Inhwa Precision (101930) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
Inhwa Precision makes core components for the large marine diesel engines used in ships (cylinder covers and frames, bed plates, and the like) and supplies them to engine and heavy-industry companies such as Hanwha Engine and HD Hyundai Heavy Industries; marine engine parts accounted for 85.6% of 2025 consolidated revenue, with metal-forming machinery and metal structural materials making up the rest. On April 23 a corporate-value enhancement plan set out expanding dividend resources and cancelling treasury stock, and the company decided on a 5-to-1 stock split and the cancellation of 469,739 treasury shares; classified as a high-dividend company with a 2025 payout ratio of 54.2%, its dividend yield at the current price reaches about 8.6%. What stands out most recently is that it is strong when downstream engine and shipbuilding orders are alive, machined-part prices and volumes hold up, and the high dividend is maintained, whereas its ROE of 7.5% is lower than finished-engine makers, Q1 2026 revenue fell, and 2025 net income contained one-off gains, so the strength of the core business is more accurately tracked via operating profit.
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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 “Shipbuilding” (Shipbuilding, Machinery, Defense & Power Equipment), a type typically read first through P/B.
Shipbuilding rides a heavy vessel-ordering cycle, with profits bunching in upturns and slipping into losses in downturns, so current-year earnings alone give an unstable read. That makes price-to-book (P/B) — the share price against the value of docks and facilities the company owns — the first lens.
Price against assets alone says little about where the cycle stands. Reading it together with price against this year's expected earnings shows how far profits have recovered.
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
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 16.4% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 8.9% lower than a year earlier.
- ROE is 7.5% (controlling-interest basis). It is below the sector average.
- Operating margin is 16.2%.
- 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 Lee In 51.3% (individual)
Controlling bloc incl. related parties 51.3%
With the controlling bloc holding 51%, control is very secure but the free float is thin.
🔎 In-depth analysis Reading
Inhwa Precision makes core components for the large marine diesel engines used in ships. Its biggest business is marine engine parts, accounting for 85.6% of 2025 consolidated revenue. It makes mid-to-large structures—cylinder covers that sit atop the engine, cylinder frames that support the engine, and bed plates that fix the engine to the hull—through welding, fabrication, and metal machining, and supplies them to engine and heavy-industry companies such as Hanwha Engine, HD Hyundai Heavy Industries, HD Hyundai Marine Engine, and Hyosung Heavy Industries. In other words, it is not a shipyard that builds ships directly but a supplier that feeds parts to shipbuilding and engine companies. The rest comes from metal-forming machinery such as wire-drawing machines that draw steel wire and wire rod (7.3% of revenue, exported to Japan, India, Vietnam, and elsewhere) and metal structural materials (7.1%)—heat exchangers for power equipment, pressure vessels, HRSGs, railway bogie frames, and the like—with customers including Doosan Enerbility and Hyundai Rotem.
The latest close is ₩7,150 and the market capitalization is ₩326.7 billion. The price sits above its 20-day moving average (₩6,680) and below its 60-day moving average (₩8,478). 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 47.6, a neutral level. The one-month change is +2.7%, the three-month change is -50.0%, and the position relative to the 52-week high is -88.5%. Relative strength versus the KOSDAQ is 2 (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 1% of all stocks. Over the past three months it lagged the index by 28.5%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
On final annual results (the 2025 business report), the P/E (how many times a year's earnings the price is) is 12.91x and the P/B (how many times net assets the price is) is 0.96x. A P/B below 1x means the market cap is smaller than the company's book net assets, which in itself is closer to a price set on the light side. Compared with finished-product companies in the same engine value chain trading at P/B in the 4-7x range, the difference is clear. ROE (how much is earned in a year on capital) is 7.5% and the operating margin is 14.4%, a level of capital profitability lower than finished-product makers as befits a supplier, and the low P/B can be seen as a natural reflection of this. The financials are stable: the debt ratio (debt against equity) is 135.4%, the current ratio is 210% for ample short-term solvency, and interest coverage is around 5x. One point to note is that 2025 net income contained one-off gains. So the core business's steady earnings power is more accurately read via operating profit than net income.
