KOSPI · 002170 · Textiles & Apparel · ₩002170

SytsSYTS

002170 · KOSPI · ₩002170 · SYTS

₩51,000▲ ₩100 (0.20%)End-of-day · Oct 28, 2026 · End-of-day prices.

Trade

Sell Buy

Valuation model · Discounted cash flow (DCF)

We use a 5-year discounted cash flow: the value of the cash the business is expected to produce, in today's money.

Fair value per share

₩169,759

vs the current price (₩51,000)

Enterprise value: ₩195B
Equity value: ₩509B
WACC: 7.4%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal. This is not financial advice.

Why the model and the price differ

The model is 233% away from today's price. A gap this size usually means the market expects something the past figures don't show yet, or the model leaves something out. What we can see:

To match today's price of ₩51,000, the model needs an operating margin of −7.3% every year (it uses 10.0%).
Margins ranged from 9.2% to 18.8% over the last 5 years, so this is a cyclical business. The model uses the average; the price may be set by where the cycle is now. Try the margin fade option.
65% of the last 12 months' net profit came from outside operations (stakes in other companies, interest, one-offs). The model adds those stakes at book value but doesn't project that income.
Today's P/E is 6.1× against a typical 9.6× over the last 10 years.

Treat the model as a starting point: change the assumptions to the story you believe, and compare with the multiples check below.

Bear / Base / Bull

Bear: ₩146,004; +186.3%
Base: ₩169,759; +232.9%
Bull: ₩210,685; +313.1%

Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.

Assumptions

Cycle options

Margin path

Every year uses the cycle-average margin (10.0%).

Revenue growth

Revenue growth, year 1-0.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-0.8% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 20.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-0.8% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 31.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-0.8% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 42.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-0.8% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 53%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-0.8% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin10%
Operating profit as a share of revenue.
Default: through-the-cycle average of the last 12 months and the last 5 annual reports' operating margins.
Tax rate27.5%
Share of operating profit paid as corporate tax.
Default: Korea's top corporate tax rate (25%) plus 10% local income tax.
Depreciation & amortisation2.3%
The non-cash cost of wearing out equipment, added back to cash flow (% of revenue).
Default: average of the last 3 annual reports (cash flow statements; equipment and intangibles).
Capital spending0%
Money spent on factories, equipment, software and other long-term assets (% of revenue).
Default: average of the last 3 annual reports (cash flow statements; equipment and intangibles).
Working capital40%
Stock and unpaid customer bills, less unpaid supplier bills, as a % of revenue. Each year's extra revenue ties up this much more cash.
Default: working capital (current assets less cash and deposits, minus current liabilities other than borrowings) as a share of revenue, averaged over the last 3 years.

Discount rate

Terminal growth2%
How fast cash flows keep growing every year after year 5.
Default: about Korea's long-run inflation plus real growth.
Risk-free rate4.11%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-28.
Beta0.6
How much the share moves when the market moves: 1 means just like the market.
Default: 105 weeks of weekly returns against KOSPI (official index); raw beta 0.09, adjusted toward 1 and kept between 0.6 and 2.0.
Equity risk premium5.5%
The extra return investors want for owning shares instead of bonds.
Default: a typical premium for Korean shares.
Cost of debt (before tax)5.61%
The interest rate the company would pay to borrow.
Default: the 10-year yield plus a 1.5% credit spread.

Starting point

Revenue (TTM to H1 2026): ₩157B
Net debt (borrowings and leases − cash and deposits): −₩237B
+ Stakes and investments: ₩77B; Associates, long-term financial assets and deposits (book value)
Shares: 3,000,000
Share price: ₩51,000
Market cap: ₩153B

TTM = trailing 12 months: the last four reported quarters added together. "TTM to H1 2026" is the 12 months up to the latest quarterly or half-year report (H1 = to the end of June). Year 1 grows from there.

Past years and projection

Grey columns are reported results from the annual reports (after-tax EBIT at the model's tax rate), so you can check the growth and margin assumptions against the past. Years 1–5 are the model.

