Hy-Lok Corporation makes the instrumentation fittings, valves and tubing that go into chemical, refining, semiconductor, shipbuilding and gas plant sites, with precision machining of stainless steel and special alloys into a wide variety of leak-critical parts at the heart of its technology. On May 8 it reported Q1 revenue of ₩54.1 billion and operating profit of ₩15.7 billion for double-digit growth, and with a 27.5% operating margin and 11.1% ROE it delivers profitability above peer parts names while trading at lower P/E and P/B than they do and paying a dividend in the 4% range. The point to watch: in a phase where multiple front-end capex streams - semiconductors, shipbuilding and plants - stay alive and margins hold, profitability, dividend and valuation all provide support; against that, revenue is tied to the front-end industries' capex cycle, so if investment slows, order and earnings momentum can weaken together.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 12.6% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 10.4% higher than a year earlier.
- ROE is 11.1% (controlling-interest basis). It is above the sector average.
- Operating margin is 27.5%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Moon Hyu-gun 22.44% (individual)
Controlling bloc incl. related parties 39.86%
With the controlling bloc holding 40%, the ownership structure is stable.
🔎 In-depth analysis
- Hy-Lok Corporation makes the instrumentation fittings (parts that join pipe to pipe leak-free), valves and tubing that go into industrial sites such as chemical, refining, semiconductor, shipbuilding, offshore and gas plants.
- Because these are parts that must never leak in environments where liquids, gases or corrosive substances flow, the core of the business is the technology to precision-machine stainless steel and special alloys to high quality and specification.
- Rather than mass-producing a single type, it makes a wide variety of standard-spec and made-to-order products the customer requires, moving in step with front-end industries' capital investment and export conditions.
- Recently, areas with steady demand for precision parts - clean-energy facilities such as LNG and hydrogen, and semiconductor plant expansions - have supported revenue.
- The latest closing price is ₩30,050 and the market cap is ₩353.6 billion.
- The price sits below both the 20-day line (₩32,500) and the 60-day line (₩37,345).
- Trading beneath both its short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a gauge that scores upward versus downward momentum over the past 14 days on a 0-100 scale) is 36.4, a neutral reading.
- The one-month change is -10.4%, the three-month change is -21.0%, and the price sits -34.9% below its 52-week high.
- Relative strength versus KOSDAQ is 73 (on a 1-99 scale that weights recent one-year returns against the index more heavily toward the present; higher means stronger than the market), placing it in roughly the top 27% of all stocks by strength.
- Over the past three months it led the index by 7.0%.
- It is best to read the chart alongside trading volume and disclosure dates.
- On a confirmed annual (2025) basis, the P/E ratio (the price divided by earnings per share) is 7.03x and the P/B ratio (the price divided by net asset value per share) is 0.78x, so it trades even below net assets.
- Both metrics place the price on the cheap side relative to earnings and assets rather than the expensive side.
- ROE (how much was earned in a year on equity) is 11.1% and the operating margin is 27.5%, delivering profitability above the sector average.
- The debt ratio is 109.6%, but most of this is non-interest-bearing operating liabilities, and as a 1,390% current ratio and 30x interest coverage show, it has ample capacity to repay - a stable financial structure.
- The dividend yield is also high, in the 4% range, making this a stock where profitability, financial strength and dividend all provide support together.
- Five-year revenue rose from ₩146.7 billion in 2021 to ₩214.6 billion in 2025, growing about 10% a year on average, and operating profit also climbed steadily over the same period from ₩18.9 billion to ₩58.9 billion.
- In 2025, revenue rose 12.6% and operating profit 17.5% year on year, quickening the pace of increase again, and in the most recent quarter, Q1 2026, revenue of ₩54.1 billion (+10.4%), operating profit of ₩15.7 billion (+23.5%) and net profit of ₩15.3 billion (+32.2%) showed earnings growing faster than revenue.
- This resulted from a larger share of higher-priced products and supportive cost management thickening margins even while making the same precision parts.
- With orders being filled in a phase where front-end capex in semiconductors, shipbuilding and LNG stays alive, this year's earnings are expected to be a step above last year's for the full year as well, and the forward P/E reflecting this comes down to 6.27x.
- There is no clear basis to view next year onward as lower than this year, so it is early to declare the current earnings level a cycle top.
- The recent disclosure flow splits into two strands: shareholder returns and results confirmation.
- On March 20, 2026 the company decided a cash dividend, continuing the consistency of its capital-efficiency and shareholder-return policy, and on May 8 it announced preliminary Q1 results, reporting revenue of ₩54.1 billion and operating profit of ₩15.7 billion for double-digit growth.
- On May 15 the quarterly report confirmed the preliminary figures unchanged, and on May 21 it held an investor briefing (IR) where the company explained its business status and outlook to the market directly.
- Voluntarily holding an IR beyond mandatory disclosures can be read as a signal of both confidence in results and a willingness to communicate.
- This is a stock with clear strengths.
- It supplies precision parts to different front-end industries - semiconductors, shipbuilding and plants - so it does not depend on any single one, and with a 27.5% operating margin and 11.1% ROE it delivers profitability above peer parts names (Sungkwang Bend ROE 6.3%, TK Corporation ROE 10.2%) while trading at lower P/E and P/B than they do and paying a dividend in the 4% range.
- It is a setup that reads as undervalued: doing the same business better while trading more cheaply.
- On top of that, a forward P/E of 6.27x reflecting this year's earnings growth, together with asset value (P/B 0.80x), provides downside support.
- The caution is that revenue is tied to the front-end industries' capex cycle, so if semiconductor, shipbuilding and plant investment slows, order and earnings momentum can weaken together.
