Sanil Electric designs and manufactures transformers, which convert electricity from one voltage to another. Its main products are extra-high-voltage transformers for large power plants and transmission grids and distribution transformers, and it exports most of what it makes overseas - above all to the United States, where its export share reaches the 90% range. As the replacement of aging U.S. transmission and distribution grids, power demand from AI data centers, and renewable-connection projects overlap, orders have poured in, and the company confirmed high growth for 2025 with annual revenue of ₩501.9 billion, operating profit of ₩178.6 billion and net profit of ₩148.9 billion. In April 2026 it locked in future revenue with a large single supply contract. The clear strengths are high profitability - an operating margin in the mid-30% range and an ROE in the mid-20% range - together with a solid balance sheet at a debt ratio in the 16% range, and the fact that reflecting the fastest growth among its peers on a forward basis brings the multiple down. The main caution is that with most revenue coming from U.S. exports, the company is exposed to currency and tariff risk and to concentration in a small number of customers.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 50.3% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 52.1% higher than a year earlier.
- ROE is 25.4% (controlling-interest basis). It is above the sector average.
- Operating margin is 35.6%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Park Dong-seok 36.02% (individual)
Controlling bloc incl. related parties 55.35%
With the controlling bloc holding 55%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Sanil Electric is a company that designs, manufactures and sells 'transformers,' which convert electricity from one voltage to another.
- Its mainstays are extra-high-voltage power transformers used in large power plants and transmission grids and distribution transformers used in factories, buildings and renewable power plants, and it exports most of what it makes overseas - above all to the United States.
- Over the past several years its export share has climbed into the 90% range, and so much of that is U.S. volume that it should effectively be seen as an export manufacturer supplying key equipment to U.S. power infrastructure.
- How it makes money is straightforward.
- As the replacement of aging U.S. transmission and distribution grids, the explosive power demand of AI data centers, and renewable-energy connection projects all proceed at once, transformer orders pour in, and this company takes that volume, builds it, and sells it.
- Its scale is smaller than the large domestic power-equipment makers, but the distinctive point is that it specializes in U.S. exports and earns high margins.
- The recent close is ₩179,600 and the market cap is ₩5.5 trillion.
- The price sits below its 20-day line (₩226,060) and below its 60-day line (₩239,952).
- Trading below both its short- and mid-term moving averages, the trend is on the subdued side.
- The RSI (a supplementary gauge that weighs upward versus downward strength over the last 14 days on a 0-100 scale) is 35.1, a neutral level.
- The one-month change is -17.8%, the three-month change is +34.0%, and the position versus the 52-week high is -46.2%.
- Relative strength against the KOSPI is 60 (on a 1-99 scale, converting the past year's return versus the index with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 40% of all stocks by strength.
- Over the past three months it lagged the index by 1.6%.
- It is best to read the chart alongside trading volume and the dates of disclosures.
- Profitability is this company's greatest strength.
- Its ROE (how much is earned in a year per unit of equity) is 25.4%, very high, and with an operating margin of 35.6% and a net margin of 29.7% it produces margins that are unusually high for a manufacturer.
- The balance sheet is also solid: the debt ratio (debt relative to equity) is just 16.5%, the current ratio (cash-like assets against debt due within a year) is 484%, and the interest coverage ratio (how many times operating profit covers interest) is 52.8x, so the debt burden is almost nil.
- On valuation, the P/E ratio (how many times one year's profit the share price represents) on last year's results is 53.8x and the P/B (how many times net assets) is 9.39x, which look high on the numbers alone.
- However, this company is in a growth inflection phase where profit jumps sharply each year, so a P/E based on 'last year's profit' looks at a year already gone and makes the stock appear more expensive than it is.
- Once this year's growing profit is factored in, the multiple falls considerably (explained in the growth section).
- Growth is very steep.
