confirming the continuation of a high-dividend policy. That said, dividend funding is tied to net profit and so can be affected by swings in valuation gains and losses. Source
- 2026-03-27IRCorporate value-up plan (voluntary disclosure). It specifies a stable dividend policy within distributable profit and high-dividend-company standing (Restriction of Special Taxation Act §104-27). No specific revenue or profit targets were given.Over the medium term, it formalizes the shareholder-return direction. With no numeric performance targets included, future figures should be read mainly through confirmed results. Source
- 2026-04-22FilingDecided to commit ₩35.4 billion as a limited partner to a private-equity fund (Zeno Value-Up Private Equity LP) (total fund commitment ₩75.5 billion, 5.28% of equity). Holds a call option on the target company's shares. Filing amended 2026-04-29.Over the medium term, a decision to allocate held cash to an outside investment; success would mean investment gains, but it carries a spending burden relative to financial headroom and uncertainty over recovery. Source
- 2026-05-11UpdateA merger-nullity suit was filed over the SIMPAC Holdings merger dated 2025-12-12 (Incheon District Court 2026 Gahap 50305). The company disclosed that it will respond actively through legal procedures.Over the medium term, uncertainty surrounds the legal validity of last year's merger. Depending on the suit's progress and outcome, it could affect the ownership structure and interpretations of corporate value. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 consolidated revenue | 1₩179.0 billion(base, +44.5%) | 1₩177.6 billion | Confirmed | link |
| 2025 consolidated operating-profit growth rate | +134.7% | operating profit +101.9% | Mismatch | link |
| 2025 cash dividend per share | DPS ₩300,x 73.9%(base) | ₩300,x approx. 80.2% | Confirmed | link |
| 2026 seasonality-approximated annual operating profit | approx. ₩130.7 billion | — | Unverified | link |
Recent filings
- 2026-06-05OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-02OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-01Corporate governance report
- 2026-05-29OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-27OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-15PeriodicQuarterly report
- 2026-05-15OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-14OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-13OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-11Disclosure
- 2026-04-29Amended filing
- 2026-04-22Disclosure
📖 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.