Shinsung Delta Tech is a contract manufacturer that makes home-appliance parts and secondary-battery components for EVs and ESS; the appliance segment accounts for about 43% of revenue (drum-washer parts alone making up the 40%-plus range) with LG Electronics as its main customer, EV battery packs alone take up around 20% of revenue, and it adds robot-vacuum OEM work on top. The 2025 annual report confirmed that its superconductor-related stake was fully written off in the accounts, and the Q1 report showed revenue up but operating profit sharply down, confirming margin pressure; the dividend is 120 won per share. The notable points right now are that stable revenue on a large-customer base plus five straight years of top-line growth and business diversification are strengths, while a 2.3% net margin, an interest-coverage ratio below 1x and a 374.5% debt ratio leave thin financial slack that makes it vulnerable to earnings swings, and going forward the stability of appliance parts and whether the secondary-battery cycle recovers will decide results.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 374.5%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue rose 7.2% year over year, and the pace is quickening (3-year trend: rising).
- Net profit swung from a loss a year earlier back into the black (a turnaround).
- Most recent quarter (Q1 2026) revenue was 6.6% higher than a year earlier.
- ROE is 8.7% (controlling-interest basis). It is above the sector average.
- Operating margin is 2.9%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Koo Bon-sang 17.5% (individual)
Controlling bloc incl. related parties 32.64%
With the controlling bloc holding 33%, the ownership structure is stable.
🔎 In-depth analysis
- This company is a contract manufacturer that makes home-appliance parts and secondary-battery components for EVs and ESS.
- Nearly half of revenue (about 43%) comes from the appliance segment, and within that, drum-washer parts are the largest at the 40%-plus range of total revenue.
- The main customer is LG Electronics, and it also supplies parts to Cuckoo, Rinnai, KT&G and others.
- The other pillar is the secondary-battery segment, where it makes EV battery packs and components such as cell cartridges, busbars and heat sinks, with EV battery packs alone taking up around 20% of revenue.
- On top of that comes OEM (original equipment manufacturing) work for premium small appliances such as robot vacuums.
- In short, rather than finished goods, its structure is to book revenue by supplying parts to large customers, so scale is large but margins are on the thin side.
- The latest closing price is 27,850 won and the market cap is 765.4 billion won.
- The price sits below its 20-day line (34,862 won) and below its 60-day line (45,848 won).
- Trading below both its short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that scores the strength of gains versus losses over the past 14 days on a 0-100 scale) is 28.7, near depressed territory.
- The one-month change is -28.0%, the three-month change is -47.9%, and the position versus the 52-week high is -65.2%.
- Relative strength against the KOSDAQ is 29 (1-99, calculated from returns 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 71% of all stocks by strength.
- Over the past three months it lagged the index by 32.5%.
- Chart reading is best done alongside trading volume and disclosure dates.
- The P/E ratio (how many times one year's profit the share price is) is about 39x, above the market average.
- The reason this figure is high is not that profit is explosive but that the net margin is thin at 2.3%.
- Revenue is large at 945.4 billion won, but because little of that revenue is left over, the market-cap multiple against profit grows.
- The P/B (how many times net assets the share price is) is 3.07x and ROE (how much is earned in a year on equity) is 8.7%, an average level of profitability against equity.
- What stands out on the balance sheet is that the debt ratio (debt versus equity) is quite high at 374.5%.
- This is because contract manufacturing carries heavy working-capital and equipment burdens by nature.
- The interest-coverage ratio (the ability to pay interest out of operating profit) is below 1x, meaning the operating profit earned barely covers the interest burden.
- Debt-inclusive metrics make the picture heavier.
- Net debt (total borrowings less cash) is about 269.5 billion won.
- EV/EBIT (enterprise value divided by operating profit; a debt-inclusive counterpart to P/E) is about 40x, a heavier burden than the P/E.
- The free-cash-flow yield (the ratio of actual cash generated to market cap) is negative, meaning recent equipment and working-capital investment saw more cash spent than the cash generated.
- Revenue has grown steadily for five straight years.
- It rose at an annual average in the 6% range, from 737.5 billion won in 2021 to 945.4 billion won in 2025, and increased 7.2% year over year in 2025 as well.
- Operating profit, by contrast, peaked at 43.9 billion won in 2021 and slid to 27.7 billion won by 2025.
- This is the classic contract-manufacturing pattern where revenue grows but margins are squeezed.
- Net profit came close to a small loss in 2024 owing to items such as the write-down of the superconductor-related stake, then recovered to a normal track of 21.7 billion won in 2025.
- In Q1 2026, however, revenue rose 6.6% to 276.6 billion won but operating profit fell 31.5% to 7.1 billion won.
- This appears to be a slowdown in the EV and battery cycle pressuring the segment's profitability.
- Revenue growth is alive but the elasticity of the profit recovery is still weak.
- This year's net profit is estimated to be similar to or slightly below last year.
- In that case the profit-based P/E for this year is also around 40x, not much different from the trailing (last-year) figure.
- In other words, rather than a case where an earnings inflection reveals undervaluation, it is a case where the thin margin is consistently reflected in the valuation.
- Recent disclosures cluster on three fronts.
- First, the 2025 annual report confirmed that the stake related to the research firm that had claimed a superconductor was fully written off in the accounts.
- The theme expectations that pushed up the 2023 share price have been completely cleared from the books.
- Second, the Q1 2026 report showed revenue up but operating profit sharply down, so the margin pressure in the core business appeared in the figures.
- Third, in May there was a disclosure of a decision on debt guarantees for an affiliate, a point to watch alongside the already-high debt ratio for its financial burden.
