Sebo M.E.C is a company that installs the mechanical systems that go into buildings and plants — cleanroom, piping, and HVAC work for semiconductor fabs such as Samsung Electronics' Pyeongtaek and Asan lines, plus HVAC, fire-protection systems, and LNG piping for large buildings — fabricating its own ducts and pipes and running a Vietnam subsidiary, so most of its revenue is tied to Samsung-group semiconductor capital spending. In April 2026 it signed an Asan piping contract with Samsung C&T (₩41.5 billion) and in May a Pyeongtaek piping contract No. 2 with Samsung E&A (₩40.0 billion) back to back, and it reduced its shares outstanding through a ₩2.0 billion treasury-share trust and the retirement of 265,000 shares (about ₩1.65 billion). What stands out lately is that it rides the structural demand of Samsung's semiconductor capex, with Q1 revenue and profit both rebounding sharply and — despite a 13.1% ROE — a P/B of 0.78x and a forward P/E of 4.4x that are cheaper than peers, strengths weighed against a single-customer, single-industry concentration in the Samsung group and quarterly earnings volatility tied to construction progress.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 9.2% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 40.9% higher than a year earlier.
- ROE is 13.1% (controlling-interest basis). It is above the sector average.
- Operating margin is 5.6%.
Ownership & governance As of 2025-12-31
Largest shareholder Kim Woo-young 34.62% (individual)
Controlling bloc incl. related parties 47.47%
With the controlling bloc holding 47%, the ownership structure is stable.
🔎 In-depth analysis
- Sebo M.E.C is a company that installs the mechanical systems that go into buildings and plants.
- Its business runs in two branches.
- First, cleanroom work for semiconductor fabs and the piping, ductwork, and HVAC (heating, cooling, and ventilation) that run through them, with advanced production sites such as Samsung Electronics' Pyeongtaek and Asan lines as its main stage.
- Second, HVAC and fire-protection systems for large buildings, plus plant equipment such as LNG piping and fuel tanks.
- In other words, it is not a general contractor that 'builds' semiconductors or buildings, but a specialist handling the trades that create the piping and cleanroom environment through which air, water, and gas flow inside them.
- It also fabricates and supplies duct and pipe products directly and runs a Vietnam subsidiary (Sebomec Vietnam).
- Most of its revenue is linked to Samsung-group semiconductor capital spending, so the pace of semiconductor-line expansion is effectively the company's workload.
- The latest close is ₩22,700 and market cap is ₩228.9 billion.
- The price sits below the 20-day line (₩23,465) and above the 60-day line (₩22,570).
- With the short- and mid-term trends crossed, direction should be read separately.
- The RSI (a gauge of upward versus downward momentum over the past 14 days on a 0–100 scale) is 46.9, a neutral level.
- It is up 2.2% over one month and up 23.1% over three months, and sits 18.8% below its 52-week high.
- Relative strength versus the KOSDAQ is 92 (on a 1–99 scale that weights the past year's return versus the index toward the most recent period; higher means stronger than the market), placing it in roughly the top 7% of all stocks by strength.
- Over the past three months it outpaced the index by 61.3%.
- It is best to read the chart alongside trading volume and disclosure dates.
- On profitability, ROE (how much it earns in a year on equity) of 13.1% is above the peer average, and an operating margin of 5.6% and a net margin of 5.0% are solid for an installation contractor.
- On finances, the debt ratio is 168%, but as is typical of construction, advances received before work and payables to partners make up a large share, and with a current ratio of 215% and interest coverage of 74x (operating profit could repay interest 74 times over), the capacity to bear debt is ample.
- On valuation, the P/B (how many times net assets the price is) is 0.78x, trading below the company's net assets.
- The P/E (how many times a year's earnings the price is) is 5.94x on past confirmed earnings, but for a stock like this whose earnings have just passed an inflection, the multiple on this year's expected earnings is closer to the real picture than the past multiple.
- The forward P/E on this year's expected earnings is 4.4x, well below the past multiple and low relative to peers.
- A 2.7% dividend yield (₩600 per share) also provides support.
- Multi-year metrics show revenue and profit moving in opposite directions.
- 2025 revenue was ₩715.8 billion, down 9.2% from a year earlier and a third straight annual decline, yet operating profit rose 41.1% and net profit rose 26.7%.
