Daemyung Energy is a renewable-energy company that vertically integrates the full lifecycle of solar and wind power plants, from development through EPC (engineering, procurement and construction), O&M and direct generation. Of its 2025 revenue of ₩131.0 billion, roughly ₩99.1 billion came from EPC, supplemented by power and REC sales and O&M services. In April 2026 new orders clustered together: two BESS projects in the Honam region (Goheung Naro and Gwangyang Hwanggeum, roughly ₩33.7 billion and ₩33.3 billion) and a 15-year O&M contract for Goheung Naro (about ₩27.3 billion), followed at month-end by a ₩136.0 billion wind EPC contract with Gokseong Green Wind (about 103.84% of 2025 revenue) that will be recognized as revenue from this year through 2029. What stands out lately is that more than ₩230 billion in new orders in April alone gives it a full workload, and the forward P/E sits below the trailing 18.76x, reflecting expectations of improving profit. The caution is that a debt ratio of 231.9% and an interest-coverage ratio of 1.54x mean financing costs eat into operating profit, so the lowered multiple only pays off when orders convert smoothly into revenue and interest rates stay under control.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 231.9%).
- Revenue rose 93.3% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 60.8% higher than a year earlier.
- ROE is 8.6% (controlling-interest basis). It is above the sector average.
- Operating margin is 12.8%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Seo Jong-hyun 39.95% (individual)
Controlling bloc incl. related parties 72.36%
With the controlling bloc holding 72%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Daemyung Energy is a renewable-energy specialist that vertically integrates the full chain of solar and wind power plants: development, engineering and construction (EPC), operations and maintenance (O&M), and direct generation.
- Its biggest earner is EPC, the turnkey construction of a power plant under a single contract; of the company's ₩131.0 billion in 2025 revenue, roughly ₩99.1 billion came from EPC.
- On top of that come power sales from plants it owns directly plus sales of renewable-energy certificates (RECs), and O&M service and dividend revenue from operating and maintaining completed plants over the long term.
- Although the company is classified under construction (civil engineering), it is closer in substance to a business that handles the entire process of renewable power generation.
- The latest close is ₩12,410 and the market cap is ₩222.3 billion.
- The price sits below its 20-day line (₩14,641) and below its 60-day line (₩17,996).
- Trading below both its short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that weighs upward against downward momentum over the past 14 days on a 0-100 scale) is 38.9, a neutral level.
- The price is down 11.4% over one month and down 46.7% over three months, and stands 54.5% below its 52-week high.
- Its relative strength versus the KOSDAQ is 41 (on a 1-99 scale that converts return against the index over the past year with more weight on recent performance; higher means stronger than the market), placing it in roughly the top 59% of all stocks by strength.
- Over the past three months it lagged the index by 25.0%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- On a trailing basis the P/E (how many times a year's earnings the price represents) is 15.72x and the P/B (how many times equity the price represents) is 1.35x.
- ROE (how much is earned in a year on equity) is 8.6%, with an operating margin of 12.8% and a net margin of 10.8%, so profitability is reasonably solid.
- The key point is that the P/E of 18.76x is based on last year's already-booked (trailing) earnings.
- Because EPC recognizes revenue and profit progressively as construction advances, when this year's newly stacked orders turn into results, the earnings-based multiple falls even at the same share price.
- Indeed, the forward P/E that reflects this year's expected profit is lower than trailing, and the forward P/B is also lower at 1.46x, showing profit is heading up.
- On the financial side, the debt ratio (debt against equity) is high at 231.9% and interest coverage is 1.54x, so the financing-cost burden is not small - understandable given that building and owning power plants directly requires heavy borrowing.
- In 2025 revenue rose 93.3% year on year (led by EPC revenue up about 173%), with operating profit up 73.1% and net profit up 81.6%, so scale and profit grew together.
- Over a longer view, revenue fell from ₩136.1 billion in 2021 to ₩67.8 billion in 2024 before rebounding to ₩131.0 billion in 2025, a trajectory that swings year to year as the company builds and recognizes revenue from power plants one at a time in its EPC business.
- In Q1 2026 revenue rose 60.8% and operating profit surged 215.5%, so the core business itself improved sharply.
- Net profit slipped 42.9%, however; with the operating line improving markedly, the drop only in net profit reads as financing costs from borrowing pressing on earnings below the operating line.
- The basis for expecting profit to step up this year is clear: April 2026 alone brought more than ₩230 billion in new orders, including the ₩136.0 billion Gokseong wind project, and this workload is recognized as revenue and profit from this year in step with construction progress.
- The forward P/E sitting below the trailing 18.76x is precisely the result of reflecting this profit growth, and with the operating-profit growth rate already confirmed in triple digits, the direction itself is backed by results.
- The remaining variable for final profit is how far non-operating financing costs cut into net profit.
- April 2026 was a month in which orders clustered.
- In mid-April the company won two Honam-region BESS projects in succession - energy storage systems that store electricity in batteries and sell it back (Goheung Naro and Gwangyang Hwanggeum, EPC of roughly ₩33.7 billion and ₩33.3 billion) - and for Goheung Naro BESS it added a 15-year long-term O&M contract (about ₩27.3 billion), securing a stable service revenue source.
- Decisively, at month-end it signed a ₩136.0 billion wind EPC contract with Gokseong Green Wind (about 103.84% of 2025 revenue); the contract was so large that a temporary suspension of share trading was carried out alongside the disclosure.
- These orders are recognized as revenue in step with construction progress from this year through 2029.
- The strengths are clear.
