Daea TI: Shares Down 47.2% Over a Year as Profit Rests on Non-Operating Gains and Model Estimate Sits Below Price

Thesis

The data supports a company with steady revenue and profits, a modest market value of about ₩180.1B, and a trailing P/E of 12.6 and P/B of 1.1, both below its year-end levels in recent years. Trailing net income of ₩14.3B is nearly three times operating income of ₩5.1B, so earnings quality depends on items below the operating line, and the data does not explain what they are.

What the data does not support is a clear improvement story. Operating margin is 3.8%, below 4.9% in 2025 and 5.3% in 2024, free cash flow is negative at ₩27.2B, and the shares are near the lower half of their 52-week range of ₩2,065 to ₩5,060. Foreign ownership slipped from 5.6% to 5.1% over 60 days. Peers trade at far higher multiples, but they are much larger companies, so the comparison is limited.

Business overview

Daea TI is listed on KOSDAQ in the electrical equipment sector. It was founded on 1995-09-12 and listed on 2001-05-17, with 70,473,377 shares outstanding and a market capitalization of ₩180.1B. It is led by two co-CEOs, 최종윤 and 장일수, and a change of CEO was filed on 2026-09-09.

Revenue grew from ₩116.3B in 2021 to ₩153.2B in 2025, with a dip in 2022 (-9.2%) and a jump in 2024 (+32.8%). Filings show frequent amendments to a major sales or supply contract between June and September 2026, but the data does not give contract values or counterparties. A merger completion report (asset acquisition and transfer) was filed on 2026-06-24, with no further detail available.

Financial analysis

These figures come from filed financial statements. Trailing twelve months to H1 2026: revenue ₩134.0B, operating income ₩5.1B, net income ₩14.3B, operating margin 3.8%, net margin 10.7% and ROE 9.8%.

Full-year 2025: revenue ₩153.2B (+2.7%), operating income ₩7.6B, net income ₩20.5B, operating margin 4.9% and ROE 14.2%. In 2024 revenue was ₩149.1B, operating income ₩7.9B and net income ₩14.7B. Operating margin was 8.9% in 2022 and 8.3% in 2021, so it is well below earlier levels.

Balance sheet: liabilities to equity of 83.5%, cash of ₩51.6B and borrowings of ₩53.6B, so cash roughly matches debt. Trailing free cash flow is negative ₩27.2B. The dividend yield is 0.0%.

Valuation

At the current price the trailing P/E is 12.6, P/B 1.1 and P/S 1.3. Enterprise value is ₩182.1B, and EV/EBITDA is not available. Year-end P/E was 14.1 in 2025, 14.5 in 2024, 22.5 in 2023 and 26.2 in 2022; year-end P/B was 1.9 in 2025 and 1.6 in 2024. Current multiples are lower than those history points.

Listed peers (LS Electric, Hyosung Heavy Industries, HD Hyundai Electric, Gaon Cable, Sanil Electric) show P/E from 20.8 to 111.2 and P/B from 6.9 to 13.5. They are far larger, with market caps of ₩5.3T to ₩24.2T, so they are a loose reference.

The valuation model (5-year discounted cash flow at a 7.4% rate, based on trailing figures to H1 2026) gives a base estimate of ₩1,282 per share, with a bear case of ₩465 and a bull case of ₩2,734. This is a model estimate based on the assumptions shown. The base case is about 49.8% below the ₩2,555 close, and only the bull case is above it. The model is sensitive to the weak free cash flow and is not a target or a reason to act.

Catalysts

• The repeated amendments to the major sales or supply contract (latest 2026-09-30) may show how contract terms or size are changing, though the data gives no figures.
• The change of CEO filed on 2026-09-09 could affect strategy or execution.
• The merger completion report (asset acquisition and transfer) filed 2026-06-24 may begin to show in future financial results.
• The next periodic report would show whether operating margin recovers from 3.8% and whether free cash flow improves.
• Investor flows over 20 days show foreigners net selling about ₩1.0B and retail net buying about ₩0.9B, so a change in that pattern could matter.

Risks

• Trailing net income is far above operating income, so reported profit depends on items outside core operations that the data does not detail.
• Free cash flow is negative at ₩27.2B while borrowings of ₩53.6B are roughly equal to cash of ₩51.6B.
• Operating margin has fallen from 8.9% in 2022 to 3.8% on a trailing basis.
• The model's base estimate of ₩1,282 is well below the share price, and the bear case is ₩465.
• The shares fell 21.6% in a month and 47.2% in a year, and foreign ownership declined from 5.6% to 5.1%; no news headlines are available to explain the move.

Closing view

The evidence is mixed. Revenue has grown over five years and trailing multiples are lower than recent year-end levels, but margins are thinner, cash flow is negative, and a large share of profit sits below the operating line. The model's base estimate is below the market price, while the bull case is above it, which shows how wide the range of outcomes is on these assumptions. Missing details on the contracts, the merger and the source of non-operating income limit how firmly any conclusion can be drawn.

Model estimate of fair value

Bear

₩465

-82%

Base

₩1,282

-51%

Bull

₩2,734

+4%

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 7.4%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

• Amended: Major sales or supply contractSep 30, 2026
• Amended: Major sales or supply contractSep 21, 2026
• Amended: Major sales or supply contractSep 14, 2026
• Change of CEOSep 9, 2026
• Amended: Major sales or supply contractAug 28, 2026
• Amended: Major sales or supply contractAug 27, 2026
• Amended: Half-year report (Jun 2026)Aug 14, 2026
• Half-year report (Jun 2026)Aug 14, 2026
• Amended: Major sales or supply contractJul 30, 2026
• Amended: Major sales or supply contractJul 23, 2026
• Amended: Major sales or supply contractJun 26, 2026
• Merger Completion Report (Asset Acquisition and Transfer)Jun 24, 2026
• Daily prices up to 2026-10-22
• Financial statements, trailing 12 months as of H1 2026
• Our fair value model, statements as of TTM to H1 2026

Report history

1. Oct 23, 2026InitiationStart of coverage (reader request)Daea TI: Shares Down 47.2% Over a Year as Profit Rests on Non-Operating Gains and Model Estimate Sits Below Price