Jusung Engineering: Share price up sharply while trailing earnings show an operating loss

Thesis

The data shows a large gap between the share price and reported earnings. The stock is up 21.1% in one month, 38.6% in three months and 677.3% in one year, and sits close to its 52-week high of ₩284,000 (low ₩26,350). Over the same period, revenue and profit have fallen from their 2024 peak. The trailing operating margin is -6.6%, and the trailing P/E is 1,650 and P/B is 20.2. The price therefore appears to reflect expectations that are not visible in the filed numbers. The data does not include forecasts, order backlog, investor flows, short-interest or news headlines, so the reasons for the move cannot be confirmed from what is available.

Business overview

Jusung Engineering is listed on KOSDAQ in the Machinery sector. It was founded on 1995-04-13 and listed on 1999-12-24. It has 47,268,321 listed shares and two co-CEOs (Hwang Chul-joo and Hwang Eun-seok). Revenue was ₩377.3B in 2021, ₩437.9B in 2022, ₩284.7B in 2023, ₩409.4B in 2024 and ₩310.7B in 2025, which shows a cyclical pattern. The data does not describe the company's products or customers.

Financial analysis

All figures come from filed financial statements (DART). Annual revenue growth was 16.1% in 2022, -35.0% in 2023, 43.8% in 2024 and -24.1% in 2025. Operating margin was 28.3% in 2022, 10.2% in 2023, 23.7% in 2024 and 10.1% in 2025. Operating income was ₩31.3B in 2025, down from ₩97.2B in 2024. Net income was ₩35.7B in 2025 versus ₩106.8B in 2024. ROE fell from 19.8% in 2024 to 6.2% in 2025. For the trailing twelve months to H1 2026, revenue was ₩225.8B, operating income was -₩14.8B (margin -6.6%), net income was ₩7.2B (margin 3.2%) and ROE was 1.3%. Net income exceeded operating income, which suggests non-operating gains, though the data does not give a breakdown. The balance sheet looks moderate: liabilities to equity of 46.4%, cash of ₩123.0B and borrowings of ₩45.0B. Free cash flow was negative at -₩11.4B.

Valuation

At ₩253,000 the stock trades at a P/E of 1,650, P/B of 20.2, P/S of 53.0 and EV/EBITDA of 3,188.7, with a dividend yield of 0.2% and an enterprise value of about ₩11.9T. At the end of 2025 the P/E was 36.7 and P/B was 2.2, so the multiples have expanded sharply. Among the peers provided, Doosan Enerbility shows a P/E of 252.9 and P/B of 5.6, and Hanmi Semiconductor a P/E of 106.7 and P/B of 31.7. Multiples for Rainbow Robotics, Wonik IPS and EO Technics are not available. Jusung's P/E is far above the peers with available data, while its P/B is below Hanmi's but above Doosan's.

Catalysts

• The half-year report filed on 2026-08-14 and preliminary earnings on 2026-07-29 are the latest official earnings data, and the next quarterly results will show whether the operating loss is narrowing.
• A 5%+ holding report was filed on 2026-10-07, following others on 2026-08-03, 2026-07-07 and 2026-07-06, which indicates ongoing changes in major shareholdings.
• The company held two investor relations (IR) events on 2026-08-24, which may have shaped market expectations.
• Share price momentum of 21.1% in one month and 38.6% in three months shows strong market attention, although the data does not identify the cause.

Risks

• Trailing operating income is negative at -₩14.8B, so the valuation is not supported by current operating earnings.
• The P/E of 1,650 and EV/EBITDA of 3,188.7 leave little room for earnings disappointments relative to what the price implies.
• Revenue has been cyclical, with declines of 35.0% in 2023 and 24.1% in 2025, and the trailing figures remain weak.
• Free cash flow is negative at -₩11.4B, and borrowings of ₩45.0B are modest but present.
• The price is near its 52-week high after a 677.3% one-year gain, and investor flow, foreign ownership and short-interest data are not available to assess positioning.

Closing view

The filed financials show a cyclical company whose profits have fallen from their 2024 peak and whose trailing operating result is negative, while the share price has risen more than sixfold in a year. The balance sheet looks manageable, with cash well above borrowings. However, the valuation multiples are far above the company's own year-end 2025 levels and above the peers with available data. The data cannot explain what the market is pricing in, so the gap between price and reported earnings is the central issue to monitor in upcoming results.

Model estimate of fair value

The valuation model has no estimate for this company yet (not enough data, or no positive value with the base case).

Report history

1. Oct 13, 2026InitiationJusung Engineering: Share price up sharply while trailing earnings show an operating loss