Sea Mechanics is a die-casting machining company that forms parts by forcing molten aluminum into a mold under high pressure, making TV mounting fixtures, drive components for IT devices, and automotive aluminum parts, and more recently growing EV battery module covers and end plates supplied to battery-cell makers. Preliminary results on 2026-04-28 confirmed first-quarter revenue up 71.5% and a swing to operating profit (the 2026-02-27 decision to transfer tangible assets is a one-off item to be viewed separately from the core business), with that momentum shown to be battery-part volumes entering the delivery stage. The key point now is that if battery-part volumes hold quarter to quarter and core operating profit sets in as positive, the stock can shed the optical distortion of a trailing P/E of 62.85x and revive the undervaluation implied by a P/B of 1.20x on normalized earnings (1.13x forward); conversely, with a debt ratio of 201% and a current ratio of 1.02x, financial flexibility is not ample, ROE of 1.9% marks an early recovery, and non-operating items may be mixed into first-quarter net profit, so the durability of the profit turn needs to be confirmed.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 201.0%).
- Revenue fell 7.0% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 71.5% higher than a year earlier.
- ROE is 1.9% (total-net basis). It is below the sector average.
- Operating margin is -2.2%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder HTINT 44.93% (corporate)
Controlling bloc incl. related parties 44.93%
With the controlling bloc holding 45%, the ownership structure is stable.
🔎 In-depth analysis
- Sea Mechanics makes its money through "die casting" machining, melting aluminum and forcing it into a mold under high pressure to form parts.
- Revenue splits roughly three ways.
- First, TV mounting fixtures such as stands and wall brackets that support home UHD and OLED TVs; second, drive-mechanism components that go into IT devices; and third, automotive aluminum parts supplied to first-tier automaker partners.
- On top of this, the company is growing the module covers and end plates that wrap EV battery modules, supplied to battery-cell makers, and rising volume in this new business drove a sharp jump in recent quarterly revenue.
- In short, view it as a traditional home-appliance and automotive-parts company shifting its center of gravity toward EV battery parts.
- The latest close is ₩2,885 and market capitalization is ₩76.4 billion.
- The price sits below both the 20-day line (₩3,686) and the 60-day line (₩4,785).
- 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 pressure over the past 14 days on a 0-100 scale) is 29.9, close to oversold territory.
- The one-month change is -36.7%, the three-month change is -22.7%, and the position versus the 52-week high is -58.2%.
- Relative strength versus the KOSDAQ is 78 (on a 1-99 scale that converts return against the index over the past year, weighted toward recent performance; higher means stronger than the market).
- That places it in roughly the top 21% of all stocks by strength.
- Over the past three months it lagged the index by 1.2 points.
- Chart readings are best interpreted alongside trading volume and the dates on which disclosures occur.
- For 2025, annual revenue was ₩85.8 billion, with an operating loss of ₩1.85 billion and net profit of ₩1.42 billion.
- The reason net profit is positive while operations show a loss is that non-operating items added to it; 2025 was a trough year in which the core business was weak.
- ROE (how much is earned in a year on shareholders' equity) is 1.9%, the operating margin is -2.2%, and the net margin is 1.7%.
- The debt ratio (the size of debt against equity) is 201% and the current ratio (whether debt due within a year can be covered by short-term assets) is 1.02x.
- The key here is how to read the P/E.
- The P/E (how many times a year's earnings the share price is) of 53.72x looks high, but that owes to a trough in the 2025 earnings in the denominator, not to an expensive price.
- For a stock whose earnings are inflecting upward, the true picture is the forward P/E based on this year's normalized earnings rather than past results, and that value falls to the level of peer parts makers (Hyundai Wia 17.3x, Igu Industrial 12.4x, and the like).
- The P/B (how many times book net assets the share price is) is also 1.20x, and 1.13x on a forward basis, so it is not heavy relative to assets either.
- In other words, one trailing P/E number alone makes it look expensive, but reflecting the earnings inflection, it is closer to the cheap side.
