Avaco develops, manufactures, and sells core equipment for flat-panel displays (FPD) and secondary batteries in-house, with vacuum, dedicated, and automation equipment for displays and battery-manufacturing equipment as its mainstays; it also develops OLED and next-generation display process equipment, supplying gear when the industry builds lines or expands capacity. A series of large single supply contracts, including one worth ₩293.2 billion (156.9% of last year's revenue) in January 2026, has already secured orders exceeding 1.5 times last year's revenue. What stands out recently is that if the secured orders convert to revenue on schedule, a P/B of 0.73x, a dividend of about 4.5%, and profitability with a 12.9% ROE can combine into a strong showing; but the equipment business's characteristic quarterly volatility can make operations look loss-making in periods when revenue is thin, and with a modest market cap, the timing of a single contract's recognition can swing the metrics.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 28.6% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 43.1% lower than a year earlier.
- ROE is 12.9% (controlling-interest basis). It is above the sector average.
- Operating margin is 8.8%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Wi Jae-gon 18.78% (individual)
Controlling bloc incl. related parties 30.15%
With the controlling bloc holding 30%, the ownership structure is stable.
🔎 In-depth analysis
- Avaco develops, manufactures, and sells core equipment for the FPD (flat-panel display) and secondary-battery (battery) fields in-house.
- Specifically, its mainstays are the vacuum equipment used to make displays, dedicated equipment specialized for particular processes, automation equipment that replaces manual work, and secondary-battery manufacturing equipment and industrial-material manufacturing equipment.
- On top of this it is developing OLED and next-generation display process equipment, so it earns money by supplying that gear when the display and battery industries build new lines or expand capacity.
- The latest close is ₩10,040 and the market cap is ₩147.4 billion.
- The price sits below both the 20-day line (₩11,680) and the 60-day line (₩13,561).
- Trading below both the short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that measures upward versus downward momentum over the past 14 days on a 0-100 scale) is 28.2, close to depressed territory.
- The price is down 20.9% over one month and down 23.1% over three months, and sits 40.1% below its 52-week high.
- Its relative strength versus the KOSDAQ is 58 (on a 1-99 scale that converts the past year's return against the index, weighted toward the recent period; higher means stronger than the market).
- That places it in roughly the top 42% of all stocks by strength.
- Over the past three months it outpaced the index by 2.2%.
- It is best to read the chart alongside trading volume and disclosure dates.
- Recent annual revenue is ₩392.9 billion, with operating profit of ₩34.6 billion and net profit of ₩28.7 billion.
- The operating margin is 8.8% and ROE (how much is earned per year on equity) is 12.9%, above the sector average, and while the debt ratio (debt to equity) is 145.8%, a current ratio of 164.5% and an interest coverage ratio of 12.5x leave ample capacity to repay debt and cover interest.
- On last year's results, the P/E (share price to one year of earnings) is 5.14x and the P/B (share price to book value) is 0.66x, with the share price marked below even the company's book value.
- These two metrics are not at burdensome high levels but rather on the low side.
- Price to book value (forward P/B of 0.72x) is still low, so on the asset-value side the burden is not large.
- The growth trend is clear.
- Revenue rose sharply for two straight years, from ₩186.9 billion in 2023 to ₩305.5 billion in 2024 to ₩392.9 billion in 2025 (about 45% average annual growth over two years), and operating profit jumped from ₩4.4 billion to ₩20.4 billion to ₩34.6 billion over the same period.
- This reflects a revival in equipment demand as display and battery makers resumed capital investment.
- This year's projection is for revenue of about ₩151.9 billion and net profit of about ₩7.5 billion, set below last year's peak.
- This is due to the nature of the equipment business: revenue swings widely by quarter with the timing of customer orders and delivery and inspection schedules.
- Indeed, first-quarter 2026 revenue was ₩14.8 billion (down 43.1% year on year) and operating profit was -₩4.0 billion, so it looked thin.
- Even in a period that looks thin like the first quarter, the annual picture can change depending on which quarter the already-secured large orders are recognized as revenue.
- For reference, the ₩293.2 billion contract disclosed in January 2026 amounts to about 157% of last year's annual revenue, so the timing of its recognition is the key variable for growth.
- There is no confirmed basis for earnings next year and beyond falling below this year, so there is no clue to conclude this year is the end of the cycle.
- Recent filings are all order-related.
- On February 19, 2026, a single supply contract was signed (detailed terms to be checked in the original); on January 30, 2026, a [correction] single supply contract set a contract value of ₩293.2 billion (156.9% of last year's revenue); and on November 28, 2025, a [correction] single supply contract (voluntary disclosure) was worth ₩13.0 billion (7.0% of revenue).
- When and over how many quarters these contracts are recognized as revenue, and whether they are one-off or repeatable transactions, are the keys to reading the coming earnings trend.
- This is a stock with clear strengths.
- In the real-demand-based businesses of display and battery equipment, revenue and earnings have grown sharply in recent years, profitability is good with a 12.9% ROE, and debt, liquidity, and interest burden are all stable.
- The share price is marked below book value (0.73x P/B) and the dividend yield is generous at about 4.5%, so there is a floor of support on the asset and dividend side.
- Adding to this, it has already secured large orders exceeding 1.5 times last year's revenue, a clear positive.
