Sungho Electronics, a components maker founded in 1973, produces power-supply units (SMPS, about 66% of revenue) that reliably deliver electricity to printers, home appliances and electric vehicles, film capacitors (about 31%) that briefly store and release electricity, and the metallized film that is their raw material. Riding demand from electric vehicles, ESS and data centers, the film-capacitor share is rising, and in April 2026 the company absorbed its capital-impaired subsidiary Amazing Holdings and in June bought back its own convertible bonds before maturity, tidying up its business and finances while also adding a semiconductor test-equipment business through M&A. The key point to watch is that the growth direction of film capacitors and the move into new businesses are strengths, but most of both last year's and this year's net profit is a non-cash convertible-bond derivative valuation gain, and with a core operating margin of 3.3%, a debt ratio of 231.7% and an interest-coverage ratio below 1x, this is a spot that needs further confirmation and is hard to call either way.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 231.7%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 87.2%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue rose 11.7% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 11.4% higher than a year earlier.
- ROE is 36.3% (controlling-interest basis). It is above the sector average.
- Operating margin is 3.3%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Seoryong Electronics 38.35% (corporate)
Controlling bloc incl. related parties 55.12%
With the controlling bloc holding 55%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Sungho Electronics is a components maker founded in 1973.
- It has two main products.
- One is power-supply units (SMPS/PSU), which go into printers, multifunction machines, home appliances and electric vehicles to deliver electricity reliably.
- The other is film capacitors, passive components that briefly store and release electricity.
- It also makes the metallized film that is the key raw material for those film capacitors.
- By revenue share, power-supply units are the largest at about 66%, but that share is gradually shrinking.
- Film capacitors, by contrast, have risen to 31%, as demand from electric vehicles, ESS (energy storage) and data centers shifts this way.
- More recently the company has been expanding quickly, moving into semiconductor test equipment and rectifier makers through acquisitions and even into real-estate development.
- The latest close is ₩19,960 and the market capitalization is ₩1.4 trillion.
- The price sits below the 20-day line (₩30,945) and below the 60-day line (₩39,924).
- Trading under both its short- and medium-term moving averages, the trend looks subdued.
- The RSI (a supplementary gauge that scores upward versus downward momentum over the past 14 days on a 0-100 scale) is 31.5, a neutral reading.
- The price is down 50.8% over one month and 50.8% over three months, and sits 62.5% below its 52-week high.
- Relative strength versus the KOSDAQ is 99 (on a 1-99 scale that weights the past year's return against the index toward recent performance; higher means stronger than the market), placing the stock in roughly the top 1% for strength among all listings.
- Over the past three months it lagged the index by 35.7%.
- Chart signals are best read alongside trading volume and disclosure dates.
- The surface metrics look extremely good.
- ROE (annual return on equity) is 36.3%, net margin is 39.3% and the P/E (how many times one year's earnings the price represents) is 15.56x.
- But these numbers should not be taken at face value.
- Of last year's net profit of ₩90.9 billion, operating profit was only ₩7.55 billion, and most of the rest was a derivative valuation gain tied to convertible bonds.
- That valuation gain is not actual cash received but a non-cash gain booked on the accounts, and it could flip into a loss if conditions change.
- So the low-looking P/E and high-looking ROE are close to an illusion created by a one-off valuation gain.
- The core business itself is thin, with an operating margin of 3.3%.
- The finances are not ample either: the debt ratio (debt against equity) is a somewhat high 231.7%, and the current ratio is 87.2%, meaning debt due within a year exceeds assets that can be quickly turned into cash.
- The interest-coverage ratio is also below 1x, so operating profit alone cannot fully cover interest.
- EV/Sales (enterprise value including debt divided by revenue) is 7.5x, so the valuation is not light relative to revenue, and the free-cash-flow yield (actual cash generated against market cap) is only about 1.0%.
- In other words, unlike the flashy net profit, actual cash generation is small.
- The top line is growing quickly.
- Revenue rose from ₩133.2 billion in 2021 to ₩231.6 billion in 2025, a five-year compound growth of about 14.8%, and grew 11.7% last year alone.
- But much of this growth came from newly acquired companies being consolidated.
- In 2025 the company acquired semiconductor test-equipment and rectifier makers one after another and pursued real-estate development and transfers in parallel.
- Net profit growth exceeded tenfold last year, but as noted, most of it was a convertible-bond derivative valuation gain, so it is hard to say actual earnings grew that much.
- In Q1 this year revenue also rose 11.4% year over year, so the core business is growing steadily, but net profit was again mostly large non-cash valuation-type items.
- Such items swing widely quarter to quarter and can flip the other way, so it is hard to extend this net profit as future earning power.
- The company's official profit target is not confirmed in disclosures either, so no forced estimate of this year's normalized net profit was made.
- Recent disclosures read along three threads.
- First, business restructuring.
- In April 2026 the company decided to absorb its 100%-owned subsidiary Amazing Holdings.
- It is a small-scale merger with no new shares issued, in the nature of tidying up a small, capital-impaired subsidiary, with a merger date of July 3.
- Second, funding and financial management.
- In June it decided to buy back its own convertible bonds before maturity.
- Because those convertible bonds were a large source of net-profit volatility, this kind of financial cleanup moves toward simplifying the earnings structure.
- Third, frequent shareholding-change disclosures.
- Several reports of large-holding and executive-shareholding changes have appeared, a sign that governance and cash flows are actively in motion.
- In May the company also held an investor briefing.
- Strengths and weaknesses split sharply.
