Ask Warren

JONBUR Research · Initiation

SPG · 058610 · Electrical equipment

SPG: Share price up sharply over a year while earnings stay modest and the model estimate sits far below the price

Why this report

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

SPG (KOSDAQ, electrical equipment) closed at ₩87,600 on 2026-10-12, up 187.2% over one year but down 9.5% over one month, with a market cap of about ₩1.9T. Trailing earnings are small (net income ₩9.5B), so multiples are very high and the model estimate per share is well below the current price.

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.

XfWATGr/in@

Thesis

The data supports a strong rerating: the share price is up 27.1% in three months and 187.2% in one year, and sits well below its 52-week high of ₩165,700 but far above the low of ₩29,000. The financial statements do not show a matching earnings jump. Revenue fell from ₩440.5B in 2022 to ₩341.7B in 2025, and trailing revenue to H1 2026 is ₩337.5B. Operating margin has improved from 3.2% in 2024 to 5.5% on a trailing basis, which is a positive, but net margin is only 2.8% and ROE is 3.6%. The price therefore appears to reflect expectations that are not visible in the filed numbers. Investor flow, foreign ownership, short balance and news data are not available, so we cannot say who is driving the move.

Business overview

SPG is a KOSDAQ-listed electrical equipment company founded on 1991-03-21 and listed on 2002-07-23, with 22,177,360 listed shares. It is led by co-CEOs 이준호 and 여영길. Revenue was ₩416.3B in 2021, peaked at ₩440.5B in 2022, and declined to ₩341.7B in 2025. The data does not break down products or segments, so we cannot describe what is driving the revenue trend. Recent filings include IR events (2026-03-31, 2026-05-11, 2026-07-06, 2026-10-08) and a corporate value-up plan filed on 2026-03-26.

Financial analysis

All figures come from filed financial statements (DART). Trailing revenue to H1 2026 was ₩337.5B, operating income ₩18.4B (5.5% margin), and net income ₩9.5B (2.8% margin). For 2025, revenue was ₩341.7B (-12.0% year on year), operating income ₩17.9B and net income ₩9.1B. Net income was ₩13.1B in 2024, ₩11.0B in 2023, ₩19.7B in 2022 and ₩22.9B in 2021, so profit is below its 2021-2022 levels. ROE was 3.6% trailing versus 11.9% in 2021. Liabilities to equity are 67.9%. Cash is ₩38.8B against borrowings of ₩61.6B, and trailing free cash flow is ₩13.8B.

Valuation

Current multiples are P/E 204.4, P/B 7.1, P/S 5.8 and EV/EBITDA 75.9, with a dividend yield of 0.3%. At the end of 2025, P/E was 197.4 and P/B 7.0; earlier year-end multiples are not available. Listed peers show P/E of 14.2 to 36.2 (HD Hyundai Electric 24.7, Hyosung Heavy Industries 35.7, Sanil Electric 36.2, LS Electric 14.2; Taihan Cable & Solution not available) and P/B of 2.5 to 9.8. SPG's P/B is within the peer range, but its P/E is far above it, reflecting low earnings. The valuation model (5-year DCF, 6.8% rate, based on TTM to H1 2026) gives a model estimate based on the assumptions shown of ₩5,352 per share in the base case, ₩841 in the bear case and ₩13,773 in the bull case. All three are below the ₩87,600 share price. The estimate is not a target and is sensitive to its assumptions.

Catalysts

  • The half-year report (filed 2026-08-14) showed trailing operating margin of 5.5%, and the next quarterly results will show whether margin improvement continues.
  • An interim dividend was decided on 2026-09-07 with an ex-date of 2026-09-18, though the dividend yield is only 0.3%.
  • The IR event on 2026-10-08 and earlier IR events may signal how the company communicates its outlook; the content is not in the data.
  • The corporate value-up plan filed on 2026-03-26 could matter for shareholder return policy, but its details are not provided.

Risks

  • The P/E of 204.4 and EV/EBITDA of 75.9 leave little room for earnings disappointment relative to what the price implies.
  • Revenue has declined from ₩440.5B in 2022 to ₩341.7B in 2025, and net margin remains only 2.8%.
  • The model estimate range (₩841 to ₩13,773) is entirely below the current price of ₩87,600, a large gap that could close through price changes.
  • The share price has moved sharply (-9.5% in one month, +187.2% in one year, 52-week range ₩29,000 to ₩165,700), indicating high volatility.
  • Borrowings of ₩61.6B exceed cash of ₩38.8B, and investor flow, foreign ownership and short interest data are not available to assess positioning.

Closing view

The data shows a stock whose price has risen far faster than its reported earnings. Margins have improved and cash flow is positive, but revenue is below its 2022 level, ROE is 3.6%, and the P/E is about 204. The model estimate sits well below the market price under every case shown. Missing flow, ownership and news data limit what can be said about the reasons for the price move, so the numbers point to a large gap between price and filed fundamentals rather than a clear explanation of it.}

Model estimate of fair value

Bear
₩841
-99%
Base
₩5,352
-94%
Bull
₩13,773
-85%

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 6.8%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 13, 2026InitiationStart of coverage (300 largest)SPG: Share price up sharply over a year while earnings stay modest and the model estimate sits far below the price

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