Sejin Heavy Industries makes the deckhouses (the crew accommodation and steering superstructure that sits on top of a ship), gas tanks for LPG carriers, and hull blocks that it supplies to shipyards. In 2025 deckhouses accounted for roughly 59% of revenue and hull components for about 40%, and the company is effectively the domestic number one in both, with HD Hyundai Heavy Industries and HD Hyundai Mipo as its main customers. On March 31, 2026 it voluntarily disclosed a corporate value-up plan and announced the results of its annual general meeting along with a change of CEO; the dividend is ₩225 per share (a yield of about 1.7%), so a key thing to watch is whether the value-up plan translates into stronger actual shareholder returns. On the positive side, the company generates a 22% ROE and an 18% operating margin, sits in a net cash position, benefits from the strong ordering cycle for LPG and gas carriers with deliveries scheduled out to 2028-2029, and its valuation looks lower on this year's earnings. On the cautionary side, its customer base is concentrated in the HD Hyundai group so earnings hinge on the shipbuilders' orders and price negotiations, quarterly results swing with delivery timing, and at a P/B in the low 3x range the shares are not cheap relative to asset value.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 279.1%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 81.9%).
- Revenue rose 14.3% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 11.4% lower than a year earlier.
- ROE is 22.2% (controlling-interest basis). It is above the sector average.
- Operating margin is 18.2%.
- P/B is high versus peers, a stretch on an asset basis.
Ownership & governance As of 2025-12-31
Largest shareholder Yoon Ji-won 44.1% (individual)
Controlling bloc incl. related parties 59.42%
With the controlling bloc holding 59%, control is very secure but the free float is thin.
🔎 In-depth analysis
- The way Sejin Heavy Industries earns money is simple and clear.
- It makes the 'deckhouse' (the crew accommodation and steering superstructure that sits on the upper part of a ship) and the gas tanks and hull blocks that go into LPG carriers, and supplies them to shipyards.
- In 2025 revenue was made up of about 59% deckhouses, about 40% hull components (LPG tanks and blocks), and the rest other items.
- The company is effectively the domestic number one in both product lines, and its main customers are HD Hyundai Heavy Industries and HD Hyundai Mipo.
- Put simply, when a large shipyard wins an order for a vessel, Sejin takes charge of building the accommodation block and gas tanks that go into it — a supplier structure tightly bound to the major shipbuilders.
- The latest close is ₩11,330 and market capitalization is ₩644.1 billion.
- The price sits below the 20-day line (₩13,875) and below the 60-day line (₩16,248).
- Trading beneath both the short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a gauge that measures the strength of gains versus losses over the past 14 days on a 0-100 scale) is 33.6, a neutral level.
- The one-month change is -18.7%, the three-month change is -31.9%, and the position versus the 52-week high is -46.6%.
- Relative strength against the KOSPI is 15 (on a 1-99 scale, computed from returns versus the index over the past year with more weight on recent periods; higher means stronger than the market).
- That places it in roughly the top 86% of all stocks by strength.
- Over the past three months it lagged the index by 49.6%.
- Chart reading is best done alongside volume and the dates on which disclosures occurred.
- Profitability is this company's biggest strength.
- ROE (how much it earns in a year on its equity) is a sizable 22.2%.
- The operating margin (the share of revenue kept as profit) is also a thick 18.2% for a shipbuilding-equipment maker.
- On the balance sheet, appearances differ from reality.
- The debt ratio (debt relative to equity) prints at a high 279%, but much of that debt is advance payments customers pay upfront — a feature of the shipbuilding business — and in practice the company holds ₩48.0 billion more cash than debt, a net cash position.
- Its ability to cover interest (an interest coverage ratio of 5.9x) is also comfortable.
- Enterprise-value measures that reflect debt look sound too.
- EV/EBIT (enterprise value divided by operating profit — essentially a debt-inclusive P/E) is 9.5x and EV/Sales (enterprise value divided by revenue) is 1.7x.
- The FCF yield (the cash actually generated relative to market cap) is 6.4%, so this is a company that steadily produces cash.
- That said, the P/B (how many times the shares trade above net asset value) is 2.82x, which looks expensive against assets.
- The growth trajectory is clear.
- In 2025 revenue rose 14.3% year on year, operating profit roughly doubled (+104%), and net profit more than tripled (+346%).
- Over five years net profit climbed step by step from ₩14.0 billion in 2021 to ₩50.7 billion in 2025 — an earnings step-up phase.
- In the first quarter of 2026 revenue and operating profit dipped slightly from a year earlier, but net profit actually rose 19.8%.
- This reflects timing differences in early volume recognition rather than a change in direction.
- Orders for LPG and gas carriers — the company's end market — continue to run strong, and deliveries of those vessels are scheduled out to 2028-2029, so the volume of deckhouses and LPG tanks Sejin will build is underpinned from behind.
- Reflecting this trajectory, there is room for 2026 earnings to climb another notch above 2025, and while the P/E on last year's results looks somewhat high, it actually falls when measured against this year's earnings.
- On March 31, 2026 the company voluntarily disclosed a 'corporate value-up plan.' In line with the government's corporate value-up policy, it is a company-level commitment to improve shareholder returns and capital efficiency.
- On the same day it concluded its annual general meeting and announced a change of CEO.
- In late March there were filings related to the largest shareholder's holdings and a large-holdings report.
- In May the first-quarter 2026 report (including a correction) and the corporate governance report were disclosed.
