Avico Electronics is a small-cap company in the electronic components and display sector that makes and sells parts used in a wide range of electronic devices. With a market cap of about ₩110.3 billion, the demand and pricing for its core products, along with the flow of quarterly results, largely set the shape of the whole business. Preliminary results disclosed on May 8, 2026 confirmed a sharp earnings rebound, with Q1 revenue of ₩35.3 billion, operating profit of ₩1.9 billion and net profit of ₩2.6 billion; earlier, a February disclosure showed a swing to profit for the full year with revenue of ₩133.9 billion, operating profit of ₩8.3 billion and net profit of ₩9.5 billion, so the quarterly and annual figures point the same way. The key point to watch now is that if the earnings recovery — which snapped a two-year losing streak — continues into the next quarter alongside expanding revenue, the low valuation stands out sharply (P/B of 0.95x, a low forward P/E, ROE of 8.2% and a current ratio of 3.38x); conversely, if the revenue or earnings recovery proves to be a single-quarter event, that appeal weakens.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 10.7% year over year, and the pace is quickening (3-year trend: mixed).
- Net profit swung from a loss a year earlier back into the black (a turnaround).
- Most recent quarter (Q1 2026) revenue was 12.2% higher than a year earlier.
- ROE is 8.2% (controlling-interest basis). It is above the sector average.
- Operating margin is 6.2%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Haengjin Development 24.7% (corporate)
Controlling bloc incl. related parties 39.57%
With the controlling bloc holding 40%, the ownership structure is stable.
🔎 In-depth analysis
- Avico Electronics belongs to the electronic components and display sector, and its core business is making and selling parts used in a wide range of electronic devices.
- As a small- to mid-cap company with a market cap of about ₩110.3 billion, it does not spread across many business divisions the way a large company would; instead, the demand and pricing of its core products, plus each quarterly earnings disclosure, largely drive the picture of the whole company.
- Reading the business alongside the recent earnings trend is therefore the fastest way to understand this company.
- The latest close is ₩6,170 and the market cap is ₩82.0 billion.
- The price sits below the 20-day line (₩9,113) and below the 60-day line (₩10,185).
- Trading beneath both the short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that weighs upward versus downward strength over the past 14 days on a 0-100 scale) is 30.9, a neutral level.
- The one-month change is -37.0%, the three-month change is -35.9%, and the position versus the 52-week high is -54.1%.
- Relative strength versus the KOSDAQ is 66 (1-99, converted from returns against the index over the past year with heavier weight on the recent period; higher means stronger than the market), placing it in roughly the top 34% for strength among all stocks.
- Over the past three months it lagged the index by 11.7%.
- Chart reading is best done together with volume and disclosure dates.
- Recent annual revenue was ₩133.9 billion, with operating profit of ₩8.3 billion and net profit of ₩9.5 billion, giving an operating margin of 6.2% and a net margin of 7.1%.
- ROE (how much a company earns in a year on its equity) is 8.2%, above the peer-group average.
- The debt ratio is 131%, but the current ratio is 3.38x (cash-like capacity to cover short-term debt is more than triple), and the interest coverage ratio is above 1, so this is a stable financial structure where the ability to repay matters more than the debt itself.
- The P/E ratio is 8.61x and the P/B is 0.70x, meaning the stock trades below book value.
- Importantly, this company sits at an inflection point where earnings have just turned up.
- So a P/E calculated on the trailing 12 months of earnings can look somewhat high because it reflects the low earnings at the start of the recovery, but a forward P/E that incorporates this year's growing earnings falls sharply.
- Among a peer group where many companies run losses, earning this much while trading below book reads less like a burden and closer to being undervalued.
- The core of this company is that after turning from losses to profit, the size of that profit keeps growing.
- Operating profit was -₩4.7 billion in 2023 and -₩4.9 billion in 2024, two straight years of losses, before swinging to +₩8.3 billion in 2025; net profit followed the same path, moving from -₩2.4 billion and -₩5.8 billion to +₩9.5 billion.
- The recovery accelerated further this year.
- Q1 2026 revenue rose +12.2% from the same period a year earlier, operating profit rose +108.2%, and net profit rose +184.3%.
- Revenue growing from the high single digits into the double digits while earnings more than double is the classic look of a recovery phase, where revenue beyond fixed costs flows straight through to profit.
- These figures assume that Q1's steep earnings growth and revenue expansion continue; they are numbers on top of a trend climbing out of two years of losses, not a one- or two-quarter flash.
- The recent disclosures are all earnings-related.
- The preliminary results disclosure on 2026-05-08 confirmed Q1 2026 revenue of ₩35.3 billion, operating profit of ₩1.9 billion and net profit of ₩2.6 billion, a sharp year-on-year gain for the same quarter.
- Earlier, on 2026-02-19, a profit-structure change disclosure carrying full-year revenue of ₩133.9 billion, operating profit of ₩8.3 billion and net profit of ₩9.5 billion (an amended disclosure reflecting the swing to profit) was filed alongside a correction to the preliminary Q1 results.
- Because the disclosures point in the same direction (rising revenue, a swing from losses to profit and higher earnings), it stands out that the trend does not rest on a single source but is confirmed on both the quarterly and annual sides.
- The strengths are clear.
- After snapping two years of losses and swinging to profit, the earnings recovery is fast — Q1 operating profit more than doubled — yet the stock still trades below book value (P/B of 0.95x), and the forward P/E on this year's earnings is low.
- Among a peer group where many companies run losses, this one actually generates profit with an ROE of 8.2%, so the undervaluation signal is relatively distinct.
- The finances are also comfortable, with a 3.38x current ratio giving ample short-term liquidity.
- What to watch alongside this is its nature as a small- to mid-cap company with a market cap of ₩110.3 billion.
