Daesung Hi-Tech is a machine-tool company whose flagship product is the Swiss-turn automatic lathe, which cuts thin bar stock to produce small, precise parts such as implants and EV components in unattended, repeated runs; to this it adds a precision-parts business and a compact machining-center business for EV battery machining, with a large share of revenue coming from exports. Recent disclosures have centered on convertible bonds (CBs): the company decided in May 2026 to issue a new CB, and in April it acquired its existing 5th-series CB before maturity and saw conversion-right exercise on its 6th-series CB, while a large Q1 net loss stemmed from a valuation loss on these CBs even as operating profit turned positive. What stands out lately is that, on the strength side, operating profit has turned positive after 2024 marked the deepest loss, end-market demand remains structurally intact, and a P/B of 1.16x and P/S of 0.79x are cheaper than peers; on the caution side, a debt ratio of 289.8% and a current ratio below 100% leave finances tight, and recurring CB issuance and conversion can keep generating dilution and net-income volatility.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 289.8%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 96.7%).
- The most recent full-year net result was a loss.
- Revenue rose 2.6% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 4.0% lower than a year earlier.
- ROE is -8.7% (controlling-interest basis). It is below the sector average.
- Operating margin is -2.4%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder Choi Ho-hyung 16.86% (individual)
Controlling bloc incl. related parties 45.39%
With the controlling bloc holding 45%, the ownership structure is stable.
🔎 In-depth analysis
- Daesung Hi-Tech is a machine-tool company whose flagship product is unattended precision-machining equipment called the Swiss-turn automatic lathe.
- The Swiss-turn cuts thin bar stock to produce small, precise parts — such as implants and EV components — in repeated runs without human hands, and it accounts for the core of the company's revenue.
- To this are added a "precision-parts" business that supplies global machine-tool and industrial-machinery makers, and a "compact machining-center" business used in machining EV batteries and components.
- In sum, it is a structure that sells both "the machines that make parts" and "the parts made with those machines," with a large share of revenue coming from exports.
- The latest close is ₩4,225 and the market cap is ₩68.7 billion.
- The price sits below both the 20-day line (₩5,148) and the 60-day line (₩8,103).
- Trading under both its short- and mid-term moving averages, the trend is subdued.
- RSI (an indicator that gauges upward versus downward force over the past 14 days on a 0-100 scale) is 30.9, a neutral level.
- The price is down 29.5% over one month and 62.9% over three months, and sits 71.3% below its 52-week high.
- Relative strength versus the KOSDAQ is 87 (1-99, weighting recent returns against the index over the past year more heavily; higher means stronger than the market), placing it in roughly the top 12% of all stocks by strength.
- Over the past three months it has lagged the index by 44.4%.
- Chart readings are best interpreted alongside trading volume and disclosure dates.
- The company is currently in an annual loss, so the P/E ratio (how many times a year's profit the price is) cannot be calculated and it is viewed on an asset and revenue basis.
- The P/B (how many times the company's net assets the price is) is 1.07x, below peers (YG-1 at 1.63x, SMEC at 1.92x), and the P/S (how many times a year's revenue the price is) is 0.79x, under 1x.
- Against assets and revenue, the price is on the cheaper side, and the diagnostic classifies it as "undervalued." Profitability and finances, meanwhile, are still weak: ROE (how much profit is generated on shareholders' equity in a year) is -8.7% and the operating margin is -2.4%, both negative; the debt ratio (debt against equity) is a high 289.8%, and the current ratio (assets convertible to cash within a year against debt due within a year) is 96.7%, slightly under 100%.
- The key point is that trailing (past confirmed) metrics still carry last year's loss, so the P/E cannot show the current health of a company whose profit is just turning.
- Thus the low P/B and P/S are more accurately read not as "expensive" but as "an asset- and revenue-based discount before it is yet judged on profit."
- Revenue stalled at ₩92.8 billion in 2023 and ₩92.8 billion in 2024, then edged up 2.6% to ₩95.2 billion in 2025, an upward direction on a three-year trend.
