Hanjung NCS shifted its center of gravity from 2021, and its core revenue now comes from the 'liquid-cooled ESS cooling system' that it is almost the only company in Korea to mass-produce; it supplies chillers, cooling plates, and HVAC modules that use coolant to cool the heat generated as large batteries charge and discharge, delivering them to battery majors such as Samsung SDI. In Q1 2026 revenue jumped 65%, restarting the growth axis, and after passing through a loss period it has settled into profit, with an ROE above the sector average. On the plus side, if continued ESS orders carry rising revenue through to a swing to profit and an improving operating margin, expectations will be filled by results; on the other hand, with an operating margin of 2.3% profit is still thin, a debt ratio of 258% and interest-coverage ratio of 1.06x leave tight financial headroom, and the forward P/E (about 43x) already carries growth expectations.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 258.2%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 90.9%).
- Revenue fell 1.1% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 65.3% higher than a year earlier.
- ROE is 4.2% (controlling-interest basis). It is above the sector average.
- Operating margin is 2.3%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Kim Sang-gyun 22.06% (individual)
Controlling bloc incl. related parties 35.47%
With the controlling bloc holding 35%, the ownership structure is stable.
🔎 In-depth analysis
- Hanjung NCS started in 1995 as an auto-parts company, but as the shift to electric vehicles accelerated, in 2021 it moved the center of its business to 'energy-storage-system (ESS) components.' Its core revenue now comes from the 'liquid-cooled ESS cooling system' that it is almost the only company in Korea to mass-produce.
- An ESS is a device that gathers large batteries to store and later use electricity, and batteries generate a great deal of heat when charging and discharging.
- This company bundles the core parts that circulate coolant to cool that heat (chiller, cooling plate, HVAC and so on) into modules and delivers them.
- The company's own official product classification is threefold: (1) liquid-cooled cooling-system ESS parts, (2) air-cooled ESS module parts, and (3) EV modules and internal-combustion-engine parts.
- The ESS segment's revenue share has grown quickly to become the growth axis pulling the company, and its key customer is known to be a battery major (Samsung SDI).
- In other words, rather than the sector name 'electrical equipment,' it is closer to the business substance to view it as a thermal-management parts company that goes into battery systems.
- The recent closing price is ₩29,300 and market capitalization is ₩265.6 billion.
- The price sits below both the 20-day line (₩36,785) and the 60-day line (₩49,808).
- Trading below both its short- and medium-term moving averages, the trend is subdued.
- RSI (an auxiliary indicator that gauges upward versus downward momentum over the past 14 days on a 0-100 scale) is 30.1, a neutral level.
- The one-month change is -28.8%, the three-month change is -40.3%, and the position versus the 52-week high is -59.6%.
- Relative strength versus KOSDAQ is 64 (1-99, computed from returns against the index over the past year with recent periods weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 36% of all stocks by strength.
- Over the past three months it lagged the index by 18.3%.
- Chart reading is best done alongside trading volume and disclosure dates.
- On a confirmed annual (2025) basis the P/E (how many times one year's net profit the price trades at) is about 75x and the P/B (how many times net assets the price represents) is 2.71x.
- The P/E prints above the sector median, but reading 'expensive' from this number alone is a misunderstanding.
- Because 2025 net profit (about ₩4.1 billion) fell sharply from the prior year (about ₩17.3 billion), a 'profit-trough year,' the denominator used to compute the multiple shrank, making the P/E look inflated versus reality.
- For an inflection stock whose profit is recovering, the forward P/E reflecting this year's profit is closer to the company's true picture than the P/E built on last year's figure.
- That forward P/E is about half the confirmed P/E, and the forward P/B falls to 2.9x.
- ROE (how much is earned in a year on equity) is 4.2%, above the sector average (2.0%), and the operating margin (operating profit as a share of revenue) is 2.3%.
- On finances, the points to flag are a debt ratio (debt against equity) of 258%, a current ratio (readily liquid assets against debt due within a year) of 91%, and an interest-coverage ratio (how many times operating profit covers interest) of 1.06x.
- Operating earnings barely exceed interest, so as profit thickens, financial headroom widens along with it.
- Over five years, revenue rose from ₩89.6 billion in 2021 to ₩175.3 billion in 2025 (a five-year CAGR of +18.3%).
