Solux, founded in 1996, was an LED lighting maker producing indoor, outdoor, and large-facility lighting, and from 2025 it moved in earnest into construction — directly performing the electrical, telecommunications, and electrical-firefighting work of buildings — shifting the center of gravity of revenue toward two axes. In June 2026 it won two electrical-works contracts for mixed-use developments in Asan, South Chungcheong and Jeonju, North Jeolla (about ₩24.2 billion combined, roughly 63% of last year's revenue), confirming the substance of the construction business through disclosure, and with construction periods running to 2029-2030 the revenue is recognized over several years while the 3rd, 8th, and 9th convertible bonds are repeatedly issued, converted, and re-disposed. What stands out is that starting to supplement the limits of a lighting-only business with a new revenue source in building electrical work, and a double-digit rebound in Q1 revenue, are strengths, whereas operating and net losses still continue, a current ratio of 42.7% leaves limited near-term liquidity, and frequent convertible bonds raise the possibility of a rising share count.
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 42.7%).
- The most recent full-year net result was a loss.
- Revenue fell 24.5% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 43.4% higher than a year earlier.
- ROE is -8.5% (total-net basis). It is below the sector average.
- Operating margin is -17.5%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder Jeong Jae-jun 9.4% (individual)
Controlling bloc incl. related parties 9.4%
With the controlling bloc holding 9%, ownership is dispersed, leaving room for control-related or activist dynamics.
🔎 In-depth analysis
- Solux, founded in 1996 and listed on KOSDAQ in 2020, was originally an LED lighting maker producing indoor and outdoor lighting, sports and large-facility lighting, and the like.
- From 2025 it entered in earnest the construction business (specialty-construction subcontracting), directly undertaking the electrical, telecommunications, and electrical-firefighting work of buildings.
- Indeed, in June 2026 it won two new-build electrical-works contracts in succession — a mixed-use development in Oncheon-dong, Asan, South Chungcheong (about ₩12.7 billion) and one on Girin-daero, Jeonju, North Jeolla (about ₩11.5 billion) — whose combined value equals roughly 63% of last year's revenue (₩38.3 billion), a large sum.
- In other words, Solux's revenue is now shifting its center of gravity toward two axes — 'sales of lighting products' and 'electrical-works construction at building sites' — with the new construction business becoming the engine lifting the top line.
- The latest close is ₩4,575 and market capitalization is ₩240.6 billion.
- The price sits below the 20-day line (₩4,862) and above the 60-day line (₩4,476).
- With the short- and mid-term trends crossed, the direction should be read separately.
- The RSI (a gauge comparing upward and downward momentum over the past 14 days on a 0-100 scale) is 48.3, a neutral level.
- The one-month change is +2.6%, the three-month change is +32.6%, and the price sits -24.0% below its 52-week high.
- Relative strength versus the KOSDAQ is 88 (on a 1-99 scale that weights recent returns against the index over the past year more heavily; higher means stronger than the market).
- That places it in roughly the top 11% of all stocks by strength.
- Over the past three months it outpaced the index by 80.2%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- Earnings are currently in a loss zone.
- ROE (how much is earned per year on equity) is -8.5%, the operating margin is -17.5%, and the net margin is -20.2%, and because profit is negative the P/E ratio (how many times one year of earnings the price represents) cannot be computed at all.
- So we look at asset-based metrics: the P/B (how many times net assets the price represents) is 2.53x and the P/S (how many times one year of revenue the price represents) is about 6.4x.
- That a market cap of more than six times revenue is set despite the losses reads as the market pricing in not 'today's profit' but 'the revenue and profit that the shift into construction will create.' Financial capacity is tight.
- The debt ratio (debt against equity) is 156% and the current ratio (liquid assets against debt due within a year) is 42.7%, below 100%, leaving limited room in near-term liquidity.
- That said, a high-looking P/E or P/B is not itself enough to conclude the stock is 'expensive.' For a company at an earnings inflection, the picture after the transition takes hold matters more than trailing results, so the level of the valuation can be properly judged only after confirming whether construction revenue flows into profit.
- The revenue trajectory is at a turning point after a rough patch.
- Annual revenue fell from ₩59.8 billion in 2023 to ₩38.3 billion in 2025 during the lighting-only era, down -24.5% last year, but the most recent Q1 2026 revenue rose +43.4% year on year to ₩7.36 billion, a clear rebound.
