Sungkwang Bend makes metal fittings that join piping — elbows, tees and reducers — used mainly in LNG carriers and shipbuilding, refining and petrochemical plants, power stations, and offshore and gas facilities; higher-grade materials such as stainless steel and special alloys make up about 70% of sales volume, supporting good margins, with Middle East exports and U.S. LNG projects as new growth engines. Preliminary results on May 8 confirmed a weak first quarter, the regular general shareholders' meeting in March approved a ₩200 per-share dividend (a payout ratio of about 15%), and the company held several investor-relations events in April and May to explain its order situation. The strengths worth noting are a net-cash, debt-free balance sheet of ₩53.8 billion, an operating margin in the 17% range, and an order base broadened by the Middle East and U.S. LNG, and the current earnings trough reflects delayed orders rather than deterioration; but a P/E of 22x is higher than fellow fittings makers Taekwang and Hyrock Korea (7-10x), meaning an order recovery is already substantially priced in.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 7.9% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 7.2% lower than a year earlier.
- ROE is 6.3% (controlling-interest basis). It is above the sector average.
- Operating margin is 17.1%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder An Jae-il 17.31% (individual)
Controlling bloc incl. related parties 36.25%
With the controlling bloc holding 36%, the ownership structure is stable.
🔎 In-depth analysis
- Sungkwang Bend makes the metal fittings that join piping — that is, fittings such as elbows (bent pipe), tees (branching pipe) and reducers (pipe that changes diameter) — used to connect the dense piping of large plants.
- Its main customers are LNG carriers and shipbuilding, refining and petrochemical plants, power stations (including nuclear), and offshore and gas facilities.
- Higher-grade materials such as stainless steel and special alloys make up a high share — about 70% of sales volume — giving better margins than simple steel pipe.
- Over the past few years the Middle East export share has risen sharply to nearly half of revenue, and U.S.
- LNG export-terminal projects have come in as a new growth engine.
- The latest close is ₩25,150 and the market cap is ₩667.9 billion.
- The price sits below both the 20-day line (₩28,925) and the 60-day line (₩34,468).
- Trading beneath both the short- and mid-term moving averages, the trend looks subdued.
- The RSI (a gauge that scores upward versus downward momentum over the past 14 days on a 0-100 scale) is 38.0, a neutral reading.
- It is down 13.0% over one month and 35.1% over three months, and stands 47.9% below its 52-week high.
- Relative strength versus the KOSDAQ is 67 (on a 1-99 scale that weights recent one-year return against the index more heavily toward recent moves; higher means stronger than the market), placing it in roughly the top 33% of all stocks by strength.
- Over the past three months it lagged the index by 10.7%.
- Chart readings are best considered alongside trading volume and the dates of disclosures.
- The balance sheet is very solid.
- The debt ratio (borrowings relative to equity) is 7.4%, effectively debt-free, and the current ratio (short-term assets against short-term liabilities) is an overwhelming 1,115%.
- Net debt (total borrowings minus cash) is ₩-53.8 billion, a net-cash company with ₩53.8 billion more cash than debt.
- On profitability, the operating margin of 17.1% is high for a manufacturer.
- That said, ROE (return on equity, how much is earned in a year on shareholders' equity) is a low 6.3%, because accumulated cash and capital have swelled shareholders' equity.
- On valuation, the P/E ratio (how many times one year of earnings the share price represents) is 19.40x and the P/B (price relative to book equity) is 1.22x.
- EV/EBIT (enterprise value, reflecting debt and cash, divided by operating profit; a debt-adjusted version of the P/E) is 17.1x, slightly below the P/E thanks to the net cash.
- The FCF yield (free cash actually generated relative to market cap) is 4.2%, so it generates cash steadily.
- Over five years, results have swung sharply with the cycle.
- From a loss in 2021 it moved to profit in 2022-2023, and revenue reached ₩254.7 billion in 2023 before fluctuating.
- In 2025 revenue recovered to ₩245.7 billion (+7.9%), but operating profit of ₩42.0 billion was essentially flat with the prior year, and net profit of ₩34.4 billion fell 16.0%.
- The first quarter of 2026 has the character of an earnings trough: revenue of ₩59.1 billion (-7.2%) and operating profit of ₩6.6 billion (-38.9%), with the operating margin pressed down to 11.1%.
- That is because orders deferred in the second through fourth quarters of last year have not yet fully shown up as revenue.
- Conversely, new orders — a forward-looking indicator — rose in the first quarter, helped by a restart of U.S.
- LNG terminal volumes.
- For fittings, it takes several quarters for orders to convert into revenue and profit, so the pressed first-quarter profit and the rise in orders appear together.
- This year's profit is seen at roughly last year's level as the weak first half is offset by working through orders in the second half.
- A full earnings rebound is more a picture for the following year, as orders convert into revenue.
- Recent disclosures center on results and shareholder matters.
- Preliminary results disclosed on May 8 confirmed a weak first quarter.
- In April and May alone the company held several investor-relations events, showing it is actively explaining its order situation to investors.
- The regular general shareholders' meeting in March approved a dividend of ₩200 per share (a payout ratio of about 15%).
- Reports on planned share transactions and holdings by executives and major shareholders also followed.
- Changes in the ownership structure are a point to watch separately from results.
- The strengths are clear: a net-cash, debt-free balance sheet of ₩53.8 billion, an operating margin in the 17% range, a product mix centered on high-grade alloys, and an order base broadened by the Middle East and U.S.
