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JONBUR Research · Initiation

Shinsung Delta Tech · 065350 · Electrical equipment

Shinsung Delta Tech: Thin Margins, Rising Revenue and a Sharp Re-rating Over the Past Year

Why this report

Start of coverage: written when a reader opened this company and there was no report yet.

Shinsung Delta Tech has grown revenue every year in the data, to ₩1.04T over the trailing twelve months, but operating margin is only 3.2% and free cash flow is negative. The shares are up 21.0% over three months yet down 44.5% over one year, and no valuation model estimate is available.

Written Oct 22, 2026 · Data as of Oct 21, 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 steadily growing but low-margin business. Revenue rose from ₩737.5B in 2021 to ₩945.4B in 2025, and the trailing figure of ₩1.04T continues the trend. Net income recovered to ₩29.4B on a trailing basis from a small loss in 2024, and ROE is 12.4%.

What the data does not support is a clear improvement in profitability at the operating level. Operating margin has drifted from 6.0% in 2021 to 3.2% now. Free cash flow is negative at -₩113.3B and borrowings of ₩396.5B far exceed cash of ₩100.2B. The share price is 62.1% above its 52-week low of ₩22,600 but 62.1% is not the gap to the high; it sits well below the 52-week high of ₩83,000. Foreign ownership has slipped to 3.9% from 4.3% sixty days ago.

Business overview

Shinsung Delta Tech is a KOSDAQ-listed company in the electrical equipment sector, founded in 1987 and listed in 2004. It has two co-CEOs and 27,483,948 listed shares. At a close of ₩31,450 its market cap is about ₩864.4B and enterprise value about ₩1.16T. The data gives no breakdown of products or segments. The only recent news item is a partnership announced on October 19, 2026 between Junction Med and the company on care robot analytics and recording features.

Financial analysis

These figures come from filed financial statements. Revenue was ₩945.4B in 2025, up 3.9%, after growth of 9.1% in 2024, 5.1% in 2023 and 7.6% in 2022. Operating income was ₩27.7B in 2025 (2.9% margin) versus ₩43.9B in 2021 (6.0% margin).

Net income was ₩21.7B in 2025, a loss of ₩1.0B in 2024, ₩12.5B in 2023, ₩16.9B in 2022 and ₩24.5B in 2021. For the twelve months to H1 2026, revenue was ₩1.04T, operating income ₩33.4B, net income ₩29.4B, net margin 2.8% and ROE 12.4%.

Liabilities to equity stand at 186.1%. Borrowings are ₩396.5B against cash of ₩100.2B, and trailing free cash flow is -₩113.3B.

Valuation

The shares trade at a P/E of 29.4, P/B of 3.2 and P/S of 0.8, with a dividend yield of 0.4%. EV/EBITDA is not available. Against its own history, P/E is below the year-end 2025 level of 71.8 and 2023 level of 90.3 but above 12.7 in 2022 and 18.6 in 2021. P/B of 3.2 is below the 6.3 at the end of 2025 but above the 1.3 of 2022.

Peers show P/E of 21.1 to 112.8 and P/B of 7.0 to 13.7: LS Electric 64.1 and 11.7, Hyosung Heavy Industries 31.1 and 7.0, HD Hyundai Electric 21.1 and 8.0, Gaon Cable 112.8 and 13.7, Sanil Electric 30.8 and 8.4. The company is much smaller than these peers and has lower P/B than all of them. A valuation model estimate per share is not available, so there is no comparison with the share price.

Catalysts

  • The half-year report filed on August 14, 2026 gave the latest trailing figures, and the next periodic filing will show whether revenue growth and margins hold.
  • Two filings on debt guarantees for another party (May 20 and July 27, 2026) may draw attention to the company's obligations to third parties.
  • The October 19, 2026 partnership with Junction Med on care robot features was the latest news item.
  • Over the last 20 trading days foreign investors were net buyers of about ₩1.2B while retail investors were net sellers of about ₩0.7B.

Risks

  • Operating margin of 3.2% leaves little cushion if costs rise or revenue growth slows.
  • Negative free cash flow of -₩113.3B has come alongside borrowings of ₩396.5B, which is nearly four times cash.
  • Liabilities to equity of 186.1% shows meaningful financial leverage.
  • Debt guarantees for other parties disclosed in filings could create contingent liabilities, and the data does not give their size.
  • The share price has fallen 44.5% over one year and is volatile, with a 52-week range of ₩22,600 to ₩83,000.

Closing view

The data shows a business with growing sales, a return to profit and an ROE of 12.4%, but also thin and declining operating margins, negative free cash flow and substantial borrowings. Valuation multiples have fallen from recent year-end levels yet remain well above 2021 and 2022, and no model estimate is available to compare with the price. The evidence is mixed, and the next filings on margins, cash flow and guarantees would be the most useful additional information.

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).

Filings and data used

Report history

  1. Oct 22, 2026InitiationStart of coverage (reader request)Shinsung Delta Tech: Thin Margins, Rising Revenue and a Sharp Re-rating Over the Past 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