Taekwang makes more than 80,000 kinds of pipe fittings used to join pipes or change their direction; its main customers are industries that use large volumes of heavy pipe, such as power plants, petrochemicals, shipbuilding, and gas facilities, so its results hinge more on the ordering cycle for large plants than on steel prices, and the domestic market is a duopoly split with Sungkwang Bend. On June 10 the company approved a treasury-share purchase trust agreement, May preliminary results and the quarterly report confirmed 31% first-quarter revenue growth, and it pays a steady ₩535 per share (dividend yield about 2.1%). What stands out is that a net-cash balance sheet, a 10.2% ROE, and the tailwind of shipbuilding, LNG, and plant orders have pulled this year's P/E below 8x, an undervaluation appeal, while a large part of net profit is non-operating income, making quarterly results volatile, and growth slows if orders cool.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 11.3% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 31.4% higher than a year earlier.
- ROE is 10.2% (controlling-interest basis). It is above the sector average.
- Operating margin is 13.0%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Daishin International 27.3% (corporate)
Controlling bloc incl. related parties 45.02%
With the controlling bloc holding 45%, the ownership structure is stable.
🔎 In-depth analysis
- Taekwang makes and sells pipe fittings used to join pipes or change their direction.
- Its mainstays are connectors such as elbows (bent pipes), tees (branch pipes), and reducers (pipes that narrow the diameter), spanning more than 80,000 kinds.
- Its main customers are industries that use large volumes of heavy pipe, such as power plants, petrochemical and refining plants, shipbuilding and offshore, and gas facilities.
- As a result, its performance hinges more on the investment (ordering) cycle for such large plants than on steel prices themselves.
- Materials split into carbon steel and stainless steel lines, and with a large share of demand from overseas plants, it is also affected by exchange rates and the global energy-investment cycle.
- The domestic fittings market is effectively a duopoly, split between Taekwang and Sungkwang Bend.
- The latest close is ₩22,800 and the market cap is ₩589.8 billion.
- The price sits below its 20-day line (₩26,902) and below its 60-day line (₩34,699).
- Trading beneath both the short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that measures upward versus downward momentum over the past 14 days on a 0-100 scale) is 35.6, a neutral level.
- The one-month change is -19.1%, the three-month change is -44.3%, and the position versus the 52-week high is -53.0%.
- Relative strength versus the KOSDAQ is 79 (1-99, computed from returns against the index over the past year with recent performance weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 20% of all stocks by strength.
- Over the past three months it lagged the index by 23.7%.
- Chart reading is best done alongside trading volume and the dates of disclosures.
- On confirmed annual (2025) figures, the P/E (how many times a year's net profit the share price is) is 9.23x and the P/B (how many times net assets per share) is 0.94x.
- Profitability is good.
- ROE (how much the company earns in a year on its equity) is 10.2%, near the top of the fittings sector, and the operating margin is 13.0%.
- The balance sheet is very strong.
- The debt ratio (debt against equity) is just 1.2%, and the current ratio (cash-like assets against debt due within a year) is 788%.
- Net debt is negative, meaning a net-cash position with cash exceeding debt by about ₩32.3 billion.
- Reflecting that net cash, EV/EBIT (a debt- and cash-adjusted P/E equivalent) is 15.8x and EV/Sales (enterprise value divided by revenue) is 2.1x.
- One thing to note: the net margin (21.5%) is larger than the operating margin (13.0%).
- This means non-operating income, such as financial income from cash holdings and investment assets, pushed net profit up well beyond the core fittings business.
- This non-operating income varies quarter to quarter, so it is more accurate to view the core operating-profit trend alongside net profit rather than simply multiplying net profit.
- Long-term results trend upward.
- Revenue grew from ₩185.1 billion in 2021 to ₩297.0 billion in 2025, a 12.5% five-year compound annual growth rate.
- There were bumps along the way: it rose to ₩312.1 billion in 2023, corrected to ₩266.8 billion in 2024, and recovered to ₩297.0 billion in 2025.
- This year the pace has clearly quickened.
- First-quarter 2026 revenue was ₩82.3 billion, up 31% from the same period a year earlier, and operating profit rose 26% to ₩9.3 billion.
- This followed a revival in front-end plant orders in power, petrochemicals, and shipbuilding, which lifted demand for fittings that go into heavy pipe.
- If this improving trajectory continues through the remaining quarters, this year's profit steps up from last year.
- So the forward P/E on this year's expected profit is closer to the real picture than the P/E on last year's confirmed profit (10.1x).
- On this year's profit, the P/E falls below 8x, low even against fittings peers.
- That said, because net profit is bolstered by non-operating income, the trend is clearer if you also check whether core operating profit keeps rising quarter by quarter.
- Recent disclosures center on shareholder returns and earnings confirmation.
- On June 10 the company approved a trust agreement to buy back treasury shares.
- When a company buys its own shares, the outstanding share count falls and each shareholder's stake grows.
- Given ample cash capacity with a 788% current ratio, this is a return it can carry out comfortably.
- The May 8 preliminary results (fair disclosure) and the May 15 quarterly report are the materials that officially confirmed the first-quarter leap in figures.
- Across April and May the company held several investor briefings (IR), communicating actively with the market right after the results.
- The dividend is a steady ₩535 per share, a yield of about 2.1%.
- The next checkpoint is second-quarter results, which will show whether the first quarter's earnings power carries through.
- The strengths are clear: a net-cash balance sheet with almost no debt, higher profitability than peers (10.2% ROE), and the tailwind of the shipbuilding, LNG, and plant ordering cycle.
- Its duopoly position sharing the domestic fittings market with Sungkwang Bend is also stable.
