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Oriental Precision & Engineering · 014940 · Machinery

Oriental Precision & Engineering: Profitable but Shares Down 61.6% Over One Year

Why this report

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Oriental Precision & Engineering closed at ₩3,885 on 2026-10-20, down 61.6% over one year and 15.7% over one month, while trailing earnings remain solid with a 12.1% operating margin. A model estimate based on the assumptions shown is well above the current price, but revenue growth has stalled and no news is available to explain the decline.

Written Oct 21, 2026 · Data as of Oct 20, 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 business that has stayed profitable and moderately leveraged: trailing revenue is ₩220.8B, operating income ₩26.6B and ROE 11.7%. The share price has fallen sharply from a 52-week high of ₩12,900 to ₩3,885, near the 52-week low of ₩3,530. The multiples have compressed as a result, with P/E at 12.2 and P/B at 1.3. What the data does not show is why the shares fell, since no news headlines are available. Revenue was flat in 2025 after strong growth in 2022 to 2024, and net income fell from ₩26.1B in 2024 to ₩19.1B in 2025. Foreign ownership rose from 3.4% to 4.9% over 60 days, but 20-day flows are small in won terms.

Business overview

The company is a machinery maker listed on KOSDAQ, founded in 1980 and listed in 2001, with 45,573,661 listed shares and a market capitalization of about ₩177.1B. Revenue grew from ₩115.9B in 2021 to ₩207.3B in 2025, with operating margin rising from 5.8% to 11.7%. Growth was 13.5% in 2022, 19.7% in 2023 and 31.6% in 2024, then 0.0% in 2025. The data gives no detail on products or customers.

Financial analysis

From filed financial statements: trailing twelve months to H1 2026 show revenue of ₩220.8B, operating income of ₩26.6B (12.1% margin) and net income of ₩14.5B (6.6% margin). ROE is 11.7%, down from 26.4% in 2024 and 16.3% in 2025. Net income in 2025 (₩19.1B) was below 2024 (₩26.1B) even though operating income was similar (₩24.3B versus ₩24.9B). Liabilities to equity are 66.9%. Cash is ₩13.5B against borrowings of ₩25.0B. Trailing free cash flow is ₩18.0B. Enterprise value is ₩149.6B; EV/EBITDA is not available. The dividend yield is 0.0%.

Valuation

At ₩3,885 the shares trade at 12.2 times earnings, 1.3 times book and 0.8 times sales. Year-end P/E was 18.4 in 2025, 9.1 in 2024 and 14.6 in 2023; year-end P/B was 2.8, 2.2 and 1.5 respectively, so the current P/B is below recent year-end levels. The listed peers (Doosan Enerbility, Hanmi Semiconductor, Jusung Engineering, Rainbow Robotics, EO Technics) show P/Es of 47.8 to 4,234.5 and P/Bs of 4.9 to 54.2, far higher, but they are much larger and not obviously comparable businesses. A discounted cash flow model estimate based on the assumptions shown (8.2% rate, TTM to H1 2026) gives a base case of ₩8,361 per share, with a bear case of ₩5,263 and a bull case of ₩13,287. All three are above the current price, but this is a model estimate, not a target, and it depends on the assumptions.

Catalysts

  • The next quarterly report, for the period to September 2026, would show whether trailing profit is holding up; the prior year's was filed on 2025-11-14.
  • The half-year report filed on 2026-08-14 is the latest full set of financials and underpins the current trailing figures.
  • Foreign ownership rose to 4.9% from 3.4% sixty days ago, and foreigners were net buyers over the past 20 days.
  • An insider shareholding report was filed on 2026-07-07, which investors may check for ownership changes.
  • The year-end record date and shareholder meeting cycle may bring dividend news; the current dividend yield is 0.0%.

Risks

  • The share price is down 61.6% over one year and 15.7% over one month, and the data offers no news explaining the move.
  • Revenue growth was 0.0% in 2025, and net income and ROE fell from 2024 levels.
  • Trailing net margin of 6.6% is well below the 12.1% operating margin, so profit below the operating line is a drag.
  • Borrowings of ₩25.0B exceed cash of ₩13.5B, leaving net debt on the balance sheet.
  • Retail investors were net sellers of about ₩875M over 20 days, and institutional and foreign flows are small, so trading interest looks thin.

Closing view

The data shows a profitable, moderately leveraged machinery company whose share price has fallen far faster than its earnings, leaving multiples lower than recent year-end levels. A model estimate based on the assumptions shown is above the current price, but flat 2025 revenue, falling ROE and the lack of any explanatory news mean the gap should be read with caution. The next filings will show whether earnings are holding up.

Model estimate of fair value

Bear
₩5,263
+43%
Base
₩8,361
+128%
Bull
₩13,287
+262%

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

Base case of the 5-year discounted cash flow model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 8.2%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 21, 2026InitiationStart of coverage (reader request)Oriental Precision & Engineering: Profitable but Shares Down 61.6% Over One Year

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