Oriental Precision & Engineering (014940) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
Oriental Precision & Engineering builds around two pillars: marine cranes used on cargo ships and container ships (with roughly 70% domestic share, effectively the top position) and deck houses, the living quarters and structures on ships. As of Q1 2026 the two segments split roughly evenly, and with major shipyards such as Samsung Heavy Industries as key customers, results are heavily tied to the shipbuilding cycle. Recent disclosures center on regular reports and shareholder-meeting procedures: Q1 cumulative revenue of about ₩56.4 billion (+10.6%) confirmed a recovery in scale, and the business report reconfirmed the two-segment makeup and the Samsung Heavy Industries-centered customer base. What stands out lately is that its roughly 70% domestic crane share, 15.3% ROE, and forward P/B of 1.47x, low versus peers, together read as undervaluation if a shipbuilding-order recovery feeds through to revenue; on the other hand, deck house revenue is concentrated in a few large customers so results can swing with order timing, and with a 190% debt ratio and Q1 profit not keeping pace with revenue, cost and currency factors need watching too.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Machinery & Electrical Equipment” (Shipbuilding, Machinery, Defense & Power Equipment), a type typically read first through P/E.
Machinery and electrical-equipment makers build and sell industrial gear, and orders and shipments feed fairly directly into profit. Because revenue translates cleanly into current-year net income, price-to-earnings (P/E) is the natural first lens.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 0.0% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 10.6% higher than a year earlier.
- ROE is 14.0% (controlling-interest basis). It is above the sector average.
- Operating margin is 11.3%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Oriental Inspection & Development 45.77% (corporate)
Controlling bloc incl. related parties 46.04%
With the controlling bloc holding 46%, the ownership structure is stable.
🔎 In-depth analysis Reading
Oriental Precision & Engineering earns money mainly along two lines. One is marine cranes (deck cranes, lifeboat cranes, hose-handling cranes and the like used on cargo ships and container ships), and the other is deck houses, the living quarters and structures on ships. As of Q1 2026 the revenue split between the two lines is roughly even. In marine cranes it holds about 70% domestic share, effectively the top position, and its deck houses also count major shipyards such as Samsung Heavy Industries as key customers, so the company's results are heavily tied to the shipbuilding cycle. Put simply, its revenue depends on how many ships are built and what is placed on them.
The latest close is ₩4,680 and the market capitalization is ₩213.3 billion. The price sits above its 20-day moving average (₩4,392) and below its 60-day moving average (₩5,228). 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 51.6, a neutral level. The one-month change is +3.9%, the three-month change is -39.5%, and the position relative to the 52-week high is -62.7%. Relative strength versus the KOSDAQ is 35 (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 35% of all stocks. Over the past three months it lagged the index by 9.7%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Starting with valuation metrics, at the current price the P/E ratio on last year's (2025) confirmed earnings (how many times one year's profit the price is) is 11.46x and the P/B (how many times the company's net assets the price is) is 1.62x. This trailing P/E looks somewhat high because 2024 saw net profit jump sharply (+192% year on year), and then in 2025, by that base effect, it pulled back -26.5%, and that one year's figure sits in the denominator. In other words, it is not that the metric is expensive but largely that the prior year's profit was temporarily lower. In fact, the forward P/B based on this year's forecast earnings is 1.57x, lower than the trailing figure, and low even against peers in machinery and equipment. Profitability is solid, with ROE (how much was earned in a year on shareholders' equity) of 15.3%, an operating margin of 11.7%, and a net margin of 9.2%. As for finances, the debt ratio is high at about 190% and the current ratio is 1.03x, but the interest coverage ratio of 13.4x means operating profit comfortably covers interest costs, so given the nature of the shipbuilding-materials sector, with heavy advance payments and working-capital turnover, the burden is not excessive.
Five-year revenue has grown steadily from ₩115.9 billion in 2021 to ₩207.3 billion in 2025, an average of about 15.6% a year. Looking at 2025 alone, revenue was essentially flat versus 2024 (-0.0%), operating profit was -2.4%, and net profit was -26.5%, a pause for breath, but this is largely a base effect after 2024's earnings jumped sharply once. And most recently, Q1 2026 cumulative revenue rose 10.6% year on year, so the scale is back on a growth track. The basis for this year's forecast earnings coming in at this level is clear. As global shipbuilding orders revive, orders for both marine cranes and deck houses are rising together; the company, with about 70% domestic crane share, is positioned to capture the order recovery directly; and the deck house order backlog for major shipyards feeds into revenue up to future delivery. This demand, share, and backlog underpin this year's forward earnings. That said, in the Q1 cumulative figures operating profit (-2.6%) and net profit (-10.9%) did not keep pace with the revenue increase, a cost and currency factor, so how quickly the revenue recovery feeds through to an earnings recovery is a point to watch.
Recent disclosures center on regular reports (the Q1 2026 quarterly report and the 2025 business report) and shareholder-meeting-related procedures. Q1 cumulative revenue of about ₩56.4 billion (+10.6%) put the recovery in scale into numbers, and the business report reconfirmed the two-segment makeup of cranes and deck houses and the Samsung Heavy Industries-centered customer base. The regular general meeting and the filing of the audit report are routine procedures at the fiscal-year close and are not events that change the company's results themselves. In sum, the disclosure flow is of a kind that confirms, at the level of regular reports, the fact that the top line is growing again.