- The dividend is 120 won per share, a dividend yield of about 0.4%, a small amount that is maintained.
- This is a stock with clear strengths and weaknesses.
- The strength is stable revenue on a large-customer base.
- Five straight years of top-line growth, and business diversification spanning appliances, secondary batteries and robots, are also strengths.
- The weaknesses are the thin margin and high debt.
- A 2.3% net margin, an interest-coverage ratio below 1x and a 374.5% debt ratio mean that even a modestly larger earnings swing can quickly erode financial slack.
- On the valuation side, a P/E of 39x is not undervaluation ahead of an earnings explosion but the result of a thin margin.
- On this year's earnings the picture is similar.
- With the superconductor-theme expectations cleared from the books, the stability of appliance parts and whether the secondary-battery segment's cycle recovers will decide results going forward.
- If EV and battery demand revives and battery-component margins recover, there is room for the margin to improve.
- Conversely, if the slowdown continues, revenue may grow while profit stays flat.
🔎 Valuation vs peers Fairly valued
Since it is not a finished-goods maker but a contract manufacturer supplying parts to large customers, we take similar electronics and module contract manufacturers and automotive and EV parts makers as a directional peer set.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Dreamtech | 3115.38x | 0.75x | 0.02% |
| HL Mando | 22.70x | 0.84x | 3.69% |
The P/E of 39x is high on its face, but this is not the premium of a stock ahead of an earnings explosion; it is the result of a thin 2.3% net margin that inflates the multiple against profit. On this year's earnings too the forward P/E is around 40x, not much different from the trailing figure, so this is not a case where an earnings inflection reveals undervaluation. Against the peer set of contract manufacturers and parts makers, it is hard to call the valuation cheap either. That said, revenue growth is alive and there is room for recovery and expansion in the secondary-battery and robot segments, so the grounds to declare it outright overvalued are also weak. Given the high debt, an EV/EBIT of about 40x looks like a heavier burden than the P/E once debt is factored in, which should be viewed together. These strengths and burdens offset each other, and at this point we judge it to be within a fair range.
Price history Close · MA20 · MA60
The latest close is ₩27,850 and the market capitalization is ₩765.4 billion. The price sits below its 20-day moving average (₩34,862) and below its 60-day moving average (₩45,848). 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 28.7, near oversold territory. The one-month change is -28.0%, the three-month change is -47.9%, and the position relative to the 52-week high is -65.2%. Relative strength versus the KOSDAQ is 29 (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 29% of all stocks. Over the past three months it lagged the index by 32.5%. 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 -32.46% / 6M -41.89% / 12M -59.14%
Key metrics vs sector median
Valuation
The P/E of 35.25x is above the sector median (19.17x). The P/B of 3.07x is above the sector median (2.15x).
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 8.7%, above the sector average (2.0%). The operating margin is 2.9%. The debt ratio is 374.5%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $552.6M | $584.6M | $626.6M | +7.19% ↑ faster |
| Operating profit | $19.8M | $17.5M | $18.4M | +4.62% ↑ faster |
| Net profit | $8.3M | -$659,158 | $14.4M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $488.8M | $525.9M | $552.6M | $584.6M | $626.6M |
| Operating profit | $29.1M | $21.2M | $19.8M | $17.5M | $18.4M |
| Net profit | $16.2M | $11.2M | $8.3M | -$659,158 | $14.4M |
| Revenue CAGR | 4-yr avg 6.40% | ||||
Revenue rose 7.2% year over year (2023 ₩833.7 billion → 2024 ₩882.0 billion → 2025 ₩945.4 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 4.6% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 6.4%. The two-year revenue CAGR is 6.5%. In the most recent quarter (Q1 2026), revenue was 6.6% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- Debt far exceeds equity (debt ratio 374.5%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-15EarningsQ1 2026 report. Revenue up 6.6% year over year to 276.6 billion won, operating profit down 31.5% to 7.1 billion won, net profit down 13.7% to 5.4 billion won.Revenue growth was maintained but the operating margin was squeezed, confirming core-business margin pressure in the figures. A point read as reflecting the slowdown in the secondary-battery segment. Source
- 2026-03-17FilingFiling of the 2025 annual report and audit report. Consolidated revenue of 945.4 billion won, operating profit of 27.7 billion won and net profit of 21.7 billion won restored to a normal level from the prior year's weakness. The stake related to the research firm claiming a superconductor was confirmed to be fully written off in the accounts.Profit normalized out of a small 2024 loss. With the theme-related stake value fully cleared from the books, the superconductor expectations are essentially wrapped up in the financial statements. Source
- 2026-05-20UpdateDisclosure of a decision on debt guarantees to others (corrected filing). A decision on guaranteeing affiliate-related debt.A point to watch for a contingent-liability burden on top of the already-high debt ratio (374.5%). If the guarantee converts to actual debt, it would affect financial capacity. Source
- 2026-03-25DividendResults of the annual shareholders' meeting. Year-end dividend of 120 won per share, a dividend yield of about 0.4%, maintaining a small dividend.Confirms a structure where the dividend is modest and the character leans more toward reinvestment in the business than shareholder returns. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-20OwnershipOwnership-change filing
- 2026-05-20Amended filing
- 2026-05-15PeriodicQuarterly report
- 2026-03-25Disclosure
- 2026-03-25Shareholders' meeting notice
- 2026-03-17PeriodicAnnual business report
- 2026-03-17Audit report (amended)
- 2026-03-17Audit report
- 2026-03-13Amended filing
- 2026-03-10Disclosure
- 2026-03-10Shareholders' meeting notice
- 2026-03-10Shareholders' 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.