Neo Auto is an auto-parts company that mass-produces transmission and drivetrain powertrain components and supplies them to automakers and parts makers. Recent annual revenue is about ₩232.1 billion, and with a market capitalization of ₩101.7 billion it is worth watching how share-count events such as bonus issues affect per-share metrics. A February 2026 earnings-change disclosure confirmed annual revenue of ₩232.1 billion, operating profit of ₩13.7 billion and net profit of ₩14.9 billion, and a 2025 bonus-issue decision (0.5 new shares per share) together with a trading halt and ex-rights adjustment are tied into the same flow. What stands out recently is that even though revenue and operating profit have trended up for several years and ROE is 10.8%, the stock sits at a P/B of 0.74x and a P/E of 6.83x (forward P/E 8.46x) — the strength of a company whose earnings are growing trading at an undemanding price; on the other hand, the pace of revenue growth is easing versus the past, and because the market cap is small, disclosures like bonus issues weigh heavily on per-share metrics.
At-a-glance assessment financial health · growth · profitability · valuation
- Revenue rose 6.2% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 5.5% higher than a year earlier.
- ROE is 10.8% (total-net basis). It is above the sector average.
- Operating margin is 5.9%.
- P/B is high versus peers, a stretch on an asset basis.
Ownership & governance As of 2025-12-31
Largest shareholder Kim Sun-hyeon 40% (individual)
Controlling bloc incl. related parties 51.19%
With the controlling bloc holding 51%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Neo Auto is an auto-parts company that makes transmission and drivetrain components and supplies them to automakers and parts makers.
- The main stream of its business is mass-producing powertrain components used in cars to generate revenue, with recent annual revenue of about ₩232.1 billion.
- Because its market capitalization of ₩101.7 billion is on the smaller side, it is worth watching not only business results but also how share-count disclosures such as bonus issues affect per-share metrics.
- The latest close is ₩10,900 and market capitalization is ₩147.0 billion.
- The price sits above the 20-day line (₩9,615) and above the 60-day line (₩10,030).
- Trading above both its short- and medium-term moving averages, the trend is on the favorable side.
- The RSI (a supplementary gauge that measures the balance of up-days versus down-days over the last 14 days on a 0-100 scale) is 57.1, a neutral level.
- The one-month change is +11.5%, the three-month change is +51.2%, and the price stands -30.0% below its 52-week high.
- Relative strength versus the KOSDAQ is 94 (on a 1-99 scale that weights recent one-year returns against the index more heavily toward recent performance; higher means stronger than the market).
- That places it in roughly the top 5% of all stocks by strength.
- Over the past three months it has outpaced the index by 91.8%.
- Chart reading is best done alongside trading volume and disclosure dates.
- Recent annual revenue is ₩232.1 billion, with operating profit of ₩13.7 billion and net profit of ₩14.9 billion.
- The operating margin is 5.9% and ROE (a profitability gauge of how much is earned in a year on shareholders' equity) is 10.8%, above the industry average.
- The debt ratio (debt against equity) of 163.1% is not burdensome, and a current ratio of 1.34 supports short-term liquidity.
- P/E (how many times one year of earnings the price is) is now 8.65x and P/B (how many times the company's book value) is 0.94x, below book.
- One more point: reflecting this year's expected earnings, the forward P/E is 5.85x and forward P/B is 0.64x, lower than the current figures.
- This means that because earnings are in a growth phase, the current metrics may actually look conservative, and a company generating double-digit ROE trading below book leans toward having room rather than being richly priced.
- Revenue rose for four straight years, from ₩142.4 billion in 2021 to ₩232.1 billion in 2025, and over the same period operating profit more than doubled, from ₩5.9 billion to ₩13.7 billion.
- The latest quarter (Q1 2026) also grew — revenue of ₩60.4 billion (+5.5% year on year), operating profit of ₩3.7 billion (+7.8%) and net profit of ₩4.3 billion (+17.5%) — with profit growing faster than revenue.
- This year's estimates are revenue of ₩250.8 billion, operating profit of ₩14.2 billion and net profit of ₩17.4 billion, set by reflecting the confirmed Q1 results together with the quarterly distribution of results over the past three years.
- Net profit growing more strongly, from ₩14.9 billion last year to ₩17.4 billion, stems from revenue rising steadily while the operating margin holds and powertrain-parts demand provides support.
- The forward P/E of 8.46x being below the current P/E also reflects this earnings growth.
- That said, the pace of revenue growth itself is easing somewhat versus the past, so it is fitter to see this as a phase of steady, step-by-step scaling rather than explosive growth.
- The most notable recent disclosure is the February 10, 2026 earnings-change filing, which confirms annual revenue of ₩232.1 billion, operating profit of ₩13.7 billion and net profit of ₩14.9 billion.
- It is worth checking whether this runs in the same direction as the annual trend and whether any one-off factors are mixed in.
- Before that, disclosures related to the 2025 bonus issue follow.
- The June 30 bonus-issue decision (0.5 new shares per share, new shares expected to list on August 4), a trading halt, and the July 11 ex-rights adjustment are tied into the same flow.
- Because a bonus issue is an event that adjusts the per-share price and per-share metrics by increasing the share count, it is worth bearing this in mind when interpreting the one-month price change noted earlier.
- The strengths are clear.
- Revenue and operating profit have trended up for several years and ROE of 10.8% is above the industry average, yet the stock sits below book at a P/B of 0.74x and a P/E of 6.83x.
- Reflecting this year's expected earnings, forward P/E falls to 8.46x and forward P/B to 0.64x — the crux being that a company with growing earnings is trading at an undemanding price.