- LNG.
- The reason profit is depressed now is not structural deterioration but a trough created by delayed orders; new orders are in fact rising.
- The valuation, though, has to be viewed differently.
- Fellow fittings makers Taekwang and Hyrock Korea trade at a P/E of 7-10x, while Sungkwang Bend is at 22x, more than double.
- Its ROE is in fact lower.
- In other words, the market has already priced in much of the coming order recovery.
- If orders convert quickly into actual profit, that premium is justified; if orders and recognition lag, the high multiple becomes a burden.
- A balanced view is to see the financial stability and order direction as bright while treating the current price range with caution.
🔎 Valuation vs peers Overvalued
Compared among Korean-listed companies that make the same industrial metal fittings (pipe fittings) and valve parts. Taekwang and Hyrock Korea are the closest in business substance.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Taekwang | 9.23x | 0.94x | 10.23% |
| Hy-Lok Corporation | 7.03x | 0.78x | 11.07% |
Against Taekwang (P/E 10x) and Hyrock Korea (P/E 7x), whose businesses are nearly identical, Sungkwang Bend's P/E of 22x is more than double. Its P/B of 1.4x is also higher than the two companies' (1.0x and 0.8x). Yet its ROE, at 6.3%, is in fact lower. Last year's net profit fell 16%, which can inflate the trailing P/E, but this year's net profit is also seen at roughly last year's level given the weak first half, so the multiple does not fall much on a forward basis either. That is, the current price already reflects much of the coming order recovery. The net cash and market position justify some premium, but relative to the direct peers the shares lean toward the expensive side.
Price history Close · MA20 · MA60
The latest close is ₩25,150 and the market capitalization is ₩667.9 billion. The price sits below its 20-day moving average (₩28,925) and below its 60-day moving average (₩34,468). 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 38.0, a neutral level. The one-month change is -13.0%, the three-month change is -35.1%, and the position relative to the 52-week high is -47.9%. Relative strength versus the KOSDAQ is 67 (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 67% of all stocks. Over the past three months it lagged the index by 10.7%. 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 -10.68% / 6M +14.92% / 12M -14.96%
Key metrics vs sector median
Valuation
The P/E of 19.40x is above the sector median (16.39x). The P/B of 1.22x 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.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 10.1%, initial growth 2.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 0.958x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 6.3%, above the sector average (2.0%). The operating margin is 17.1%. The debt ratio is 7.4%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $168.8M | $150.9M | $162.8M | +7.90% ↑ faster |
| Operating profit | $29.7M | $27.8M | $27.8M | -0.08% ↑ faster |
| Net profit | $26.0M | $27.2M | $22.8M | -16.03% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $90.7M | $161.7M | $168.8M | $150.9M | $162.8M |
| Operating profit | -$5.3M | $17.7M | $29.7M | $27.8M | $27.8M |
| Net profit | -$805,303 | $26.0M | $26.0M | $27.2M | $22.8M |
| Revenue CAGR | 4-yr avg 15.74% | ||||
Revenue rose 7.9% year over year (2023 ₩254.7 billion → 2024 ₩227.7 billion → 2025 ₩245.7 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit fell 0.1% year over year. That said, the decline narrowed. Over the 5 years on record, revenue compound annual growth (CAGR) is 15.7%. The two-year revenue CAGR is -1.8%. In the most recent quarter (Q1 2026), revenue was 7.2% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-08EarningsQ1 2026 preliminary results disclosed. Revenue ₩59.1 billion (-7.2%), operating profit ₩6.6 billion (-38.9%), net profit ₩8.4 billion (-8.2%). A trough phase with the operating margin pressed into the 11% range on delayed orders.Confirms weak short-term profit. But since the cause is order delays, it is distinct from structural impairment. Source
- 2026-05-18IRNotice of an investor-relations event. A session to explain first-quarter results and the order situation to investors, with several IR events held between April and May.Over the medium term, stronger communication on orders and industry conditions. A phase in which the company is actively explaining its order flow. Source
- 2026-03-27DividendResults of the regular general shareholders' meeting. Approved a dividend of ₩200 per share (a payout ratio of about 15%) and the financial statements.The dividend yield of about 0.7% is on the low side. Relative to profit, dividend capacity is ample given the net cash. Source
- 2026-05-15FilingQ1 2026 quarterly report filed. A regular filing containing detailed financials and business status.Source material to review the weak first quarter alongside the financial soundness together. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 revenue, operating profit and net profit | revenue ₩59.1 billion / operating profit ₩6.6 billion / net profit ₩8.4 billion | revenue ₩59.1 billion / operating profit ₩6.6 billion / net profit ₩8.4 billion | Confirmed | link |
| 2025 annual revenue, operating profit and net profit | revenue ₩245.7 billion / operating profit ₩42.0 billion / net profit ₩34.4 billion | — | Confirmed | link |
| 2026 net-profit estimate | approx. ₩33.0 billion(self-estimate) | — | Unverified | link |
Recent filings
- 2026-05-29OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-18OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-18OwnershipOwnership-change filing
- 2026-05-18Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-08Disclosure
- 2026-05-08EarningsFair-disclosure notice
- 2026-04-08Disclosure
- 2026-04-08Disclosure
- 2026-04-01OwnershipOwnership-change filing
- 2026-03-27Shareholders' meeting notice
- 2026-03-27OwnershipOwnership-change filing
📖 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.