Sangshin EDP (091580) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
Sangshin EDP makes the metal can (CAN) that forms the outer shell of lithium-ion secondary batteries, along with the Cap Assembly that handles safety functions. Almost all of its revenue comes from a single large domestic battery maker (Samsung SDI) under a captive-supply arrangement, so the company's results track that customer's battery shipments and utilization rate directly. Its Q1 2026 report showed revenue and profit rebounding together as it climbed out of a loss-making phase, it decided in late April to issue convertible bonds and completed the issuance in early May, and on April 1 it made a voluntary disclosure of a corporate value-up plan. The notable point recently is that, while peer component suppliers remain stuck in a downturn, Sangshin was the first to widen its return to profitability, which is a strength; on the other hand, its revenue is effectively tied to a single customer, its financial cushion is thin at a 209.7% debt ratio and an 81.5% current ratio, and the convertible bonds leave room for future dilution.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Battery Cells & Packs” (Secondary Batteries), a type typically read first through EV/EBITDA.
Battery cell and pack makers carry heavy capacity build-outs and depreciation, so net income alone understates how much cash the core business really generates. That is why EV/EBITDA — which looks at operating cash before depreciation and folds in debt — is the first lens.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 84.8%).
- Revenue rose 2.0% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 26.9% higher than a year earlier.
- ROE is 1.3% (controlling-interest basis). It is above the sector average.
- Operating margin is 3.5%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2025-12-31
Largest shareholder Kim Min-cheol 11.42% (individual)
Controlling bloc incl. related parties 28.69%
With the controlling bloc holding 29%, control is maintained but the free float is relatively large.
🔎 In-depth analysis Reading
Sangshin EDP is a component maker that produces the outer shell and safety devices of lithium-ion secondary batteries. Its main products are the metal container (CAN) that holds the battery contents and the Cap Assembly that covers it and handles safety functions such as venting gas and blocking overpressure. Cylindrical cans and mid-to-large (prismatic) cans account for most of its revenue, and the company's foundation lies in localizing parts that used to be sourced from Japanese suppliers. Most of its revenue comes from a single large domestic battery maker (Samsung SDI) under a captive-supply structure, so the company's results move with that customer's battery shipments and utilization. In short, it makes and supplies the exterior and safety parts that go into batteries for EVs, power tools and ESS, sitting in a position where component orders rise together with battery demand.
The latest close is ₩14,230 and the market capitalization is ₩189.7 billion. The price sits above its 20-day moving average (₩13,952) and below its 60-day moving average (₩17,316). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 48.1, a neutral level. The one-month change is -2.2%, the three-month change is -47.7%, and the position relative to the 52-week high is -53.6%. Relative strength versus the KOSDAQ is 80 (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 81% of all stocks. Over the past three months it lagged the index by 22.0%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
The headline P/E ratio (how many times a year's net profit the share price represents) looks very high at 88.80x, but this is inflated by a small denominator, since 2025 net profit was near a trough at ₩2.0 billion, not a sign that the stock is expensive. For a company whose earnings are in a recovery phase, forward-based metrics that reflect this year's profit are closer to reality than last year's scorecard. The forward P/E that reflects this year's recovery paints a completely different picture from the headline figure. On an asset basis too, P/B (how many times net asset value the share price is) is 1.14x and forward P/B is 1.12x, low compared with peer component makers, so on neither an asset nor an earnings basis is this a stock carrying a heavy valuation. That said, financial strength needs checking. ROE (how much is earned in a year on equity) is still low at 1.3%, the debt ratio (debt against equity) is 209.7%, the current ratio (assets that can be turned into cash within a year against debt due within a year) is tight at 81.5%, and the interest coverage ratio (how many times operating profit covers interest) is 1.56x. These metrics are positioned to improve together once earnings settle into a trend.
Over five years, revenue swung around, from ₩197.5 billion (2021) to ₩290.8 billion (2022), ₩290.1 billion (2023), ₩245.1 billion (2024) and ₩250.0 billion (2025), while operating profit swung from a ₩30.1 billion profit in 2023 to a ₩6.5 billion loss in 2024 and back to an ₩8.6 billion profit in 2025. Net profit also firmed up off the bottom, from -₩6.3 billion in 2023 to ₩0.6 billion in 2024 and ₩2.0 billion in 2025. And the change is most pronounced in the very latest quarter. Q1 2026 revenue was ₩72.2 billion, up 26.9% from a year earlier, and that single quarter's operating profit (₩4.88 billion) and net profit (₩3.45 billion) already exceeded the whole of last year. The quarterly operating margin of 6.8% was about double last year's annual 3.5%. Forward-based earnings come out this high because the customer's battery shipments are reviving, lifting utilization and unit prices together, and because the company is at the early stage of a recovery where volumes past the loss-making phase and fixed-cost hurdle fall straight through to profit. This is not simply an extrapolation of last year's numbers but a picture grounded in the recovery actually confirmed in Q1. Whether the recovery lasts only one quarter or turns into a trend is something the next quarter's results will confirm.
This year's disclosures read along two lines. The first is a recovery signal. The Q1 report showed revenue and profit rebounding together, with the company emerging from a loss-making phase. The second is fundraising. In late April it decided to issue convertible bonds (corporate bonds that can be converted into shares) and completed the issuance in early May; since a company that already carries a high debt ratio brought in additional funds, it is worth keeping an eye on the use of proceeds and the possibility of an increase in share count (dilution) upon future conversion. Separately, on April 1 it made a voluntary disclosure of a corporate value-up plan, laying out at the company level its direction for shareholder returns and profitability improvement.
