SFA Engineering's core businesses are smart-factory (logistics automation) and display equipment, expanded through its subsidiary CIS (battery electrode equipment) and its listed subsidiary SFA Semicon (semiconductor back-end packaging). Its 2025 consolidated revenue of about ₩1.631 trillion breaks down into roughly ₩790.2 billion from smart factory, about ₩407.2 billion from CIS, and about ₩367.4 billion from SFA Semicon. On April 1, 2026, a corporate value-up plan formalized targets of at least 12% average annual growth and a 12%-plus operating margin through 2030, along with shareholder returns, and the company stated that its 2025 payout ratio of 48.5% meets the criteria for a high-dividend company. What stands out lately is that most of the market cap is explained by the market value of its listed stake in SFA Semicon plus net cash of about ₩262.7 billion, a signal of NAV undervaluation, backed by a 4.3% dividend and a solid balance sheet. On the other hand, the business is heavily driven by customer capex cycles, and in a downturn in downstream investment like 2024 it can even swing to a loss.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 252.1%).
- Revenue fell 20.3% year over year (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 9.3% lower than a year earlier.
- ROE is 6.1% (controlling-interest basis). It is above the sector average.
- Operating margin is 5.3%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder DY Holdings 40.98% (corporate)
Controlling bloc incl. related parties 43.72%
With the controlling bloc holding 44%, the ownership structure is stable.
🔎 In-depth analysis
- SFA Engineering designs and builds equipment that goes into factory production lines and sells it.
- There are broadly four streams.
- First, smart-factory (logistics automation) and display and inspection equipment (a large pillar of standalone revenue).
- Second, battery electrode-process equipment via its subsidiary CIS (33.23% stake).
- Third, semiconductor back-end packaging via its listed subsidiary SFA Semicon (55.12% stake).
- Fourth, other automation equipment.
- Its 2025 consolidated revenue of about ₩1.631 trillion consists of roughly ₩790.2 billion from smart factory, about ₩407.2 billion from CIS electrode equipment, and about ₩367.4 billion from SFA Semicon.
- Rather than mass-producing parts directly, the company wins orders and delivers the equipment customers install when building new plants or lines, so revenue is heavily driven by the timing of downstream capex.
- The recent closing price is ₩21,000 and the market cap is ₩754.1 billion.
- The price sits below the 20-day line (₩24,195) and below the 60-day line (₩27,619).
- Trading beneath both the short- and mid-term moving averages, the trend looks subdued.
- RSI (a supplementary gauge that compares upward and downward force over the past 14 days on a 0-100 scale) is 34.0, a neutral level.
- The one-month change is -13.2%, the three-month change is -20.2%, and the position relative to the 52-week high is -41.1%.
- Relative strength versus the KOSDAQ is 68 (on a 1-99 scale, converting return versus the index over the past year with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 32% of all stocks by strength.
- Over the past three months it led the index by 4.1%.
- Chart reading is best done alongside trading volume and disclosure dates.
- The P/E ratio (how many times one year of net profit the price represents) is 13.69x.
- P/B (how many times the company's net assets the price represents) is 0.84x, meaning it trades below even book net assets.
- But P/B alone masks this company's real value, because the listed subsidiary SFA Semicon stake is carried on the books at low acquisition cost; measured at market value, net assets are much larger.
- The balance sheet is solid.
- Net debt (total borrowings minus cash) is about negative ₩262.7 billion, a net-cash position where cash far exceeds debt.
- A current ratio of 212% also leaves ample short-term liquidity.
- The debt-to-equity ratio of 252% looks high on the number alone, but it reflects order advances, contract liabilities, and subsidiary consolidation mixed together; the reality is net cash, so it is hard to read as a financial risk signal.
- EV/EBIT (a P/E-like multiple that also reflects debt and cash) is 6.2x, showing the core business is priced quite cheaply once net cash is stripped out.