- This is not a one-off swing but a change from newly started construction (electrical works) revenue actually beginning to register, and the ₩24.2 billion of multi-year orders confirmed in June 2026 form a base to lift the top line further.
- That said, profit has yet to catch up to revenue, with a Q1 operating loss of -₩3.06 billion and a net loss of -₩8.53 billion continuing.
- That the net loss far exceeds the operating loss reflects large financial and valuation costs tied to convertible bonds, mixing in a one-off character stemming from the capital structure rather than the core operations.
- Since the company issued no official profit outlook and losses continue, this year's forward earnings multiple was left blank rather than estimated forcibly.
- The top line has clearly turned; the remaining hurdle is whether that revenue connects to a profit.
- Recent disclosures split into two threads.
- First, orders as a growth catalyst: in June 2026 it signed two mixed-use development electrical-works contracts in Asan, South Chungcheong and Jeonju, North Jeolla (about ₩24.2 billion combined), confirming the substance of the construction business through disclosure.
- With construction periods running to 2029-2030 respectively, revenue is recognized over several years.
- Second, financing and equity: the 3rd, 8th, 9th, and other convertible bonds (CBs) are repeatedly issued, converted, acquired before maturity, and re-disposed.
- For example, on June 2 the company re-disposed to outside parties the 3rd CB (face value ₩1.8 billion) it had bought back, to secure operating funds (conversion price ₩3,087, about 583,000 shares on conversion, 1.14% of total shares), and a June 10 disclosure confirmed that Sangsangin Savings Bank holds a 12.62% stake for simple investment through CB conversion and the like.
- Orders add to the top line, while frequent CBs are a factor to watch alongside, as a rising share count later could dilute existing holdings.
- The strengths are clear.
- It has begun supplementing the limits of an LED-lighting-only business with a new revenue source in building electrical work, multi-year orders exceeding half of last year's revenue have been captured in actual disclosures, and Q1 revenue swung to a double-digit rebound for the first time in a year.
- The key is that the transition has begun not as mere expectation but in contract and revenue figures.
- Points to watch alongside are profit and finances.
- Operating and net losses still continue, a 42.7% current ratio leaves limited near-term liquidity, and frequent convertible-bond issuance and conversion raise the possibility of a rising share count.
- In sum, if the new construction orders flow beyond revenue into profit and the convertible-bond burden is confirmed to be winding down, both the top line and value firm up, whereas if the swing to profit is delayed or additional financing and dilution recur, the burden grows.
- Rather than concluding good or bad either way, this is a textbook 'early-transition' company suitable to follow while confirming the point at which the fruits of the transition show up in the bottom line.
🔎 Valuation vs peers Inconclusive
A peer set of small-cap KOSDAQ electrical-equipment and power-distribution stocks closest to the business substance (LED lighting plus building electrical work), used to view the P/B and profitability position.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Jeil Electric | 23.52x | 0.99x | 4.22% |
| GT Power | 23.51x | 3.10x | 13.18% |
| Sundo Electric | 14.83x | 2.20x | 14.81% |
The peer small-cap electrical-equipment and power-distribution stocks are all profitable (ROE roughly +4% to +15%) and some pay dividends, whereas Solux is loss-making (ROE -8.5%), making a direct P/E comparison impossible. On net assets, the P/B of 2.53x is about mid-range among peers, but they earn the multiple while turning a profit, whereas Solux is still in a loss, so the same P/B is of different quality. On last year's confirmed results (trailing) the loss makes it hard to judge cheap versus expensive, and it is hard to conclude a swing to net profit this year, so a forward earnings multiple cannot be produced stably either. Thus the current valuation is best held inconclusive until it is confirmed whether the construction orders connect to actual profit.