- The 31% first-quarter revenue growth is evidence that this trend is starting to show up in core results.
- Above all, the price is on the cheap side.
- Even the 10x trailing P/E is an unburdensome level versus peers, and on this year's profit the P/E drops below 8x, among the lower end of the fittings peer group.
- There are cautions too.
- A large part of net profit is non-operating income from asset holdings, so it varies considerably by quarter.
- The core fittings business can see quarterly results swing depending on when orders are recognized, and if shipbuilding and plant orders cool, growth slows with them.
- In short, while the ordering cycle is alive, core growth and a solid balance sheet work together; when the cycle turns, growth moderates.
🔎 Valuation vs peers Undervalued
The true peer set is companies in the same pipe-fittings business, not steel prices; domestic fittings makers Sungkwang Bend and Hyrock Korea are closest in business substance.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Sungkwang Bend | 19.40x | 1.22x | 6.27% |
| Hy-Lok Corporation | 7.03x | 0.78x | 11.07% |
| POSCO Steeleon | 16.50x | 0.73x | 4.44% |
Against direct competitor Sungkwang Bend's P/E of 22.4x, Taekwang's 10.1x P/E is less than half. Yet its ROE (profit against equity) of 10.2% is actually higher than Sungkwang Bend's (6.3%). Another fittings maker, Hyrock Korea, is lower at a P/E of 7.4x, but Taekwang is growing faster, with first-quarter revenue up 31%. There is an optical effect of last year's confirmed P/E looking somewhat high, and this is because profit is at an inflection where it is growing. On this year's expected profit, the P/E falls below 8x, and given the fast growth it is on the cheap side instead. Considering the absence of debt burden thanks to net cash and its edge in profitability over peers, this is judged an undervalued phase where the share price is cheap relative to earnings and assets. That said, because net profit contains non-operating income, it is best to also confirm whether the core operating profit persists on an annual basis.
Price history Close · MA20 · MA60
The latest close is ₩22,800 and the market capitalization is ₩589.8 billion. The price sits below its 20-day moving average (₩26,902) and below its 60-day moving average (₩34,699). 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 35.6, a neutral level. The one-month change is -19.1%, the three-month change is -44.3%, and the position relative to the 52-week high is -53.0%. Relative strength versus the KOSDAQ is 79 (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 80% of all stocks. Over the past three months it lagged the index by 23.7%. 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 -23.67% / 6M +25.35% / 12M +15.64%
Key metrics vs sector median
Valuation
The P/E of 9.23x is below the sector median (16.39x). The P/B of 0.94x is above the sector median (0.50x). 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.
Profitability & financials
Return on equity (ROE) is 10.2%, above the sector average (2.0%). The operating margin is 13.0%. The debt ratio is 118.6%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $206.8M | $176.8M | $196.8M | +11.30% ↑ faster |
| Operating profit | $38.3M | $26.4M | $25.7M | -2.85% ↑ faster |
| Net profit | $36.5M | $29.8M | $42.3M | +42.22% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $122.7M | $165.5M | $206.8M | $176.8M | $196.8M |
| Operating profit | $9.0M | $30.1M | $38.3M | $26.4M | $25.7M |
| Net profit | $10.1M | $23.7M | $36.5M | $29.8M | $42.3M |
| Revenue CAGR | 4-yr avg 12.54% | ||||
Revenue rose 11.3% year over year (2023 ₩312.1 billion → 2024 ₩266.8 billion → 2025 ₩297.0 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit fell 2.9% year over year. That said, the decline narrowed. Over the 5 years on record, revenue compound annual growth (CAGR) is 12.5%. The two-year revenue CAGR is -2.5%. In the most recent quarter (Q1 2026), revenue was 31.4% 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.
- ROE of 10.2% points to solid profitability.
- Revenue grew 11.3% 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
- 2026-06-10UpdateApproved a trust agreement to buy back treasury sharesDirected at raising shareholder value by reducing the outstanding share count. With ample cash capacity, the burden is limited. Source
- 2026-05-15UpdateFirst-quarter 2026 report — revenue ₩82.3 billion, operating profit ₩9.3 billion, net profit ₩28.8 billion confirmedConfirms the first-quarter leap in official figures. Also confirms the structure where net profit is large relative to operating profit. Source
- 2026-05-08EarningsFirst-quarter 2026 consolidated preliminary operating results via fair disclosure — revenue +31.4%, operating profit +26.3%Shipbuilding and LNG demand starting to feed into core results. Whether it persists next quarter is the key. Source
- 2026-03-30DividendDividend and other agenda items confirmed at the annual general meeting (₩535 per share, dividend yield about 2.1%)Continued shareholder returns through a steady cash dividend. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| First-quarter 2026 revenue growth rate | revenue ₩82.3 billion, +31.4% | ₩82.3 billion(+31.4%) | Confirmed | link |
| 2025 annual revenue | ₩297.0 billion | ₩297.0 billion | Confirmed | link |
| Latest closing price | ₩22,800 | — | Unverified | link |
| 2026 expected net profit (internal estimate) | approx. ₩85.0 billion | — | Unverified | link |
Recent filings
- 2026-06-10TreasuryMaterial-fact report
- 2026-05-22Disclosure
- 2026-05-22Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-13Disclosure
- 2026-05-08EarningsFair-disclosure notice
- 2026-05-08EarningsFair-disclosure notice
- 2026-04-03Disclosure
- 2026-04-01OwnershipOwnership-change filing
- 2026-03-31Disclosure
- 2026-03-30Shareholders' meeting notice
- 2026-03-26PeriodicAnnual business report (amended)
📖 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.