Poongsan runs on two engines: a copper-alloy fabrication business (roughly two-thirds of revenue) that buys electrolytic copper and processes it into copper and brass sheet, rod and tube, and a defense business (about a third) that makes small-caliber ammunition and other munitions, where defense acts as a stabilizer that cushions the copper-price volatility of the fabrication side. Preliminary Q1 2026 results released in late April showed a sharp improvement in operating profit and net profit (net profit +87.7%), followed by an investor briefing on the defense and copper-alloy outlook and a corporate bond issuance filing in April. What stands out lately is that the shares trade at a P/B of 0.8x, below book value, and are treated as a materials stock despite the embedded defense arm, so there is an undervaluation angle: the stock is strong when copper prices hold and defense exports land in the second half, but earnings thin out quickly if copper prices drop sharply, since the fabrication profit swings heavily with copper prices and inventory valuation.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 10.8% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 9.9% higher than a year earlier.
- ROE is 6.4% (controlling-interest basis). It is above the sector average.
- Operating margin is 5.9%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Poongsan Holdings 38% (corporate)
Controlling bloc incl. related parties 38.02%
With the controlling bloc holding 38%, the ownership structure is stable.
🔎 In-depth analysis
- Poongsan makes money from two engines.
- The first is copper-alloy fabrication.
- It buys electrolytic copper (refined copper) and processes it into copper and brass products such as sheet, rod and tube, and this business accounts for about two-thirds of total revenue.
- Its profit swings heavily with the spread between copper input cost and selling price, and with the valuation change on inventory it holds.
- The second is the defense business.
- It makes military and sporting ammunition, including small-caliber rounds; this is about a third of revenue but carries higher margins than fabrication.
- Defense is tied to the domestic defense budget and overseas exports, so it acts as a stabilizer that cushions the copper-price volatility of the fabrication side.
- In other words, the company has two faces at once: a raw-material processor and a defense manufacturer.
- The latest close is ₩61,500 and the market cap is ₩1.7 trillion.
- The price sits below its 20-day line (₩68,490) and its 60-day line (₩82,810).
- Trading under both its short- and mid-term moving averages, the trend is on the soft side.
- RSI (a supplementary gauge that weighs up-days against down-days over the past 14 days on a 0-100 scale) is 34.6, a neutral level.
- The one-month change is -12.3%, the three-month change is -39.8%, and the price is -62.7% from its 52-week high.
- Relative strength versus the KOSPI is 2 (1-99, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the bottom 1% of all stocks by strength.
- Over the past three months it lagged the index by 52.2%.
- It is best to read the chart alongside trading volume and the dates on which disclosures were made.
- Valuation metrics are on the low side.
- The P/E ratio (how many times one year's earnings the price represents) is 11.71x and the P/B (how many times book equity the price represents) is 0.75x, so it trades below book value.
- The dividend yield is 2.6% and the payout ratio (the share of net profit returned as dividends) is about 32%, returning a third of earnings to shareholders.
- Profitability is still ordinary: ROE (how much is earned in a year on equity) is 6.4% and the operating margin is 5.9%.
- On the balance sheet, the debt ratio (debt against equity) of 188% is somewhat high, but an interest coverage of 6.3x and a current ratio of 190% keep interest servicing and short-term liquidity stable.
- Factoring in debt changes the picture a little.
- EV/EBIT (enterprise value divided by operating profit, akin to a P/E that includes debt) is 9.0x and EV/Sales (enterprise value divided by revenue) is 0.53x, both still low.
- Worth flagging, though, is that net debt (gross borrowings less cash) stood at ₩837.1 billion and last year's free cash flow (FCF, the cash left after earnings and investment) was negative.
- Given a business heavy in raw-material inventory and working capital, cash flow tends to be uneven.
- The long-run trend is steady revenue growth.
- Over five years revenue rose from ₩3.5 trillion to ₩5.05 trillion, and last year it grew 10.8% year on year, actually accelerating.
- Earnings, by contrast, have been choppy.
- 2025 net profit was ₩147.2 billion, down 37.7% from the prior year, a year pressured by the overlap of copper prices and the timing of defense revenue recognition.
- In 2026, though, the direction turned.
- Q1 revenue rose 9.9% year on year to ₩1.27 trillion, operating profit jumped 29.4% to ₩90.2 billion, and net profit surged 87.7% to ₩78.0 billion.
- Q1 net profit alone exceeded half of last year's full-year net profit.
- Firm copper prices lifted fabrication margins and inventory valuation, while defense sees higher-margin revenue build as export volumes land in the second half.
- If this earnings trajectory holds, we see this year's net profit recovering strongly from last year toward the 2024 level (₩236.0 billion).
- On that basis the current share price is set far cheaper than the P/E implied by last year's earnings.
- The disclosure flow mixes earnings recovery with balance-sheet and shareholder-return signals.
- The late-April preliminary Q1 disclosure confirmed a sharp improvement in operating and net profit, followed by an investor briefing where management explained the defense and copper-alloy outlook directly.
- In April, filings related to a corporate bond issuance followed, a recurring feature given a business structure heavy in raw-material purchasing and working capital.
- In May there was a filing on changes in the largest shareholder's holdings, along with a clarifying disclosure addressing market rumors and media reports.
- In June the company published its corporate governance report.
- The strengths and the cautions split cleanly.
