Motonic makes fuel- and intake-system parts for car engines, with the LPI system for LPG vehicles as its core revenue source, supplying GDI pumps for gasoline direct injection, throttle bodies, oil pumps, and EGR mostly to Hyundai Motor and Kia on an OEM basis, while widening its lineup into future-mobility areas such as regulators for hydrogen fuel-cell vehicles and hybrid parts to reduce its dependence on LPG parts. On April 24 it voluntarily disclosed a corporate value-up plan, in March it decided to cancel treasury shares it held, and adding the annual cash dividend on top, it has made clear its direction of returning accumulated cash to shareholders, while the May first-quarter report also confirmed a slowdown in results. What stands out lately is that near-debt-free finances, cash comparable to its market cap, a high dividend in the 8% range, treasury-share cancellation, and a low valuation with a 0.43x P/B and a 9.7x forward P/E all support the downside — strengths against which revenue and operating profit are falling, the recovery signal was weak in the first quarter too, and results are tied to LPG and hybrid model sales and to Hyundai and Kia volumes, so they are exposed to swings in end-market demand.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 3.8% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 4.3% lower than a year earlier.
- ROE is 5.6% (controlling-interest basis). It is below the sector average.
- Operating margin is 6.6%.
- P/B is low versus peers too, so it looks cheap on an asset basis as well.
Ownership & governance As of 2025-12-31
Largest shareholder Kim Hee-jin 17.68% (individual)
Controlling bloc incl. related parties 45.68%
With the controlling bloc holding 46%, the ownership structure is stable.
🔎 In-depth analysis
- Motonic makes fuel- and intake-system parts for car engines.
- Its core revenue source is the LPI system for LPG vehicles (a system that injects liquefied petroleum gas into the engine in liquid form), and alongside it, the company supplies GDI pumps for gasoline direct injection, throttle bodies that regulate air flow, oil pumps, EGR (exhaust-gas recirculation), and fuel rails.
- Most of the products go into Hyundai Motor and Kia on an OEM (original equipment manufacturer) basis, so the two companies' LPG and hybrid model sales flow is directly linked to results.
- On top of this, it is drawing a picture of reducing its dependence on traditional LPG parts by widening its lineup into future-mobility areas such as regulators for hydrogen fuel-cell vehicles (FCEV) and parts for hybrids.
- The latest close is ₩9,640 and market capitalization is ₩209.5 billion.
- The price sits below its 20-day line (₩9,868) and below its 60-day line (₩10,339).
- Trading beneath both its short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that weighs upward against downward force over the past 14 days on a 0-100 scale) is 40.8, a neutral level.
- The one-month change is -3.5%, the three-month change is -8.5%, and the position versus the 52-week high is -17.2%.
- Its relative strength against the KOSPI is 25 (on a 1-99 scale, computed from returns over the past year against the index with more weight on the recent period; higher means stronger than the market).
- That places it in roughly the top 75% of all stocks by strength.
- Over the past three months it lagged the index by 27.3%.
- Chart reading is best done alongside trading volume and the dates of disclosures.
- The valuation metrics are low across the board.
- The P/E (how many times one year's earnings the price is) is 7.76x and the P/B (how many times the company's net assets) is 0.43x, less than half of net assets.
- The forward P/E on this year's expected earnings is also around 9.7x, far below peers Hyundai Wia (in the 17x range) and HL Mando (in the 22x range).
- In other words, whether viewed on past earnings or this year's expected earnings, it is clearly in a band priced cheaply versus peers.
- The dividend also stands out, with a yield in the 8% range (₩790 per share) and 63% of last year's net profit returned as dividends.
- The finances are very solid: the current ratio (assets that can be turned to cash against debt due within a year) is over 10x and interest coverage (how many times operating profit can pay interest) reaches 24x, so it is effectively a cash-rich company with almost no debt burden.
- Profitability is ordinary — the ROE (how much it earns in a year on its equity) is 5.6%, below the peer average, and the operating margin is 6.6%.
- The net margin (9.65%) being higher than the operating margin results from non-operating income such as interest and investment gains flowing from its ample cash, showing a structure in which abundant cash props up earnings.
- Top-line growth is in a slowdown.
- Revenue was ₩279.7 billion in 2025, down 3.8% from the prior year, while operating profit (-22%) and net profit (-16.6%) fell more.
- Over multiple years, net profit rose from ₩27.5 billion (2023) to ₩32.4 billion (2024) and then stepped down to ₩27.0 billion in 2025.
- In first-quarter 2026 the slowdown continued, with revenue of ₩68.3 billion (-4.3%) and net profit of ₩5.7 billion (-20.6%); net profit falling faster than revenue partly reflects lower non-operating income.
- That said, the trailing P/E (on last year's confirmed earnings, already past) and the forward P/E (on the next year's estimated earnings) carry different meaning.
- That the forward P/E on this year's expected earnings is 9.7x — around half the peer set's — means the price is still set low even allowing for the possibility that earnings dip somewhat.
- The direction of results ultimately depends on Hyundai and Kia's LPG and hybrid model sales and the pace of future-mobility part adoption, so if end-market volumes hold up, earnings stabilize.
- The center of recent disclosures is 'shareholder returns' rather than 'results.' On April 24, 2026, the company issued a corporate value-up plan (voluntary disclosure), which is a voluntary filing in which a company tells the exchange it will lift shareholder value on its own.
- Earlier, in March, it also disclosed a decision to cancel treasury shares it held (eliminating them to reduce shares outstanding).
- Treasury-share cancellation has the effect of raising the value of one share as shares outstanding fall, making it, alongside dividends, a representative means of shareholder return.