There is variation in the top line, but earnings power is clearly improving. Operating profit rose more than fourfold in four years, from ₩3.6 billion in 2021 to ₩15.5 billion in 2025 (+51.4% in 2025), and the operating margin climbed to 14.4%. That flow continued this year: Q1 2026 revenue of ₩26.0 billion was down 8.9% from a year earlier, but operating profit rose 56.5% to ₩4.2 billion. In other words, even in a stretch where revenue eased somewhat, it lifted margins through pricing, mix, and cost management to keep more. Its mainstay marine engine parts are a structure where work is filled on the basis of large-engine volumes already secured by downstream players such as Hanwha Engine, HD Hyundai Heavy Industries, and HD Hyundai Marine Engine, so while shipbuilding and engine orders hold up, machined-part demand is underpinned. That said, since the company does not disclose numeric revenue or profit targets, the future earnings flow is best confirmed via the operating-profit trend each time quarterly results come out.
Recent disclosures weigh toward shareholder returns. In the April 23, 2026 corporate-value enhancement plan (voluntary disclosure), the company set out facility expansion for production efficiency, strengthened cost competitiveness, expanded dividend resources, and treasury-stock cancellation as its main directions (it did not include specific revenue or profit targets). On April 30, 5-to-1 stock-split new shares were listed, raising shares outstanding from 9.23 million to 46.16 million (purpose: expanding float), and on May 22 it decided to cancel 469,739 treasury shares held (worth about ₩5.0 billion) as of June 1 (it also terminated a treasury-stock acquisition trust agreement at the same time). Adding a 2025 interim dividend and a February 2026 year-end dividend, the company is classified as a high-dividend company under the Restriction of Special Taxation Act (2025 payout ratio 54.2%, with total dividends up 112% from a year earlier).
This company's appeal comes from price and returns. Its P/B is below 1x, so it trades cheaper than book net assets; its dividend yield at the current price is high at about 8.6%; and its commitment to shareholder returns is confirmed through disclosures of a stock split, treasury-stock cancellation, and high dividends. Compared with downstream engine makers that pay almost no dividends, its position within the value chain—the lowest multiple and the highest dividend—is clear. The core business's earnings power is also steadily improving on an operating-profit basis. The points to watch together are capital profitability and the top line. ROE of 7.5% is lower than finished-engine makers, Q1 2026 revenue fell, and 2025 net income contained one-off gains, so the strength of the core business is more accurately tracked via operating profit. In sum, this company is strong when downstream engine and shipbuilding orders are alive, machined-part prices and volumes hold up, and the high dividend is maintained, and weaker when downstream orders cool or margins wobble—a stock whose low price and high dividend are watched against downstream orders.
🔎 Valuation vs peers Fairly valued
Because its core business is supplying parts for large marine engines, the peer set is made up of engine and heavy-industry companies that are downstream customers to which Inhwa Precision supplies parts and that sit in the same engine value chain.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hanwha Engine | 20.87x | 5.94x | 33.97% |
| HD Hyundai Marine Engine | 11.59x | 3.83x | 35.90% |
| HD Hyundai Heavy Industries | 37.60x | 5.48x | 19.61% |
The peers are the downstream engine and heavy-industry companies to which Inhwa Precision delivers parts. (a) Position: a P/E of 15.76x is in a similar range to theirs, but a P/B of 1.18x and a dividend yield of 8.6% are the lowest multiple and the highest dividend within the value chain. (b) Premium/discount: a parts supplier normally has lower margins and ROE than finished-engine makers, so a P/B discount is natural, and the high dividend partly offsets that discount. (c) Limits of trailing: last year's final P/E does not reflect the one-off swing in 2025 net income or the Q1 2026 revenue decline. For the forward basis, with no official company numeric target, only a DART seasonality approximation of quarterly results (annual operating profit of about ₩29.4 billion) can be referenced, and that is an estimate. Taken together, with strengths (low P/B, high dividend) and weaknesses (low ROE, shrinking top line) interlocking, viewing it in the "fairly valued" category is the balanced interpretation.
