Shinheung SEC makes the safety components that go inside lithium-ion secondary batteries. Its main products are the Cap Assembly and can that form the lid of prismatic cells, plus the current-interrupt device used in cylindrical cells, all essential parts that cut the internal circuit and prevent explosion when a cell overheats or over-pressurizes. More than 90% of its revenue comes from a single customer, Samsung SDI, under a dedicated-supplier structure. After a February disclosure confirmed a full-year loss for last year, the May quarterly report showed the start of a recovery, with Q1 revenue up 19.5% and net profit swinging back into the black. The notable points are that the stock trades at a discount, with a P/B of 0.53x and a forward P/E of around 7.5x, right as earnings pass an inflection point, while the single-customer dependence, a thin operating margin in the 1% range, and a debt ratio of 147.5% that leaves limited financial headroom are all worth watching alongside.
At-a-glance assessment financial health · growth · profitability · valuation
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 69.2%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The most recent full-year net result was a loss.
- Revenue fell 5.7% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 19.5% higher than a year earlier.
- ROE is -1.6% (controlling-interest basis). It is below the sector average.
- Operating margin is 1.5%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder Choi Hwa-bong 9.15% (individual)
Controlling bloc incl. related parties 26.52%
With the controlling bloc holding 27%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- Shinheung SEC makes the safety components that go inside lithium-ion secondary batteries (rechargeable batteries).
- Its core products are the Cap Assembly and prismatic can that form the lid of prismatic cells, and the CID (current-interrupt device) for cylindrical cells, key parts that cut the internal circuit to prevent explosion when a battery overheats or over-pressurizes.
- More than 90% of revenue comes from a single customer, Samsung SDI, under a dedicated-supplier structure, and beyond its domestic sites the company runs overseas production units in the United States, Malaysia and elsewhere to supply parts to local battery plants.
- In other words, the company's results are almost directly tied to how well Samsung SDI's batteries sell (for EVs, ESS, power tools and BBUs).
- Because safety components are essential parts that must go into every single cell, shipments tend to rise fairly quickly once downstream operations pick up.
- The recent close is ₩4,580 and the market cap is ₩176.6 billion.
- The price sits below the 20-day line (₩5,344) and below the 60-day line (₩7,490).
- Being under both the short- and medium-term moving averages, the trend looks pressured.
- The RSI (a supplementary gauge that weighs recent up-moves against down-moves over the last 14 days on a 0-100 scale) is 31.9, a neutral level.
- The one-month change is -21.3%, the three-month change is -42.9%, and the position versus the 52-week high is -59.5%.
- Relative strength versus the KOSDAQ is 74 (1-99, converting the past year's return versus the index with more weight on recent performance; higher means stronger than the market).
- That puts it in roughly the top 26% of all stocks by strength.
- Over the last three months it lagged the index by 22.3%.
- Chart reading is best done alongside volume and disclosure dates.
- The stock trades at a P/B of 0.50x, well below its shareholders' equity, and its P/S is also low at around 0.6x.
- A trailing P/E based on last year's (2025) confirmed results (the multiple on the past year's earnings) cannot be calculated at all because the company posted a net loss.
- That said, this stock is in a recovery phase where earnings have just passed an inflection point, so a forward P/E based on estimated earnings for the year ahead reflects the real picture better than a trailing figure based on the past loss.
- That forward P/E is below the peer median, a signal that the stock is cheap not only against assets but also against recovering earnings.
- The financials do warrant a check.
- The debt ratio (debt against equity) is 147.5%, the current ratio (assets that can be turned into cash immediately against debt due within a year) is 69.2%, which is below 100%, and last year's interest coverage ratio (how far operating profit covers interest) was under 1x.
- These are the numbers of a loss-making year, so the key is to watch whether they improve together as this year's earnings recover.
- The top line grew from ₩366.3 billion to ₩539.9 billion over 2021-2023, then fell for two straight years to ₩432.8 billion in 2024 and ₩408.2 billion in 2025.
- Earnings fell more steeply, with operating profit shrinking from ₩43.7 billion in 2023 to ₩5.9 billion in 2025, and net profit swinging to a loss of ₩5.8 billion last year, the direct result of passing straight through a secondary-battery down-cycle (an oversupply phase) as EV and ESS demand slowed.
- The turn came in Q1 2026.
- Revenue rose 19.5% year on year to ₩123.7 billion and net profit swung back to a positive ₩8.5 billion, confirming in the numbers that the company has entered a recovery phase where shipments are rising again after the down-cycle.
- Because safety components are essential parts that go into every cell, volumes follow closely once downstream utilization rises, and in step with a recovery in Samsung SDI's ESS and cylindrical-cell operations, the estimated earnings for this year swing from last year's loss to a clear profit.
- The forward P/E that can now be computed reflects this recovering earnings figure.
- That said, Q1 net profit (₩8.5 billion) was well above operating profit (₩1.6 billion), so non-operating factors such as FX are mixed in, and it is worth confirming whether operating profit itself thickens quarter by quarter.
- Recent disclosures include many routine items such as periodic reports, shareholder meetings and share-holding changes, but two matter most for reading the trend.
- The February disclosure of a change in the profit-and-loss structure confirmed last year's full-year loss, signaling the bottom of the down-cycle, and the May Q1 report marked an inflection point by showing revenue up 19.5% and net profit swinging into the black, confirming the recovery had begun.
- In April the company held an IR session to explain its recovery-phase business plans, including overseas-plant operations and product mix, directly.