- Adding the annual cash dividend, Motonic is making clear its direction of returning accumulated cash to shareholders even amid a slowdown in core-business growth.
- In May the first-quarter report came out, confirming the slowdown in results alongside it.
- The strengths are distinct.
- Near-debt-free financial muscle and cash comparable to its market cap, a will to return capital that runs from a high dividend in the 8% range to treasury-share cancellation, and a low asset-value assessment of a 0.43x P/B all prop up the downside.
- On top of this, not only the 7.66x trailing P/E but also the 9.7x forward P/E on this year's expected earnings are low versus peers, so even after reflecting a step down in earnings, the price sits in an undervalued zone.
- The caution is the core business.
- Revenue and operating profit are falling, the recovery signal was weak in the first quarter too, and part of earnings leans on non-operating income.
- Also, results are tied to LPG and hybrid model sales and to Hyundai and Kia volumes, so they are exposed to swings in end-market demand.
- In short, when end-market volumes stabilize or the share of future-mobility parts grows so the core business holds up, the undervaluation, high dividend, and cash strength gain force together; conversely, if end-market demand shakes further, core-business margins and an earnings recovery can be delayed.
- The direction of core-business revenue and the actual execution of the shareholder-return policy are the points that decide what comes next.
🔎 Valuation vs peers Inconclusive
Compared with domestic auto-parts makers of near business character that supply parts to Hyundai Motor and Kia. Hyundai Wia (powertrain and parts, low P/B), HL Mando (chassis and electronics), and Hwaseung Corporation (small parts) are used as reference.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hyundai Wia | 16.31x | 0.45x | 2.74% |
| HL Mando | 22.70x | 0.84x | 3.69% |
| Hwaseung Corporation | 1.68x | 0.46x | 27.54% |
Looking at its position versus the peer set, Motonic is low on both P/E and P/B and highest on dividend. On asset value (0.45x P/B) and cash strength alone it is in a discount zone, but this largely stems from the core business shrinking and an ROE below the peer average. In other words, it is closer to an asset-stock character 'priced low because growth is weak' than 'cheap.' One point to note is the trailing P/E of 7.76x computed on last year's confirmed earnings. Because last year was an inflection stretch coming down from an earnings peak, converting to this year's estimated earnings raises the multiple somewhat, so the undervaluation may not be as large as the trailing figure suggests. Ultimately, because re-valuation is possible only once a core-business recovery and the execution of shareholder returns are confirmed together, judgment is withheld.
Price history Close · MA20 · MA60
The latest close is ₩9,640 and the market capitalization is ₩209.5 billion. The price sits below its 20-day moving average (₩9,868) and below its 60-day moving average (₩10,339). 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 40.8, a neutral level. The one-month change is -3.5%, the three-month change is -8.5%, and the position relative to the 52-week high is -17.2%. Relative strength versus the KOSPI is 25 (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 25% of all stocks. Over the past three months it lagged the index by 27.3%. 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 -27.31% / 6M -40.71% / 12M -60.61%
Key metrics vs sector median
Valuation
The P/E is 7.76x. The P/B of 0.43x is below 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.
Profitability & financials
Return on equity (ROE) is 5.6%, below the sector average (7.0%). The operating margin is 6.6%. The debt ratio is 109.9%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $161.9M | $192.6M | $185.4M | -3.75% ↓ slower |
| Operating profit | $10.0M | $15.8M | $12.3M | -22.05% ↓ slower |
| Net profit | $18.2M | $21.4M | $17.9M | -16.57% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $130.0M | $148.4M | $161.9M | $192.6M | $185.4M |
| Operating profit | $9.5M | $9.1M | $10.0M | $15.8M | $12.3M |
| Net profit | $7.9M | $14.2M | $18.2M | $21.4M | $17.9M |
| Revenue CAGR | 4-yr avg 9.29% | ||||
Revenue fell 3.8% year over year (2023 ₩244.3 billion → 2024 ₩290.6 billion → 2025 ₩279.7 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 22.1% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 9.3%. The two-year revenue CAGR is 7.0%. In the most recent quarter (Q1 2026), revenue was 4.3% 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 8.2%, is on the high side.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 3.8% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-04-24FilingFiling of a corporate value-up plan (voluntary disclosure) — the company voluntarily discloses to the exchange its direction for enhancing shareholder valueShort term: formation of shareholder-return expectations. Medium term: whether the dividend and treasury-share policy are actually executed is the key to re-valuation Source
- 2026-03-11DividendDecision to cancel treasury shares — canceling held treasury shares to reduce shares outstandingShort term: a per-share value uplift and shareholder-return signal. Medium term: a factor improving EPS and per-share asset value Source
- 2026-05-15Earnings2026 first-quarter report — revenue ₩68.3 billion (-4.3% YoY) and net profit ₩5.7 billion (-20.6%), a continued slowdownShort term: confirms a delayed core-business recovery. Medium term: the reliance on non-operating income is highlighted, and an end-market demand recovery is needed Source
- 2026-03-18Earnings2025 annual report — revenue ₩279.7 billion (-3.8%) and net profit ₩27.0 billion (-16.6%), a slowdown after a prior-year peakMedium term: confirms an earnings inflection. The cash resources for dividends remain more than sufficient Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-01Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-04-24Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-18PeriodicAnnual business report
- 2026-03-11Shareholders' meeting notice
- 2026-03-11Shareholders' meeting notice
- 2026-03-11Disclosure
- 2026-03-11Disclosure
- 2026-03-09Audit report
- 2026-03-04OwnershipOfficers'/major-shareholders' holdings report
📖 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.