Daea TI is a domestic leader that makes the signaling systems that keep railways running safely, developing and supplying core equipment such as centralized traffic control (CTC), automatic train protection (ATP), and electronic interlocking (EI); railway signaling is its core business, layered together with dairy manufacturing and distribution and financial investment such as real-estate funds in a mixed structure. Railway-signaling supply contracts worth tens of billions of won ran on from December 2025 through May 2026, and it actively worked its capital with a May real-estate transfer decision and a March treasury-share acquisition trust agreement. What stands out recently is that its leading position in high-barrier public infrastructure, steady order intake, a ROE of 13.3%, and a trailing P/E of 9.5x are strengths, while the one-off items mixed into 2025 net profit, the weak first-quarter core business, and a debt ratio of 218% need to be viewed alongside the pace of the core-business recovery.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 218.0%).
- Revenue rose 2.7% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 27.6% lower than a year earlier.
- ROE is 13.3% (controlling-interest basis). It is above the sector average.
- Operating margin is 4.9%.
- P/B is low versus peers too, so it looks cheap on an asset basis as well.
Ownership & governance As of 2025-12-31
Largest shareholder Choi Jin-woo 15.66% (individual)
Controlling bloc incl. related parties 16.15%
With the controlling bloc holding 16%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- Daea TI makes the systems that control signals so railways can run safely, and it is a domestic leader in this field.
- Most of its revenue comes from the railway signaling (SIG) division, where it directly develops and supplies core equipment such as centralized traffic control (CTC), which gathers and controls trains from one place; automatic train protection (ATP), which automatically keeps the gap from the train ahead; and electronic interlocking (EI), which safely locks track junctions.
- It covers Korean (KTCS), European (ETCS), and radio-communication-based (CBTC) approaches, and it also runs overseas railway business through subsidiaries in the Philippines, Indonesia, and elsewhere.
- On top of this, it also holds an FS division that manufactures and distributes dairy products, and finance (asset-management) related businesses such as real-estate funds and investment partnerships.
- In other words, it is a mixed structure where food and financial investment are added to the core business (railway signaling), so the company comes into clearer focus when core-business profit and profit from investments and assets are read separately.
- The latest close is ₩2,540, and market capitalization is ₩179.0 billion.
- The price sits below its 20-day line (₩2,888) and below its 60-day line (₩3,595).
- Being below both the short- and medium-term moving averages, the trend is on the subdued side.
- The RSI (a supplementary gauge comparing upward and downward momentum over the past 14 days on a 0-100 scale) is 31.2, a neutral level.
- The one-month change is -10.9%, the three-month change is -37.5%, and the position versus the 52-week high is -55.1%.
- Relative strength against the KOSDAQ is 41 (on a 1-99 scale, converted from returns versus the index over the past year with more weight on recent performance; higher means stronger than the market).
- This places it in roughly the top 59% of all stocks by strength.
- Over the past three months it lagged the index by 20.5%.
- Chart interpretation is best done alongside trading volume and the dates of disclosures.
- The P/E ratio (how many times a year's earnings the price represents) is 8.75x and the P/B (how many times the company's net assets the price represents) is 1.16x.
- Both are on the low side versus the sector, making it a phase that is not expensive by either the earnings or asset yardstick.
- ROE (how much is earned in a year on equity) is 13.3% and the net margin is 13.4%, so profitability indicators are also solid.
- That said, the nature of the profit needs to be viewed as well.
- 2025 net profit (about ₩20.5 billion) reaches 2.7x operating profit (about ₩7.6 billion), and much of the gap comes from non-operating profit from finance and real-estate investment rather than the core business.
- So the trailing P/E of 9.5x is clearly cheap 'on last year's confirmed earnings,' but it should be seen together with the fact that these earnings include one-off investment and asset gains.
- On the balance sheet, the debt ratio is 218%, somewhat high relative to equity, and with a current ratio of 106.7% and interest coverage of 2.08x, the cushion is not very ample.
- This ties in with a business structure that actively works its holdings, so it is more appropriate to treat it as a point to keep watching on funding rather than a danger signal.
- Five-year revenue traced a recovery-and-growth path of ₩116.3 billion (2021) → ₩105.5 billion → ₩112.3 billion → ₩149.1 billion → ₩153.2 billion (2025), with the 2025 growth rate easing to 2.7%.
