Shinhwa Pretech (095190) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
Shinhwa Pretech makes metal-processed components and has a market capitalization of about ₩110.9 billion, so beyond the flow of the business itself, it helps to watch how each disclosure, such as financing or results, affects its finances and share count. In March 2026 and December 2025, disclosures of acquiring convertible bonds before maturity came in at ₩7.3 billion and ₩0.8 billion respectively (conversion price ₩2,377), which eased the future burden of a rising share count by that much, and a January revenue/profit-loss structure change disclosure confirmed annual revenue of ₩92.5 billion, an operating loss of ₩4.8 billion and a net loss of ₩6.9 billion. What stands out lately is the strength that, at a price near book value with a P/B of 1.02x, the company swung from last year's loss to positive operating and net profit in the first quarter of 2026 with revenue also up 22.7%, pointing toward recovery; but because the full year last year was a loss, it is worth checking whether the profit continues in the remaining quarters and how financing such as convertible bonds affects the share count.
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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 “Steel & Metals” (Chemicals, Refining, Steel & Materials), a type typically read first through P/B.
Steel and metals swing hard with raw-material prices and downstream demand, so profits balloon in upturns and can flip to losses in downturns. Because earnings are so volatile, price-to-book (P/B) — the share price against the value of plant and assets — is the first lens.
That said, earnings are swinging with the industry cycle right now, so this metric is best viewed alongside asset value and the demand backdrop.
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
- The most recent full-year net result was a loss.
- Revenue rose 8.3% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 22.7% higher than a year earlier.
- ROE is -6.4% (total-net basis). It is below the sector average.
- Operating margin is -5.2%.
- 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 Shinhwa Precision 23.29% (corporate)
Controlling bloc incl. related parties 45.47%
With the controlling bloc holding 45%, the ownership structure is stable.
🔎 In-depth analysis Reading
Shinhwa Pretech is a company that makes metal-processed components. Its market capitalization is ₩110.9 billion, not large, so beyond the flow of the business itself, it helps to watch how each disclosure, such as financing or results, affects its finances and share count.
The latest close is ₩1,924 and the market capitalization is ₩125.6 billion. The price sits below its 20-day moving average (₩1,968) and below its 60-day moving average (₩2,030). 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 47.5, a neutral level. The one-month change is -4.3%, the three-month change is -21.6%, and the position relative to the 52-week high is -28.7%. Relative strength versus the KOSDAQ is 62 (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 63% of all stocks. Over the past three months it outpaced the index by 20.7%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
For last year (2025), the annual result was a loss, with revenue of ₩92.5 billion, an operating loss of ₩4.8 billion and a net loss of ₩6.9 billion, an operating margin of -5.2% and ROE (how much is earned on equity in a year) of -6.4%. The debt ratio (debt relative to equity) is 115.6%, not an excessive level. Because it was loss-making, the P/E ratio (how many times a year's earnings the price is) is not computed, but P/B (how many times book value the price is) is 1.14x, nearly at book value. That is, the price has come down to roughly the asset value the company holds, and the diagnosis views it as undervalued. Judging only by last year's loss, profitability looks weak, but the current state of the company can be read properly only by also considering that it turned to a profit in the first quarter.
Revenue was ₩101.5 billion in 2023, fell in a year to ₩85.4 billion in 2024, then turned direction again, rising 8.3% to ₩92.5 billion in 2025. The more important change appeared in the first quarter of 2026. First-quarter revenue was ₩24.4 billion, up 22.7% from the same period a year earlier, and operating profit of ₩1.7 billion and net profit of ₩1.1 billion swung into the black. Given that last year's annual operating result was a loss of ₩4.8 billion, the shift from a loss to a quarterly profit is a clear earnings-inflection signal confirmed in actual results. That profit turned positive on a quarterly basis on top of rising revenue is why the company should not be judged on last year's loss figures alone. If the first-quarter trend continues in the remaining quarters, the full-year result this year sits in a zone that could improve a notch on last year.
Recent disclosures cluster around financing and results. On March 16, 2026, and December 16, 2025, disclosures of acquiring convertible bonds (corporate bonds convertible into shares) before maturity came in at ₩7.3 billion and ₩0.8 billion respectively. The conversion price is ₩2,377, and because the company took back some of the convertible bonds it had issued, this heads in the direction of easing the future burden of a rising share count by that much. On January 30, 2026, a revenue/profit-loss structure change disclosure confirmed and released annual revenue of ₩92.5 billion, an operating loss of ₩4.8 billion and a net loss of ₩6.9 billion. For the financing disclosures, look at where the incoming funds are used and at changes in share count; for the results disclosure, look at whether later quarters point the same way.
The strengths are clear. The price has come down to around book value (P/B 1.02x), a cheap spot against assets, and an actual change was confirmed as operating and net profit both swung into the black in the first quarter of 2026 from last year's loss. Revenue also rose 22.7% in the first quarter, pointing toward recovery. The price is already well pressed below the moving averages, so if the profitable trend continues, the undervaluation appeal comes back to life. On the caution side, the point is whether the profit is not a one-time first-quarter event but continues in the remaining quarters. Because the full year last year was a loss, confirming the next quarter's results is needed before concluding that earnings have firmly settled, and it also helps to keep an eye on how financing disclosures such as convertible bonds affect the share count. In short, if the first-quarter profit continues, the price near book value reads as undervalued; if it returns to a loss, recovery expectations weaken.