- Over the past three years revenue moved from ₩214.5 billion to ₩334.0 billion to ₩501.9 billion, operating profit from ₩46.6 billion to ₩109.2 billion to ₩178.6 billion, and net profit from ₩39.0 billion to ₩83.7 billion to ₩148.9 billion, all rising sharply each year.
- In 2025 revenue rose +50.3%, operating profit +63.5% and net profit +78.0% year over year, and in the first quarter of 2026, growth in the 50% range continued with revenue of ₩150.3 billion (+52.1%), operating profit of ₩55.5 billion (+47.9%) and net profit of ₩45.9 billion (+46.9%).
- The outlook is what matters.
- The transformer industry is in a structural boom with supply so extremely tight that, even when orders are placed centered on the United States, buyers must wait more than two years, and this trend is expected to run over several years rather than end in a single year.
- Sanil Electric has brought its second plant online to greatly expand production capacity and is filling that volume into actual revenue this year; the 50%-range growth already confirmed in the first quarter is expected to continue alongside a second-half ramp-up.
- Taking together the first-quarter profit trend, the capacity expansion and the industry phase, this year's net profit is estimated to rise clearly above last year's (₩148.9 billion), and on this increased profit the share multiple falls by about 30% versus the level on last year's results, so it is hard to view as excessive relative to the pace of growth.
- The most notable disclosure is the single sale/supply contract signed on April 30, 2026; given the nature of products like transformers that take a long time to build, a large supply contract carries strong meaning as locking in future revenue in advance.
- On the same day the company disclosed its preliminary consolidated 2025 operating results and year-end close, confirming high growth of ₩501.9 billion in annual revenue, ₩178.6 billion in operating profit and ₩148.9 billion in net profit, and the first-quarter 2026 report on May 15 confirmed the growth had continued.
- From March to May there was a series of ownership-related disclosures, including large-holding and largest-shareholder ownership changes and executive and major-shareholder stake changes; these are ownership-structure filings common in a newly listed stock and are a matter to view from a supply-demand standpoint, separate from business results.
- Rather than press articles, it is safer to treat the original disclosures as primary source material and confirm whether orders translate into actual revenue and cash flow.
- The strengths are clear.
- The company is riding the structural growth axis of U.S. power-infrastructure demand; it combines high profitability - an operating margin in the mid-30% range and an ROE in the mid-20% range - with a solid balance sheet at a debt ratio in the 16% range; and its growth rate is the highest even among the power-equipment peers it is compared with.
- The 53.8x P/E on last year's results looks high, but because it is in an inflection phase where profit jumps sharply each year, on a forward basis that reflects this year's growing profit the multiple falls by about 30%, so given the fastest growth among its peers it actually sits on the lower side.
- The cautions must be viewed together.
- Because most revenue comes from U.S. exports, results can swing sharply with the exchange rate and with changes in U.S. tariff and trade policy, and there is concentration risk from heavy dependence on a single large market and a small number of customers.
- Also, with the share price having nearly doubled in six months, growth expectations are substantially reflected, so if the pace of growth slows the valuation burden could grow.
- In sum, it is a strong stock as long as U.S. power investment and the transformer supply shortage continue, and a structure that weakens if U.S. demand, the exchange rate or tariffs are shaken.
🔎 Valuation vs peers Fairly valued
Compared against domestic power-equipment (transformer-centered) makers with a high U.S. export share; HD Hyundai Electric and LS Electric are larger with broader business scope and differ directly in scale, but share the same power-equipment demand cycle.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| HD Hyundai Electric | 40.10x | 14.48x | 36.11% |
| Hyosung Heavy Industries | 49.68x | 10.98x | 22.11% |
| LS Electric | 99.12x | 13.73x | 13.85% |
(a) Position versus peers: the 53.8x P/E on last year's results is similar to HD Hyundai Electric (49.8x) and far below Hyosung Heavy Industries (66.7x) and LS Electric (137.9x). (b) Premium/discount: with the highest growth rate among peers and top-tier ROE and balance sheet, a degree of premium is partly justified. (c) Limits of trailing and the forward basis: Sanil Electric is in an inflection phase where profit jumps sharply each year, so a multiple on 'last year's profit' makes it look more expensive than it is. Reflecting the confirmed first-quarter results, the growth trajectory and the capacity expansion from the second plant coming online, the multiple on this year's earnings falls by about 30%, and given the fastest growth it is hard to view as excessive. That said, with the share price having nearly doubled over the past half-year, growth expectations are substantially reflected; it is judged Fairly valued as a range that is justified as long as growth continues but where the burden grows if growth slows.
