YG-1 manufactures cutting tools such as end mills, drills, taps and turning tools, holding a leading global position in end mills in particular. Of its ₩639.4 billion consolidated revenue in 2025, products accounted for roughly ₩577.4 billion (90%), and about 87% of revenue came from exports to more than 60 countries. On March 26, 2026 the company voluntarily disclosed a corporate-value enhancement plan, and from April onward disclosures on the largest shareholder's pledged shares (Song Ho-geun and related parties, about 34.5%) followed and were amended several times, while IMC holds about 16% as the second-largest shareholder. The encouraging points are that the stock sits at an earnings inflection so this year's valuation falls, and its world-leading end-mill product strength, 87% export diversification and recovering downstream manufacturing are strengths. The cautions are that the debt ratio is high and interest coverage sits around 1.5x, so profit swings with rates and exchange rates, and a governance variable remains as the largest shareholder's pledge disclosures keep recurring.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 275.4%).
- Revenue rose 11.2% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 46.7% higher than a year earlier.
- ROE is 5.9% (controlling-interest basis). It is below the sector average.
- Operating margin is 10.4%.
Ownership & governance As of 2025-12-31
Largest shareholder Song Ho-geun 14.05% (individual)
Controlling bloc incl. related parties 32.17%
With the controlling bloc holding 32%, the ownership structure is stable.
🔎 In-depth analysis
- YG-1 makes and sells cutting tools that shape and drill metal.
- Its main products are end mills, drills, taps and turning tools, and it is known as a company that holds a leading global market share in end mills in particular.
- Of its ₩639.4 billion consolidated revenue in 2025, product revenue was about ₩577.4 billion, or 90%, with the rest from merchandise and services.
- About 87% of revenue is exported to more than 60 countries including China, the United States, France and India, with the domestic share only 13%.
- Because it supplies tools that are inevitably consumed when machining materials on manufacturing floors such as automotive, aerospace, shipbuilding and mold-making, tool consumption rises together with downstream manufacturing when that cycle picks up.
- The latest close is ₩22,200 and market capitalization is ₩825.7 billion.
- The price sits above its 20-day line (₩20,718) and above its 60-day line (₩17,355).
- Being above both the short- and medium-term moving averages, the trend is on the healthier side.
- RSI (a gauge that scores upward versus downward force over the past 14 days on a 0-100 scale) is 56.3, a neutral level.
- The one-month change is +60.6%, the three-month change is +75.1%, and the position versus the 52-week high is -16.9%.
- Relative strength against the KOSDAQ is 97 (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).
- That places it in roughly the top 2% of all stocks by strength.
- Over the past three months it led the index by 146.3%.
- Chart reading is best done alongside trading volume and disclosure dates.
- On last year's (2025) confirmed results, the P/E ratio (how many times a year's profit the price represents) is 32.66x and the P/B (how many times book equity the price represents) is 1.93x.
- However, last year's net profit of ₩25.3 billion came in a year when earnings were depressed, so the trailing P/E of 31.6x makes the stock look more expensive than it really is.
- In Q1 2026 the company already posted ₩25.7 billion of net profit, surpassing the full prior-year figure in a single quarter, so on this year's earnings the valuation is far lower.
- On profitability, ROE (how much the company earns in a year on its equity) was 5.9% last year with a 10.4% operating margin, and the Q1 operating margin rose to 18.7%.
- Financially, the debt ratio (debt against equity) is high in the 170-275% range.
- This stems from capacity-expansion investment across 29 overseas subsidiaries (₩57.4 billion of tangible-asset investment in 2025), foreign-currency borrowing arising because 87% of revenue is exports, and large-scale inventory operation that makes up 69% of current assets.
- EV/EBIT (enterprise value divided by operating profit, a debt-adjusted counterpart to P/E) is 20.8x and EV/Sales (enterprise value divided by revenue) is 2.2x.
- Net debt (total borrowings less cash) is about ₩581.1 billion, so once debt is taken into account the burden looks larger than the headline P/E suggests.
- The FCF yield (cash actually generated relative to market cap) was -2.3% last year, reflecting a phase of aggressive capex where cash is still in net outflow.
- Revenue rose steadily from ₩553.2 billion in 2023 to ₩575.0 billion in 2024 and ₩639.4 billion in 2025, gathering pace over the past three years.
- Operating profit also grew 19% year on year to ₩66.5 billion in 2025.
- Net profit, however, was choppy, dropping from ₩32.0 billion in 2022 to ₩16.7 billion in 2024 before recovering to ₩25.3 billion in 2025, a structure exposed to both high interest costs and exchange-rate effects.
- The heart of the inflection is Q1 2026: revenue jumped +46.7% year on year, operating profit +327.8% and net profit +507.1%.
- There is a base effect from weak Q1 results a year earlier, but the operating margin leaping into the high teens can be read as operating leverage from downstream-manufacturing recovery and higher utilization.
- This year, with downstream industries such as automotive, aerospace and shipbuilding running actively, we expect profit to grow substantially over last year.
- Some non-recurring items may be mixed into Q1, so simply multiplying the quarter by four would overstate things, but even allowing for that we judge full-year earnings to be on a track well above double last year's.
- The disclosure most worth watching is the corporate-value enhancement plan voluntarily disclosed on March 26, 2026.
- The company set out its own medium-to-long-term direction for improving capital efficiency and shareholder returns, which is meaningful given the timing coincides with the earnings inflection.
- There is also a point for caution: disclosures on the largest shareholder's pledged shares followed and were amended several times from April 2026.
- This means part of the largest shareholder's stake (Song Ho-geun and related parties, about 34.5%) is pledged as collateral, warranting attention on governance stability.