🔎 Valuation vs peers Undervalued
Companies with adjacent market capitalization within metal processing.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| RF Systems | 19.73x | 1.90x | 11.40% |
| Semyung Electric | 8.86x | 1.26x | 14.78% |
| Samyoung M-Tek | 10.71x | 0.97x | 10.83% |
Within metal processing, we first looked at a public-data peer set with nearby market capitalization. The current P/E ratio (how many times a year's earnings the price is) is not available, and P/B is 1.20x. That said, for smaller-cap names, earnings swings and financing disclosures carry a lot of weight, so we did not draw firm conclusions from metrics based solely on last year's confirmed results. The basis for the outlook box is a DART seasonality approximation.
Earnings outlook Estimate company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩99.9 billion | — | — |
| Next quarter | Q2 2026 | ₩25.1 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩1,924 and the market capitalization is ₩125.6 billion. The price sits below its 20-day moving average (₩1,968) and below its 60-day moving average (₩2,030). 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 47.5, a neutral level. The one-month change is -4.3%, the three-month change is -21.6%, and the position relative to the 52-week high is -28.7%. Relative strength versus the KOSDAQ is 62 (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 63% of all stocks. Over the past three months it outpaced the index by 20.7%. 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 +20.67% / 6M +10.53% / 12M -7.71%
Key metrics Computed vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 1.14x is above the sector median (0.78x).
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) Estimate
Model output — not a price target. This is what the formula returns under the assumptions below, not a view on where the share price should go.
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 -6.4%, below the sector average (1.0%). The operating margin is -5.2%. The debt ratio is 110.7%, so the financial structure is moderate.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $71.3M | $60.0M | $65.0M | +8.28% ↑ faster |
| Operating profit | $2.1M | $2.7M | -$3.4M | -222.33% ↓ slower |
| Net profit | -$1.6M | -$3.2M | -$4.9M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $68.9M | $67.1M | $71.3M | $60.0M | $65.0M |
| Operating profit | -$668,169 | -$1.6M | $2.1M | $2.7M | -$3.4M |
| Net profit | -$2.1M | -$6.6M | -$1.6M | -$3.2M | -$4.9M |
| Revenue CAGR | 4-yr avg -1.44% | ||||
Revenue rose 8.3% year over year (2023 ₩101.5 billion → 2024 ₩85.4 billion → 2025 ₩92.5 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit fell 222.3% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is -1.4%. The two-year revenue CAGR is -4.5%. In the most recent quarter (Q1 2026), revenue was 22.7% 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 most recent full year was a loss, so it is worth checking whether profitability recovers.
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-03-16UpdateAcquisition of bonds before maturity following issuance of convertible bonds (including overseas convertible bonds): bond-related amount ₩7.3 billion, conversion price ₩2,377A disclosure to view together with the purpose of the incoming funds and the change in share count. Where a facility or operating purpose is stated, the key is whether the investment is actually executed and connects to revenue. Source
- 2025-12-16UpdateAcquisition of bonds before maturity following issuance of convertible bonds (including overseas convertible bonds): bond-related amount ₩0.8 billion, conversion price ₩2,377A disclosure to view together with the purpose of the incoming funds and the change in share count. Where a facility or operating purpose is stated, the key is whether the investment is actually executed and connects to revenue. Source
- 2026-01-30EarningsChange of 30% or more in revenue or profit/loss structure (15% or more for large corporations): annual revenue ₩92.5 billion, operating loss ₩4.8 billion, net loss ₩6.9 billionRecent confirmed or preliminary results. Check whether they point the same way as the annual trend and whether one-off factors are present. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩1,924 | ₩1,924 | Confirmed | link |
| Latest quarterly results | revenue ₩24.4 billion, operating profit ₩1.7 billion | revenue ₩24.4 billion, operating profit ₩1.7 billion | Confirmed | link |
| Annual results | revenue ₩92.5 billion, operating profit -₩4.8 billion | revenue ₩92.5 billion, operating profit -₩4.8 billion | Confirmed | link |
| Financing disclosure original text | ₩7.3 billion · ₩2,377 | ₩7.3 billion · ₩2,377 | Confirmed | link |
| Financing disclosure original text | ₩0.8 billion · ₩2,377 | ₩0.8 billion · ₩2,377 | Confirmed | link |
| Results disclosure original text | revenue30%: revenue ₩92.5 billion · operating profit -₩4.8 billion · net profit -₩6.9 billion | revenue30%: revenue ₩92.5 billion · operating profit -₩4.8 billion · net profit -₩6.9 billion | Confirmed | link |
| Outlook box basis | DART | DART | Confirmed | link |
Recent filings Source
- 2026-05-21OwnershipOwnership-change filing
- 2026-05-18OwnershipOwnership-change filing
- 2026-05-15PeriodicQuarterly report
- 2026-03-24Disclosure
- 2026-03-24Shareholders' meeting notice
- 2026-03-16PeriodicAnnual business report
- 2026-03-16Convertible-bond issuance
- 2026-03-13Audit report
- 2026-03-09Disclosure
- 2026-03-09Shareholders' meeting notice
- 2026-03-09Shareholders' 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.