- The company does not officially disclose separate revenue or profit targets, so the path ahead can be read by tracking disclosed results together with the operating direction of its downstream customer (Samsung SDI).
- The strengths here are fairly clear.
- The stock trades below shareholders' equity (P/B 0.53x), earnings passed an inflection point in Q1 2026 with revenue up 19.5% and net profit swinging into the black, and a forward P/E below peers (around 7.5x) points to it being undervalued even against recovering earnings.
- A recovery in downstream Samsung SDI's ESS and cylindrical-cell operations is also favorable for parts shipments.
- The points to watch are equally clear.
- More than 90% of revenue is tied to a single customer, so results hinge on Samsung SDI's utilization; the operating margin is thin at around 1%, so the earnings recovery could slow if demand turns down again; and with a debt ratio of 147.5% and a current ratio of 69.2%, financial headroom is not generous.
- In short, the undervaluation stands out when downstream battery demand recovers and Q1-like revenue growth continues quarter after quarter, while the recovery slows when the single customer's operations soften or margins compress again.
🔎 Valuation vs peers Inconclusive
The peer set is KOSDAQ small- and mid-caps that sit in the same secondary-battery materials and components value chain and went through the 2025 battery-industry down-cycle together.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Chunbo | 0.00x | 1.02x | -13.64% |
| Enchem | 0.00x | 1.04x | -14.38% |
| L&F | 0.00x | 5.51x | -79.27% |
(a) Position versus peers: Cheonbo (P/B 1.17), Enchem (1.46) and L&F (7.71) all trade above their shareholders' equity, whereas Shinheung SEC at 0.65x is the lowest of the group. (b) Discount: this discount appears to reflect the thin margin typical of a parts maker (operating margin in the 1% range), the single-customer dependence, and the financial burden of a 147.5% debt ratio. As a lower-value-added 'components' business relative to materials makers (cathode, electrolyte), its multiple also tends to be set lower. (c) Limits of trailing figures: last year's loss makes a P/E-based comparison impossible, and with the Q1 2026 swing into profit earnings are passing an inflection point, so last year's confirmed results alone cannot settle whether the valuation is fair. On a forward basis the assessment can shift substantially depending on recovery assumptions, so we view it as inconclusive.
Price history Close · MA20 · MA60
The latest close is ₩4,580 and the market capitalization is ₩176.6 billion. The price sits below its 20-day moving average (₩5,344) and below its 60-day moving average (₩7,490). 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 31.9, a neutral level. The one-month change is -21.3%, the three-month change is -42.9%, and the position relative to the 52-week high is -59.5%. Relative strength versus the KOSDAQ is 74 (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 74% of all stocks. Over the past three months it lagged the index by 22.3%. 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 -22.29% / 6M +9.41% / 12M +14.55%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 0.50x is below the sector median (2.15x).
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 -1.6%, below the sector average (2.0%). The operating margin is 1.5%. The debt ratio is 147.5%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $357.8M | $286.9M | $270.6M | -5.68% ↑ faster |
| Operating profit | $28.9M | $8.7M | $3.9M | -55.00% ↑ faster |
| Net profit | $20.5M | $14.6M | -$3.9M | -126.47% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $242.7M | $316.7M | $357.8M | $286.9M | $270.6M |
| Operating profit | $20.6M | $20.6M | $28.9M | $8.7M | $3.9M |
| Net profit | $17.7M | $13.0M | $20.5M | $14.6M | -$3.9M |
| Revenue CAGR | 4-yr avg 2.75% | ||||
Revenue fell 5.7% year over year (2023 ₩539.9 billion → 2024 ₩432.8 billion → 2025 ₩408.2 billion), and the three-year trend is 'falling'. That said, the rate of decline narrowed from the prior year. Operating profit fell 55.0% year over year. That said, the decline narrowed. Over the 5 years on record, revenue compound annual growth (CAGR) is 2.8%. The two-year revenue CAGR is -13.0%. In the most recent quarter (Q1 2026), revenue was 19.5% higher 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
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 69.2%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 5.7% year over year (3-year trend: falling).
Recent news & events searched · sourced
- 2026-02-25EarningsDisclosure of a change of 30%+ in revenue or profit-and-loss structure — signaled that 2025 full-year results deteriorated sharply and net profit swung to a lossIn the short term, a drag on sentiment from the confirmed loss. In the medium term, a signal confirming the bottom of the industry down-cycle, and a reference point for judging the subsequent recovery. Source
- 2026-04-14IRIR session held — the company explained its business status and plans for the recovery phase directlyThe company laid out the direction of overseas-plant operations and product mix that disclosures alone do not reveal. Bears on medium-term earnings visibility. Source
- 2026-05-15FilingQ1 2026 quarterly report — revenue ₩123.7 billion (+19.5% year on year), net profit +₩8.5 billion, a swing into the blackIn the short term, a signal of an earnings inflection. In the medium term, whether the revenue recovery continues quarter after quarter is the key to this year's estimated earnings. Source
- 2026-03-26FilingAnnual general meeting result — routine items such as approval of financial statements handledA routine governance and dividend procedure with limited direct impact on results. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-15PeriodicQuarterly report
- 2026-04-14Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-18PeriodicAnnual business report
- 2026-03-18Audit report
- 2026-03-18OwnershipOfficers'/major-shareholders' holdings report (amended)
- 2026-03-18OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-18OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-18OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-10Shareholders' meeting notice
- 2026-03-10Shareholders' meeting notice
- 2026-02-25EarningsEarnings filing
📖 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.