- EV/Sales (enterprise value divided by revenue) is 0.33x.
- FCF yield (the ratio of actual cash generated to market cap) is about 7.1%, so cash generation is also healthy.
- The growth trajectory shows the cycle plainly.
- Revenue rose from ₩1.5649 trillion in 2021 to ₩2.0453 trillion in 2024, then fell to ₩1.631 trillion in 2025 (-20.3% YoY).
- Operating profit slid from ₩188.9 billion in 2021 to a loss of ₩48.4 billion in 2024, then turned positive at ₩85.9 billion in 2025.
- Net profit also swung from a ₩72.6 billion loss in 2024 to a ₩55.1 billion profit in 2025.
- In short, 2024 was the trough and recovery began in 2025.
- However, first-quarter 2026 posted revenue of ₩361.1 billion (-9.3%) and operating profit of ₩15.4 billion (-46.8%), so core-business margin recovery is still slow.
- Net profit was relatively firm at ₩20.4 billion (-5.0%), supported by financial income from ample net cash and by subsidiary results.
- In its April 2026 corporate value-up plan the company set targets of at least 12% average annual growth and a 12%-plus operating margin through 2030.
- Battery and logistics-automation orders are in a phase of filling in toward the second half.
- The most important disclosure is the corporate value-up plan filed voluntarily on April 1, 2026.
- It formalized growth (at least 12% average annual) and profitability (12%-plus operating margin) targets through 2030, together with a shareholder-return policy pairing higher dividends and share buybacks.
- The company stated that its 2025 payout ratio of 48.5% meets the criteria for a high-dividend company.
- This firm has kept a consistent return stance, maintaining its dividend even through the 2024 net loss.
- In March, the regular shareholders' meeting and the 2025 annual report filing followed, and in May an investor briefing (IR) and the first-quarter report were disclosed.
- In April, a large-holding change on the part of top shareholder DY Holdings lowered its holding slightly from 43.87% to 43.44%.
- Based on the company's own filings and IR, a trend aimed at both an earnings recovery and stronger shareholder returns is confirmed.
- There are three observation points.
- First, from a net-asset-value view, the undervaluation signal is clear.
- The market value of the 55.12% stake in listed subsidiary SFA Semicon plus net cash (about ₩262.7 billion) alone explains most of the company's market cap, meaning the core equipment business is priced at almost nothing.
- Second, the balance sheet is solid, the dividend yield is high at 4.3%, and the company has committed growth and profitability targets and shareholder returns to a formal document, which is a strength on the stability side.
- Third, the caution is that the business is heavily driven by customer capex cycles.
- In a downturn in downstream investment like 2024, it can even swing to a loss.
- In sum, undervaluation appeal comes to the fore when orders recover and margins normalize, whereas earnings volatility rises again if downstream investment freezes up.
🔎 Valuation vs peers Undervalued
Compared against domestic listed equipment makers in process equipment (display, battery, semiconductor back-end) and logistics automation, plus the listed subsidiary that is core to the company's real value.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| SFA Semicon | 0.00x | 1.73x | -4.05% |
| Wonik IPS | 61.28x | 5.31x | 8.66% |
Judging this company on simple P/E and P/B alone misses its real value. The market value of the 55.12% stake in listed subsidiary SFA Semicon exceeds half the company's market cap, and adding net cash of about ₩262.7 billion fills up most of it. In other words, a core equipment business with revenue in the ₩1.6 trillion range is effectively priced at almost nothing. The 2025 trailing P/E of 14.5x embeds recovery-phase earnings right after the 2024 loss, so it is hard to call expensive or cheap on the absolute level alone. Viewed on a forward basis that reflects net asset value, net cash, and the 2026 recovery trajectory, the stock is judged to be in undervalued territory. It also sits at a relatively low level compared with pure semiconductor-equipment names like Wonik IPS that carry high multiples.