- The strengths are valuation and an earnings inflection.
- At a P/B of 0.8x the stock trades below book value, and with Q1 net profit up 87.7% earnings have bottomed and turned.
- A P/E of 12.5x on last year's earnings may look high, but measured against this year's recovered earnings the multiple falls below that.
- Compared with pure defense names trading around 40-60x, the fact that it is treated as a materials stock despite housing defense points to an undervaluation angle.
- The caution is where the earnings come from.
- Fabrication profit swings heavily with copper prices and inventory valuation, so quarterly variance is large.
- If copper prices roll over, a quarter like Q1 may not simply repeat.
- Negative free cash flow and a 188% debt ratio also need to be viewed together as features of a raw-material business.
- In short, the stock is strong when copper prices hold and defense exports land in the second half, and its fabrication profit thins quickly if copper prices drop sharply.
🔎 Valuation vs peers Undervalued
As a hybrid that combines copper-alloy (copper-processing) materials with a defense ammunition business, its position is viewed by placing it alongside both pure defense names and steel/materials companies.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hanwha Aerospace | 34.98x | 5.07x | 14.51% |
| Hanwha Systems | 50.46x | 2.52x | 5.00% |
| Hyundai Steel | 0.00x | 0.19x | -0.04% |
Because two-thirds of revenue is copper processing (fabrication), Poongsan cannot command the high multiples of a pure defense name, while its one-third defense exposure gives it steadier earnings than a pure steel/materials company. Even accounting for that middle character, its current position is on the low side. A P/B of 0.8x is below book value, and the P/E of 12.5x on last year's earnings carries the caveat that 2025 was a pressured year for earnings. With Q1 net profit up 87.7% and earnings having turned, the valuation looks even lower on this year's recovered earnings. Taken together with the large discount versus pure defense names and trading below book value, we judge it undervalued, while noting that earnings swinging with copper prices is itself a reason for the discount.
Price history Close · MA20 · MA60
The latest close is ₩61,500 and the market capitalization is ₩1.7 trillion. The price sits below its 20-day moving average (₩68,490) and below its 60-day moving average (₩82,810). 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 34.6, a neutral level. The one-month change is -12.3%, the three-month change is -39.8%, and the position relative to the 52-week high is -62.7%. Relative strength versus the KOSPI 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 52.2%. 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 -52.24% / 6M -67.79% / 12M -78.12%
Key metrics vs sector median
Valuation
The P/E of 11.71x is below the sector median (16.39x). The P/B of 0.75x is above the sector median (0.50x). 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, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 6.4%, above the sector average (2.0%). The operating margin is 5.9%. The debt ratio is 188.4%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $2.7B | $3.0B | $3.3B | +10.85% ↑ faster |
| Operating profit | $151.5M | $214.6M | $197.1M | -8.14% ↓ slower |
| Net profit | $103.7M | $156.4M | $97.5M | -37.65% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $2.3B | $2.9B | $2.7B | $3.0B | $3.3B |
| Operating profit | $208.2M | $153.5M | $151.5M | $214.6M | $197.1M |
| Net profit | $161.3M | $116.2M | $103.7M | $156.4M | $97.5M |
| Revenue CAGR | 4-yr avg 9.52% | ||||
Revenue rose 10.8% year over year (2023 ₩4.1 trillion → 2024 ₩4.6 trillion → 2025 ₩5.0 trillion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit fell 8.1% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 9.5%. The two-year revenue CAGR is 10.6%. In the most recent quarter (Q1 2026), revenue was 9.9% higher 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.
- Revenue grew 10.8% 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
- 2026-04-30EarningsPreliminary Q1 2026 results disclosure. Revenue ₩1,270.9 billion (+9.9% YoY), operating profit ₩90.2 billion (+29.4%), net profit ₩78.0 billion (+87.7%), a sharp improvement in earnings.Short term: confirms an earnings trough and signals an inflection. Medium term: the key is whether copper prices and defense margins keep recovering. Source
- 2026-04-30EarningsFair disclosure of operating (preliminary) results on a consolidated basis. Q1 consolidated results announced alongside the standalone figures.Short term: confirms the consolidated versus standalone profit structure. Medium term: a basis for gauging how earnings split between the fabrication and defense divisions. Source
- 2026-04-27IRDisclosure of an investor briefing (IR). Management explained Q1 results and the copper-alloy and defense outlook directly to investors.Short term: a window into the company's official outlook. Medium term: shares assumptions on defense exports and copper input costs. Source
- 2026-05-12FilingFiling on changes in the holdings of the largest shareholder and related parties. Discloses changes in controlling-shareholder stakes.Short term: updates governance-related information. Medium term: a basis for checking the stability of the major shareholder's stake. Source
- 2026-06-01FilingCorporate governance report disclosure. Discloses governance status including the board and shareholder returns.Short term: governance transparency information. Medium term: a check on shareholder returns and governance improvement. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-01Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-05-14Disclosure
- 2026-05-12OwnershipLargest-shareholder ownership change report
- 2026-04-30EarningsFair-disclosure notice
- 2026-04-30EarningsFair-disclosure notice
- 2026-04-27Disclosure
- 2026-04-24Earnings disclosure
- 2026-04-24Disclosure
- 2026-04-23Disclosure
- 2026-04-20Disclosure
- 2026-04-20Amended filing
📖 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.