- Net profit rose steadily from ₩5.0 billion → ₩8.4 billion → ₩10.7 billion → ₩14.7 billion → ₩20.5 billion, but much of the 2025 increase leaned on finance and investment gains rather than the core business, so it diverges from operating profit (₩7.6 billion in 2025, -3.1% year over year).
- In the first quarter of 2026, core-business indicators bent sharply, with revenue ₩28.6 billion (-27.6%), operating profit ₩0.6 billion (-60.4%), and net profit ₩2.2 billion (-51.6%).
- Because this is an order-based business, it is worth allowing for the fact that quarterly results swing depending on when contracts are recognized as revenue.
- This year's forward P/E (the P/E recalculated on this year's expected earnings) comes out at 8.75x, higher than the trailing P/E of 9.5x based on last year's confirmed earnings.
- This does not mean the core business gets that much worse; rather, because the one-off investment and asset gains that greatly inflated 2025 net profit do not recur every year, this year's earnings bar is adjusted toward the core business.
- In other words, last year's trailing looked artificially low due to one-offs, and this year's forward is closer to a more realistic picture that also reflects core-business earnings power, the quarterly trend, and 2026 factors such as real-estate disposal gains.
- Recent disclosures carry meaning on both the core-business and financial sides.
- On the core-business side, single-sale/supply contracts for railway signaling keep coming in.
- Supply contracts of ₩15.8 billion in December 2025 (13.6% of annual revenue), ₩13.5 billion in February 2026 (15.7%), and ₩14.3 billion in May 2026 (16.6%) ran on, showing the order base is being maintained.
- On the financial side, a May 2026 disclosure announced a decision to transfer tangible assets (real estate); selling held real estate books the disposal gain as 2026 non-operating profit, a one-off factor added to this year's net profit.
- Also, in March 2026 it decided to sign a treasury-share acquisition trust agreement, signaling an intent toward shareholder returns and price stability, and around the same time it wrapped up a change of CEO and the regular shareholders' meeting.
- In short, it is a phase where 'orders keep coming in and capital is actively worked, while the core business's quarterly results were weak, and financial events like real-estate sales and treasury shares affect this year's profit and supply-demand.'
- The strengths are clear.
- It holds a domestic leading position in railway signaling, a high-barrier public-infrastructure field; supply contracts worth tens of billions of won keep coming quarter after quarter; and it actively uses its capital through treasury-share acquisition and real-estate sales.
- Profitability is solid at a ROE of 13.3%, and a trailing P/E of 9.5x and P/B of 1.3x are low versus peers, so it is not a spot with a heavy price burden either.
- Points to view together are that 2025 net profit contains large one-off finance and investment items, so the gap between trailing and forward (on this year's expected earnings) must be understood; that first-quarter 2026 core-business results bent; and that a debt ratio of 218% leaves the financial cushion tight.
- It also has the trait that its mixed structure of core business, food, and finance makes the profit and loss hard to read in a single line.
- In sum, this stock is strong 'when accumulated orders are quickly recognized as revenue, core operating profit recovers, and real-estate and investment gains work the capital well,' and can lag 'when the conversion of orders into revenue is slow and core-business weakness drags on.' The price itself is on the cheap side by asset and earnings measures, so the pace of the core-business recovery is the point to watch going forward.
🔎 Valuation vs peers Inconclusive
Compared against names whose business substance is close within the railway-infrastructure ecosystem. Semyung Electric Machinery (railway electrical parts and metal fittings) is used as an on-site comparison peer, while Estraffic, in the signaling and traffic-control area, is mentioned only as a reference in the same railway-signaling domain (being off-site, its figures are not shown).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Semyung Electric | 8.12x | 1.15x | 14.16% |
The on-site peer Semyung Electric Machinery (P/E 10.5x · P/B 1.5x · ROE 14.2%) and Daea TI (P/E 11.4x · P/B 1.5x · ROE 13.3%) show similar surface indicators. But it is hard to be definitive because the trailing P/E of 11.4x uses 2025 net profit — greatly boosted by one-off gains — as the denominator. Taking core operating profit alone, the multiple against normal earnings power could be higher, so the surface 'cheap-looking' range cannot simply be accepted. This company is also a mixed structure blending food and financial investment alongside railway signaling, so comparing it by a single-business multiple itself has limits. On the other side, the P/B of 1.5x is an asset-based level similar to peers, and the fact that capital is being turned into cash through real-estate sales is a cushioning factor on the asset-value side. Until the core-business recovery is confirmed, an inconclusive stance is more reasonable than declaring it either undervalued or overvalued.