- The company pays a dividend (₩225 per share, a yield of about 1.7%), so a key point to watch is whether the value-up plan leads to stronger actual shareholder returns.
- The strengths are clear.
- It is the domestic number-one supplier of deckhouses and LPG tanks, tightly tied to the major shipbuilders; profitability is high with a 22% ROE and an 18% operating margin; and it sits in a net cash position with good cash generation.
- Its end market — the boom in LPG and gas carrier orders and a delivery schedule stretching to 2028-2029 — underpins volume.
- Last year's surge in earnings makes the P/E look high, but recomputed on this year's earnings it actually falls, making this an earnings-inflection stock.
- The cautions deserve equal weight.
- With customers concentrated in the HD Hyundai group, results depend heavily on the large shipyards' orders and price negotiations.
- As is typical of shipbuilding, quarterly results swing with delivery timing.
- And at a P/B in the 3x range, the shares are not cheap relative to asset value — a point to weigh in balance.
- In short, this is a stock that is strong when shipbuilding orders stay robust and deliveries proceed on plan, and weaker when orders cool or deliveries slip.
🔎 Valuation vs peers Fairly valued
Domestic shipbuilding-equipment suppliers that deliver components and blocks to the major shipbuilders, including firms in the gas-carrier value chain.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| DongSung Finetec | 8.43x | 1.82x | 21.59% |
| Oriental Precision & Engineering | 10.25x | 1.57x | 15.27% |
| SK Oceanplant | 21.99x | 1.02x | 4.64% |
Last year's earnings surge put the P/E (how many times a year's earnings the shares trade at) at 14.8x, which does not look low versus peers. But 2025 was an earnings-inflection year in which net profit more than tripled, so the P/E on last year's figures overstates the true valuation. Recomputed on this year's earnings the multiple falls to around 12x, and given that the company's profitability (a 22% ROE) is the highest in the peer set, the level is not stretched relative to earnings. The P/B (how many times net asset value the shares trade at), by contrast, is 2.82x — higher than peers — so on an asset basis there is a premium attached. Taken together, high profitability and cash generation justify the valuation while the P/B premium offsets it, so we view the shares as fairly valued relative to earnings.
Price history Close · MA20 · MA60
The latest close is ₩11,330 and the market capitalization is ₩644.1 billion. The price sits below its 20-day moving average (₩13,875) and below its 60-day moving average (₩16,248). 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 33.6, a neutral level. The one-month change is -18.7%, the three-month change is -31.9%, and the position relative to the 52-week high is -56.6%. Relative strength versus the KOSPI is 15 (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 14% of all stocks. Over the past three months it lagged the index by 49.6%. 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 -49.59% / 6M -61.45% / 12M -55.78%
Key metrics vs sector median
Valuation
The P/E of 12.71x is in line with the sector median (12.45x). The P/B of 2.82x is above the sector median (1.64x).
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 11.3%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.22x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 22.2%, above the sector average (15.0%). The operating margin is 18.2%. The debt ratio is 279.1%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $255.0M | $233.5M | $266.9M | +14.28% ↑ faster |
| Operating profit | $22.2M | $23.8M | $48.6M | +103.97% ↑ faster |
| Net profit | $11.3M | $7.5M | $33.6M | +346.50% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $165.9M | $271.8M | $255.0M | $233.5M | $266.9M |
| Operating profit | $2.5M | $16.5M | $22.2M | $23.8M | $48.6M |
| Net profit | $9.3M | $8.9M | $11.3M | $7.5M | $33.6M |
| Revenue CAGR | 4-yr avg 12.61% | ||||
Revenue rose 14.3% year over year (2023 ₩384.8 billion → 2024 ₩352.4 billion → 2025 ₩402.7 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit rose 104.0% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 12.6%. The two-year revenue CAGR is 2.3%. In the most recent quarter (Q1 2026), revenue was 11.4% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- ROE of 22.2% points to solid profitability.
- Revenue grew 14.3% year over year, a sign of growth.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-03-31FilingVoluntary disclosure of a corporate value-up plan, publicly committing at the company level to improved shareholder returns and capital efficiency.Raises expectations for stronger dividends and shareholder returns over the medium term; the intensity of execution is what matters. Source
- 2026-03-31FilingAnnouncement of the AGM results and a change of CEO, with the leadership transition occurring together.A near-term factor in governance and management direction. Source
- 2026-05-15EarningsFirst-quarter 2026 report disclosed. Revenue of ₩87.2 billion (-11.4%) and operating profit of ₩13.6 billion (-23.4%), but net profit of ₩15.8 billion (+19.8%).Revenue and operating profit slipped slightly year on year while net profit rose, interpreted as an effect of delivery timing. Source
- 2026-03-23Earnings2025 annual report disclosed. Revenue of ₩402.7 billion (+14.3%), operating profit of ₩73.4 billion (+104%), and net profit of ₩50.7 billion (+346%).Officially confirms a year in which earnings took a step-change leap. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-29Corporate governance report
- 2026-05-18PeriodicQuarterly report (amended)
- 2026-05-15PeriodicQuarterly report
- 2026-04-06OwnershipLargest-shareholder ownership change report
- 2026-03-31Disclosure
- 2026-03-31Shareholders' meeting notice
- 2026-03-31Disclosure
- 2026-03-23PeriodicAnnual business report
- 2026-03-23Audit report
- 2026-03-20OwnershipOwnership-change filing
- 2026-03-16Disclosure
- 2026-03-16Shareholders' 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.