Toptec designs, builds, and installs machinery and equipment for industrial sites, with a structure that links its domestic equipment to overseas production bases through its listed subsidiary Lemon (which makes electromagnetic-shielding materials), Daehan Tech (which assembles and installs machinery), and overseas entities in Hungary and the United States. In February and April 2026, single sale/supply contracts of ₩76.3 billion (22.1% of recent revenue) and ₩74.1 billion (12.3%) were disclosed in succession, and on April 30 there was also a contract-cancellation disclosure, so this is a stretch with both incoming and outgoing contracts. What stands out recently is that the share price trades at 0.28x net assets, clearly cheap relative to assets, that both operating and net profit turned positive in Q1 this year after last year's loss, and that a 3.5% dividend yield provides support; on the other hand, the revenue base has shrunk sharply over the past few years, so it needs further confirmation whether the Q1 profit continues through the full year and whether new contracts convert into actual revenue.
At-a-glance assessment financial health · growth · profitability · valuation
- The most recent full-year net result was a loss.
- Revenue fell 63.9% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 28.0% lower than a year earlier.
- ROE is -3.8% (controlling-interest basis). It is below the sector average.
- Operating margin is -1.8%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder Lee Jae-hwan 27.66% (individual)
Controlling bloc incl. related parties 42.57%
With the controlling bloc holding 43%, the ownership structure is stable.
🔎 In-depth analysis
- Toptec is a company that designs, builds, and sells machinery and equipment.
- Assembling and installing industrial-site machinery is the center of the business, and it operates through subsidiaries.
- Its subsidiaries include the listed Lemon, which makes electromagnetic-shielding materials, and Lemon's subsidiaries; Daehan Tech, which assembles and installs machinery; and overseas entities in Hungary and the United States (TOPTEC HU and TOPTEC USA).
- In other words, it is a structure that links domestically built equipment to overseas production bases.
- As a company with a not-large market capitalization of about ₩107.0 billion, it is worth watching both the flow of the business itself and the effect that contract disclosures, as they come, have on results and the share count.
- The latest close is ₩2,800 and market capitalization is ₩106.5 billion.
- The price sits below the 20-day line (₩3,104) and below the 60-day line (₩3,818).
- Trading below both its short- and mid-term moving averages, the trend is on the subdued side.
- RSI (an auxiliary gauge that scores upward versus downward momentum over the past 14 days on a 0-100 scale) is 35.3, at a neutral level.
- The one-month change is -18.1%, the three-month change is -34.0%, and the position versus the 52-week high is -49.3%.
- Relative strength versus the KOSDAQ is 49 (1-99, computed from returns against the index over the past year with more weight on recent performance; higher means stronger than the market).
- This places it in roughly the top 51% of all stocks by strength.
- Over the past three months it lagged the index by 10.5%.
- Chart reading is best done alongside trading volume and disclosure dates.
- Last year (2025), full-year revenue was ₩171.0 billion with an operating loss of ₩3.1 billion and a net loss of ₩14.8 billion, a loss.
- So the P/E ratio (how many times one year's earnings the share price is) on annual earnings cannot be computed; instead, on a P/B basis (how many times book value the share price is) it is 0.28x.
- This means the share price is very low relative to the company's net assets (equity of ₩384.4 billion)—that is, the market cap (₩107.0 billion) is less than a third of equity.
- Set against adjacent peers within machinery and equipment at P/B 0.38-1.16x, it is clearly on the cheap side relative to assets.
- The P/E looks blank because of the annual loss, but this is more accurately read not as a signal that the stock is "expensive" but as an earnings-inflection phase from loss to profit that is not yet reflected in the annual figures.
- The debt ratio (debt versus equity) is 144.6% and the current ratio (assets convertible to cash versus debt due within a year) is 238%, so short-term solvency has room.
- Annual revenue fell from ₩601.7 billion in 2023 to ₩473.6 billion in 2024 and ₩171.0 billion in 2025, and operating profit slid from positive to a loss.
- Looked at only this far, it is indeed a contraction.
- But this year the picture changes.
- Q1 2026 revenue was ₩32.6 billion, down from a year earlier, yet operating profit was ₩6.0 billion and net profit ₩11.3 billion, both turning positive.
- Operating profit of ₩6.0 billion on revenue of ₩32.6 billion is an operating margin of about 18%, meaning it is turning a profitable trade even as revenue scale shrinks.
- This can be read as a signal that the business mix is shifting toward profitable operations and contracts—shedding low-margin revenue—rather than simply that revenue grew.
- For the full year, revenue of around ₩108.2 billion is estimated, and on that figure alone the top line has not yet recovered much.
- So this year's key is not "top-line growth" but "a recovery in profitability from loss to profit," and the point to watch is whether the Q1 profit continues quarter after quarter.
- For reference, there is no evidence that the outlook beyond next year is lower than this year, so there is no basis to firmly call this year a cycle peak.
- Recent disclosures are mostly contract-related.
- On February 26, 2026 a single sale/supply contract of ₩76.3 billion (22.1% of recent revenue) and on April 7 one of ₩74.1 billion (12.3% of recent revenue) were disclosed in succession, with amendments.
- Both are not small relative to the company's annual revenue, so the timing and term of actual revenue recognition matter.
- Meanwhile, on April 30 there was also a single sale/supply contract-cancellation disclosure, and it is worth checking in the original text which contract was unwound and on what terms.
- In sum, this is a stretch with both incoming and outgoing contracts, so whether the new contracts sustain the profitable trend seen in Q1 is the fork in the road for future results.
- Toptec is a stock where the strengths and the points to watch split fairly clearly.
