GNC Energy (119850) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
Although classified under "games," GNC Energy actually supplies emergency generators to facilities where power must not be interrupted, such as data centers and telecom carriers. As of 2025, generators made up about 75% of total revenue (₩197.9 billion), and domestic generators for data centers and R&D centers grew about 31% in a single year. In June 2026 a string of large orders was confirmed, including ₩62.71 billion of generators for Naver's Sejong data center, ₩38.16 billion for LG Uplus's Paju center and ₩25.22 billion for LG CNS's Goyang Samsong, and it delivers profitability with an ROE of 18.2% and an operating margin of 18.8%. What stands out lately is that if the secured large orders are recognized as revenue smoothly in the second half, there is substantial room for the low multiples of 8.11x trailing and 5.98x forward to narrow; on the other hand, generators carry strong seasonality with profit concentrated in the fourth quarter, so it is hard to judge on off-season first-quarter results alone.
This page organises public market and filing data for information purposes. It is not a recommendation to buy or sell, nor investment advice. Metrics labelled “forward” are our own unverified estimates. Please verify with the original DART filings and decide at your own responsibility.
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 “Power Equipment” (Shipbuilding, Machinery, Defense & Power Equipment), a type typically read first through forward P/E.
Power-equipment firms make the transformers and grid gear that move electricity, and their results swing with grid-investment cycles and large project awards. Because the backlog converting into future earnings matters more than results already booked, the forward P/E — reflecting expected earnings — is the first lens.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
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 16.1% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 16.4% lower than a year earlier.
- ROE is 17.0% (controlling-interest basis). It is above the sector average.
- Operating margin is 15.4%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Ahn Byeong-cheol 30.4% (individual)
Controlling bloc incl. related parties 33.51%
With the controlling bloc holding 34%, the ownership structure is stable.
🔎 In-depth analysis Reading
Although grouped under "games" by name and classification, that is unrelated to its actual business. It is a company that makes and supplies emergency generators to facilities where power must not be interrupted, such as data centers and telecom carriers, and per the 2025 business report generator revenue accounted for about 75% of total company revenue (₩197.9 billion). Its core customers are exactly data centers (DC) and R&D centers, and domestic generator revenue toward these two grew about 31% in a single year, from ₩114.9 billion in 2024 to ₩150.4 billion in 2025. In other words, more than half of total revenue comes from large generators that go into data centers, so it is a business structure that grows alongside data centers as AI and cloud investment increases them. Beyond that, there are side branches such as cogeneration plants and renewable-energy businesses, but their weight is small (about 1.8%), and the center of gravity is in power equipment for data centers. Headquarters is in Seongnam, Gyeonggi, and the largest shareholder is CEO Ahn Byeong-cheol (about 30.4% including related parties).
The latest close is ₩51,100 and the market capitalization is ₩840.5 billion. The price sits above its 20-day moving average (₩36,640) and above its 60-day moving average (₩28,667). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 68.9, a neutral level. The one-month change is +83.2%, the three-month change is +39.1%, and the position relative to the 52-week high is -0.2%. Relative strength versus the KOSDAQ is 89 (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 89% of all stocks. Over the past three months it outpaced the index by 106.9%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
On confirmed results (2025), the trailing P/E ratio (how many times one year's net profit the price represents) is 21.04x and the P/B (how many times net assets the price represents) is 3.65x. Profitability is good, with ROE (how much is earned in a year on equity) at 18.2%, above the peer average, an operating margin (the share of operating profit in revenue) of 18.8% and a net margin of 15.2%. The balance sheet is solid too, with a debt ratio of 69.4% and a current ratio (assets to be converted to cash within a year versus debt due within a year) of 198.6%, both sound, and an interest-coverage ratio (how many times interest can be paid with operating profit) of 8.9x, so the rate burden is not large. On top of the trailing P/E and P/B not being high, the forward P/E reflecting this year's expected earnings falls further to 5.98x. This is the pattern seen in a phase of rising earnings, and since the generator business has a lag in revenue recognition making quarterly swings large, viewing it by the annual flow rather than one or two quarters' numbers fits the business substance.