- For such companies, whether quarterly results continue in one direction heavily sways the stock, so the thing to check is whether the earnings gain confirmed in Q1 carries into the next quarter along with expanding revenue.
- In short, the more the rising earnings harden into a trend, the more the low forward P/E stands out as a strong draw; conversely, if the revenue or earnings recovery is confined to a single quarter, that appeal fades.
🔎 Valuation vs peers Undervalued
A peer group of electronic components and display companies with market caps close to Avico Electronics.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| RaonTech | — | 6.81x | -39.28% |
| Poongwon Precision | — | 10.35x | -191.25% |
| MDevice | 11.73x | 2.66x | 22.67% |
Within the electronic components and display sector, we looked first at a public-data peer group with nearby market caps. The current P/E is 8.61x and the P/B is 0.70x. That said, because smaller-cap names are heavily affected by earnings swings and funding disclosures, we did not draw firm conclusions from metrics based on last year's confirmed results alone. The forecast box is based on a DART seasonality approximation.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩140.3 billion | ₩17.3 billion | ₩27.1 billion |
| Next quarter | Q2 2026 | ₩36.3 billion | ₩5.9 billion | ₩9.7 billion |
Price history Close · MA20 · MA60
The latest close is ₩6,170 and the market capitalization is ₩82.0 billion. The price sits below its 20-day moving average (₩9,113) and below its 60-day moving average (₩10,185). 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 30.9, a neutral level. The one-month change is -37.0%, the three-month change is -35.9%, and the position relative to the 52-week high is -54.1%. Relative strength versus the KOSDAQ is 66 (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 66% of all stocks. Over the past three months it lagged the index by 11.7%. 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 -11.69% / 6M -3.40% / 12M +10.09%
Key metrics vs sector median
Valuation
The P/E of 8.61x is below the sector median (18.61x). The P/B of 0.70x is below the sector median (1.63x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets. 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 10.4%, 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 8.2%, above the sector average (7.0%). The operating margin is 6.2%. The debt ratio is 131.1%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $82.9M | $80.1M | $88.7M | +10.69% ↑ faster |
| Operating profit | -$3.1M | -$3.2M | $5.5M | — |
| Net profit | -$1.6M | -$3.9M | $6.3M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $97.9M | $109.2M | $82.9M | $80.1M | $88.7M |
| Operating profit | $2.0M | $7.5M | -$3.1M | -$3.2M | $5.5M |
| Net profit | $2.5M | $6.2M | -$1.6M | -$3.9M | $6.3M |
| Revenue CAGR | 4-yr avg -2.43% | ||||
Revenue rose 10.7% year over year (2023 ₩125.0 billion → 2024 ₩120.9 billion → 2025 ₩133.9 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Over the 5 years on record, revenue compound annual growth (CAGR) is -2.4%. The two-year revenue CAGR is 3.5%. In the most recent quarter (Q1 2026), revenue was 12.2% 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.
- Revenue grew 10.7% 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
- 2026-05-08EarningsOperating (preliminary) results on a consolidated basis (fair disclosure): Q1 2026 revenue ₩35.3 billion · operating profit ₩1.9 billion · net profit ₩2.6 billionThis is a recent confirmed or preliminary earnings item. Check whether it points the same way as the annual trend and whether any one-off factors are involved. Source
- 2026-02-19Earnings[Amended] Change of 30% or more (15% for large corporations) in revenue or profit structure: full-year revenue ₩133.9 billion · operating profit ₩8.3 billion · net profit ₩9.5 billionThis is a recent confirmed or preliminary earnings item. Check whether it points the same way as the annual trend and whether any one-off factors are involved. Source
- 2026-02-19Earnings[Amended] Operating (preliminary) results on a consolidated basis (fair disclosure): Q1 2026 revenue ₩35.3 billion · operating profit ₩1.9 billion · net profit ₩2.6 billionThis is a recent confirmed or preliminary earnings item. Check whether it points the same way as the annual trend and whether any one-off factors are involved. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩6,170 | ₩6,170 | Confirmed | link |
| Latest quarterly results | revenue ₩35.3 billion, operating profit ₩1.9 billion | revenue ₩35.3 billion, operating profit ₩1.9 billion | Confirmed | link |
| Annual results | revenue ₩133.9 billion, operating profit ₩8.3 billion | revenue ₩133.9 billion, operating profit ₩8.3 billion | Confirmed | link |
| Earnings disclosure source text | : 2026 1 revenue ₩35.3 billion · operating profit ₩1.9 billion · net profit ₩2.6 billion | : 2026 1 revenue ₩35.3 billion · operating profit ₩1.9 billion · net profit ₩2.6 billion | Confirmed | link |
| Earnings disclosure source text | []revenue30%: revenue ₩133.9 billion · operating profit ₩8.3 billion · net profit ₩9.5 billion | []revenue30%: revenue ₩133.9 billion · operating profit ₩8.3 billion · net profit ₩9.5 billion | Confirmed | link |
| Earnings disclosure source text | []: 2026 1 revenue ₩35.3 billion · operating profit ₩1.9 billion · net profit ₩2.6 billion | []: 2026 1 revenue ₩35.3 billion · operating profit ₩1.9 billion · net profit ₩2.6 billion | Confirmed | link |
| Forecast box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-05-20Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-08EarningsFair-disclosure notice
- 2026-04-08DividendCash/stock dividend decision (amended)
- 2026-03-24Disclosure
- 2026-03-24Shareholders' meeting notice
- 2026-03-16PeriodicAnnual business report
- 2026-03-16Audit report
- 2026-03-09Disclosure
- 2026-03-09Shareholders' meeting notice
- 2026-02-19EarningsAmended filing
- 2026-02-19Shareholders' 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.