Price history Close · MA20 · MA60
The latest close is ₩21,000 and the market capitalization is ₩754.1 billion. The price sits below its 20-day moving average (₩24,195) and below its 60-day moving average (₩27,619). 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 34.0, a neutral level. The one-month change is -13.2%, the three-month change is -20.2%, and the position relative to the 52-week high is -41.1%. Relative strength versus the KOSDAQ is 68 (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 68% of all stocks. Over the past three months it outpaced the index by 4.1%. 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 +4.06% / 6M +5.57% / 12M -9.95%
Key metrics vs sector median
Valuation
The P/E of 13.69x is in line with the sector median (14.44x). The P/B of 0.84x is below the sector median (1.44x).
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 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.14x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 6.1%, above the sector average (5.0%). The operating margin is 5.3%. The debt ratio is 252.1%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.2B | $1.4B | $1.1B | -20.26% ↓ slower |
| Operating profit | $58.9M | -$32.1M | $56.9M | — |
| Net profit | $26.5M | -$48.1M | $36.5M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.0B | $1.1B | $1.2B | $1.4B | $1.1B |
| Operating profit | $125.2M | $106.7M | $58.9M | -$32.1M | $56.9M |
| Net profit | $77.5M | $51.1M | $26.5M | -$48.1M | $36.5M |
| Revenue CAGR | 4-yr avg 1.04% | ||||
Revenue fell 20.3% year over year (2023 ₩1.9 trillion → 2024 ₩2.0 trillion → 2025 ₩1.6 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Over the 5 years on record, revenue compound annual growth (CAGR) is 1.0%. The two-year revenue CAGR is -6.4%. In the most recent quarter (Q1 2026), revenue was 9.3% 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.
- The dividend yield, at 4.5%, is on the high side.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 20.3% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-04-01FilingCorporate value-up plan (voluntary disclosure) announced — targets of at least 12% average annual growth and a 12%-plus operating margin through 2030, with a shareholder-return policy pairing higher dividends and buybacks written into the plan (2025 payout ratio 48.5%).Over the mid term, formalizes growth and profitability targets and the return policy, providing a reference point for a re-valuation. The pace of meeting the targets is the key. Source
- 2026-05-15EarningsFirst-quarter 2026 quarterly report filed — revenue of ₩361.1 billion (-9.3%), operating profit of ₩15.4 billion (-46.8%), net profit of ₩20.4 billion (-5.0%).In the short term, confirms that core operating-profit recovery is slow. Net profit was relatively defended by net-cash-based financial income and subsidiary results. Source
- 2026-05-15IRInvestor briefing (IR) held — explained first-quarter results and business status.In the short term, a channel for communicating with the market on the pace of recovery and the order pipeline. Source
- 2026-04-07UpdateLarge-holding change by top shareholder DY Holdings and others — a disposal by related parties and an executive's retirement lowered the holding from 43.87% to 43.44%.Not enough to shake control, but the top shareholder's stake changes and collateral status warrant checking. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| SFA Semicon (036540) ownership ratio | 55.12% | 55.12% | Confirmed | link |
| 2030 growth and profitability targets (12%+ average annual, 12%+ operating margin) | — | (2026-04-01) | Confirmed | link |
| 2025 annual revenue / operating profit / net profit | revenue 16,310 · operating profit 859 · net profit 551 | 2025 | Confirmed | link |
| 2026 net profit estimate (about ₩63 billion) | approx. 630(forward PER 12.7) | — | Unverified | link |
Recent filings
- 2026-05-15Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-04-27PeriodicAnnual business report (amended)
- 2026-04-07OwnershipOwnership-change filing
- 2026-04-01Disclosure
- 2026-03-31Disclosure
- 2026-03-31Shareholders' meeting notice
- 2026-03-23PeriodicAnnual business report
- 2026-03-23Audit report
- 2026-03-17Amended filing
- 2026-03-17Amended filing
- 2026-03-16Disclosure
📖 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.