Daeyang Electric makes money from the parts and systems that go into ships, defense equipment, railway cars, and automobiles, spanning four lines — shipbuilding, defense, rail, and automotive — with products such as marine and vehicle lighting, electronic and electrical systems, underwater robots, and pressure sensors, while its subsidiary Korea Special Battery adds defense-industry revenue with storage batteries for defense use, forming a structure that supplies parts to many industries. In March 2026 confirmed results emerged with annual revenue of ₩230.1 billion, operating profit of ₩27.1 billion, and net profit of ₩24.8 billion, and in May there were shareholder-return and capital-related moves via a treasury-share disposal. The point to watch lately is that revenue and profit have grown for several years with margins rising alongside and the balance sheet solid, yet the stock has slid nearly in half from its high, leaving a P/E of 6.14x and a forward P/E of 4.34x that are distinctly lower than peers (Halla IMS 9.24x, ILSEUNG 13.36x); on the other hand, because the company is not large, perceived volatility can grow when revenue wobbles temporarily as in the first quarter or when capital and disclosure events overlap.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 17.2% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 8.5% lower than a year earlier.
- ROE is 9.2% (controlling-interest basis). It is below the sector average.
- Operating margin is 11.8%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Seo Young-woo 59.34% (individual)
Controlling bloc incl. related parties 59.45%
With the controlling bloc holding 59%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Daeyang Electric makes money from the parts and systems that go into ships, defense equipment, railway cars, and automobiles.
- Its business splits broadly into four lines — shipbuilding, defense, rail, and automotive — and by product it makes lighting (marine and vehicle luminaires), electronic and electrical systems, underwater robots, pressure sensors, and more.
- That is, rather than leaning on a single finished product, it supplies parts to many industries, so when the shipbuilding cycle improves it captures that demand too.
- Its subsidiary Korea Special Battery derives 100% of revenue from manufacturing and selling various storage batteries for the defense industry, adding defense-side revenue.
- Because the company is not large, it is best to watch, alongside the business trend, how a single disclosure affects results and share count.
- The latest closing price is ₩15,950 and market capitalization is ₩152.6 billion.
- The price sits below its 20-day line (₩18,134) and its 60-day line (₩23,248).
- Trading below both the short- and mid-term moving averages, the trend is on the subdued side.
- The RSI (a supplementary gauge that weighs upward versus downward momentum over the past 14 days on a 0-100 scale) is 35.4, a neutral level.
- The one-month change is -13.7%, the three-month change is -32.8%, and the position versus the 52-week high is -53.6%.
- Relative strength versus the KOSDAQ is 49 (1-99, computed from returns against the index over the past year with recent performance weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 51% of all stocks by strength.
- Over the past three months it lagged the index by 13.0%.
- Chart reading is best done alongside trading volume and disclosure dates.
- Recent annual revenue is ₩230.1 billion, operating profit ₩27.1 billion, and net profit ₩24.8 billion.
- The operating margin is 11.8% and ROE (how much the company earns in a year on its equity) is 9.2%; the debt ratio (debt against equity) is 119.6% and the current ratio is 408%, so short-term liquidity is ample, and with an interest coverage ratio of 7.2x the debt burden is not heavy.
- On valuation, the P/E (how many times a year's earnings the price represents) is 6.16x and P/B (how many times book value the price represents) is 0.57x.
- Because this is a company whose profits are growing quickly, rather than flatly calling the P/E and P/B based on last year's confirmed results 'expensive' or 'cheap,' the more realistic picture is that the forward P/E reflecting this year's profit falls to 4.33x.
- The P/B of 0.57x also trades below book value, so relative to assets and earnings the stock reads as undervalued.
- Revenue rose steadily from ₩154.3 billion in 2023 to ₩196.3 billion in 2024 and ₩230.1 billion in 2025, while operating profit swelled even more sharply over the same span, from ₩3.7 billion to ₩15.7 billion to ₩27.1 billion.
- The key is that margins rose alongside — this was growth that increased money left over, not just top-line expansion.
- In the first quarter of 2026, revenue fell 8.5% from the same period a year earlier, but operating profit rose +9.9% and net profit +26.6%, so even as revenue paused briefly, profit actually improved.
- This is a signal that weight is shifting toward higher-priced products or more profitable business lines.
- The outlook for this year reflecting this quarterly trend is revenue of ₩231.0 billion, operating profit of ₩34.6 billion, and net profit of ₩34.9 billion — a picture in which profit steps up another notch from last year.
- It is a phase supported by the shipbuilding recovery and demand diversified across defense, rail, and automotive, and there is no clear basis to see next year and beyond falling below this year.
- On March 3, 2026, a change in revenue and profit-and-loss structure disclosure produced confirmed results of annual revenue ₩230.1 billion, operating profit ₩27.1 billion, and net profit ₩24.8 billion.
- It is enough to check whether it points the same direction as the annual trend and whether any one-off factors are mixed in.
- Following that, a treasury-share disposal decision on May 8 and a disposal-result report on May 11 marked a shareholder-return and capital-related move in which held treasury shares were disposed of.
- In such cases it is good to check the return terms, the change in share count, and together the earnings and cash-flow strength that support them.
- This stock's strengths are clear.