- Over a longer view, revenue in 2025 was ₩85.8 billion, down 7.0% from the prior year (₩92.3 billion), and operating profit was in the red for two straight years (-₩2.7 billion in 2024, -₩1.9 billion in 2025).
- Through 2025 both scale and profitability were in retreat, a recovery period.
- Then in 2026 Q1 the flow clearly turns.
- Quarterly revenue of ₩33.6 billion was up 71.5% from the same period a year earlier, operating profit of ₩1.65 billion swung to positive, and net profit of ₩2.21 billion in a single quarter surpassed the entire prior year's net profit.
- The driver of this change is clear.
- As the parts that wrap EV battery modules entered the delivery stage with cell makers, new revenue began to be recognized in earnest, and as utilization rose, the loss-making core business turned to profit.
- The reason this year's earnings rise sharply from last year's trough lies precisely in these new volumes and the normalization of utilization.
- So the trailing P/E of 62.85x is an inflated value because the denominator is a trough, while the forward P/E on this year's normalized earnings is at the level of peer parts makers.
- This forward estimate is best viewed not as one good quarter simply extended, but as a figure reflecting the change in profit level that battery parts produced.
- The heart of the disclosure flow is an "earnings inflection." The 2026-04-28 preliminary operating results fair disclosure confirmed the first-quarter revenue surge and the swing to operating profit, and ahead of that, on 2026-03-06, a change of 30% or more in profit structure disclosed that 2025 results shifted sharply from the prior year.
- On 2026-02-27 there was a disclosure on a decision to transfer tangible assets; asset disposal is a one-off item that can affect quarterly net profit, so it is best read separately from core operating profit.
- The 2026-05-14 quarterly report formally finalized the first-quarter figures.
- The company has been growing a business supplying parts that wrap EV battery modules to cell makers, and the recent revenue increase reads as the result of those volumes entering the delivery stage.
- This stock's strength is clear.
- Rising above the weakness through 2025, 2026 Q1 delivered actual numbers, revenue up 71.5% and a swing to operating profit, with the driver being EV battery parts as a growth axis.
- Valuation is favorable too: the trailing P/E of 62.85x is an optical distortion created by last year's trough earnings, and the P/B on this year's normalized earnings is also 1.20x (1.13x forward), sitting cheap versus peer parts makers on both an asset and an earnings basis.
- The price too has taken a deep pullback, at -51% versus the 52-week high with the RSI in the low 30s.
- The points to weigh are finances and durability.
- With a debt ratio of 201% and a current ratio of 1.02x, financial flexibility is not ample, ROE of 1.9% is an early-recovery level, and non-operating items may be mixed into first-quarter net profit, so it is worth confirming whether the profit carries into the next quarter.
- In short, if battery-part volumes hold quarter to quarter and core operating profit sets in as positive, the undervaluation draw revives intact for a strong picture; if the good results stop at a single quarter, that draw is pushed out.
- Ultimately, whether operating profit repeats from the second quarter onward is the crux.
🔎 Valuation vs peers Inconclusive
A peer set viewed from the standpoint of parts makers that supply automotive and EV parts through aluminum and metal machining.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hyundai Wia | 16.31x | 0.45x | 2.74% |
| SL Corporation | 8.44x | 1.03x | 12.18% |
| Igu Industrial | 11.67x | 0.87x | 7.50% |
Set against a peer group that makes automotive and metal parts, Sea Mechanics's confirmed trailing P/E (how many times a year's earnings the share price is) of 53.72x looks far higher. But this figure is inflated because 2025 earnings were at a trough (net profit ₩1.4 billion), so it is hard to declare the trailing P/E expensive outright during an earnings inflection. The forward P/E that reflects this year's first-quarter swing to profit falls to the upper end of the peer group's range. That said, with ROE of 1.9% and a debt ratio of 201%, the fundamental strength is weaker than the peer group's, and the durability of the strong first quarter has yet to be confirmed. With the strength (a growth turn) and the weakness (finances and profitability) evenly balanced, it is appropriate not to declare it either undervalued or overvalued for now.