- As a full-set renewable business that does development, EPC, O&M and generation in one, it has diversified revenue sources at each stage, and more than ₩230 billion of new orders in April 2026 alone filled this year's workload amply.
- The expectation that this work will turn into profit as construction advances is confirmed by the forward P/E sitting below the trailing 18.76x, and with operating profit already growing in triple digits, the direction of rising profit is supported by the numbers.
- Policy-driven demand such as the RPS (Renewable Portfolio Standard) also lends support.
- What to watch is the link between finances and profit conversion: with a debt ratio of 231.9% and interest coverage of 1.54x, financing costs erode operating profit, so - as in Q1 - the core business can be strong yet net profit can still fall.
- In short, in periods when accumulated orders convert smoothly into revenue and financing costs are contained, profit rises quickly and the lowered forward multiple pays off; conversely, if rates stay high or construction is delayed, operating improvement fails to reach net profit and the stock loses momentum.
🔎 Valuation vs peers Fairly valued
The renewable-energy value chain: wind tower manufacturing (CS Wind) and solar modules (HD Hyundai Energy Solutions); Daemyung is not a manufacturer but an operator across development, EPC, O&M and generation, so its business character differs, though it shares the same renewable-policy-and-demand backdrop.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| CS Wind | 47.64x | 1.43x | 3.01% |
| HD Hyundai Energy Solutions | 28.94x | 2.89x | 9.98% |
Against renewable-energy manufacturing peers, the P/E and P/B look low, giving a surface-level discount. But Daemyung is an EPC and generation operator whose profit is recognized in step with construction progress rather than on manufacturing margins, so simple multiple comparisons have limits. Above all, the P/E of 20.51x is based on last year's booked (trailing) earnings, whereas 2025 profit contains a V-shaped-recovery base effect, and the actual earnings-based multiple shifts with how fast this year's orders convert into revenue. Factoring in that the financial burden of a 231.9% debt ratio and 1.54x interest coverage presses on net profit, orders are abundant but financial and profit-conversion risks coexist, so it is hard to conclude either way - a Fairly valued zone.
Price history Close · MA20 · MA60
The latest close is ₩12,410 and the market capitalization is ₩222.3 billion. The price sits below its 20-day moving average (₩14,641) and below its 60-day moving average (₩17,996). 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 38.9, a neutral level. The one-month change is -11.4%, the three-month change is -46.7%, and the position relative to the 52-week high is -54.5%. Relative strength versus the KOSDAQ is 41 (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 41% of all stocks. Over the past three months it lagged the index by 25.0%. 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 -24.96% / 6M -22.62% / 12M -53.73%
Key metrics vs sector median
Valuation
The P/E of 15.72x is above the sector median (8.02x). The P/B of 1.35x is above the sector median (0.50x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
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 10.4%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 8.6%, above the sector average (7.0%). The operating margin is 12.8%. The debt ratio is 231.9%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $40.9M | $44.9M | $86.8M | +93.28% ↑ faster |
| Operating profit | $11.1M | $6.4M | $11.1M | +73.09% ↑ faster |
| Net profit | $4.1M | $5.2M | $9.4M | +81.56% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $90.2M | $58.3M | $40.9M | $44.9M | $86.8M |
| Operating profit | $31.1M | $17.0M | $11.1M | $6.4M | $11.1M |
| Net profit | $15.7M | $17.3M | $4.1M | $5.2M | $9.4M |
| Revenue CAGR | 4-yr avg -0.95% | ||||
Revenue rose 93.3% year over year (2023 ₩61.6 billion → 2024 ₩67.8 billion → 2025 ₩131.0 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 73.1% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is -0.9%. The two-year revenue CAGR is 45.8%. In the most recent quarter (Q1 2026), revenue was 60.8% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- Revenue grew 93.3% year over year, a sign of growth.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-04-16UpdateSigned a Goheung Naro BESS (energy storage system) EPC construction contract, about ₩33.7 billion (roughly 25.73% of 2025 revenue)Secures a near-term new revenue source, recognized as revenue over 2026-2027 in step with construction progress. Source
- 2026-04-17UpdateSigned a Gwangyang Hwanggeum BESS EPC construction contract, about ₩33.3 billion (roughly 25.43% of 2025 revenue)Adds Honam-region ESS work, contributing to near-term top-line growth. Source
- 2026-04-24UpdateSigned a Goheung Naro BESS long-term operations and maintenance (O&M) contract, a 15-year service worth about ₩27.3 billionSecures a stable, recurring service and dividend-type revenue source with lower volatility than EPC over the medium term. Source
- 2026-04-27UpdateSigned a wind EPC construction contract with Gokseong Green Wind, about ₩136.0 billion (roughly 103.84% of 2025 revenue), accompanied by a share-trading suspension procedure due to the large contract sizeThis year's single largest order. Recognized as revenue over 2026-2029, it is the core basis for medium-term top-line growth. Source
- 2026-05-14EarningsQ1 2026 report: revenue up 60.8% and operating profit up 215.5% on core-business growth, but net profit down 42.9%Top line and operating profit surged, but the fall in net profit due to non-operating burdens such as financing costs is a near-term point to watch. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-14PeriodicQuarterly report
- 2026-04-27Single supply/sales contract
- 2026-04-27Supply contract disclosure
- 2026-04-24Single supply/sales contract
- 2026-04-17Single supply/sales contract
- 2026-04-16Single supply/sales contract
- 2026-04-09OwnershipOwnership-change filing
- 2026-04-03OwnershipOwnership-change filing
- 2026-03-27Disclosure
- 2026-03-27Shareholders' meeting notice
- 2026-03-19PeriodicAnnual business report
- 2026-03-19Audit report
📖 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.