- On the strength side, film capacitors are a field that attracts demand from electric vehicles, ESS and data centers, so the direction of the core business itself is not bad.
- Through M&A it has also added new businesses such as semiconductor test equipment.
- On the caution side, the clear point is that most of both last year's and this year's net profit is a convertible-bond derivative valuation gain.
- That is not actual cash and is a non-cash item that can flip into a loss if conditions change.
- So it is risky to conclude the stock is cheap based on good-looking numbers like a 17x P/E and a 36% ROE.
- The actual core operating margin is a thin 3.3%, the debt ratio is 231.7% and the interest-coverage ratio is below 1x.
- In sum, it could be strong in a phase where film-capacitor demand flows through to results, the acquired businesses turn a profit and the financial burden eases.
- It weakens if the valuation gain disappears or reverses and the core earnings stay thin while the debt burden persists.
- For now it is a spot that is hard to call either way and needs further confirmation.
🔎 Valuation vs peers Inconclusive
Compared against Korean components makers of capacitors (passive components) such as film and electrolytic types. Sungho has a large power-supply share, but because its growth axis is shifting toward film capacitors it is viewed on the capacitor-industry benchmark.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Samhwa Capacitor | 83.86x | 3.79x | 4.52% |
| Samyoung Electronics | 57.70x | 0.55x | 0.95% |
The headline 17x P/E is far below capacitor peers (Samhwa Capacitor at 101x, Samyoung Electronics at 60x) and the 36% ROE is high, so at first glance it looks cheap. But these numbers cannot be trusted as they stand. Of last year's net profit of ₩90.9 billion, operating profit was only ₩7.55 billion, and most of the rest was a non-cash valuation gain from convertible bonds. Stripping out the valuation gain, the core-business earnings are small, so the low P/E does not automatically mean undervaluation. Conversely, the high P/Es of peers reflect a phase where the capacitor industry is weak and earnings are depressed, so a simple multiple comparison cannot settle which is more attractive either. On top of this, the high debt ratio and an interest-coverage ratio below 1x mean financial stability also needs confirmation. For these reasons, rather than declaring it cheap or expensive, it is more honest to hold off on a verdict.
Price history Close · MA20 · MA60
The latest close is ₩19,960 and the market capitalization is ₩1.4 trillion. The price sits below its 20-day moving average (₩30,945) and below its 60-day moving average (₩39,924). 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 31.5, a neutral level. The one-month change is -50.8%, the three-month change is -50.8%, and the position relative to the 52-week high is -62.5%. Relative strength versus the KOSDAQ is 99 (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 99% of all stocks. Over the past three months it lagged the index by 35.7%. 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 -35.69% / 6M +91.49% / 12M +1585.81%
Key metrics vs sector median
Valuation
The P/E of 15.56x is below the sector median (18.61x). The P/B of 5.64x is above the sector median (1.63x). 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 36.3%, above the sector average (7.0%). The operating margin is 3.3%. The debt ratio is 231.7%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $137.9M | $137.4M | $153.5M | +11.70% ↑ faster |
| Operating profit | $17.1M | $4.2M | $5.0M | +19.64% ↑ faster |
| Net profit | $11.7M | $5.3M | $60.3M | +1042.45% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $88.3M | $101.8M | $137.9M | $137.4M | $153.5M |
| Operating profit | $815,411 | $1.4M | $17.1M | $4.2M | $5.0M |
| Net profit | $2.1M | -$2.8M | $11.7M | $5.3M | $60.3M |
| Revenue CAGR | 4-yr avg 14.82% | ||||
Revenue rose 11.7% year over year (2023 ₩208.1 billion → 2024 ₩207.3 billion → 2025 ₩231.6 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit rose 19.6% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 14.8%. The two-year revenue CAGR is 5.5%. In the most recent quarter (Q1 2026), revenue was 11.4% 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 36.3% points to solid profitability.
- Revenue grew 11.7% year over year, a sign of growth.
Points to watch
- Debt is somewhat higher than equity (debt ratio 231.7%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 87.2%).
Recent news & events searched · sourced
- 2026-04-29FilingDecision to absorb 100%-owned subsidiary Amazing Holdings. A small-scale merger with no new shares issued, in the nature of tidying up a capital-impaired small subsidiary. Merger date 2026-07-03.It simplifies the governance structure, but because it is tidying up a small subsidiary, the impact on core results is limited. Source
- 2026-06-09FilingDecision to buy back its own previously issued convertible bonds before maturity. The convertible bonds had been a large source of net-profit volatility.Reducing the convertible-bond burden can ease future derivative valuation-gain-and-loss volatility, a positive for simplifying the earnings structure. Source
- 2026-05-15EarningsQ1 2026 report filed. Revenue ₩66.0 billion (+11.4% year over year), operating profit ₩3.2 billion. Net profit was mostly large non-cash valuation-type items.Core revenue is growing steadily, but net profit is valuation-gain in nature and can swing widely quarter to quarter. Source
- 2026-05-07IRInvestor briefing held. An occasion for company explanation on business diversification and results.An official channel for the company's communication on its expansion direction and financial situation. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-09Material-fact report
- 2026-06-09PeriodicQuarterly report (amended)
- 2026-06-08OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-01OwnershipOwnership-change filing
- 2026-05-26OwnershipOwnership-change filing
- 2026-05-26OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-20OwnershipOwnership-change filing
- 2026-05-15PeriodicQuarterly report
- 2026-05-07Disclosure
- 2026-05-07Disclosure
- 2026-04-30Material-fact report (amended)
- 2026-04-29Material-fact 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.