KOSPI · 003780 · Rubber & plastics · ₩003780

Chin Yang Industry진양산업

003780 · KOSPI · ₩003780 · 진양산업

₩5,620▲ ₩230 (4.27%)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

₩7,591

vs the current price (₩5,620)

Enterprise value: ₩125B
Equity value: ₩99B
WACC: 6.5%

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 35% 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 ₩5,620, the model needs an operating margin of 7.0% every year (it uses 8.7%).
Or revenue growth −5.5 points a year higher than assumed in each of the 5 years.
Today's P/E is 12.3× against a typical 11.4× 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: ₩3,267; −41.9%
Base: ₩7,591; +35.1%
Bull: ₩15,462; +175.1%

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 (8.7%).

Revenue growth

Revenue growth, year 12.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (2.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 22.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (2.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 32.9%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (2.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 42.9%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (2.7% 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 (2.7% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin8.7%
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 & amortisation1.1%
The non-cash cost of wearing out equipment, added back to cash flow (% of revenue).
Default: not in the statements, so 80% of capital spending (most spending replaces equipment that wears out).
Capital spending1.4%
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 capital10.5%
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): ₩90B
Net debt (borrowings and leases − cash and deposits): ₩26B
+ Stakes and investments: ₩89M; Associates, long-term financial assets and deposits (book value)
Shares: 13,000,000
Share price: ₩5,620
Market cap: ₩73B

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	₩87B	₩88B	₩91B	₩92B	₩95B	₩97B	₩100B	₩103B
Growth	3.8%	1.6%	2.8%	2.7%	2.8%	2.9%	2.9%	3.0%
EBIT	₩7.6B	₩8.2B	₩8.4B	₩8B	₩8.2B	₩8.5B	₩8.7B	₩9B
EBIT margin	8.7%	9.3%	9.3%	8.7%	8.7%	8.7%	8.7%	8.7%
After-tax EBIT	₩5.5B	₩5.9B	₩6.1B	₩5.8B	₩6B	₩6.1B	₩6.3B	₩6.5B
+ Depreciation	—	—	—	₩1B	₩1B	₩1.1B	₩1.1B	₩1.1B
− Capital spending	₩712M	₩310M	₩2.7B	₩1.3B	₩1.3B	₩1.4B	₩1.4B	₩1.4B
− Working capital	−₩2.8B	−₩1.8B	₩1.4B	₩254M	₩271M	₩289M	₩297M	₩316M
Free cash flow	—	—	—	₩5.3B	₩5.4B	₩5.6B	₩5.7B	₩5.9B
Discount factor	—	—	—	0.939	0.881	0.827	0.776	0.729
Present value	—	—	—	₩5B	₩4.8B	₩4.6B	₩4.4B	₩4.3B

Terminal value ₩139B, worth ₩101B today: 81% 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 ₩5,090 a share)Now 1.10×	₩5,6201.10×	₩7,8661.55×	₩11,0952.18×
Price / earnings (last 12 months: ₩457 a share)Now 12.3×	₩3,5557.78×	₩5,20311.4×	₩7,47716.4×

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%
5.5%	₩8,080	₩9,068	₩10,335	₩12,020	₩14,368
6.0%	₩7,062	₩7,832	₩8,793	₩10,025	₩11,662
6.5%	₩6,228	₩6,842	₩7,591	₩8,525	₩9,723
7.0%	₩5,533	₩6,032	₩6,629	₩7,357	₩8,265
7.5%	₩4,945	₩5,356	₩5,840	₩6,421	₩7,128

Now (TTM)

Market cap: ₩73B
Enterprise value: ₩98B
P/E: 12.3×
P/B: 1.1×
P/S: 0.8×
EV/EBITDA: —
Dividend yield: 6.4%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩6,740	₩8,650	₩6,880	₩6,240	₩8,370
Market cap	₩88B	₩112B	₩89B	₩81B	₩109B
P/E	12.6×	11.2×	10.5×	13.2×	17.6×
P/B	1.3×	1.7×	1.6×	1.6×	2.3×
P/S	1.0×	1.3×	1.0×	1.0×	1.4×
EV/EBITDA	—	—	—	—	—
Dividend yield	5.3%	3.2%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Chin Yang Industry	12.3×	1.1×	0.8×	—	6.4%
Hankook Tire & Technology	5.8×	0.5×	0.3×	—	4.0%
Kumho Tire	3.1×	0.6×	0.3×	—	0.0%
Pum-Tech Korea	20.1×	2.6×	2.1×	—	0.7%
Dongwon Systems	9.7×	0.7×	0.4×	5.7×	2.8%
Nexen Tire	3.5×	0.3×	0.2×	—	3.6%
PI Advanced Materials	12.8×	1.2×	1.7×	5.2×	2.2%
Similar companies (median)	7.8×	0.6×	0.4×	5.5×	2.5%

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

Also known as: Chin Yang Industry / 진양산업 / 003780 / KRX:003780

Source: KRX statistical information