- The more meaningful change comes in operating profit: the loss, which had deepened to ₩6.6 billion in 2023 and ₩13.1 billion in 2024, narrowed sharply to ₩2.3 billion in 2025, and in Q1 2026 operating profit finally turned positive (about ₩0.04 billion).
- Having bottomed at the deepest loss in 2024, recovery is underway at the operating stage.
- Living end-market demand for Swiss-turn and precision parts — such as EV components, implants and precision machining — underpins this recovery.
- It is still too early, however, to pin down full-year profit this year in numbers.
- The Q1 2026 net loss was large at about ₩15.9 billion, but this is a non-operating, accounting valuation loss tied to convertible bonds (bonds that let borrowed money be converted into shares), not a loss involving cash outflow.
- In other words, operating profit has turned positive but net profit is heavily swayed by non-operating items, so it is hard at this stage to assume annual net profit is positive and assign a forward (future-earnings) multiple.
- This is not a knock on the recovery but a plain description of the fact that recovery started at the operating stage and has not yet steadily reached net profit.
- Recent disclosures are concentrated on convertible bonds (CBs).
- On May 11, 2026, the company decided to issue a new CB (material-fact report), and in April its existing 5th-series CB was acquired before maturity and the conversion right on its 6th-series CB was exercised.
- In May, the issuance result of the 7th-series CB was disclosed.
- A CB is a means of raising funds, but it has two sides: when the share price rises, an accounting valuation loss is recorded, and when it converts, the share count grows and existing shareholders' stakes are diluted.
- In fact, the large Q1 2026 net loss stemmed from this CB valuation loss.
- At the same time, there are moves to partly clean up the existing CB burden, such as acquiring bonds before maturity, so it is natural to read this stock's disclosures along a single axis of "financing, dilution and the cleanup thereof."
- The strengths are clear.
- Having passed 2024, its deepest loss, operating profit turned positive in Q1 2026, and end-market demand for Swiss-turn and precision parts (EV components, implants, precision machining) remains structurally intact.
- With an asset-based P/B of 1.16x and a revenue-based P/S of 0.79x, cheaper than peers, this is a place with room for a re-valuation if profit settles onto a recovery track.
- The cautions are equally clear.
- A debt ratio of 289.8% and a current ratio below 100% leave finances tight, and recurring CB issuance and conversion can keep generating additional dilution and net-income volatility.
- The operating profit has also only just crossed above zero, so it is not yet thick.
- In sum, this is a stock where the cheap valuation stands out as a strength "in a phase where operating recovery flows through to revenue and profit each quarter and the CB burden is cleaned up," and where financial and net-income volatility become the drag "in a phase where demand softens or dilution recurs through further financing."
🔎 Valuation vs peers Inconclusive
Domestic peers in machine tools / precision machining such as Swiss-turn automatic lathes and precision cutting tools (YG-1: end mills and other cutting tools; SMEC: machine tools); unrelated sectors such as cosmetics and aerospace were excluded.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| YG-1 | 32.66x | 1.93x | 5.92% |
| SMEC | 0.00x | 1.87x | -22.03% |
On an asset-value basis (P/B of 1.54x), it sits at a discount to peers such as YG-1 (1.91) and SMEC (2.24). However, because the company is still loss-making, a P/E comparison does not hold, and last year's trailing (past confirmed) results capture the period just before the profit inflection (the swing to operating profit), so they do not show current health as-is. On a forward (future-earnings) basis, the fact that operating profit has just turned positive is a positive, but net profit is heavily swayed by CB valuation gains and losses and the operating profit is only near zero, so until a stable earnings base is confirmed it is hard to conclude "cheap" or "expensive." This is a period to first confirm whether operating recovery continues quarter after quarter and whether the CB burden is cleaned up.