Earnings outlook Estimate company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | ₩26.2 billion | ₩10.7 billion | — |
Price history Close · MA20 · MA60
The latest close is ₩7,150 and the market capitalization is ₩326.7 billion. The price sits above its 20-day moving average (₩6,680) and below its 60-day moving average (₩8,478). 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 47.6, a neutral level. The one-month change is +2.7%, the three-month change is -50.0%, and the position relative to the 52-week high is -88.5%. Relative strength versus the KOSDAQ is 2 (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 1% of all stocks. Over the past three months it lagged the index by 28.5%. 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 -28.46% / 6M -76.31% / 12M -81.38%
Key metrics Computed vs sector median
Valuation
The P/E is 12.91x. The P/B of 0.96x is below the sector median (1.61x). 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) 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 11.3%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 7.5%, below the sector average (13.0%). The operating margin is 16.2%. The debt ratio is 32.6%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $73.0M | $65.2M | $75.8M | +16.35% ↑ faster |
| Operating profit | $3.4M | $7.2M | $10.9M | +51.39% ↓ slower |
| Net profit | $1.8M | $28.1M | $18.0M | -36.12% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $77.6M | $104.2M | $73.0M | $65.2M | $75.8M |
| Operating profit | $2.6M | $6.9M | $3.4M | $7.2M | $10.9M |
| Net profit | $10.7M | -$7.6M | $1.8M | $28.1M | $18.0M |
| Revenue CAGR | 4-yr avg -0.57% | ||||
Revenue rose 16.4% year over year (2023 ₩104.0 billion → 2024 ₩92.8 billion → 2025 ₩108.0 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit rose 51.4% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is -0.6%. The two-year revenue CAGR is 1.9%. In the most recent quarter (Q1 2026), revenue was 8.9% lower than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
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 10.5%, is on the high side.
- Revenue grew 16.4% 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
- 2026-04-23IRCorporate-value enhancement plan (voluntary disclosure) — set out facility expansion and stronger cost competitiveness, expanding dividend resources, and treasury-stock cancellation as directions for enhancing shareholder value (no specific numeric targets; qualifies as a high-dividend company under the Restriction of Special Taxation Act).Material in which the company itself formalizes its mid-term shareholder-return direction. But with no numeric revenue or profit targets, it cannot be used as a basis for numeric projections and is viewed as confirmation of the commitment to dividends and cancellation. Source
- 2026-04-30Filing5-to-1 stock split (par value ₩500 to ₩100), changed listing of new shares, shares outstanding 9,232,882 to 46,164,410, purpose being to expand float.The per-share price was adjusted to one-fifth, so pre-split charts must be read on a converted basis. It does not change the company's value itself and is a measure to improve trading accessibility. Source
- 2026-05-22UpdateDecided to cancel 469,739 previously acquired treasury shares (acquisition cost about ₩5.0 billion), scheduled cancellation date 2026-06-01. Total shares outstanding decrease but capital stock does not. The result of terminating a treasury-stock acquisition trust agreement was disclosed the same day.A short-term return that raises shareholder value by reducing the share count. Since cash on hand is used for the cancellation, it is best viewed alongside future dividend and investment capacity. Source
- 2026-05-15EarningsFiled the quarterly report (2026.03) — carries final results including Q1 revenue of ₩26.0 billion (-8.9% year on year) and operating profit of ₩4.2 billion (+56.5%).The final-results material for this year's first quarter. With a revenue decline and profit increase appearing together, it is a reference point for confirming changes in profitability and mix rather than the top line. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Dividend per share (DPS) and payout ratio | DPS ₩750 / 54.1% | 2025 54.17%, ₩13,849,323,000 | Confirmed | link |
| Shares outstanding (after stock split) | 46,164,410 | 46,164,410 | Confirmed | link |
| 2025 revenue composition by business segment | — | 85.55% / 7.34% / 7.11% | Confirmed | link |
| 2026 annual operating profit (seasonality approximation) | approx. ₩29.4 billion | — | Unverified | link |
Recent filings Source
- 2026-05-27OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-22Disclosure
- 2026-05-22Disclosure
- 2026-05-22TreasuryMaterial-fact report
- 2026-05-15PeriodicQuarterly report
- 2026-04-29Spin-off/split decision
- 2026-04-23Disclosure
- 2026-04-07Spin-off/split decision
- 2026-04-07PeriodicAnnual business report (amended)
- 2026-03-26Spin-off/split decision
- 2026-03-26Disclosure
- 2026-03-26Shareholders' 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.