- Revenue and profit have grown for several years with margins rising alongside, and debt, liquidity, and interest burden are all sound, so the balance sheet is solid.
- Even so the stock has slid nearly in half from its high, sitting at a P/E of 6.14x and P/B of 0.57x, and the forward P/E reflecting this year's profit is 4.34x, distinctly lower than peers (Halla IMS 9.24x, ILSEUNG 13.36x).
- Relative to assets and earnings, the undervalued signal is clear.
- The point to consider alongside is that, because the company is not large, perceived volatility can grow when revenue wobbles temporarily as in the first quarter or when capital and disclosure events such as a treasury-share disposal overlap.
- In sum, this is a stock whose underlying strength shows clearly when shipbuilding and defense demand continues and the margin-improvement trend holds, and one that warrants a check when revenue turns down again or return terms get ahead of earnings strength.
🔎 Valuation vs peers Undervalued
A comparison set of shipbuilding names with adjacent market capitalization.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Chosun Refractories | 81.28x | 0.82x | 1.00% |
| Ilseung | 12.45x | 2.02x | 16.26% |
| Halla IMS | 9.54x | 1.22x | 12.83% |
Within shipbuilding, we prioritized a public-data comparison set with nearby market capitalization. The current P/E (how many times a year's earnings the price represents) is 6.16x and P/B (how many times book value the price represents) is 0.57x. That said, for smaller-cap names, earnings swings and financing disclosures carry a large effect, so we did not draw firm conclusions from last year's confirmed-results metrics 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 | ₩231.0 billion | ₩34.6 billion | ₩34.9 billion |
| Next quarter | Q2 2026 | ₩55.8 billion | ₩7.1 billion | ₩5.9 billion |
Price history Close · MA20 · MA60
The latest close is ₩15,950 and the market capitalization is ₩152.6 billion. The price sits below its 20-day moving average (₩18,134) and below its 60-day moving average (₩23,248). 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 35.4, a neutral level. The one-month change is -13.7%, the three-month change is -32.8%, and the position relative to the 52-week high is -53.6%. 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 13.0%. 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 -12.95% / 6M -28.21% / 12M -26.73%
Key metrics vs sector median
Valuation
The P/E of 6.16x is below the sector median (12.45x). The P/B of 0.57x is below the sector median (1.64x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets.
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 11.3%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.419x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 9.2%, below the sector average (15.0%). The operating margin is 11.8%. The debt ratio is 119.6%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $102.3M | $130.1M | $152.5M | +17.23% ↓ slower |
| Operating profit | $2.5M | $10.4M | $17.9M | +72.51% ↓ slower |
| Net profit | $5.6M | $13.0M | $16.4M | +26.48% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $90.5M | $86.4M | $102.3M | $130.1M | $152.5M |
| Operating profit | $4.8M | -$6.6M | $2.5M | $10.4M | $17.9M |
| Net profit | $5.9M | -$5.0M | $5.6M | $13.0M | $16.4M |
| Revenue CAGR | 4-yr avg 13.92% | ||||
Revenue rose 17.2% year over year (2023 ₩154.3 billion → 2024 ₩196.3 billion → 2025 ₩230.1 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 72.5% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 13.9%. The two-year revenue CAGR is 22.1%. In the most recent quarter (Q1 2026), revenue was 8.5% 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.
- Revenue grew 17.2% 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
- 2026-03-03EarningsChange of 30% or more (15% for large corporations) in revenue or profit-and-loss structure: annual revenue ₩230.1 billion, operating profit ₩27.1 billion, net profit ₩24.8 billionRecent confirmed or preliminary results. Check whether it points the same direction as the annual trend and whether any one-off factors are present. Source
- 2026-05-11UpdateTreasury-share disposal-result report: check the return termsA disclosure related to cash returns or a change in share count. Check whether earnings strength and cash flow support it. Source
- 2026-05-08UpdateMaterial-fact report (treasury-share disposal decision): check the return termsA disclosure related to cash returns or a change in share count. Check whether earnings strength and cash flow support it. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩15,950 | ₩15,950 | Confirmed | link |
| Latest quarterly results | revenue ₩50.9 billion, operating profit ₩6.3 billion | revenue ₩50.9 billion, operating profit ₩6.3 billion | Confirmed | link |
| Annual results | revenue ₩230.1 billion, operating profit ₩27.1 billion | revenue ₩230.1 billion, operating profit ₩27.1 billion | Confirmed | link |
| Results disclosure text | revenue30%: revenue ₩230.1 billion · operating profit ₩27.1 billion · net profit ₩24.8 billion | revenue30%: revenue ₩230.1 billion · operating profit ₩27.1 billion · net profit ₩24.8 billion | Confirmed | link |
| Shareholder-return disclosure text | : | : | Confirmed | link |
| Shareholder-return disclosure text | : | : | Confirmed | link |
| Outlook-box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-05-18OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-18OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-18OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-18OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-18OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-15PeriodicQuarterly report
- 2026-05-11TreasuryTreasury-stock disposal decision
- 2026-05-08TreasuryMaterial-fact report
- 2026-03-31Shareholders' meeting notice
- 2026-03-23PeriodicAnnual business report
- 2026-03-23Audit report
- 2026-03-16Shareholders' 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.