Jeryong Electric makes distribution transformers (pole-mounted and pad-mounted) that step electricity down to the voltages used by homes and factories. It exports most of its output to the United States, earning high margins in the gap left by a transformer shortage driven by aging-grid replacement and AI data center demand. A distribution-transformer supply contract with PSE&G in the US, signed in December 2025, was raised from ₩44.1 billion to ₩53.2 billion through a unit-price adjustment and runs through the end of 2027; the company disclosed a corporate value-up plan in March 2026 and pays a dividend of ₩1,100 per share (a dividend yield of about 2.0%). What stands out recently is that it is a direct beneficiary of the US transformer shortage, with profitability of 24.5% ROE and a 29.9% operating margin, a net-cash balance sheet, and a secured supply contract as strengths, while its results swing sharply with the cycle: earnings have been coming down since the 2024 peak, so on a current-year basis that reflects the earnings decline the multiple rises, which must be weighed together.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 14.7% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 30.9% lower than a year earlier.
- ROE is 24.5% (total-net basis). It is above the sector average.
- Operating margin is 29.9%.
- P/B is high versus peers, a stretch on an asset basis.
Ownership & governance As of 2025-12-31
Largest shareholder Park Jong-tae 17.93% (individual)
Controlling bloc incl. related parties 33.13%
With the controlling bloc holding 33%, the ownership structure is stable.
🔎 In-depth analysis
- Jeryong Electric makes distribution transformers that step electricity down to the voltages used by homes and factories.
- Its main products are pole-mounted transformers hung on utility poles and pad-mounted transformers.
- In particular, it exports most of its revenue to the United States.
- There, on top of demand to replace an aging grid, power demand has surged as AI data centers proliferate.
- As a result, transformer supply is tight.
- Jeryong Electric supplies its products directly to US utilities in this gap, earning high margins.
- The latest close is ₩42,700 and the market cap is ₩685.9 billion.
- The price sits below the 20-day line (₩49,902) and the 60-day line (₩58,390).
- Trading below both the short- and medium-term moving averages, the trend looks subdued.
- The RSI (a gauge that compares upward and downward strength over the past 14 days on a 0-100 scale) is 36.9, a neutral level.
- The one-month change is -14.8% and the three-month change is -5.3%, and the price is -53.3% from its 52-week high.
- Relative strength versus the KOSDAQ is 82 (on a 1-99 scale, converting the past year's return versus the index with more weight on recent periods; higher means stronger than the market), placing it in roughly the top 17% of all stocks by strength.
- Over the past three months it led the index by 20.2%.
- Chart readings are best viewed together with trading volume and the dates of disclosures.
- Profitability is a strength.
- ROE (how much is earned in a year on equity) is 24.5% and the operating margin is 29.9%, well above the manufacturing average.
- The finances are very solid.
- The debt ratio (debt relative to equity) is just 11.2%.
- The current ratio (cash-like assets relative to debt due within a year) is 914%.
- Net debt (total borrowings minus cash) is negative ₩49.9 billion, a net-cash position with more cash than debt.
- The FCF yield (cash actually earned relative to market cap) is 7.3%, indicating good cash generation.
- That said, the current P/E ratio (how many times one year's net profit the price represents) of 11.68x is based on 2025 earnings.
- As 2026 earnings are running below that, recalculating on this year's earnings pushes the multiple higher.
- Results swing sharply with the cycle.
- Revenue jumped more than fivefold from ₩48.8 billion in 2021 to ₩262.7 billion in 2024, a period when the US transformer shortage peaked.
- It then fell 14.7% to ₩224.0 billion in 2025, and net profit came down from ₩79.9 billion to ₩58.7 billion.
- The decline was steeper in the first quarter of 2026, with revenue down 30.9% and operating profit down 63.4% year over year, as supply eased somewhat and competition set in.
- Even so, the company follows a selective-order strategy, taking high-margin volumes.
- Its distribution-transformer supply contract with PSE&G in the US runs through the end of 2027, so it has volume left to underpin future results.
- This year's earnings are expected to settle at a lower level than 2025.
- The most important disclosure is the distribution-transformer supply contract with PSE&G in the US, signed in December 2025.
- From an initial ₩44.1 billion, it was raised to ₩53.2 billion through a unit-price adjustment.
- The contract runs through the end of 2027, with all volume produced and supplied in-house.
- In March 2026 the company disclosed a corporate value-up plan and set out its direction for shareholder returns.
- It is in fact paying a dividend of ₩1,100 per share, maintaining a dividend yield of about 2.0%.
- Through the quarterly and business reports, the slowdown in first-quarter 2026 results is also confirmed.
- The strengths are clear.
- It is a direct beneficiary of the broad trend of a US transformer shortage.
- It combines high profitability, with 24.5% ROE and a 29.9% operating margin, with a solid balance sheet of net cash and low debt.
- It has also secured a supply contract running through 2027.
- The caution is that results swing sharply with the cycle.
- Earnings are coming down after the 2024 peak, and the first quarter of 2026 saw a steep decline.
- High reliance on US exports makes it sensitive to intensifying local competition and to shifts in policy or tariffs.