- That profit grew even as revenue fell is because the share of higher-margin work, such as semiconductor systems, increased.
- The quarterly trend is clearer: Q1 2026 revenue of ₩245.9 billion (+40.9%), operating profit of ₩15.8 billion (+55.8%), and net profit of ₩13.2 billion (+44.7%), with revenue and profit rebounding sharply together.
- Added to that are the Pyeongtaek (₩40.0 billion) and Asan (₩41.5 billion) contracts, whose revenue begins to be recognized from Q2 — together these two alone exceed 11% of last year's revenue and feed into results by construction progress.
- That is why the forward P/E on this year's expected earnings comes out at 4.4x, below the past multiple.
- With Samsung continuing semiconductor expansion on the Pyeongtaek and Asan lines, both the quality and quantity of orders provide support, and the Q1 results and new orders are the real basis for this year's earnings recovery.
- Recent disclosures gather around two axes, 'orders' and 'shareholder returns.' On orders, it signed an Asan piping contract with Samsung C&T (₩41.5 billion, 5.8% of recent revenue) in April 2026 and a Pyeongtaek piping contract No.
- 2 with Samsung E&A (₩40.0 billion, 5.59%) in May, back to back.
- Both are directly tied to the expansion of Samsung semiconductor lines and fill in revenue visibility from the second half of 2026 into 2027.
- On shareholder returns, it signed a treasury-share trust contract (₩2.0 billion) and retired 265,000 treasury shares it held (about ₩1.65 billion), reducing shares outstanding.
- Retiring treasury shares is a return method that directly raises the value packed into each share.
- That the earnings rebound and shareholder returns overlap in the same period is the feature of this disclosure flow.
- The strengths are clear.
- It rides the structural demand of Samsung semiconductor capex (capital spending); revenue and profit rebounded sharply together in Q1; and new orders, treasury-share retirement, and dividends proceed at the same time.
- With a 13.1% ROE deploying capital efficiently, the share price still sits below net assets at a P/B of 0.78x, and the forward P/E of 4.4x on this year's expected earnings is lower than peers grouped under the same semiconductor-capex tailwind.
- It earns well yet trades cheaply — a zone that reads as undervalued.
- The variables to watch are also clear.
- First, a large part of revenue is concentrated in the Samsung group, so the pace of the semiconductor investment cycle is directly the pace of its workload — a single-customer, single-industry dependence.
- Second, as is inherent to an order-based industry, quarterly results can be uneven depending on construction progress.
- In sum, in a phase where semiconductor-line expansion continues, it is a strong zone where profitability, valuation, and shareholder returns support one another, and the variables are the speed of that cycle and the degree of single-customer concentration.
🔎 Valuation vs peers Undervalued
Systems/construction stocks linked to the semiconductor and power capex cycle, compared by business substance — specialist mechanical installer (Sebo), electrical equipment (Jeryong Electric), and a large general contractor (DL E&C) are used to gauge its position.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Jeryong Electric | 11.68x | 2.87x | 24.53% |
| DL E&C | 6.47x | 0.46x | 7.06% |
| Keryong Construction | 1.74x | 0.18x | 10.57% |
(a) Position versus the true peer set: Jeryong Electric, grouped under the same capex tailwind, has a higher ROE but commands a premium at a P/E of 14.9x and P/B of 3.66x, whereas Sebo M.E.C sits at a P/E of 6.4x and P/B of 0.84x despite a solid 13.1% ROE. Its profitability (ROE) is nearly double that of the large general contractor (DL E&C). (b) Premium/discount: a below-net-asset price against high capital efficiency is discount territory. (c) The limit of trailing and the forward basis: with 2025 revenue falling, trailing metrics understate the company's current momentum, and reflecting Q1 net profit surging 44.7% plus the added Pyeongtaek and Asan work, the forward multiple on this year's estimate falls further below trailing. That said, the single-customer, single-industry dependence and quarterly volatility are discount factors, so rather than declaring it flatly 'cheap,' it reads as an undervaluation zone relative to profitability, with cycle dependence as the variable.