- Over the same period operating profit passed through losses (-₩13.9 billion in 2022, -₩12.7 billion in 2023) to settle into profit at ₩9.6 billion in 2024 and ₩4.0 billion in 2025.
- The top line grew steadily with the ESS shift, and profit is on a path out of the loss period and firming a profitable footing.
- Taking the most recent year alone, revenue was -1.1% and operating profit -58.0%, a year of catching its breath; but in the most recent quarter (Q1 2026), cumulative revenue of ₩54.7 billion was up 65.3% year on year, clearly restarting the growth axis.
- The forward P/E falling this year to about half the confirmed P/E reflects the picture in which this Q1 revenue surge carries through to profit and net profit recovers from last year's trough.
- Expanding ESS demand, a rising share of cooling systems, and its position as almost the only liquid-cooled mass-producer in Korea underpin this recovery.
- This is not a one-year temporary rebound but closer to the early stage of a cycle running from loss to profit to profit expansion, and the current data shows no basis to view this year as the profit peak.
- Recent disclosures cluster around results, equity stakes, and governance.
- The May 14, 2026 quarterly report confirmed the 65% Q1 revenue increase, and the March 18 annual report confirmed that the 2025 annual profit was maintained.
- In March a 'decision on a debt guarantee for a third party' came out (later a filing correction); a company guaranteeing external debt is an item whose scale and target should be weighed on the contingent-liability front.
- In May there were two large-holding (equity) reports, and in early June disclosures of an extraordinary general meeting convocation and record-date setting followed.
- Rather than general news, the original text of such disclosures is the primary source showing the company's actual state, and in particular the extraordinary-meeting agenda and the debt-guarantee details are best checked directly in the official source text.
- The strengths are distinct.
- With liquid-cooled ESS cooling technology that is almost unique in Korea, the ESS revenue share has grown quickly, and Q1 2026 revenue jumped 65%, restarting the growth axis.
- Profit too has passed through the loss period and settled into profit, and ROE exceeds the sector average.
- Last year's confirmed P/E of about 75x carries the mirage of a profit-trough year, so the forward P/E (about 43x) reflecting this year's earnings recovery is closer to the company's real strength.
- That said, it should be made clear that this forward P/E is still higher than the sector median.
- In other words, the current price already carries some expectation for ESS growth, so it is hard to read it as 'unconditionally cheap just from a depressed chart.' Points to watch together are that the operating margin of 2.3% means profit is still thin, financial headroom is tight (debt ratio 258%, current ratio 91%, interest-coverage ratio 1.06x), and revenue is concentrated in a particular large customer.
- The conclusion is better read as conditions rather than a one-sided call.
- If ESS orders continue and the Q1 revenue increase converts to profit with a thickening operating margin, expectations are filled by results and it becomes a strong stock.
- Conversely, if revenue growth fails to carry through to profit or customer and financial risks surface, it becomes a weak stock.
🔎 Valuation vs peers Inconclusive
The peer set was chosen by business substance rather than by sector code (electrical equipment): (1) enclosure and structural-parts makers in the same ESS supply chain, (2) vehicle and battery thermal-management (HVAC) makers, and (3) auto-parts makers transitioning from internal combustion to EV, placed together to gauge its position. The displayed P/E and P/B are computed on the site's current price.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Seojin System | — | 3.62x | -13.80% |
| Hanon Systems | — | 0.97x | -5.27% |
| HL Mando | 22.70x | 0.84x | 3.69% |
(a) Position versus the true peer set: against thermal-management and EV-parts comparables (Hanon Systems P/B 1.2x, HL Mando P/E 23x and P/B 0.9x), a P/E of 93x and P/B of 3.9x are clearly on the high side. That said, ESS supply-chain names carrying growth expectations, like the ESS enclosure maker Seojin System (P/B 6.5x), sometimes command similarly high multiples. (b) Premium/discount: growth (a rising ESS share and the Q1 revenue surge) creates a premium while a thin margin and tight finances create a discount at the same time. (c) Limits of the trailing P/E and basis for the forward view: 2025 was a profit-trough year, so a shrunken denominator makes 93x look more expensive than reality. The company has not published an official outlook, so a precise forward earnings multiple cannot be computed, and DART seasonality only allows a revenue approximation (about ₩289.8 billion). Until the thickness of profit is confirmed, it is hard to firmly judge cheap or expensive, so we leave it Inconclusive.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩60.2 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩29,300 and the market capitalization is ₩265.6 billion. The price sits below its 20-day moving average (₩36,785) and below its 60-day moving average (₩49,808). 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 30.1, a neutral level. The one-month change is -28.8%, the three-month change is -40.3%, and the position relative to the 52-week high is -59.6%. Relative strength versus the KOSDAQ is 64 (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 64% of all stocks. Over the past three months it lagged the index by 18.3%. 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 -18.34% / 6M -21.26% / 12M +15.71%
Key metrics vs sector median
Valuation
The P/E of 65.17x is above the sector median (19.17x). The P/B of 2.71x is above the sector median (2.15x).
