BHI is a contract-based manufacturer whose mainstay is the HRSG (heat recovery steam generator), a key piece of equipment that recovers heat from gas-turbine exhaust to raise power-generation efficiency; it supplies power boilers, BOP, and chemical and desalination facilities to LNG combined-cycle and thermal power plant clients. In 2026, large orders in the hundreds of billions to over a trillion won have clustered — including a Middle East 850MW-class HRSG and a supply contract for the Vietnam O Mon 4 combined-cycle plant — filling several years of work; meanwhile in May the company disclosed a mostly unrealized derivative trading loss incurred while hedging dollar order proceeds. What stands out lately is a pairing of a strength and a caution: rising LNG combined-cycle demand is filling the order book fast and profit has just jumped, so this year's earnings-based valuation burden is lower than it appears; against that stand a high debt ratio, a current ratio below 100%, and quarterly net-profit swings driven by exchange rates.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 467.8%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 86.7%).
- Revenue rose 91.3% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 107.6% higher than a year earlier.
- ROE is 36.7% (controlling-interest basis). It is above the sector average.
- Operating margin is 9.8%.
- P/B is high versus peers, a stretch on an asset basis.
Ownership & governance As of 2025-12-31
Largest shareholder Park Eun-mi 16.8% (individual)
Controlling bloc incl. related parties 40.07%
With the controlling bloc holding 40%, the ownership structure is stable.
🔎 In-depth analysis
- BHI makes and sells large equipment used in power plants.
- Its mainstay product is the HRSG (heat recovery steam generator), a key piece of equipment that recaptures the heat of hot exhaust from a gas turbine to make steam and raise power-generation efficiency.
- Alongside this it supplies power boilers, BOP (balance-of-plant equipment such as condensers and heat exchangers), and chemical and desalination facilities.
- In other words, it is not a company that sells electricity directly but a contract-based manufacturer that earns money by supplying equipment to clients building LNG combined-cycle and thermal power plants.
- Overseas projects in the Middle East, Asia, and elsewhere make up a larger share of revenue than domestic ones, and because it is a project business where a single contract can run from tens of billions into the trillions of won, quarterly revenue tends to be uneven.
- The latest close is ₩45,000 and market capitalization is ₩1.4 trillion.
- The price sits below its 20-day moving average (₩57,898) and below its 60-day average (₩75,788).
- Trading beneath both the short- and mid-term averages, the trend is on the soft side.
- The RSI (an auxiliary gauge that compares upward and downward strength over the past 14 days on a 0-100 scale) is 33.0, a neutral level.
- The one-month change is -25.7%, the three-month change is -49.9%, and the position versus the 52-week high is -58.9%.
- Relative strength against the KOSDAQ is 72 (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 27% of all stocks by strength.
- Over the past three months it lagged the index by 34.8%.
- Chart reading is best done alongside trading volume and the dates of disclosures.
- Profitability metrics are notably good.
- ROE (how much is earned in a year on equity) is a very high 36.7%, and the operating margin is 9.8%.
- On valuation, the P/E ratio (how many times one year's earnings the share price represents) is 26.2x and the P/B (how many times book equity the share price represents) is 9.62x.
- But this P/E is on last year's basis, just as profit jumped.
- Accounting for the profit that grows this year, the actual burden is lower than that.
- The financial structure needs attention.
- The debt ratio (debt against equity) is a high 467.8%.
- Assets convertible to cash against debt due within a year (the current ratio) are 86.7%, below 100%.
- Given the nature of contract-based work, advance payments and construction-related liabilities loom large, but with an interest coverage ratio of 2.74x the cushion is not generous.
- On the other hand, the cash the company actually holds is ample: net debt (total borrowings minus cash; negative means net cash) is about -₩59.0 billion, a net-cash position.
- FCF yield (the ratio of cash actually generated to market cap; higher is more attractive for cash generation) is around 5.5%.
- On an enterprise-value basis that reflects debt, EV/EBIT (enterprise value divided by operating profit, a debt-adjusted equivalent of the P/E) is 21.8x, slightly lower than the plain P/E.
- Growth is steep.
- 2025 revenue rose 91.3% year over year.
- Operating profit jumped 244% and net profit 232%.
- Over five years, this is a textbook earnings turnaround, stepping up out of losses in 2021-2022.
- In Q1 2026 too, revenue rose 107.6% year over year to ₩280.8 billion and operating profit rose 183.9% to ₩35.3 billion, continuing the growth.
- The operating margin also improved to 12.6%, above the annual figure (9.8%), as high-value export volume appears to have begun flowing into results.
- However, Q1 net profit was ₩5.1 billion, down 41.3% from a year earlier — not because the business worsened, but because of a non-cash valuation loss on FX-hedging derivatives (see events below).
- This year, with large orders arriving one after another, record results are within reach.
- As the accumulated order backlog is recognized as future revenue, there is ample room for profit to grow.
- Large supply-contract disclosures have come in a steady stream in 2026.
- The company won successive orders for 850MW-class HRSGs for a Middle East (Israel) combined-cycle plant.
- Overseas awards clustered, including an agreement to supply HRSGs to the Vietnam O Mon 4 combined-cycle plant.
- With single contracts in the hundreds of billions to over a trillion won, several years of work are being filled.
- On the other hand, in May the company disclosed a derivative trading loss.
- This is a valuation loss arising as exchange rates rose during FX hedging that locks dollar order proceeds into won.
- Most of it is still an unrealized book loss and is of a nature that offsets against translation gains when the related orders are recognized as revenue.
- The strengths are clear.
- As LNG combined-cycle power demand grows worldwide, work for key equipment such as HRSGs is piling up fast.