Price history Close · MA20 · MA60
The latest close is ₩22,700 and the market capitalization is ₩228.9 billion. The price sits below its 20-day moving average (₩23,465) and above its 60-day moving average (₩22,570). 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 46.9, a neutral level. The one-month change is +2.2%, the three-month change is +23.1%, and the position relative to the 52-week high is -18.8%. Relative strength versus the KOSDAQ is 92 (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 93% of all stocks. Over the past three months it outpaced the index by 61.3%. 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 +61.27% / 6M +82.33% / 12M +76.92%
Key metrics vs sector median
Valuation
The P/E of 6.44x is below the sector median (7.73x). The P/B of 0.84x is in line with the sector median (0.79x). 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.
Profitability & financials
Return on equity (ROE) is 13.1%, above the sector average (9.0%). The operating margin is 5.6%. The debt ratio is 168.4%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $583.5M | $522.8M | $474.4M | -9.25% ↑ faster |
| Operating profit | $30.9M | $19.0M | $26.8M | +41.08% ↑ faster |
| Net profit | $24.6M | $18.6M | $23.6M | +26.66% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $286.7M | $684.0M | $583.5M | $522.8M | $474.4M |
| Operating profit | $5.7M | $21.9M | $30.9M | $19.0M | $26.8M |
| Net profit | $7.7M | $15.7M | $24.6M | $18.6M | $23.6M |
| Revenue CAGR | 4-yr avg 13.41% | ||||
Revenue fell 9.2% year over year (2023 ₩880.4 billion → 2024 ₩788.8 billion → 2025 ₩715.8 billion), and the three-year trend is 'falling'. That said, the rate of decline narrowed from the prior year. Operating profit rose 41.1% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 13.4%. The two-year revenue CAGR is -9.8%. In the most recent quarter (Q1 2026), revenue was 40.9% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- ROE of 13.1% points to solid profitability.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 9.2% year over year (3-year trend: falling).
Recent news & events searched · sourced
- 2026-05-14UpdatePyeongtaek piping contract No. 2 signed with Samsung E&A (₩40.0 billion, 5.59% of recent revenue, construction period 2026-05-26 to 2027-12-31)A large order tied to Samsung semiconductor lines securing revenue visibility from the second half of 2026 into 2027. A core driver of medium-term results. Source
- 2026-04-09UpdateAsan piping contract signed with Samsung C&T (₩41.5 billion, 5.80% of recent revenue, construction period 2026-04-10 to 2027-03-31)Revenue recognition begins from Q2 by construction progress. A short- and medium-term positive as order backlog adds to the strong Q1 results. Source
- 2026-04-27FilingRetirement of 265,000 treasury shares approved (retirement amount about ₩1.65 billion, retirement scheduled 2026-05-07)Per-share value rises as shares outstanding fall. A direct shareholder return, neutral to positive. Source
- 2026-04-27FilingTreasury-share trust contract signed (₩2.0 billion, 2026-04-29 to 2027-04-28, purpose: price stabilization and enhancing shareholder value)Secures additional treasury-buyback capacity. Signals strengthened shareholder returns alongside the dividend. Source
- 2026-05-15EarningsQ1 2026 report filed (revenue ₩245.9 billion +40.9%, operating profit ₩15.8 billion +55.8%, net profit ₩13.2 billion +44.7%)A simultaneous sharp rebound in revenue and profit points to a possible reversal of the three-year revenue-decline trend. Short-term earnings momentum. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 consolidated revenue | ₩715,793,070,282 | ₩715,793,070,282 | Confirmed | link |
| Pyeongtaek piping contract No. 2 contract value | ₩40,000,000,000 | ₩40,000,000,000 | Confirmed | link |
| Treasury-share retirement quantity | 265,128 | 265,128 | Confirmed | link |
| 2026 estimated net profit (in-house estimate) | approx. ₩48.0 billion | — | Unverified | link |
Recent filings
- 2026-05-15PeriodicQuarterly report
- 2026-05-14Single supply/sales contract
- 2026-05-07Single supply/sales contract (amended)
- 2026-04-27Disclosure
- 2026-04-27TreasuryMaterial-fact report
- 2026-04-13Single supply/sales contract (amended)
- 2026-04-09Single supply/sales contract
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-19Amended filing
- 2026-03-19Amended filing
- 2026-03-18Audit 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.