Price history Close · MA20 · MA60
The latest close is ₩179,600 and the market capitalization is ₩5.5 trillion. The price sits below its 20-day moving average (₩226,060) and below its 60-day moving average (₩239,952). 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 35.1, a neutral level. The one-month change is -17.8%, the three-month change is +34.0%, and the position relative to the 52-week high is -46.2%. Relative strength versus the KOSPI is 60 (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 60% of all stocks. Over the past three months it lagged the index by 1.6%. 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 -1.61% / 6M -20.04% / 12M -8.30%
Key metrics vs sector median
Valuation
The P/E of 36.92x is in line with the sector median (40.10x). The P/B of 9.39x is in line with the sector median (10.98x).
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 6.5%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.469x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 25.4%, above the sector average (22.0%). The operating margin is 35.6%. The debt ratio is 16.5%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $142.2M | $221.4M | $332.7M | +50.28% ↓ slower |
| Operating profit | $30.9M | $72.4M | $118.4M | +63.54% ↓ slower |
| Net profit | $25.9M | $55.5M | $98.7M | +77.97% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $142.2M | $221.4M | $332.7M |
| Operating profit | — | — | $30.9M | $72.4M | $118.4M |
| Net profit | — | — | $25.9M | $55.5M | $98.7M |
| Revenue CAGR | 2-yr avg 52.96% | ||||
Revenue rose 50.3% year over year (2023 ₩214.5 billion → 2024 ₩334.0 billion → 2025 ₩501.9 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 63.5% year over year. The pace of that profit growth is gradually easing. Over the 3 years on record, revenue compound annual growth (CAGR) is 53.0%. The two-year revenue CAGR is 53.0%. In the most recent quarter (Q1 2026), revenue was 52.1% 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 25.4% points to solid profitability.
- Revenue grew 50.3% 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
- 2026-04-30UpdateDisclosure of a single sale/supply contract - a transformer supply contract securing future revenue in advanceA factor that raises mid-term revenue visibility. Transformers have long lead times, so a large contract becomes a foundation for several years of results Source
- 2026-04-30EarningsPreliminary consolidated 2025 operating results disclosure - revenue ₩501.9 billion, operating profit ₩178.6 billion, net profit ₩148.9 billionConfirmed high growth of +50.3% revenue, +63.5% operating profit and +78.0% net profit. Demonstrated high margins and growth at the same time Source
- 2026-05-15EarningsFirst-quarter 2026 report - revenue ₩150.3 billion (+52.1%), operating profit ₩55.5 billion (+47.9%), net profit ₩45.9 billion (+46.9%)Growth in the 50% range continued early in the year, confirming that the volume increase from the second plant coming online is showing up in results Source
- 2026-05-28FilingCorporate governance report disclosure - regular disclosure of governance statusThe direct impact on results is limited, but it is a routine information-disclosure item for a listed company Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-28Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-05-12OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-30EarningsFair-disclosure notice
- 2026-04-30EarningsFair-disclosure notice
- 2026-04-30Single supply/sales contract
- 2026-04-17OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-15EarningsEarnings disclosure
- 2026-04-03PeriodicAnnual business report (amended)
- 2026-04-03OwnershipAmended filing
- 2026-03-27OwnershipOwnership-change filing
- 2026-03-27OwnershipLargest-shareholder ownership change 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.