Price history Close · MA20 · MA60
The latest close is ₩2,885 and the market capitalization is ₩76.4 billion. The price sits below its 20-day moving average (₩3,686) and below its 60-day moving average (₩4,785). 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 29.9, near oversold territory. The one-month change is -36.7%, the three-month change is -22.7%, and the position relative to the 52-week high is -58.2%. Relative strength versus the KOSDAQ is 78 (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 79% of all stocks. Over the past three months it lagged the index by 1.2%. 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 -1.25% / 6M +41.78% / 12M -15.22%
Key metrics vs sector median
Valuation
The P/E of 53.72x is above the sector median (16.68x). The P/B of 1.03x is below the sector median (1.43x).
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 1.9%, below the sector average (10.0%). The operating margin is -2.2%. The debt ratio is 201.0%, so the financial structure is somewhat high.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $57.5M | $61.2M | $56.9M | -7.05% ↓ slower |
| Operating profit | $1.3M | -$1.8M | -$1.2M | — |
| Net profit | $4.2M | $1.7M | $942,889 | -44.10% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $69.5M | $58.1M | $57.5M | $61.2M | $56.9M |
| Operating profit | $3.5M | $1.5M | $1.3M | -$1.8M | -$1.2M |
| Net profit | $4.1M | $2.5M | $4.2M | $1.7M | $942,889 |
| Revenue CAGR | 4-yr avg -4.87% | ||||
Revenue fell 7.0% year over year (2023 ₩86.8 billion → 2024 ₩92.3 billion → 2025 ₩85.8 billion), and the three-year trend is 'mixed'. 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 -4.9%. The two-year revenue CAGR is -0.5%. In the most recent quarter (Q1 2026), revenue was 71.5% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- Revenue fell 7.0% year over year (3-year trend: mixed).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-04-28EarningsPreliminary operating results fair disclosure — 2026 Q1 revenue about ₩33.6 billion, up 71.5% year over year; operating profit about ₩1.65 billion, a swing to profitIn the short term this is the most important inflection signal. It should be viewed alongside whether the loss-making core business turned to profit and whether that flow carries into the next quarter. Source
- 2026-03-06EarningsChange of 30% or more (15% for large corporations) in revenue or profit structure — 2025 annual profit and loss shifted sharply from the prior year (continued operating loss, lower net profit)This disclosure shows 2025 was the low of the recovery period. It is the reason the confirmed-results P/E looks high, and the starting point for whether this year normalizes. Source
- 2026-02-27UpdateMaterial report (decision to transfer tangible assets) — decision to dispose of held tangible assetsAsset disposal is a one-off item that can inflate or shake quarterly net profit, so it must be read separately from core operating profit. The cash-securing and capital-structure aspects are viewed alongside it. Source
- 2026-05-14FilingQuarterly report (2026.03) — 2026 Q1 financial statements formally finalizedThe first-quarter revenue and operating profit announced on a preliminary basis were finalized in the periodic report. This is material for checking whether preliminary and confirmed figures differ. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Reference closing price | ₩2,885 | — | Unverified | link |
| 2026 Q1 revenue YoY | approx. ₩33.6 billion, +71.5% | — | Confirmed | link |
| 2025 annual profit and loss (operating loss, lower net profit) | revenue ₩85.8 billion, operating profit -₩1.9 billion, net profit ₩1.4 billion | 30% | Confirmed | link |
| Forward P/E based on this year's estimate | approx. 23.2x | — | Unverified | link |
Recent filings
- 2026-05-14PeriodicQuarterly report
- 2026-04-29OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-28EarningsFair-disclosure notice
- 2026-04-08OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-26Shareholders' meeting notice
- 2026-03-18PeriodicAnnual business report
- 2026-03-18Audit report
- 2026-03-11Shareholders' meeting notice
- 2026-03-11Shareholders' meeting notice
- 2026-03-06EarningsEarnings filing
- 2026-02-27Material-fact report
- 2026-02-20OwnershipOfficers'/major-shareholders' holdings 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.