HYUNGJI Innovation and Creative형지I&C
011080 · KOSDAQ · ₩011080 · 형지I&C
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
With these assumptions the model gives no positive value.
- Enterprise value
- −₩25B
- Equity value
- −₩31B
- WACC
- 9.3%
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 gives no positive value at these assumptions. What we can see:
- To match today's price of ₩811, the model needs an operating margin of 3.4% every year (it uses −5.8%).
- Margins ranged from −13.9% to 3.4% 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.
- In the projection, spending on equipment, software and working capital takes most or all of the after-tax operating profit, so free cash flow is thin. Companies that invest heavily often look like this until spending slows.
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
- —
- Base
- —
- Bull
- —
Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.
Assumptions
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Cycle options
Margin path
Every year uses the cycle-average margin (−5.8%).
Revenue growth
- -10%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-10.3% a year, annual reports), fading to 3% by year 5.
- -6.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-10.3% a year, annual reports), fading to 3% by year 5.
- -3.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-10.3% a year, annual reports), fading to 3% by year 5.
- -0.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-10.3% a year, annual reports), fading to 3% by year 5.
- 3%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-10.3% a year, annual reports), fading to 3% by year 5.
Business
- -5.8%
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.
- 27.5%
Share of operating profit paid as corporate tax.
Default: Korea's top corporate tax rate (25%) plus 10% local income tax.
- 2%
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).
- 2.4%
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).
- 29.9%
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
- 2%
How fast cash flows keep growing every year after year 5.
Default: about Korea's long-run inflation plus real growth.
- 4.03%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-27.
- 2
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 4.78, adjusted toward 1 and kept between 0.6 and 2.0.
- 5.5%
The extra return investors want for owning shares instead of bonds.
Default: a typical premium for Korean shares.
- 5.53%
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)
- ₩51B
- Net debt (borrowings and leases − cash and deposits)
- ₩6.3B
- Shares
- 7,096,262
- Share price
- ₩811
- Market cap
- ₩5.8B
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 | ₩65B | ₩57B | ₩51B | ₩46B | ₩43B | ₩42B | ₩42B | ₩43B |
| Growth | −7.3% | −13.1% | −10.5% | −10.0% | −6.7% | −3.5% | −0.2% | 3.0% |
| EBIT | ₩653M | −₩5B | −₩7B | −₩2.7B | −₩2.5B | −₩2.4B | −₩2.4B | −₩2.5B |
| EBIT margin | 1.0% | −8.8% | −13.9% | −5.8% | −5.8% | −5.8% | −5.8% | −5.8% |
| After-tax EBIT | ₩474M | −₩3.6B | −₩5.1B | −₩1.9B | −₩1.8B | −₩1.7B | −₩1.7B | −₩1.8B |
| + Depreciation | — | — | — | ₩924M | ₩862M | ₩832M | ₩831M | ₩855M |
| − Capital spending | ₩2.2B | ₩845M | ₩1.2B | ₩1.1B | ₩1B | ₩999M | ₩997M | ₩1B |
| − Working capital | ₩5.8B | −₩3.2B | −₩244M | −₩1.5B | −₩926M | −₩451M | −₩25M | ₩372M |
| Free cash flow | — | — | — | −₩593M | −₩1.1B | −₩1.5B | −₩1.9B | −₩2.3B |
| Discount factor | — | — | — | 0.915 | 0.838 | 0.767 | 0.701 | 0.642 |
| Present value | — | — | — | −₩543M | −₩888M | −₩1.1B | −₩1.3B | −₩1.5B |
Terminal value −₩30B, worth −₩19B today: 78% 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 ₩4,339 a share)Now 0.19× | ₩4,4841.03× | ₩12,5252.89× | ₩92,19621.2× |
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% |
|---|---|---|---|---|---|
| 8.3% | — | — | — | — | — |
| 8.8% | — | — | — | — | — |
| 9.3% | — | — | — | — | — |
| 9.8% | — | — | — | — | — |
| 10.3% | — | — | — | — | — |
Now (TTM)
- Market cap
- ₩5.8B
- Enterprise value
- ₩12B
- P/E
- —
- P/B
- 0.2×
- P/S
- 0.1×
- EV/EBITDA
- —
- Dividend yield
- 0.0%
Over time (at each year end)
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Price | ₩8,299 | ₩9,011 | ₩10,506 | ₩13,793 | ₩54,471 |
| Market cap | ₩59B | ₩64B | ₩75B | ₩98B | ₩387B |
| P/E | — | — | 40.1× | — | — |
| P/B | 1.7× | 2.3× | 2.5× | 3.4× | 32.2× |
| P/S | 1.2× | 1.1× | 1.1× | 1.4× | 5.9× |
| EV/EBITDA | — | — | — | 28.8× | — |
| Dividend yield | 0.0% | — | — | — | — |
Versus similar companies
Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.
Also known as: HYUNGJI Innovation and Creative / 형지I&C / 011080 / KRX:011080
Source: KRX statistical information