Price history Close · MA20 · MA60
The latest close is ₩4,575 and the market capitalization is ₩240.6 billion. The price sits below its 20-day moving average (₩4,862) and above its 60-day moving average (₩4,476). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 48.3, a neutral level. The one-month change is +2.6%, the three-month change is +32.6%, and the position relative to the 52-week high is -24.0%. Relative strength versus the KOSDAQ is 88 (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 80.2%. 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 +80.19% / 6M +19.49% / 12M -2.22%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 2.53x is above 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 -8.5%, below the sector average (2.0%). The operating margin is -17.5%. The debt ratio is 155.8%, so the financial structure is moderate.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $39.7M | $33.6M | $25.4M | -24.50% ↓ slower |
| Operating profit | $341,725 | -$4.4M | -$4.5M | — |
| Net profit | -$4.4M | -$27.2M | -$5.1M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $46.4M | $37.0M | $39.7M | $33.6M | $25.4M |
| Operating profit | $3.4M | -$2.9M | $341,725 | -$4.4M | -$4.5M |
| Net profit | $2.8M | -$2.9M | -$4.4M | -$27.2M | -$5.1M |
| Revenue CAGR | 4-yr avg -14.02% | ||||
Revenue fell 24.5% year over year (2023 ₩59.8 billion → 2024 ₩50.7 billion → 2025 ₩38.3 billion), and the three-year trend is 'falling'. The rate of decline widened 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 -14.0%. The two-year revenue CAGR is -20.0%. In the most recent quarter (Q1 2026), revenue was 43.4% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 42.7%).
- The most recent full-year net result was a loss.
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 24.5% year over year (3-year trend: falling).
Recent news & events searched · sourced
- 2026-06-05UpdateSigned a subcontract for new-build electrical (telecom and electrical-firefighting) works for a mixed-use development in Oncheon-dong, Asan, South Chungcheong. Confirmed contract value about ₩12.74 billion (33.3% of last year's revenue), counterparty Onyang Oncheon-yeok Metrohaim (real-estate development and sales), construction period 2026-09-30 to 2030-06-30.Near term: expectations of top-line growth as the substance of the construction business is confirmed. Mid term: recognized as revenue over several years, diversifying a lighting-only business structure. However, given the nature of subcontracted works, the timing of realization varies with margin and progress billing. Source
- 2026-06-05UpdateSigned a subcontract for new-build electrical (telecom and electrical-firefighting) works for the Girin-daero mixed-use development in Jeonju, North Jeolla. Confirmed contract value ₩11.5 billion (30.1% of last year's revenue), counterparty Island LLC (real-estate consulting, land development and sales), construction period 2026-08-31 to 2029-04-30.Both near- and mid-term material that raises visibility of construction revenue. Combined with the earlier Asan contract at about ₩24.2 billion, it equals 63% of last year's revenue and becomes the core basis of the business transition. Source
- 2026-06-02FilingDecision to acquire and then re-dispose the own 3rd convertible bond (face value ₩1.8 billion) before maturity. Disposal amount about ₩1.9 billion, purpose to secure operating funds, conversion price ₩3,087, about 583,000 shares on conversion (1.14% of total shares).Helpful for near-term operating funds, but a latent burden as CBs released into the market could, on conversion into shares, raise the share count and dilute existing holders. Source
- 2026-06-10UpdateSangsangin Savings Bank reported a 12.62% stake (7,378,138 shares) for simple investment through partial CB redemption and new acquisition, among others (simplified large-holding report).Holding by a financial institution for simple investment rather than a strategic investor; the stake can fluctuate frequently with CB conversion and trading, so it needs watching on the supply/demand and dilution side. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Supply contract value (Asan mixed-use electrical works) | (base disclosures) | approx. ₩12,739,000,000 | Confirmed | link |
| Supply contract value (Jeonju mixed-use electrical works) | (base disclosures) | approx. ₩11,500,000,000 | Confirmed | link |
| Total shares outstanding (voting) | base 51,604,369 | 51,086,067 | Unverified | link |
| Q1 2026 revenue growth rate | revenue ₩7.4 billion, +43.4% | — | Unverified | link |
Recent filings
- 2026-06-10OwnershipOwnership-change filing
- 2026-06-05Disclosure
- 2026-06-05Single supply/sales contract
- 2026-06-05Single supply/sales contract
- 2026-06-02Material-fact report
- 2026-06-02Disclosure
- 2026-05-29Material-fact report
- 2026-05-29Material-fact report
- 2026-05-29Material-fact report (amended)
- 2026-05-29Material-fact report (amended)
- 2026-05-29Disclosure
- 2026-05-28Material-fact report (amended)
📖 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.