- The strengths are two.
- First, the share price is just 0.28x net assets, clearly cheap relative to asset value and low even compared with adjacent names in the same sector.
- Second, both operating and net profit turned positive in Q1 this year after last year's annual loss, and the operating margin recovered to double digits, suggesting profitability may have passed its bottom.
- The dividend yield of 3.5% also lends support.
- Conversely, the points to watch are that, with the revenue base having shrunk sharply over the past few years, it needs further confirmation whether one quarter of profit continues through the full year, and that the speed at which new contracts convert into actual revenue and earnings is the crux.
- In conclusion, this stock's picture is one where the undervaluation appeal revives "if the Q1 turn to profit carries into the coming quarters and new contracts are recognized as revenue," while "if the profit proves a temporary factor and the top-line recovery is delayed," the cheap price can stay cheap for a while.
🔎 Valuation vs peers Undervalued
A peer set within machinery and equipment that is adjacent by market capitalization.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| DY Power | 4.81x | 0.39x | 8.04% |
| Woolim PTS | 39.76x | 1.15x | 2.89% |
| CS Bearing | 9.03x | 1.00x | 11.12% |
Within machinery and equipment, we first looked at a public-data peer set close by market capitalization. The current P/E ratio (how many times one year's earnings the share price is) is not available, and P/B (how many times book value the share price is) is 0.28x. That said, for lower-market-cap names, earnings swings and financing disclosures carry a large effect, so we did not draw firm conclusions from metrics based on last year's confirmed results alone. The basis for the outlook box is a DART seasonality approximation.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩108.2 billion | — | — |
| Next quarter | Q2 2026 | ₩16.2 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩2,800 and the market capitalization is ₩106.5 billion. The price sits below its 20-day moving average (₩3,104) and below its 60-day moving average (₩3,818). 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 35.3, a neutral level. The one-month change is -18.1%, the three-month change is -34.0%, and the position relative to the 52-week high is -49.3%. Relative strength versus the KOSDAQ is 49 (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 49% of all stocks. Over the past three months it lagged the index by 10.5%. 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 -10.52% / 6M -26.71% / 12M -33.63%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 0.28x is below the sector median (1.44x).
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 -3.8%, below the sector average (5.0%). The operating margin is -1.8%. The debt ratio is 144.6%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $398.8M | $313.9M | $113.3M | -63.90% ↓ slower |
| Operating profit | $45.7M | $8.3M | -$2.1M | -125.18% ↓ slower |
| Net profit | $38.0M | $23.5M | -$9.8M | -141.56% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $109.3M | $228.6M | $398.8M | $313.9M | $113.3M |
| Operating profit | -$58.7M | $13.8M | $45.7M | $8.3M | -$2.1M |
| Net profit | -$49.6M | $9.7M | $38.0M | $23.5M | -$9.8M |
| Revenue CAGR | 4-yr avg 0.92% | ||||
Revenue fell 63.9% year over year (2023 ₩601.7 billion → 2024 ₩473.6 billion → 2025 ₩171.0 billion), and the three-year trend is 'falling'. The rate of decline widened from the prior year. Operating profit fell 125.2% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 0.9%. The two-year revenue CAGR is -46.7%. In the most recent quarter (Q1 2026), revenue was 28.0% lower 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.
- The dividend yield, at 3.6%, is on the high side.
Points to watch
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 63.9% year over year (3-year trend: falling).
Recent news & events searched · sourced
- 2026-04-30ContractSingle sale/supply contract cancellation: check the detailed terms in the original textThe contract amount and term are the key to future revenue recognition. Whether it is a one-off or a repeatable transaction shapes the mid-term read. Source
- 2026-04-07Contract[Amended] Single sale/supply contract signed: contract amount ₩74.1 billion, 12.3% of recent revenueThe contract amount and term are the key to future revenue recognition. Whether it is a one-off or a repeatable transaction shapes the mid-term read. Source
- 2026-02-26Contract[Amended] Single sale/supply contract signed: contract amount ₩76.3 billion, 22.1% of recent revenueThe contract amount and term are the key to future revenue recognition. Whether it is a one-off or a repeatable transaction shapes the mid-term read. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩2,800 | ₩2,800 | Confirmed | link |
| Latest quarterly results | revenue ₩32.6 billion, operating profit ₩6.0 billion | revenue ₩32.6 billion, operating profit ₩6.0 billion | Confirmed | link |
| Annual results | revenue ₩171.0 billion, operating profit -₩3.1 billion | revenue ₩171.0 billion, operating profit -₩3.1 billion | Confirmed | link |
| Contract disclosure original text | ㆍapprox. : | ㆍapprox. : | Confirmed | link |
| Contract disclosure original text | []ㆍapprox. : approx. ₩74.1 billion · revenue 12.3% | []ㆍapprox. : approx. ₩74.1 billion · revenue 12.3% | Confirmed | link |
| Contract disclosure original text | []ㆍapprox. : approx. ₩76.3 billion · revenue 22.1% | []ㆍapprox. : approx. ₩76.3 billion · revenue 22.1% | Confirmed | link |
| Outlook box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-05-15PeriodicQuarterly report
- 2026-04-30Single supply/sales contract
- 2026-04-07Single supply/sales contract (amended)
- 2026-03-31Disclosure
- 2026-03-30Amended filing
- 2026-03-30Shareholders' meeting notice
- 2026-03-20PeriodicAnnual business report
- 2026-03-20Audit report
- 2026-03-17OwnershipOwnership-change filing
- 2026-03-13Shareholders' meeting notice
- 2026-03-13Disclosure
- 2026-03-13Shareholders' 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.