- A point to watch is the equipment business's characteristic quarterly volatility.
- In periods when revenue is thin, as in the first quarter, operations can look loss-making, which is also why this year's projected earnings are set below last year's peak, making a forward P/E visible.
- Also, with a modest market cap, the timing of a single contract's recognition or a single financing filing can swing the metrics.
- In short, if the secured orders convert to revenue on schedule, they can combine with the low book value and high dividend for a strong showing; conversely, if revenue recognition is delayed or new orders dry up, the unevenness of quarterly results acts as a burden.
🔎 Valuation vs peers Overvalued
A peer group within machinery and equipment with adjacent market capitalizations.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| KZ Precision | 19.23x | 0.31x | 1.60% |
| Samick THK | — | 1.02x | -28.59% |
| LOT Vacuum | — | 0.63x | -3.31% |
Within machinery and equipment, we first looked at a public-data peer group with nearby market capitalizations. The current P/E (share price to one year of earnings) is 5.14x and the P/B (share price to book value) is 0.66x. That said, because smaller-cap names are heavily affected by earnings swings and financing filings, we did not draw firm conclusions from metrics based on last year's confirmed results alone. The basis for the outlook box is a DART seasonality approximation.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩151.9 billion | — | ₩7.5 billion |
| Next quarter | Q2 2026 | ₩47.7 billion | — | ₩0.6 billion |
Price history Close · MA20 · MA60
The latest close is ₩10,040 and the market capitalization is ₩147.4 billion. The price sits below its 20-day moving average (₩11,680) and below its 60-day moving average (₩13,561). 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 28.2, near oversold territory. The one-month change is -20.9%, the three-month change is -23.1%, and the position relative to the 52-week high is -40.1%. Relative strength versus the KOSDAQ is 58 (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 58% of all stocks. Over the past three months it outpaced the index by 2.2%. 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 +2.23% / 6M -12.66% / 12M -19.88%
Key metrics vs sector median
Valuation
The P/E of 5.14x is below the sector median (14.44x). The P/B of 0.66x is below the sector median (1.44x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets.
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 4.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 12.9%, above the sector average (5.0%). The operating margin is 8.8%. The debt ratio is 145.8%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $123.8M | $202.5M | $260.4M | +28.60% ↓ slower |
| Operating profit | $2.9M | $13.5M | $22.9M | +69.71% ↓ slower |
| Net profit | $2.8M | $15.8M | $19.0M | +19.93% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $119.2M | $144.0M | $123.8M | $202.5M | $260.4M |
| Operating profit | $6.5M | $9.0M | $2.9M | $13.5M | $22.9M |
| Net profit | $8.3M | $12.0M | $2.8M | $15.8M | $19.0M |
| Revenue CAGR | 4-yr avg 21.58% | ||||
Revenue rose 28.6% year over year (2023 ₩186.9 billion → 2024 ₩305.5 billion → 2025 ₩392.9 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 69.7% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 21.6%. The two-year revenue CAGR is 45.0%. In the most recent quarter (Q1 2026), revenue was 43.1% 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 5.0%, is on the high side.
- ROE of 12.9% points to solid profitability.
- Revenue grew 28.6% 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
- 2026-02-19ContractSingle supply contract signed: check the detailed terms in the original.The contract value and term are the key to future revenue recognition. Whether it is a one-off or a repeatable transaction shapes the mid-term interpretation. Source
- 2026-01-30Contract[Correction] Single supply contract signed: contract value ₩293.2 billion, 156.9% of recent revenue.The contract value and term are the key to future revenue recognition. Whether it is a one-off or a repeatable transaction shapes the mid-term interpretation. Source
- 2025-11-28Contract[Correction] Single supply contract signed (voluntary disclosure): contract value ₩13.0 billion, 7.0% of recent revenue.The contract value and term are the key to future revenue recognition. Whether it is a one-off or a repeatable transaction shapes the mid-term interpretation. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩10,040 | ₩10,040 | Confirmed | link |
| Latest quarterly results | revenue ₩14.8 billion, operating profit -₩4.0 billion | revenue ₩14.8 billion, operating profit -₩4.0 billion | Confirmed | link |
| Annual results | revenue ₩392.9 billion, operating profit ₩34.6 billion | revenue ₩392.9 billion, operating profit ₩34.6 billion | Confirmed | link |
| Original contract filing | ㆍapprox. : | ㆍapprox. : | Confirmed | link |
| Original contract filing | []ㆍapprox. : approx. ₩293.2 billion · revenue 156.9% | []ㆍapprox. : approx. ₩293.2 billion · revenue 156.9% | Confirmed | link |
| Original contract filing | []ㆍapprox. : approx. ₩13.0 billion · revenue 7.0% | []ㆍapprox. : approx. ₩13.0 billion · revenue 7.0% | Confirmed | link |
| Outlook box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-06-08PeriodicAnnual business report (amended)
- 2026-05-13PeriodicQuarterly report
- 2026-05-04EarningsFair-disclosure notice
- 2026-04-28Disclosure
- 2026-04-24DividendCash/stock dividend decision (amended)
- 2026-04-03TreasuryMaterial-fact report
- 2026-04-03Disclosure
- 2026-03-27Disclosure
- 2026-03-27Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-20OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-19PeriodicAnnual business 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.