The strength is clear. That Sangshin was the first to widen its return to profitability while peer component makers remained in the red amid an industry downturn is this stock's distinct differentiator. At the same time, the points to watch are just as clear. Its revenue is effectively tied to a single customer, so it tracks that customer's battery cycle and utilization directly; its financial cushion is thin at a 209.7% debt ratio and an 81.5% current ratio; and the convertible bonds leave room for future dilution. In sum, this is a stock whose undervaluation appeal clearly emerges when the customer's battery demand revives and quarterly profit improvement carries through as a trend, but whose structure is vulnerable to swings when downstream demand cools again or financial burdens grow.
🔎 Valuation vs peers Inconclusive
Compared mainly against peer component makers whose business substance is closest, making battery exterior and safety parts and supplying them to large domestic battery makers. Shinheung SEC is the most direct comparable, making battery Cap Assemblies and CIDs (safety parts), while Samah Aluminium shares the downstream industry as a battery-material (aluminum) supplier.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Shinheung SEC | 0.00x | 0.48x | -1.64% |
| Sam-A Aluminium | 0.00x | 2.93x | -11.42% |
Shinheung SEC, the most direct peer component maker, is reflecting the industry downturn head-on with a P/B of 0.65x and negative ROE, and the material supplier Samah Aluminium also has negative ROE. Sangshin EDP's P/B of 1.49x is somewhat higher than peer component makers, but part of that premium is explained by its having posted the largest return to profitability in Q1. The headline P/E of 118x is a trailing figure calculated on last year's trough earnings (₩2.0 billion), which overstates the company's current earning power; reflecting this year's quarterly recovery trajectory, the forward multiple has room to come down substantially from there. That said, since it is not yet confirmed whether the recovery is only a one-quarter rebound or turns into a trend, or whether the company can absorb its high debt and convertible-bond burden, it is hard to conclude either way, so this is left as Inconclusive.
Price history Close · MA20 · MA60
The latest close is ₩14,230 and the market capitalization is ₩189.7 billion. The price sits above its 20-day moving average (₩13,952) and below its 60-day moving average (₩17,316). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 48.1, a neutral level. The one-month change is -2.2%, the three-month change is -47.7%, and the position relative to the 52-week high is -53.6%. Relative strength versus the KOSDAQ is 80 (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 81% of all stocks. Over the past three months it lagged the index by 22.0%. 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 -22.03% / 6M +32.36% / 12M +64.73%
Key metrics Computed vs sector median
Valuation
The P/E of 94.30x is above the sector median (12.50x). The P/B of 1.14x is in line with the sector median (1.21x).
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 1.3%, above the sector average (1.0%). The operating margin is 3.5%. The debt ratio is 117.8%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $203.8M | $172.2M | $175.7M | +2.02% ↑ faster |
| Operating profit | $21.1M | -$4.6M | $6.1M | — |
| Net profit | -$4.4M | $449,209 | $1.4M | +214.59% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $138.8M | $204.3M | $203.8M | $172.2M | $175.7M |
| Operating profit | $13.8M | $23.0M | $21.1M | -$4.6M | $6.1M |
| Net profit | $12.3M | $17.2M | -$4.4M | $449,209 | $1.4M |
| Revenue CAGR | 4-yr avg 6.08% | ||||
Revenue rose 2.0% year over year (2023 ₩290.1 billion → 2024 ₩245.1 billion → 2025 ₩250.1 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Over the 5 years on record, revenue compound annual growth (CAGR) is 6.1%. The two-year revenue CAGR is -7.2%. In the most recent quarter (Q1 2026), revenue was 26.9% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- —
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-15EarningsQ1 2026 quarterly report filed - revenue ₩72.2 billion (+26.9% YoY), operating profit ₩4.88 billion and net profit ₩3.45 billion, with quarterly results exceeding the whole of last yearShort term: confirmation of an earnings inflection highlights recovery momentum. Medium term: whether quarterly profit improvement continues is the key variable for forward valuation. Source
- 2026-04-30FilingReport on major matters (decision to issue convertible bonds) - decided to issue convertible bonds (later amended May 6)Short term: fundraising secures room for operations and investment. Medium term: an added burden on an already high debt ratio, with possible dilution upon conversion. Source
- 2026-05-08FilingSecurities issuance results (voluntary disclosure) - confirmation that the convertible-bond issuance procedure is completeShort term: completion of the raise resolves some uncertainty. Medium term: need to check whether share count rises depending on the conversion price and conversion period. Source
- 2026-04-01IRCorporate value-up plan (voluntary disclosure) - company-level direction for shareholder returns and profitability improvementShort term: expectation of shareholder returns. Medium term: execution is what matters, i.e. whether it actually leads to improved ROE and dividends. Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-06-02PeriodicAnnual business report (amended)
- 2026-05-15PeriodicQuarterly report
- 2026-05-15PeriodicAnnual business report (amended)
- 2026-05-08Disclosure
- 2026-05-08OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-06Material-fact report (amended)
- 2026-04-30Material-fact report
- 2026-04-24OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-01Disclosure
- 2026-03-31Shareholders' meeting notice
- 2026-03-23PeriodicAnnual business report
- 2026-03-23Audit 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.