- The company benefits head-on from this flow through high ROE, rapid revenue growth, and rising export orders.
- Because profit has just jumped, last year's P/E looks high, but accounting for the profit that grows this year, the valuation burden is lower than it appears.
- There are also cautions.
- As a contract business, quarterly results swing widely.
- The debt ratio is high and the current ratio below 100%, so financial slack is not generous.
- With many dollar-denominated orders, quarterly net profit can lurch on derivative valuation gains and losses as exchange rates move — a point worth knowing.
- In sum, it is strong when power-equipment demand holds firm and orders convert to revenue as scheduled; conversely, if a sharp FX move or a delay in recognizing revenue from large projects coincides, quarterly results can wobble.
🔎 Valuation vs peers Undervalued
Domestic listed companies in power and electricity equipment manufacturing whose businesses overlap.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Doosan Enerbility | 553.29x | 6.02x | 1.09% |
| CS Wind | 47.64x | 1.43x | 3.01% |
In the same power and electricity equipment group, Doosan Enerbility (P/E 650, ROE 1.1%) and CS Wind (P/E 53, ROE 3.0%) carry very high multiples because their profit is suppressed. By contrast, BHI trades at a P/E of 26.2x — lower than this comparison set — while leading on both growth and profitability with ROE of 36.7% and revenue up 91%. A P/E of 26x on last year's basis looks high at first glance, but this reflects the nature of an inflection point where profit has just surged. On a forward basis that reflects the profit growing this year, the multiple falls clearly, reading as an undervaluation signal against the company's growth and profitability. That said, the high debt ratio and the current ratio below 100% are factors that limit any premium.
Price history Close · MA20 · MA60
The latest close is ₩45,000 and the market capitalization is ₩1.4 trillion. The price sits below its 20-day moving average (₩57,898) and below its 60-day moving average (₩75,788). 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 33.0, a neutral level. The one-month change is -25.7%, the three-month change is -49.9%, and the position relative to the 52-week high is -58.9%. Relative strength versus the KOSDAQ is 72 (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 73% of all stocks. Over the past three months it lagged the index by 34.8%. 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 -34.78% / 6M -7.07% / 12M +17.24%
Key metrics vs sector median
Valuation
The P/E of 21.36x is above the sector median (14.44x). The P/B of 7.84x is above the sector median (1.44x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
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 1.303x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 36.7%, above the sector average (5.0%). The operating margin is 9.8%. The debt ratio is 467.8%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $243.5M | $268.3M | $513.1M | +91.26% ↑ faster |
| Operating profit | $10.0M | $14.5M | $50.0M | +244.30% ↑ faster |
| Net profit | $5.0M | $13.0M | $43.2M | +232.64% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $155.7M | $218.8M | $243.5M | $268.3M | $513.1M |
| Operating profit | -$20.3M | $5.4M | $10.0M | $14.5M | $50.0M |
| Net profit | -$22.9M | -$12.7M | $5.0M | $13.0M | $43.2M |
| Revenue CAGR | 4-yr avg 34.74% | ||||
Revenue rose 91.3% year over year (2023 ₩367.4 billion → 2024 ₩404.7 billion → 2025 ₩774.1 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 244.3% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 34.7%. The two-year revenue CAGR is 45.2%. In the most recent quarter (Q1 2026), revenue was 107.6% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- ROE of 36.7% points to solid profitability.
- Revenue grew 91.3% year over year, a sign of growth.
Points to watch
- Debt far exceeds equity (debt ratio 467.8%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 86.7%).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-06-01UpdateSingle sale and supply contract disclosed. A large supply contract for power equipment (HRSGs and the like), an extension of the overseas order flow that has continued through 2026.Expanding the order backlog improves revenue visibility for the next several years. Results reflect the timing at which revenue is recognized. Source
- 2026-05-26UpdateSingle sale and supply contract (voluntary disclosure). A large HRSG supply contract for a combined-cycle power plant, an overseas project order.Expands high-value export volume. Background to the improving operating margin. Source
- 2026-05-15UpdateDisclosure of a derivative trading loss. A valuation and trading loss arising on currency forwards and FX swaps used to hedge dollar orders, driven by rising exchange rates.Suppressed Q1 net profit, but most of it is a non-cash unrealized valuation loss. It is of a nature that offsets against translation gains when the related orders are recognized as revenue. Source
- 2026-05-15EarningsQ1 2026 quarterly report. Revenue ₩280.8 billion (+107.6%), operating profit ₩35.3 billion (+183.9%), net profit ₩5.1 billion (-41.3%).Core-business growth was steep, but net profit alone dipped temporarily on the derivative valuation loss. Growth at the operating level was maintained. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 revenue, operating profit, and net profit | revenue 7,741 / operating profit 755 / net profit 652 | 2025 | Confirmed | link |
| Q1 2026 results | revenue 2,808(+107.6%) / operating profit 353(+183.9%) / net profit 51(-41.3%) | 2026 1 | Confirmed | link |
| 2026 new orders (large supply contracts) | HRSG approx. | approx. | Confirmed | link |
| 2026 full-year profit (internal estimate) | forward net profit approx. 850 | — | Unverified | link |
Recent filings
- 2026-06-05Single supply/sales contract (amended)
- 2026-06-01Single supply/sales contract
- 2026-05-27Single supply/sales contract (amended)
- 2026-05-26Single supply/sales contract
- 2026-05-15Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-04-30Disclosure
- 2026-04-30Single supply/sales contract (amended)
- 2026-04-14Single supply/sales contract (amended)
- 2026-04-02Single supply/sales contract (amended)
- 2026-03-30Disclosure
- 2026-03-30Shareholders' 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.