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JONBUR Research · Initiation

SL · 005850 · Auto parts

SL: Low Multiples and Rising Earnings, With the Share Price Down From Its 52-Week High

Why this report

Start of coverage: one of the 300 largest companies, written once its financial statements were in.

SL, a KOSPI auto parts maker, trades at 5.8x earnings and 0.8x book value, with trailing revenue of ₩5.5T and an operating margin of 8.3%. The shares are up 39.4% over one year but down 8.4% over one month and 11.8% over three months, and sit 39.9% below their 52-week high of ₩79,500.

Written Oct 13, 2026 · Data as of Oct 12, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

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Thesis

The data supports a picture of a profitable, growing company valued at low multiples. Trailing P/E is 5.8x, EV/EBITDA is 2.9x and the dividend yield is 6.0%. Net cash of ₩458.6B and free cash flow of ₩355.7B back this up. Return on equity of 15.2% is above the 12.8% of 2025 but below the 17.4% to 18.8% of 2023 and 2024.

What the data does not show is why the shares have fallen from their high. No news headlines, investor flow data, foreign ownership or short balance figures are available, so the cause of the recent weakness cannot be assessed. Operating margin has been stable at 7.8% to 8.3% since 2023, so growth in profit now depends mainly on revenue growth.

Business overview

SL (에스엘) is listed on KOSPI in the auto parts sector. It was founded in 1968 and listed in 1988. It has 46,448,520 listed shares and a market cap of about ₩2.2T at the ₩47,800 close on 12 October 2026. The CEOs are listed as 이성엽 and 정문호.

Revenue has grown from ₩3.0T in 2021 to ₩5.2T in 2025, and the trailing twelve months to H1 2026 reached ₩5.5T. Among the peers provided, Hyundai Mobis is much larger at ₩33.0T, while HL Mando (₩2.0T), Kumho HT (₩1.5T), Samhyun (₩1.4T) and Hyundai WIA (₩1.4T) are of broadly similar size or smaller.

Financial analysis

These figures come from filed financial statements (DART). Revenue rose from ₩4.17T in 2022 to ₩4.84T in 2023 (+15.9%), ₩4.97T in 2024 (+2.8%) and ₩5.24T in 2025 (+5.4%). Operating income was ₩407.1B in 2025, a margin of 7.8%. Net income was ₩310.8B, down from ₩368.4B in 2024 and ₩335.5B in 2023.

Trailing figures to H1 2026 show revenue of ₩5.47T, operating income of ₩451.5B (8.3% margin) and net income of ₩381.2B (7.0% margin). Liabilities to equity are 56.9%. Cash is ₩458.6B and free cash flow is ₩355.7B. Borrowings data is not available.

Valuation

At the current price the trailing P/E is 5.8x, P/B 0.8x, P/S 0.4x and EV/EBITDA 2.9x, with enterprise value of ₩1.76T and a dividend yield of 6.0%. At the end of 2025, P/E was 6.4x and P/B 0.8x, so multiples are close to that level; earlier year-end multiples are not available.

Among peers, only Hyundai Mobis (P/E 9.1x, P/B 0.6x) and HL Mando (P/E 11.9x, P/B 0.7x) have multiples in the data. SL's P/E is lower than both, and its P/B is higher than both. The other three peers have no multiples available.

Our simple 5-year DCF model gives a fair value range of ₩97,662 (bear), ₩119,646 (base) and ₩149,879 (bull) per share. It assumes 7.9% growth and a 9.0% discount rate, starting from free cash flow of ₩306.5B and net cash of ₩458.6B. The share price of ₩47,800 is well below even the bear case. This is a model output that depends on its assumptions, not a forecast.

Catalysts

  • The half-year report for June 2026, filed on 14 August 2026, showed trailing net income of ₩381.2B and is the latest earnings data.
  • A corporate value-up plan was filed on 27 March 2026, which may bear on shareholder returns, though details are not in the data.
  • Two 5%+ holding reports (1 April and 1 July 2026) and an insider shareholding report (24 August 2026) point to changes in ownership that investors may follow.
  • The next quarterly report will show whether the trailing operating margin of 8.3% holds.

Risks

  • The shares are down 11.8% over three months and 39.9% below the 52-week high, and the data gives no reason for the decline.
  • Net income fell from ₩368.4B in 2024 to ₩310.8B in 2025 even as revenue rose.
  • Return on equity of 15.2% remains below the 18.8% reached in 2023.
  • Investor flow, foreign ownership and short balance data are unavailable, so market positioning cannot be assessed.
  • The model fair value rests on 7.9% growth and a 9.0% discount rate, and a small change in these inputs could shift the range materially.

Closing view

The filed numbers show a company with growing revenue, an operating margin of about 8%, net cash and a 6.0% dividend yield, valued at low multiples against its own results and against the two peers with data. The model fair value range is far above the current price, but it is sensitive to its assumptions. The recent share price decline is unexplained in the available data, and flows and news are missing. The evidence is positive on fundamentals and incomplete on what the market is reacting to.

Model estimate of fair value

Bear
₩97,662
+97%
Base
₩119,646
+142%
Bull
₩149,879
+203%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

A simple 5-year discounted cash flow from filed statements (H1 2026): revenue growth 7.9% fading to 2%, discount rate 9%. Per share, not a price target. See and change the assumptions

Filings and data used

Report history

  1. Oct 13, 2026InitiationStart of coverage (300 largest)SL: Low Multiples and Rising Earnings, With the Share Price Down From Its 52-Week High

Built only from jonbur's own data: prices and investor flows, filed financial statements and filings, and news headlines. Disclosed (filed) data is labelled as such. Written by AI and may contain mistakes.

This is not financial advice. The report does not recommend buying or selling anything.

Source: KRX statistical information