- Another axis is that IMC (International Metalworking Companies) holds about 16% as the second-largest shareholder, showing a link to a global metalworking group.
- From an observational standpoint: first, earnings are at a clear inflection point.
- On last year's net profit the P/E looks expensive, but on this year's earnings it drops sharply, the classic profile of an earnings-inflection stock.
- Second, world-leading product competitiveness in end mills and 87% export diversification are strengths.
- Third, this is a phase where downstream-manufacturing recovery is pushing results higher.
- The cautions are equally clear.
- The debt ratio is high and interest coverage is around 1.5x, so profit swings sharply with rates and exchange rates.
- Recurring disclosures on the largest shareholder's pledge also remain a governance risk.
- In short, this is a stock where earnings leverage works strongly if the downstream cycle stays on a recovery track and rates and exchange rates are favorable, whereas if downstream demand rolls over or financing costs rise, high debt can erode profit quickly.
🔎 Valuation vs peers Undervalued
Comparison with cutting-tool and mold-tool manufacturers fits the business substance. Because comparable listed pure cutting-tool peers of similar size are limited in Korea, the valuation judgment centers on the company's own earnings trajectory and a forward basis.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| YG-1 | 32.66x | 1.93x | 5.92% |
Judged only on last year's (2025) confirmed net profit, the P/E of 31.6x looks expensive. But last year was a depressed-earnings year, and in Q1 2026 the company already surpassed the full prior-year net profit in a single quarter. On a forward basis reflecting this year's earnings trajectory, the multiple drops sharply into the low double digits. In other words, the high trailing P/E is an illusion arising from depressed earnings just before an inflection, and on a forward basis the stock is in fact in undervalued territory. That said, the high debt ratio and earnings sensitivity to exchange rates and interest rates should be reflected as valuation-discount factors.
Price history Close · MA20 · MA60
The latest close is ₩22,200 and the market capitalization is ₩825.7 billion. The price sits above its 20-day moving average (₩20,718) and above its 60-day moving average (₩17,355). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 56.3, a neutral level. The one-month change is +60.6%, the three-month change is +75.1%, and the position relative to the 52-week high is -16.9%. Relative strength versus the KOSDAQ is 97 (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 98% of all stocks. Over the past three months it outpaced the index by 146.3%. 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 +146.34% / 6M +405.27% / 12M +265.42%
Key metrics vs sector median
Valuation
The P/E of 32.66x is above the sector median (26.72x). The P/B is 1.93x. 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.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 10.1%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 5.9%, in line with the sector average (6.0%). The operating margin is 10.4%. The debt ratio is 275.4%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $366.6M | $381.1M | $423.8M | +11.20% ↑ faster |
| Operating profit | $36.2M | $37.0M | $44.1M | +19.19% ↑ faster |
| Net profit | $15.5M | $11.1M | $16.8M | +51.57% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $303.4M | $364.4M | $366.6M | $381.1M | $423.8M |
| Operating profit | $28.5M | $48.1M | $36.2M | $37.0M | $44.1M |
| Net profit | $14.2M | $21.2M | $15.5M | $11.1M | $16.8M |
| Revenue CAGR | 4-yr avg 8.71% | ||||
Revenue rose 11.2% year over year (2023 ₩553.2 billion → 2024 ₩575.0 billion → 2025 ₩639.4 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 19.2% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 8.7%. The two-year revenue CAGR is 7.5%. In the most recent quarter (Q1 2026), revenue was 46.7% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- Revenue grew 11.2% year over year, a sign of growth.
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
- 2026-03-26FilingVoluntarily disclosed a corporate-value enhancement plan. The company itself set out a direction for improving capital efficiency and shareholder returns.Medium-term expectation of improved ROE and shareholder-return policy. Positive for credibility given the coincidence with the earnings inflection. Source
- 2026-05-15EarningsQ1 2026 quarterly report. Revenue ₩207.8 billion (+46.7%), operating profit ₩38.8 billion (+327.8%), net profit ₩25.7 billion (+507.1%), an inflection with surging profit.A near-term earnings surprise. Surpassing the full prior-year net profit in Q1 sharply raised this year's earnings expectations. Source
- 2026-05-29UpdateSigned a share-pledge agreement that could entail a change in the largest shareholder (amended disclosure). Repeatedly amended from April.Part of the largest shareholder's stake is pledged as collateral, warranting attention on governance stability. Source
- 2026-03-18Filing2025 business report. Consolidated revenue ₩639.4 billion (+11.2%), operating profit ₩66.5 billion, export share 87%, 29 subsidiaries confirmed.Reconfirms the global production-and-sales network and export-centric structure. Background to the high debt structure driven by capex. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 consolidated revenue | ₩639.4 billion | 639,383 | Confirmed | link |
| Export share | - | approx. 87% | Confirmed | link |
| Largest shareholder's stake | - | approx. 34.5%, IMC approx. 16.1% | Confirmed | link |
| 2026 in-house net profit estimate and forward multiple | approx. ₩60.0 billion / forward approx. 13.3x | — | Unverified | link |
Recent filings
- 2026-06-01OwnershipOwnership-change filing
- 2026-05-29OwnershipLargest-shareholder ownership change report (amended)
- 2026-05-15PeriodicQuarterly report
- 2026-04-15OwnershipLargest-shareholder ownership change report (amended)
- 2026-04-15OwnershipOwnership-change filing
- 2026-04-09OwnershipLargest-shareholder ownership change report (amended)
- 2026-04-09OwnershipOwnership-change filing
- 2026-03-31OwnershipOwnership-change filing
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-18OwnershipOwnership-change filing
- 2026-03-18PeriodicAnnual business 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.