Semyung Electric makes metal-fabricated products used in the railway and power sectors, mainly supplying parts that draw and support electricity, such as catenary fittings, along with fabricated products for transmission and distribution equipment; as a small-cap, a single large supply contract feeds directly and heavily into its revenue and profit. Following a voluntary disclosure of a corporate-value enhancement plan in March 2026, it signed supply contracts worth 9.6 billion won (66.3% of recent revenue) and 7.4 billion won (62.3%) that same March. What stands out lately is that a high 45.8% operating margin and 14.2% ROE, rapid growth, and a 3.2% dividend yield together make the forward P/E read cheap relative to the quality of earnings, yet as a small-cap the revenue can swing if gaps between large contracts stretch out, so the flow of follow-on orders should be watched alongside.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 124.0% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 90.3% higher than a year earlier.
- ROE is 14.2% (total-net basis). It is above the sector average.
- Operating margin is 45.8%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Kwon Cheol-hyun 16.7% (individual)
Controlling bloc incl. related parties 38.8%
With the controlling bloc holding 39%, the ownership structure is stable.
🔎 In-depth analysis
- Semyung Electric makes metal-fabricated products used in the railway and power sectors.
- It mainly supplies parts that draw and support electricity, such as catenary fittings, and fabricated products that go into transmission and distribution equipment.
- As a small-cap with a market cap of 106.3 billion won, it has the trait that a single large supply contract feeds directly and heavily into its revenue and profit, not just the business itself.
- The latest close is 6,800 won and market cap is 103.7 billion won.
- The price sits below its 20-day line (7,962 won) and its 60-day line (10,332 won).
- Trading under both the short- and medium-term moving averages, the trend is on the depressed side.
- RSI (a supplementary gauge that scores upward versus downward force over the past 14 days on a 0-100 scale) is 33.8, a neutral level.
- The one-month change is -18.1%, the three-month change is -23.0%, and the position versus the 52-week high is -59.0%.
- Relative strength versus KOSDAQ is 61 (on a 1-99 scale that converts return versus the index over the past year, weighted toward the recent period; higher means stronger than the market).
- That places it in roughly the top 39% of all stocks by strength.
- Over the past three months it lagged the index by 1.2%.
- Chart reading works best alongside trading volume and the dates of filings.
- For the most recent full year (2025), revenue was 32.3 billion won, operating profit 14.8 billion won, and net profit 12.8 billion won.
- An operating margin of 45.8% and a net margin of 39.5% are very high for a manufacturer, and ROE (how much the company earns in a year on its equity) of 14.2% is above the peer average.
- The debt ratio (debt versus equity) is 118.5%, the current ratio (assets that can be turned into cash versus debt due within a year) is 258.6%, and the interest-coverage ratio (how many times operating profit covers interest) is 32x, so the balance sheet is stable.
- On the surface, a P/E of 8.33x and a P/B of 1.18x may look ordinary, but the company is in an inflection phase where earnings are rising sharply, so metrics based on last year's confirmed results come out looking more expensive than reality.
- The forward P/E that reflects this year's earnings is the closer picture of the company's current state.
- Revenue grew from 12.5 billion won in 2023 to 14.4 billion won in 2024 and 32.3 billion won in 2025, and operating profit grew over the same period from 2 billion won to 14.8 billion won.
- Revenue in 2025 rose 124.0% year over year, and the pace of increase is speeding up.
- In the first quarter of 2026 the growth continued, with revenue of 9.6 billion won (+90.3%) and operating profit of 4 billion won (+34.4%).
- Behind these leaps are the large supply contracts booked quarter by quarter.
- In March 2026 alone, single-sale and supply contracts worth 9.6 billion won and 7.4 billion won were disclosed in succession, and the two combined roughly match recent annual revenue, giving a real basis for lifting this year's revenue.
- This year's outlook is revenue of 46.6 billion won, operating profit of 16.2 billion won, and net profit of 15.4 billion won, a step up from last year built on confirmed first-quarter results and the contract backlog.
- That said, because revenue moves in large-contract units, whether follow-on orders keep coming determines how long the growth lasts.
- On March 30, 2026, through a corporate-value enhancement plan (voluntary disclosure), the company itself laid out a plan covering shareholder returns and growth direction.
- Because it is planning material the company provided directly, if it contains concrete figures it can serve as a primary basis for the outlook, and if not, it is better read as directional reference.
- Next, on March 31 it disclosed a single-sale and supply contract worth 9.6 billion won (66.3% of recent revenue), and on March 25 one worth 7.4 billion won (62.3%).
- Both contracts are central to future revenue recognition, and whether they are one-off or repeatable transactions shapes the medium-term reading of results.
- Semyung Electric is an unusual combination of high margins and rapid growth.
- On top of profitability with a 45.8% operating margin and 14.2% ROE, the balance sheet is stable, and a 3.2% dividend yield provides further support.
- Looking at the peer set, some names have negative ROE or higher P/B; against those, the forward P/E clearly reads as cheap relative to the quality of earnings.
- In other words, even if surface metrics look ordinary, the undervaluation signal is stronger once the pace of earnings growth is taken into account.
- The condition under which the strengths hold is continued large supply-contract wins that sustain revenue growth; the condition under which the case weakens is a lengthening gap between quarterly large contracts that makes revenue lumpy.