	FY2023	FY2024	FY2025	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue	₩179B	₩191B	₩175B	₩156B	₩156B	₩158B	₩161B	₩166B
Growth	0.3%	6.7%	−8.7%	−0.8%	0.2%	1.1%	2.1%	3.0%
EBIT	₩18B	₩20B	₩18B	₩16B	₩16B	₩16B	₩16B	₩17B
EBIT margin	9.9%	10.4%	10.6%	10.0%	10.0%	10.0%	10.0%	10.0%
After-tax EBIT	₩13B	₩14B	₩13B	₩11B	₩11B	₩11B	₩12B	₩12B
+ Depreciation	₩4.4B	₩4.2B	₩4B	₩3.6B	₩3.6B	₩3.6B	₩3.7B	₩3.8B
− Capital spending	—	₩0	₩5.6M	₩0	₩0	₩0	₩0	₩0
− Working capital	−₩166B	−₩24B	−₩37B	−₩502M	₩125M	₩687M	₩1.3B	₩1.9B
Free cash flow	—	₩42B	₩54B	₩15B	₩15B	₩14B	₩14B	₩14B
Discount factor	—	—	—	0.931	0.867	0.807	0.751	0.700
Present value	—	—	—	₩14B	₩13B	₩12B	₩11B	₩9.7B

Terminal value ₩195B, worth ₩136B today: 70% of enterprise value. It assumes spending settles at 110% of depreciation once growth slows to the terminal rate.

Cross-check: what the market has paid before

For cyclical businesses, analysts check a DCF against the multiples the stock has traded at through past cycles. Price / book is the usual anchor for them: P/E looks highest at the bottom of a cycle, when earnings are smallest, and lowest at the top. The price each band would give today:

	Low	Typical	High
Price / book (book value ₩152,904 a share)Now 0.33×	₩50,6980.33×	₩55,3170.36×	₩64,0170.42×
Price / earnings (last 12 months: ₩8,383 a share)Now 6.08×	₩45,4565.42×	₩80,2979.58×	₩114,97513.7×
P/E on run-rate earnings (Q2 2026 × 4: ₩8,643 a share)Now 5.90×	₩46,8665.42×	₩82,7889.58×	₩118,54213.7×

Low, typical and high are the 10th percentile, middle and 90th percentile of month-end multiples since 2021, each against the latest report out by then, per share at today's share count; loss years and P/E above 100 are left out. Run-rate earnings are one quarter × 4, not a forecast. Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Sensitivity

Fair value per share as two inputs change; the middle is the current case.

WACC ↓ · Terminal growth →	1.0%	1.5%	2.0%	2.5%	3.0%
6.4%	₩175,019	₩178,721	₩183,245	₩188,905	₩196,203
6.9%	₩169,449	₩172,348	₩175,822	₩180,066	₩185,375
7.4%	₩164,740	₩167,044	₩169,759	₩173,011	₩176,984
7.9%	₩160,705	₩162,557	₩164,710	₩167,248	₩170,286
8.4%	₩157,208	₩158,712	₩160,440	₩162,447	₩164,812

Now (TTM)

Market cap: ₩153B
Enterprise value: −₩84B
P/E: 6.1×
P/B: 0.3×
P/S: 1.0×
EV/EBITDA: —
Dividend yield: 4.5%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩55,800	₩49,700	₩48,550	₩52,800	₩58,000
Market cap	₩167B	₩149B	₩146B	₩158B	₩174B
P/E	7.0×	13.5×	6.7×	10.5×	5.3×
P/B	0.4×	0.3×	0.3×	0.4×	0.4×
P/S	1.0×	0.8×	0.8×	0.9×	0.9×
EV/EBITDA	—	—	—	7.8×	4.6×
Dividend yield	4.1%	3.0%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Syts	6.1×	0.3×	1.0×	—	4.5%
F&F	4.5×	1.1×	1.2×	—	4.4%
LF	5.5×	0.4×	0.3×	4.5×	3.3%
Chokwang Leather	43.6×	0.7×	4.8×	57.9×	0.0%
Handsome	7.1×	0.3×	0.3×	—	0.0%
Hansae	9.4×	0.4×	0.2×	—	0.0%
JS	4.0×	0.6×	0.2×	—	5.3%
Similar companies (median)	6.3×	0.5×	0.3×	31.2×	1.6%

Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.

Also known as: Syts / SYTS / 002170 / KRX:002170

Source: KRX statistical information