- In short, in a phase where front-end capex stays alive and margins hold, it is a strong stock where profitability, dividend and valuation all provide support; in a phase where front-end investment cools or the exchange rate turns unfavorable, the shrinking of the earnings-growth margin is its weak point.
🔎 Valuation vs peers Fairly valued
The comparison uses names with verifiable site figures within the same business group that makes parts for front-end facilities and piping (fittings, valves and pipe couplings); the closest direct competitor, DK-Lok (105740), is often cited but is excluded from the numeric comparison as there is no site data for it.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Sungkwang Bend | 19.40x | 1.22x | 6.27% |
| Taekwang | 9.23x | 0.94x | 10.23% |
(a) Position versus peers: against fellow parts makers Sungkwang Bend (P/E 21.5, P/B 1.35, ROE 6.3%) and TK Corporation (P/E 10.6, P/B 1.08, ROE 10.2%), Hy-Lok Corporation has the lowest multiples at P/E 7.76 and P/B 0.86 yet the highest ROE at 11.1%. With better profitability but lower multiples, it sits at a discount versus peers. (b) Premium/discount factors: its status as a small-mid KOSDAQ name and concern over volatility tied to the front-end capex cycle act as a discount, while high profitability, cash and dividends act as a premium, offsetting each other. (c) Limits of trailing and the forward basis: a P/E of 7.76x is on last year's confirmed earnings, so if this year's earnings grow the forward multiple falls further. Plugging in a seasonality approximation adjusted with DART confirmed results (this year's net profit of about ₩56.7 billion) brings the forward P/E down to about 6.9x, but this is an unverified approximation, not an official company outlook. Taken together, with multiples low relative to profitability, financial strength and dividends, it is hard to view as overvalued, but factoring in front-end cycle volatility we see it as roughly fairly valued.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | ₩56.1 billion | ₩18.4 billion | ₩14.7 billion |
Price history Close · MA20 · MA60
The latest close is ₩30,050 and the market capitalization is ₩353.6 billion. The price sits below its 20-day moving average (₩32,500) and below its 60-day moving average (₩37,345). 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 36.4, a neutral level. The one-month change is -10.4%, the three-month change is -21.0%, and the position relative to the 52-week high is -34.9%. Relative strength versus the KOSDAQ is 73 (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 73% of all stocks. Over the past three months it outpaced the index by 7.0%. 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 +7.00% / 6M +18.24% / 12M +2.30%
Key metrics vs sector median
Valuation
The P/E of 7.03x is below the sector median (16.39x). The P/B of 0.78x is above the sector median (0.50x).
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 11.1%, above the sector average (2.0%). The operating margin is 27.5%. The debt ratio is 109.6%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $125.2M | $126.3M | $142.2M | +12.63% ↑ faster |
| Operating profit | $34.4M | $33.2M | $39.0M | +17.51% ↑ faster |
| Net profit | $31.4M | $31.5M | $33.3M | +5.85% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $97.3M | $121.2M | $125.2M | $126.3M | $142.2M |
| Operating profit | $12.5M | $27.0M | $34.4M | $33.2M | $39.0M |
| Net profit | $12.9M | $22.4M | $31.4M | $31.5M | $33.3M |
| Revenue CAGR | 4-yr avg 9.96% | ||||
Revenue rose 12.6% year over year (2023 ₩188.8 billion → 2024 ₩190.5 billion → 2025 ₩214.6 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 17.5% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 10.0%. The two-year revenue CAGR is 6.6%. In the most recent quarter (Q1 2026), revenue was 10.4% higher 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 4.5%, is on the high side.
- ROE of 11.1% points to solid profitability.
- Revenue grew 12.6% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
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
- 2026-03-20FilingCorporate value-up plan voluntarily disclosed. A document in which the company itself sets out its direction for capital efficiency and shareholder returnsOver the medium term, a reference point for gauging the durability and direction of shareholder-return policy such as dividends and treasury shares. Concrete execution needs to be confirmed through follow-up disclosures. Source
- 2026-05-08EarningsFair disclosure of Q1 2026 consolidated operating (preliminary) results. Revenue of ₩54.1 billion and operating profit of ₩15.7 billion for double-digit growthIn the short term, it confirms that the earnings growth rate (operating profit +23.5%, net profit +32.2%) outpaced the revenue growth rate. Whether it continues for the full year is key. Source
- 2026-05-15FilingQ1 2026 quarterly report filed. The detailed figures of the preliminary results are confirmedIn the short term, an official source verifying whether the preliminary and confirmed figures match. Financial and cash-flow details can be checked alongside. Source
- 2026-05-21IRInvestor briefing (IR) held. A session where the company explains its business and results direction directlyOver the medium term, an opportunity to check front-end demand and export trends through the company's official explanation. An official channel rather than general media. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 revenue | ₩54.1 billion(+10.4% YoY) | ₩54.1 billion | Confirmed | link |
| Q1 2026 operating profit | ₩15.7 billion(+23.5% YoY) | ₩15.7 billion | Confirmed | link |
| 2025 annual revenue | ₩214.6 billion | ₩214.6 billion | Confirmed | link |
| Latest closing price | ₩30,050 | — | Unverified | link |
| This year's operating profit (seasonality approximation) | approx. ₩63.7 billion | — | Unverified | link |
Recent filings
- 2026-05-21Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-12OwnershipOwnership-change filing
- 2026-05-08EarningsFair-disclosure notice
- 2026-04-29OwnershipOwnership-change filing
- 2026-04-29OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-01OwnershipOwnership-change filing
- 2026-03-20Disclosure
- 2026-03-20Shareholders' meeting notice
- 2026-03-12PeriodicAnnual business report
- 2026-03-12Audit report
- 2026-03-05Disclosure
📖 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.