This is a stock with clear strengths. Its roughly 70% domestic share in marine cranes, its 15.3% ROE profitability, and a forward P/B of 1.47x on this year's forecast earnings, low versus peers, combine into a mix that reads as a price cheap relative to earnings if a shipbuilding-order recovery feeds through to revenue. At the same time, there are clear points to examine. Deck house revenue is concentrated in a few large customers such as Samsung Heavy Industries, so results can swing with customer order timing, and the 190% debt ratio and Q1 profit not keeping pace with revenue are points to watch alongside cost and currency trends. In sum, this is a stock in which the appeal of its forward valuation comes alive when the shipbuilding cycle and order backlog feed into revenue and cost and currency stabilize, and one in which the earnings recovery can be delayed if orders cool or cost pressure grows. The price has fallen sharply, but looking only at business fundamentals and valuation, there are not a few strengths worth keeping in view.
🔎 Valuation vs peers Undervalued
The peer set is shipbuilding upstream suppliers that make materials and structures going directly into ship construction. Sejin Heavy Industries, whose business is closest in deck houses and cabin structures; HD Hyundai Marine Engine, in ship machinery (engines); and SK Oceanplant, centered on offshore structures, are grouped as riding the same shipbuilding cycle.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Sejin Heavy Industries | 12.34x | 2.73x | 23.29% |
| HD Hyundai Marine Engine | 11.59x | 3.83x | 35.90% |
| SK Oceanplant | 22.66x | 1.04x | 5.26% |
Within the peer set, Oriental Precision & Engineering sits at the lowest multiple, with a P/E of 13.4x and a P/B of 2.05x. Its ROE of 15.3% is lower than Sejin Heavy Industries (22.2%) and HD Hyundai Marine Engine (33.8%) but clearly higher than SK Oceanplant (4.6%), so its multiple looks suppressed relative to profitability. That said, last year's trailing P/E is a figure with 2025 net profit down 26.5% (including the 2024 base effect), so in an earnings-inflection zone it can look more expensive than it really is, and on a forward basis reflecting this year's Q1 revenue recovery (+10.6%) the burden falls further. Taking into account that suppliers riding the same shipbuilding upturn generally carry higher multiples, we see it as undervalued. However, if margin softening and customer concentration work together, this discount could be justified, so it is best read conditionally rather than concluding flatly that it is cheap.
Price history Close · MA20 · MA60
The latest close is ₩4,680 and the market capitalization is ₩213.3 billion. The price sits above its 20-day moving average (₩4,392) and below its 60-day moving average (₩5,228). 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 51.6, a neutral level. The one-month change is +3.9%, the three-month change is -39.5%, and the position relative to the 52-week high is -62.7%. Relative strength versus the KOSDAQ is 35 (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 35% of all stocks. Over the past three months it lagged the index by 9.7%. 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 -9.67% / 6M -19.45% / 12M -21.28%
Key metrics Computed vs sector median
Valuation
The P/E of 11.14x is below the sector median (14.07x). The P/B of 1.62x is above the sector median (1.01x).
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) Estimate
Model output — not a price target. This is what the formula returns under the assumptions below, not a view on where the share price should go.
DCF (discounted cash flow) estimate — discount rate 10.1%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 14.0%, above the sector average (2.0%). The operating margin is 11.3%. The debt ratio is 83.9%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $110.7M | $145.6M | $145.6M | -0.02% ↓ slower |
| Operating profit | $9.0M | $17.5M | $17.1M | -2.37% ↓ slower |
| Net profit | $6.3M | $18.3M | $13.4M | -26.53% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $81.4M | $92.4M | $110.7M | $145.6M | $145.6M |
| Operating profit | $4.7M | $6.4M | $9.0M | $17.5M | $17.1M |
| Net profit | $3.2M | $5.9M | $6.3M | $18.3M | $13.4M |
| Revenue CAGR | 4-yr avg 15.63% | ||||
Revenue fell 0.0% year over year (2023 ₩157.5 billion → 2024 ₩207.3 billion → 2025 ₩207.3 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 2.4% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 15.6%. The two-year revenue CAGR is 14.7%. In the most recent quarter (Q1 2026), revenue was 10.6% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- ROE of 14.0% points to solid profitability.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 0.0% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-05-08EarningsFiled the Q1 2026 quarterly report. Revenue ₩56.4 billion (+10.6% year on year), operating profit ₩8.0 billion (-2.6%), net profit ₩6.2 billion (-10.9%), so the top line grew while margins softened slightly.Short term: confirmation of the revenue recovery is positive, the margin softening a burden. Medium term: a quarter gauging whether increased upstream shipbuilding volume feeds into materials revenue. Source
- 2026-03-16FilingFiled the 2025 business report. Annual revenue ₩207.3 billion (essentially unchanged from the prior year), with the two-segment structure of marine cranes and deck houses and the Samsung Heavy Industries-centered customer base confirmed.Medium term: reference material for checking the business structure and customer concentration. Confirms that the net-profit decline (-26.5%) is mixed with a 2024 base effect. Source
- 2026-03-24FilingDisclosure of the regular general meeting results. Approval of the financial statements and other regular agenda items finalized the 2025 fiscal-year settlement.Short term: a procedure finalizing the settlement and shareholder-return direction. Medium term: a routine governance event with limited impact on the direction of results itself. Source
- 2026-03-10FilingFiled the audit report. The external auditor's audit results for the 2025 financial statements were disclosed, confirming the reliability of the settlement figures.Short term: uncertainty resolved as financial figures are finalized. Medium term: a starting point for checking the audit opinion and financial soundness. Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-05-08PeriodicQuarterly report
- 2026-03-24Shareholders' meeting notice
- 2026-03-16PeriodicAnnual business report
- 2026-03-10Audit report
- 2026-03-06Shareholders' meeting notice
- 2026-03-06Shareholders' meeting notice
📖 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.