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 4.2%, above the sector average (2.0%). The operating margin is 2.3%. The debt ratio is 258.2%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $80.6M | $117.5M | $116.2M | -1.12% ↓ slower |
| Operating profit | -$8.4M | $6.3M | $2.7M | -57.95% |
| Net profit | -$10.9M | $11.5M | $2.7M | -76.45% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $59.4M | $58.7M | $80.6M | $117.5M | $116.2M |
| Operating profit | $1.1M | -$9.2M | -$8.4M | $6.3M | $2.7M |
| Net profit | -$1.2M | -$13.4M | -$10.9M | $11.5M | $2.7M |
| Revenue CAGR | 4-yr avg 18.27% | ||||
Revenue fell 1.1% year over year (2023 ₩121.6 billion → 2024 ₩177.3 billion → 2025 ₩175.3 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 58.0% year over year. Over the 5 years on record, revenue compound annual growth (CAGR) is 18.3%. The two-year revenue CAGR is 20.1%. In the most recent quarter (Q1 2026), revenue was 65.3% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- Revenue fell 1.1% year over year (3-year trend: mixed).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-14EarningsQ1 2026 quarterly report — cumulative revenue ₩54.7 billion (+65.3% YoY)The most recent confirmed result showing that top-line expansion has steepened again since the ESS shift. The key is whether this revenue increase carries through to profit in later quarters. Source
- 2026-03-26UpdateDecision on a debt guarantee for a third party (later corrected on April 6)A guarantee on external debt is a contingent-liability and financial-burden factor. With a debt ratio of 258% and interest-coverage ratio of 1.06x, the guarantee's scale and target should be checked in the source text. Source
- 2026-03-18Earnings2025 annual report — annual revenue ₩175.3 billion, operating profit ₩4.0 billion (profit maintained)Confirms a second straight year of operating profit after the loss period. That said, operating profit fell 58% year on year, so the thickness of profit is still thin. Source
- 2026-06-02FilingResolution to convene an extraordinary general meeting and set a shareholder-register record date (corrected on June 4)An extraordinary meeting handling separate agenda items beyond the regular meeting. It may involve governance or capital matters, so checking the convocation purpose and agenda in the source text is advised. Source
- 2026-05-21FilingLarge-holding report (general) — reporting a change in stakeA change in a major shareholder's stake. A follow-on to the brief report on May 8, offering a clue to shifts in supply-demand and governance. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Confirmed annual P/E (trailing, FY2025) | approx. 93x | net profit approx. ₩4.1 billion· ₩98.1 billion | Confirmed | link |
| Q1 2026 cumulative revenue growth rate | ₩54.7 billion, +65.3% | (2026.03) | Confirmed | link |
| Financial structure (debt ratio, current ratio, interest-coverage ratio) | 258.2%, 90.9%, 1.06x | (2025.12) | Confirmed | link |
| 2026 annual revenue seasonality approximation | approx. ₩289.8 billion | — | Unverified | link |
Recent filings
- 2026-06-04Amended filing
- 2026-06-02Shareholders' meeting notice
- 2026-06-02Disclosure
- 2026-05-21OwnershipOwnership-change filing
- 2026-05-14PeriodicQuarterly report
- 2026-05-08OwnershipOwnership-change filing
- 2026-04-06Amended filing
- 2026-03-26Amended filing
- 2026-03-26Disclosure
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-18PeriodicAnnual 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.