Price history Close · MA20 · MA60
The latest close is ₩4,225 and the market capitalization is ₩68.7 billion. The price sits below its 20-day moving average (₩5,148) and below its 60-day moving average (₩8,103). 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 30.9, a neutral level. The one-month change is -29.5%, the three-month change is -62.9%, and the position relative to the 52-week high is -71.3%. Relative strength versus the KOSDAQ is 87 (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 88% of all stocks. Over the past three months it lagged the index by 44.4%. 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 -44.40% / 6M +27.65% / 12M -9.31%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 1.07x 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 -8.7%, below the sector average (5.0%). The operating margin is -2.4%. The debt ratio is 289.8%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $61.5M | $61.5M | $63.1M | +2.57% ↑ faster |
| Operating profit | -$4.4M | -$8.7M | -$1.5M | — |
| Net profit | -$4.8M | -$8.2M | -$3.7M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $74.6M | $85.1M | $61.5M | $61.5M | $63.1M |
| Operating profit | $8.0M | $7.6M | -$4.4M | -$8.7M | -$1.5M |
| Net profit | $5.0M | $1.5M | -$4.8M | -$8.2M | -$3.7M |
| Revenue CAGR | 4-yr avg -4.10% | ||||
Revenue rose 2.6% year over year (2023 ₩92.8 billion → 2024 ₩92.8 billion → 2025 ₩95.2 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating results are in the red, so a swing back to profit matters more than the growth rate here. Over the 5 years on record, revenue compound annual growth (CAGR) is -4.1%. The two-year revenue CAGR is 1.3%. In the most recent quarter (Q1 2026), revenue was 4.0% 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.
Points to watch
- Debt is somewhat higher than equity (debt ratio 289.8%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 96.7%).
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
Recent news & events searched · sourced
- 2026-05-11FilingDecision to issue a new convertible bond (CB) — disclosure of a decision to issue an additional CB for financing.In the short term it helps secure liquidity such as working capital, but it also carries the possibility of an accounting valuation loss when the share price rises and dilution of existing shareholders' stakes from a higher share count upon conversion. Source
- 2026-05-15EarningsQ1 2026 quarterly report filed — revenue ₩17.58 billion (-4.0% year over year), operating profit turned positive, net loss of about ₩15.95 billion (reflecting an accounting valuation loss tied to convertible bonds).The operating-stage recovery (swing to profit) is positive, but the net-income volatility widened by the non-operating CB valuation loss should be checked alongside it. That valuation loss is an accounting loss with no cash outflow. Source
- 2026-04-27FilingAcquisition of the 5th-series convertible bond before maturity — disclosure that the company acquired part of an already-issued CB before its maturity.A move to partly clean up the existing CB burden, reducing future factors of dilution and valuation-gain/loss swings. That said, since it runs alongside a new CB issuance, whether the total CB burden net-decreases needs further confirmation. Source
- 2026-04-21FilingExercise of conversion rights on the 6th-series convertible bond — a claim to convert held CBs into shares was made.As bonds convert into shares, the number of shares outstanding rises and existing shareholders' stakes are diluted. At the same time, debt (bonds) converts into equity, which is somewhat positive for the financial structure. Source
- 2026-05-19Filing7th-series convertible bond securities-issuance result (voluntary disclosure) — a result disclosure confirming that the new CB issuance was actually completed.As the point when the raised funds actually came in, it is positive for liquidity, but an additional CB is added to the capital structure, accumulating dilution pressure upon future conversion. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 swing to operating profit / revenue | operating profit approx. ₩0.0 billion, revenue ₩17.6 billion | operating profit ·revenue approx. ₩17.6 billion | Confirmed | link |
| Nature of the Q1 2026 net loss | approx. -₩15.9 billion | — | Confirmed | link |
| Financial soundness (debt ratio · current ratio) | 289.8%, 96.7% | — | Unverified | link |
Recent filings
- 2026-05-27OwnershipOwnership-change filing
- 2026-05-22OwnershipOwnership-change filing
- 2026-05-19Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-11OwnershipOwnership-change filing
- 2026-05-11Material-fact report
- 2026-04-30OwnershipOwnership-change filing
- 2026-04-29OwnershipOwnership-change filing
- 2026-04-27Convertible-bond issuance
- 2026-04-27Disclosure
- 2026-04-21Disclosure
- 2026-04-20Disclosure
📖 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.