- Against nearby peers by market cap in the same industry, the P/E itself may look somewhat higher, but with a higher ROE than those names, it is hard to call it overpriced once the profitability difference is accounted for.
- On the cautious side, the pace of revenue growth is easing versus the past, and because the market cap is small, share-count disclosures such as bonus issues weigh relatively heavily on per-share metrics.
- In sum, as long as earnings keep growing and auto-parts demand provides support, the low valuation stands out and the stock reads strong; if the slowdown becomes pronounced or profitability wobbles, that appeal fades.
🔎 Valuation vs peers Fairly valued
Auto-parts names close by market capitalization.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Sambo Motors | 4.65x | 0.22x | 4.83% |
| Dowool | 3.55x | 0.37x | 10.44% |
| Hwaseung Corporation | 1.68x | 0.46x | 27.54% |
Within auto parts, the public-data peer set nearest by market capitalization was looked at first. The current P/E (how many times one year of earnings the price is) is 8.65x and P/B (how many times book value) is 0.94x. That said, smaller-cap names are more affected by earnings swings and financing disclosures, so no conclusion was drawn 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 | ₩250.8 billion | ₩14.2 billion | ₩17.4 billion |
| Next quarter | Q2 2026 | ₩64.9 billion | ₩4.6 billion | ₩5.4 billion |
Price history Close · MA20 · MA60
The latest close is ₩10,900 and the market capitalization is ₩147.0 billion. The price sits above its 20-day moving average (₩9,615) and above its 60-day moving average (₩10,030). 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 57.1, a neutral level. The one-month change is +11.5%, the three-month change is +51.2%, and the position relative to the 52-week high is -30.0%. Relative strength versus the KOSDAQ is 94 (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 95% of all stocks. Over the past three months it outpaced the index by 91.8%. 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 +91.81% / 6M +5.33% / 12M +10.68%
Key metrics vs sector median
Valuation
The P/E of 8.65x is in line with the sector median (7.76x). The P/B of 0.94x is above the sector median (0.56x).
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 9.8%, initial growth 2.2%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 10.8%, above the sector average (7.0%). The operating margin is 5.9%. The debt ratio is 163.1%, so the financial structure is moderate.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $131.4M | $144.9M | $153.8M | +6.20% ↓ slower |
| Operating profit | $6.9M | $8.4M | $9.1M | +8.11% ↓ slower |
| Net profit | $7.9M | $11.7M | $9.9M | -15.99% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $94.4M | $108.7M | $131.4M | $144.9M | $153.8M |
| Operating profit | $3.9M | $5.3M | $6.9M | $8.4M | $9.1M |
| Net profit | $4.4M | $5.2M | $7.9M | $11.7M | $9.9M |
| Revenue CAGR | 4-yr avg 13.00% | ||||
Revenue rose 6.2% year over year (2023 ₩198.2 billion → 2024 ₩218.6 billion → 2025 ₩232.1 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 8.1% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 13.0%. The two-year revenue CAGR is 8.2%. In the most recent quarter (Q1 2026), revenue was 5.5% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- ROE of 10.8% points to solid profitability.
Points to watch
- Revenue rose 6.2% year over year, and the pace is slowing (3-year trend: rising).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-02-10EarningsChange of 30% or more (15% for large corporations) in revenue or profit structure: annual revenue ₩232.1 billion, operating profit ₩13.7 billion, net profit ₩14.9 billionThis is recent confirmed or preliminary results data. Check whether it runs in the same direction as the annual trend and whether any one-off factors are present. Source
- 2025-07-11FilingEx-rights adjustment (bonus issue)This is a recent change confirmed in the official disclosure text. Whether it carries through to actual results and financial metrics needs checking. Source
- 2025-06-30FilingTrading halt (bonus issue)This is a recent change confirmed in the official disclosure text. Whether it carries through to actual results and financial metrics needs checking. Source
- 2025-06-30FilingMaterial-event report (bonus-issue decision): new shares allotted per share, common shares 0.5, other shares -. 6. Dividend accrual date for new shares January 1, 2025. 7. Scheduled certificate delivery date -. 8. New-share listing date August 4, 2025. 9. Board resolution date (decision date) June 30, 2025. Outside directors present: 2, absent: -.This is a recent change confirmed in the official disclosure text. Whether it carries through to actual results and financial metrics needs checking. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩10,900 | ₩10,900 | Confirmed | link |
| Latest quarterly results | revenue ₩60.4 billion, operating profit ₩3.7 billion | revenue ₩60.4 billion, operating profit ₩3.7 billion | Confirmed | link |
| Annual results | revenue ₩232.1 billion, operating profit ₩13.7 billion | revenue ₩232.1 billion, operating profit ₩13.7 billion | Confirmed | link |
| Results disclosure text | revenue30%: revenue ₩232.1 billion · operating profit ₩13.7 billion · net profit ₩14.9 billion | revenue30%: revenue ₩232.1 billion · operating profit ₩13.7 billion · net profit ₩14.9 billion | Confirmed | link |
| Disclosure text | — | — | Confirmed | link |
| Disclosure text | — | — | Confirmed | link |
| Outlook box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-05-15PeriodicQuarterly report
- 2026-03-27Shareholders' meeting notice
- 2026-03-27Disclosure
- 2026-03-19PeriodicAnnual business report
- 2026-03-19Audit report
- 2026-03-12Shareholders' meeting notice
- 2026-03-12Shareholders' meeting notice
- 2026-03-12Disclosure
- 2026-03-12Shareholders' meeting notice
- 2026-02-10EarningsEarnings filing
- 2026-02-10DividendCash/stock dividend decision
📖 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.