Iljin Electric: Rising Revenue and Margins, With a Share Price Well Above Its 52-Week Low

Thesis

The data supports a clear improvement in operations. Revenue rose from ₩932.4B in 2021 to ₩2.04T in 2025, and the trailing twelve months to H1 2026 reached ₩2.21T. Operating margin widened from 2.2% to 9.2% and ROE from 4.6% to 24.4%.

The market has priced in much of this. The share price of ₩73,800 is 50.1% below its 52-week high of ₩147,900 and 95.5% above its low of ₩37,750. It is up 21.0% over three months and 3.9% over one month.

What the data does not show: investor flows, foreign ownership, short balance and news headlines are all unavailable, so we cannot say who has been buying or selling. Free cash flow is small relative to profit, and the dividend yield is 0.0%.

Business overview

Iljin Electric is listed on KOSPI in the electrical equipment sector. It was founded on 2008-07-02 and listed on 2008-08-01. It has 47,685,390 listed shares and a market capitalisation of about ₩3.52T. The CEO is 유상석, sole representative director.

The filing list shows repeated major sales or supply contract disclosures (2026-05-12, 2026-06-05 amended, 2026-07-30 amended and 2026-10-02). It also shows changes in the largest shareholder's holdings (2026-04-29 and 2026-05-20) and 5%+ holding reports (2026-05-20 and 2026-07-01). The data gives no contract values or customer details.

Financial analysis

All figures below come from filed financial statements (DART).

Revenue: ₩932.4B (2021), ₩1.16T (2022), ₩1.25T (2023), ₩1.58T (2024), ₩2.04T (2025). Growth was 24.9% in 2022, 7.0% in 2023, 26.5% in 2024 and 29.6% in 2025.

Operating income rose from ₩20.4B in 2021 to ₩151.2B in 2025. Net income rose from ₩14.9B to ₩103.9B over the same period. Operating margin was 7.4% in 2025.

Trailing twelve months to H1 2026: revenue ₩2.21T, operating income ₩202.3B (9.2% margin), net income ₩140.6B (6.4% margin) and ROE 24.4%.

Balance sheet: liabilities to equity is 161.1%, cash is ₩188.6B and borrowings are reported as ₩0. Trailing free cash flow is only ₩8.3B, far below net income.

Valuation

The current P/E is 25.0, equal to the year-end 2025 P/E of 25.0. The current P/B is 5.4, up from 4.4 at year-end 2025. P/S is 1.6, and enterprise value is about ₩3.33T. EV/EBITDA is not available. Earlier-year multiples are not available, so a longer history cannot be compared.

Peers in the data: HD Hyundai Electric (P/E 24.7, P/B 9.3), Hyosung Heavy Industries (35.7, 8.1), Sanil Electric (36.2, 9.8), LS Electric (14.2, 2.6) and Taihan Cable & Solution (P/E not available, P/B 2.5). Iljin's P/E sits within the peer range, and its P/B is below three of the five peers and above the other two.

Catalysts

• A major sales or supply contract was disclosed on 2026-10-02, following earlier filings and amendments on 2026-05-12, 2026-06-05 and 2026-07-30.
• The half-year report filed on 2026-08-11 gave the latest earnings base, with trailing operating margin at 9.2%.
• Changes in the largest shareholder's holdings (2026-04-29 and 2026-05-20) and 5%+ holding reports (2026-05-20 and 2026-07-01) show ownership activity.
• The next quarterly filing will show whether revenue growth and margin gains continue.

Risks

• The share price is 50.1% below its 52-week high, which shows large price swings over the past year.
• Trailing free cash flow of ₩8.3B is small against net income of ₩140.6B, so profit is not converting into cash.
• Liabilities to equity of 161.1% is a sizeable leverage level, even though reported borrowings are ₩0.
• The stock pays no dividend (0.0% yield), so returns depend on price changes.
• Investor flow, foreign ownership, short interest and news data are unavailable, which limits visibility into market positioning.

Closing view

The filed numbers show steady growth, wider margins and a sharply higher ROE, and the share price has risen strongly over one year. At a P/E of 25.0 and a P/B of 5.4, valuation sits in the middle of the peer set. Weak cash conversion, high liabilities relative to equity and missing flow data are the main gaps in the picture. The evidence shows a business with improving earnings, but it cannot say how much of that is already reflected in the price.

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, 2026InitiationIljin Electric: Rising Revenue and Margins, With a Share Price Well Above Its 52-Week Low