- Because a single contract carries heavy weight for a small-cap, the key is to watch both the flow of follow-on orders and whether the company carries out the corporate-value enhancement plan it put forward.
🔎 Valuation vs peers Fairly valued
A peer set within metal fabrication with market caps close to the company's.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Shinhwa Pretech | — | 1.20x | -6.40% |
| RF Systems | 16.68x | 1.74x | 10.44% |
| Wooyang HC | — | 0.83x | -2.34% |
We looked first at a public-data peer set within metal fabrication with nearby market caps. The current P/E (how many times one year of earnings the price represents) is 8.12x and the P/B (how many times book value the price represents) is 1.15x. Because smaller-cap names are heavily affected by earnings swings and financing filings, we did not draw firm conclusions from metrics based on last year's confirmed results alone. The outlook box is based on a DART seasonality approximation.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩46.6 billion | ₩16.2 billion | ₩15.4 billion |
| Next quarter | Q2 2026 | ₩12.3 billion | ₩4.2 billion | ₩6.6 billion |
Price history Close · MA20 · MA60
The latest close is ₩6,800 and the market capitalization is ₩103.7 billion. The price sits below its 20-day moving average (₩7,962) and below its 60-day moving average (₩10,332). 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 33.8, a neutral level. The one-month change is -18.1%, the three-month change is -23.0%, and the position relative to the 52-week high is -59.0%. Relative strength versus the KOSDAQ is 61 (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 61% of all stocks. Over the past three months it lagged the index by 1.2%. 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 -1.23% / 6M -12.06% / 12M -11.07%
Key metrics vs sector median
Valuation
The P/E of 8.12x is below the sector median (16.68x). The P/B of 1.15x is below the sector median (1.43x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets.
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 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 14.2%, above the sector average (10.0%). The operating margin is 45.8%. The debt ratio is 118.5%, so the financial structure is moderate.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $8.3M | $9.6M | $21.4M | +124.05% ↑ faster |
| Operating profit | $1.3M | $2.0M | $9.8M | +389.02% ↑ faster |
| Net profit | $865,945 | $3.1M | $8.5M | +172.43% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $10.0M | $9.3M | $8.3M | $9.6M | $21.4M |
| Operating profit | $1.1M | $677,817 | $1.3M | $2.0M | $9.8M |
| Net profit | $1.5M | $1.5M | $865,945 | $3.1M | $8.5M |
| Revenue CAGR | 4-yr avg 21.11% | ||||
Revenue rose 124.0% year over year (2023 ₩12.5 billion → 2024 ₩14.4 billion → 2025 ₩32.3 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 389.0% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 21.1%. The two-year revenue CAGR is 61.0%. In the most recent quarter (Q1 2026), revenue was 90.3% 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 3.2%, is on the high side.
- ROE of 14.2% points to solid profitability.
- Revenue grew 124.0% 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
- 2026-03-30UpdateCorporate-value enhancement plan (voluntary disclosure): check the company's plan in the original filingPlanning material the company presented directly. If it contains figures, treat it as a primary basis for the outlook box; if not, treat it as directional material only. Source
- 2026-03-31Contract[Correction] Single-sale and supply contract signed: contract value 9.6 billion won, 66.3% of recent revenueThe contract value and term are central to future revenue recognition. Whether it is a one-off or a repeatable transaction shapes the medium-term reading. Source
- 2026-03-25Contract[Correction] Single-sale and supply contract signed: contract value 7.4 billion won, 62.3% of recent revenueThe contract value and term are central to future revenue recognition. Whether it is a one-off or a repeatable transaction shapes the medium-term reading. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩6,800 | ₩6,800 | Confirmed | link |
| Latest quarterly results | revenue ₩9.6 billion, operating profit ₩4.0 billion | revenue ₩9.6 billion, operating profit ₩4.0 billion | Confirmed | link |
| Annual results | revenue ₩32.3 billion, operating profit ₩14.8 billion | revenue ₩32.3 billion, operating profit ₩14.8 billion | Confirmed | link |
| Outlook/plan filing (original text) | : | : | Confirmed | link |
| Contract filing (original text) | []ㆍapprox. : approx. ₩9.6 billion · revenue 66.3% | []ㆍapprox. : approx. ₩9.6 billion · revenue 66.3% | Confirmed | link |
| Contract filing (original text) | []ㆍapprox. : approx. ₩7.4 billion · revenue 62.3% | []ㆍapprox. : approx. ₩7.4 billion · revenue 62.3% | Confirmed | link |
| Basis of the outlook box | DART | DART | Confirmed | link |
Recent filings
- 2026-05-14PeriodicQuarterly report
- 2026-04-30Disclosure
- 2026-04-09OwnershipOwnership-change filing
- 2026-03-31Single supply/sales contract (amended)
- 2026-03-30Disclosure
- 2026-03-25Single supply/sales contract (amended)
- 2026-03-25Single supply/sales contract (amended)
- 2026-03-24Shareholders' meeting notice
- 2026-03-16PeriodicAnnual business report
- 2026-03-06Shareholders' meeting notice
- 2026-03-05Single supply/sales contract (amended)
- 2026-03-04Audit 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.