Over five years, revenue grew from ₩122.5 billion in 2021 to ₩166.4 billion in 2023 and ₩262.6 billion in 2025, an average of about 21% growth per year. Operating profit swelled quickly over the same period, from ₩11.0 billion (2023) to ₩31.7 billion (2024) and ₩49.4 billion (2025). The driver of this leap is clear: as AI and cloud investment rose, new data centers followed, and the company winning the large generator orders that go into them lifted domestic data-center generator revenue from ₩114.9 billion in 2024 to ₩150.4 billion in 2025. The forward P/E on this year's expected earnings falling to 5.98x is also because, into 2026, large data-center generator orders were confirmed one after another - Naver Sejong (₩62.7 billion), LG Uplus Paju (₩38.2 billion), LG CNS Goyang Samsong (₩25.2 billion) - stacking up volume to be recognized as future revenue. Generators carry seasonality with revenue and profit concentrated in the fourth quarter (three-year averages of about 32% of revenue and about 41% of operating profit in Q4), so judging a full year on the off-season Q1 2026 revenue of ₩55.4 billion and operating profit of ₩4.4 billion is premature. That said, the revenue growth pace is a trend of slowing versus 2024, so how quickly profit grows further is a point to confirm through second-half order-fulfillment results.
Into 2026, large generator orders for data centers and telecom carriers were won one after another. On June 1 it contracted ₩62.71 billion (27.7% of last year's revenue) for generators (phases 2-3) at Naver's Sejong data center - a scale exceeding a quarter of single-year revenue. The order name was transferred from Naver to the contractor XiC&A, but the supply volume itself was disclosed as unchanged. On June 10 a new ₩38.16 billion (14.5% of last year's revenue) supply contract for phase-2 generators at LG Uplus's Paju center was signed, and on June 4 the end date of the ₩25.22 billion (17.0% of last year's revenue) contract for generators at LG CNS's Goyang Samsong IT platform center was amended to the end of June. All three are data-center generators, its flagship business, a signal that the company is establishing a place in the data-center power supply chain. Orders are recognized as revenue over the contract term (for example, the Naver deal runs to March 2029), so how much is reflected in which quarter's results going forward is the point to watch.
The strengths are clear. More than half of revenue comes from data-center generators, and with large orders from Naver, LG Uplus and LG CNS being confirmed steadily, it is riding directly on the big trend of AI data-center power demand. On top of delivering good profitability with an ROE of 18.2% and an operating margin of 18.8%, while similar power-infrastructure names trade at P/Es of 30-50x, it stays at a trailing P/E of 8.11x and a forward P/E of 12.12x, so the valuation burden is on the light side. There are points to examine too. Generators carry strong seasonality with profit concentrated in Q4, so judging a full year on off-season Q1 results is hard, and with Q1 2026 operating profit falling sharply year over year, second-half recovery must be watched. In sum, if data-center generator demand and the already secured large orders are recognized as revenue smoothly in the second half, there is substantial room for the low multiples to narrow. Conversely, if order revenue recognition is later than expected or the second-half recovery is weak, the seasonal slowdown could drag on, so the pace at which quarterly results catch up with the order backlog is the key point to watch.
🔎 Valuation vs peers Undervalued
In keeping with the business substance of manufacturing power equipment for data centers and grids, it was compared against domestic listed power-equipment firms riding the same AI and data-center power demand. That said, GNC Energy is a small-cap around ₩360 billion in market cap while the peers are trillion-won large caps, so absolute multiples should be viewed as "direction" rather than a direct comparison.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Iljin Electric | 27.04x | 4.66x | 19.39% |
| Sanil Electric | 33.18x | 8.31x | 27.50% |
| HD Hyundai Electric | 37.44x | 13.19x | 37.84% |
While the direct peer set of domestic listed power-equipment firms trades at P/Es of 38-56x and P/Bs of 6-20x, GNC Energy stays at a confirmed P/E of 9.06x and a P/B of 1.65x despite an ROE no less high. Not only on last year's confirmed trailing P/E, but on this year's forward basis converted via a seasonality approximation, the multiple burden is not large because profit is concentrated in the second half. This large gap appears to combine (a) a small-cap discount versus large power-equipment names and (b) uncertainty from the Q1 results slowdown, and versus the peer set we judge it in undervalued territory. That said, generators carry a large revenue-recognition lag and Q4 concentration, so it must not be asserted on one or two quarters' results alone, and the gap can narrow only once second-half order fulfillment and earnings recovery are confirmed. We therefore view it as a spot that could be re-valued depending on whether results follow the seasonality, rather than asserting it is "cheap."
Earnings outlook Estimate company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | ₩62.5 billion | ₩4.6 billion | ₩19.3 billion |
Price history Close · MA20 · MA60
The latest close is ₩51,100 and the market capitalization is ₩840.5 billion. The price sits above its 20-day moving average (₩36,640) and above its 60-day moving average (₩28,667). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 68.9, a neutral level. The one-month change is +83.2%, the three-month change is +39.1%, and the position relative to the 52-week high is -0.2%. Relative strength versus the KOSDAQ is 89 (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 89% of all stocks. Over the past three months it outpaced the index by 106.9%. 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 +106.87% / 6M +103.82% / 12M +60.59%
Key metrics Computed vs sector median
Valuation
The P/E of 21.04x is above the sector median (12.50x). The P/B of 3.65x is above the sector median (1.21x).