Price history Close · MA20 · MA60
The latest close is ₩2,540 and the market capitalization is ₩179.0 billion. The price sits below its 20-day moving average (₩2,888) and below its 60-day moving average (₩3,595). 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 31.2, a neutral level. The one-month change is -10.9%, the three-month change is -37.5%, and the position relative to the 52-week high is -55.1%. Relative strength versus the KOSDAQ is 41 (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 41% of all stocks. Over the past three months it lagged the index by 20.5%. 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 -20.49% / 6M -25.77% / 12M -50.63%
Key metrics vs sector median
Valuation
The P/E of 8.75x is below the sector median (19.17x). The P/B of 1.16x is below the sector median (2.15x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets.
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, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 13.3%, above the sector average (2.0%). The operating margin is 4.9%. The debt ratio is 218.0%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $74.5M | $98.9M | $101.5M | +2.71% ↓ slower |
| Operating profit | $2.0M | $5.2M | $5.0M | -3.08% ↓ slower |
| Net profit | $7.1M | $9.8M | $13.6M | +38.96% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $77.0M | $70.0M | $74.5M | $98.9M | $101.5M |
| Operating profit | $6.4M | $6.2M | $2.0M | $5.2M | $5.0M |
| Net profit | $3.3M | $5.6M | $7.1M | $9.8M | $13.6M |
| Revenue CAGR | 4-yr avg 7.14% | ||||
Revenue rose 2.7% year over year (2023 ₩112.3 billion → 2024 ₩149.1 billion → 2025 ₩153.2 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit fell 3.1% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 7.1%. The two-year revenue CAGR is 16.8%. In the most recent quarter (Q1 2026), revenue was 27.6% lower 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 13.3% points to solid profitability.
Points to watch
- Revenue rose 2.7% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-05-21UpdateSigning of a single-sale/supply contract for railway signaling (amended) — contract value about ₩14.3 billion, 16.6% of recent annual revenueA positive factor reinforcing the revenue base of the order-based core business. However, the reflection in quarterly results may be delayed depending on the timing of revenue recognition. Source
- 2026-05-15FilingDecision to transfer tangible assets (real estate) — sale of held real estateThe disposal gain is reflected as 2026 non-operating profit, a one-off factor lifting this year's net profit. It needs to be viewed separately from core-business profit. Source
- 2026-05-14EarningsFirst-quarter 2026 quarterly report — revenue, operating profit, and net profit all declinedConfirms core-business weakness (revenue -27.6%, operating profit -60.4%). The pace at which accumulated orders convert into revenue is the key. Source
- 2026-03-11FilingDecision to sign a treasury-share acquisition trust agreementFavorable for supply-demand via a steadier float and an intent toward shareholder returns, but it is not a factor that changes the core-business fundamentals. Source
- 2025-12-12UpdateSigning of a single-sale/supply contract for railway signaling (amended) — contract value about ₩15.8 billion, 13.6% of recent annual revenueA flow of supply contracts worth tens of billions of won each quarter filling the order backlog. The pace of revenue conversion is the key to the core-business recovery. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 annual results (consolidated) | revenue ₩153.2 billion / operating profit ₩7.6 billion / net profit ₩20.5 billion | revenue approx. ₩153.2 billion / operating profit approx. ₩7.6 billion | Confirmed | link |
| First-quarter 2026 results | revenue ₩28.6 billion / operating profit ₩0.6 billion(-60.4%) | revenue approx. ₩28.6 billion / operating profit approx. ₩0.6 billion | Confirmed | link |
| Scale of the 2026-05-21 supply contract | approx. approx. ₩14.3 billion / revenue 16.6% | approx. approx. ₩14.3 billion / revenue 16.6% | Confirmed | link |
| This year's net profit (in-house estimate) | PER 21.2x | — | Unverified | link |
Recent filings
- 2026-05-21Single supply/sales contract (amended)
- 2026-05-15Material-fact report
- 2026-05-14PeriodicQuarterly report
- 2026-03-26OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-26OwnershipOwnership-change filing
- 2026-03-26Disclosure
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-18PeriodicAnnual business report
- 2026-03-18Audit report
- 2026-03-11TreasuryMaterial-fact report
- 2026-03-06OwnershipOwnership-change filing
📖 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.