- The current P/E of about 15x, based on 2025 earnings, looks low.
- However, one must also consider that on this year's basis, with earnings declining, the multiple rises further.
🔎 Valuation vs peers Fairly valued
Compared against US-export-oriented transformer and power-equipment makers. Sanil Electric is a direct peer growing on large-transformer exports, while Iljin Electric and Taihan Cable & Solution are domestic power-equipment and cable makers.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Sanil Electric | 36.92x | 9.39x | 25.44% |
| Iljin Electric | 28.60x | 5.05x | 17.65% |
| Taihan Cable & Solution | 64.70x | 3.40x | 5.26% |
Profitability is top-tier. ROE of 24.5% is almost identical to Sanil Electric's (25.4%) and higher than Iljin Electric's (17.6%) and Taihan's (5.3%). Yet the P/E of 15.2x is a third of Sanil Electric's (48.9x), and the P/B of 3.7x is a quarter of Sanil's (12.5x). This gap comes from the direction of growth. Sanil Electric is growing, with revenue up 50% year over year, whereas Jeryong Electric's revenue fell 14.7% in 2025 and dropped a further 30.9% in the first quarter of 2026, an environment of declining earnings. In other words, Jeryong's low P/E looks low because it is based on 2025 earnings that are past their peak. Recalculating on this year, with earnings falling, pushes the multiple higher. That said, given the net cash, high dividend, and long-term supply contract, it is not at an excessive discount to peers either. As a stock whose actual valuation is governed by the direction of the cycle, we see it as fairly valued.
Price history Close · MA20 · MA60
The latest close is ₩42,700 and the market capitalization is ₩685.9 billion. The price sits below its 20-day moving average (₩49,902) and below its 60-day moving average (₩58,390). 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 36.9, a neutral level. The one-month change is -14.8%, the three-month change is -5.3%, and the position relative to the 52-week high is -53.3%. Relative strength versus the KOSDAQ is 82 (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 82% of all stocks. Over the past three months it outpaced the index by 20.2%. 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 +20.23% / 6M +38.01% / 12M +3.30%
Key metrics vs sector median
Valuation
The P/E of 11.68x is below the sector median (19.17x). The P/B of 2.87x is above the sector median (2.15x).
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 0.63x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 24.5%, above the sector average (2.0%). The operating margin is 29.9%. The debt ratio is 111.5%, so the financial structure is moderate.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $121.9M | $174.1M | $148.5M | -14.74% ↓ slower |
| Operating profit | $46.5M | $64.8M | $44.4M | -31.50% ↓ slower |
| Net profit | $37.4M | $53.0M | $38.9M | -26.54% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $32.3M | $57.0M | $121.9M | $174.1M | $148.5M |
| Operating profit | $77,598 | $10.6M | $46.5M | $64.8M | $44.4M |
| Net profit | $777,748 | $8.3M | $37.4M | $53.0M | $38.9M |
| Revenue CAGR | 4-yr avg 46.39% | ||||
Revenue fell 14.7% year over year (2023 ₩183.9 billion → 2024 ₩262.7 billion → 2025 ₩224.0 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 31.5% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 46.4%. The two-year revenue CAGR is 10.4%. In the most recent quarter (Q1 2026), revenue was 30.9% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- ROE of 24.5% points to solid profitability.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 14.7% year over year (3-year trend: mixed).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2025-12-22UpdateDistribution-transformer supply contract signed with PSE&G in the US. Raised from an initial ₩44.1 billion to ₩53.2 billion through a unit-price adjustment. Term runs through the end of 2027, with all volume produced and supplied in-house.Secures long-term volume to underpin 2026-2027 revenue. Supports the downside for results as US demand in the cycle slows. Source
- 2026-03-17IRCorporate value-up plan disclosed voluntarily. Sets out the direction for shareholder returns.Continuity of the shareholder-return policy, including dividends. In fact maintains a dividend yield of about 2.0% through the actual ₩1,100-per-share dividend. Source
- 2026-05-13EarningsQ1 2026 report. Revenue ₩34.7 billion (-30.9% year over year), operating profit ₩5.9 billion (-63.4%), net profit ₩8.1 billion (-45.3%).Confirms a slowdown in results as US supply stabilized and competition intensified. A phase of declining earnings from the 2024 peak. Source
- 2026-03-16FilingFY2025 business report. Annual revenue ₩224.0 billion (-14.7%), operating profit ₩67.0 billion (-31.5%), net profit ₩58.7 billion (-26.5%).The first year of negative growth after the 2024 peak. Even so, high profitability was maintained with a 29.9% operating margin. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-02OwnershipOwnership-change filing
- 2026-06-02PeriodicAnnual business report (amended)
- 2026-05-13PeriodicQuarterly report
- 2026-03-24Shareholders' meeting notice
- 2026-03-17Disclosure
- 2026-03-16PeriodicAnnual business report
- 2026-03-11Audit report
- 2026-03-09Shareholders' meeting notice
- 2026-03-06OwnershipOwnership-change filing
- 2026-02-23Shareholders' 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.