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 10.1%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.736x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 17.0%, above the sector average (1.0%). The operating margin is 15.4%. The debt ratio is 64.7%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $116.9M | $159.0M | $184.5M | +16.05% ↓ slower |
| Operating profit | $7.7M | $22.3M | $34.7M | +55.73% ↓ slower |
| Net profit | $8.0M | $27.0M | $28.1M | +3.79% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $86.0M | $104.4M | $116.9M | $159.0M | $184.5M |
| Operating profit | $4.9M | $4.3M | $7.7M | $22.3M | $34.7M |
| Net profit | $3.1M | $19.2M | $8.0M | $27.0M | $28.1M |
| Revenue CAGR | 4-yr avg 21.01% | ||||
Revenue rose 16.1% year over year (2023 ₩166.4 billion → 2024 ₩226.3 billion → 2025 ₩262.6 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 55.7% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 21.0%. The two-year revenue CAGR is 25.6%. In the most recent quarter (Q1 2026), revenue was 16.4% 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.
- ROE of 17.0% points to solid profitability.
- Revenue grew 16.1% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The price is near its 52-week high, so chasing it warrants caution around volatility.
Recent news & events searched · sourced
- 2026-06-10UpdateNew ₩38.16 billion supply contract (14.5% of last year's revenue) signed for phase-2 generators at LG Uplus's Paju center, contract term 2026-06-09 to 2028-03-31, in-house productionIn the short term a new data-center order adds to the order backlog. In the mid term, since it is recognized as revenue over the contract term, it reflects into future quarterly profit depending on the recognition pace and cost ratio. Source
- 2026-06-01Update₩62.71 billion contract (27.7% of last year's revenue) for generators (phases 2-3) at Naver's Sejong data center, with the name transferred from orderer Naver to contractor XiC&A, contract term 2026-06-01 to 2029-03-31A large data-center order exceeding a quarter of single-year revenue, a core axis of mid-term revenue. The contractor transfer is only a change of contracting party; the supply volume itself was disclosed as unchanged. Source
- 2026-06-04UpdateEnd date of the ₩25.22 billion supply contract (17.0% of last year's revenue) for generators at LG CNS's Goyang Samsong IT platform center amended to 2026-06-30As the closing stage of an existing data-center order, whether that revenue is recognized by the first half is a variable for short-term results. Source
- 2026-05-15FilingFiled the Q1 2026 quarterly report (revenue of ₩55.4 billion and operating profit of ₩4.4 billion, down 16.4% and 70.6% year over year respectively)With the generator revenue-recognition lag and Q4-concentration seasonality, Q1 is originally an off-season, but as a large slowdown versus the prior-year period, second-half recovery must be watched. Source
- 2026-03-18FilingFiled the 2025 business report (consolidated revenue of ₩262.6 billion and operating profit of ₩49.4 billion, generator weight about 75%, domestic data-center generators ₩150.4 billion)A reference confirming officially the business structure in which data-center generators account for more than half of revenue and the 2025 earnings leap. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 consolidated revenue | ₩262,633,597,538(₩262.6 billion) | ₩262,633,597,538 | Confirmed | link |
| Core business (generator) revenue weight | base '' | ₩197.9 billion(75.3%), ₩150.4 billion | Mismatch | link |
| Data-center generator orders (2026-06) | disclosures 3 | 627.1·LG 381.6·LG CNS 252.2 | Confirmed | link |
| Latest closing price | ₩51,100 | — | Unverified | link |
| This year's seasonality-approximated results | revenue 2,762·operating profit 263·net profit 695 | — | Unverified | link |
Recent filings Source
- 2026-06-10Single supply/sales contract
- 2026-06-04Single supply/sales contract (amended)
- 2026-06-01Single supply/sales contract (amended)
- 2026-05-21OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-15PeriodicQuarterly report
- 2026-05-15OwnershipOwnership-change filing
- 2026-03-31PeriodicAnnual business report (amended)
- 2026-03-31Audit report (amended)
- 2026-03-26Shareholders' meeting notice
- 2026-03-18PeriodicAnnual business report
- 2026-03-18Audit report
- 2026-03-10Disclosure
📖 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.