KOSDAQ · 017510 · Metal products · ₩017510

Semyung Electric Machinery세명전기

017510 · KOSDAQ · ₩017510 · 세명전기

₩6,120▼ ₩220 (3.47%)End-of-day · Oct 29, 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

₩9,290

vs the current price (₩6,120)

Enterprise value: ₩134B
Equity value: ₩142B
WACC: 8.5%

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 52% 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 ₩6,120, the model needs an operating margin of 14.1% every year (it uses 20.7%).
Or revenue growth −12.5 points a year higher than assumed in each of the 5 years.
Margins ranged from 7.3% to 45.8% 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.
The group includes a financial business (an insurer, bank or broker), whose investments and minority shareholders are left out here. A sum-of-the-parts view usually fits groups like this better.
Today's P/E is 7.8× against a typical 22.1× 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: ₩6,541; +6.9%
Base: ₩9,290; +51.8%
Bull: ₩13,547; +121.4%

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 (20.7%).

Revenue growth

Revenue growth, year 125%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (32.3% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 219.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (32.3% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 314%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (32.3% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 48.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (32.3% 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 (32.3% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin20.7%
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 & amortisation1.7%
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 spending1.3%
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 rate4.01%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-30.
Beta0.81
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 0.72, 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)5.51%
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): ₩38B
Net debt (borrowings and leases − cash and deposits): −₩7.4B
Shares: 15,246,000
Share price: ₩6,120
Market cap: ₩93B

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	₩12B	₩14B	₩32B	₩48B	₩57B	₩65B	₩71B	₩73B
Growth	−15.3%	21.9%	124.0%	25.0%	19.5%	14.0%	8.5%	3.0%
EBIT	₩1.4B	₩3B	₩15B	₩9.9B	₩12B	₩14B	₩15B	₩15B
EBIT margin	11.4%	21.0%	45.8%	20.7%	20.7%	20.7%	20.7%	20.7%
After-tax EBIT	₩980M	₩2.2B	₩11B	₩7.2B	₩8.6B	₩9.8B	₩11B	₩11B
+ Depreciation	₩267M	₩296M	₩288M	₩817M	₩976M	₩1.1B	₩1.2B	₩1.2B
− Capital spending	₩373M	₩6.8M	₩258M	₩625M	₩746M	₩851M	₩923M	₩951M
− Working capital	−₩262M	−₩14B	₩196M	₩3.8B	₩3.7B	₩3.2B	₩2.2B	₩852M
Free cash flow	₩1.1B	₩16B	₩11B	₩3.6B	₩5.1B	₩6.9B	₩8.7B	₩10B
Discount factor	—	—	—	0.922	0.850	0.784	0.723	0.666
Present value	—	—	—	₩3.3B	₩4.3B	₩5.4B	₩6.3B	₩6.9B

Terminal value ₩162B, worth ₩108B today: 80% 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 ₩6,191 a share)Now 0.99×	₩3,6950.60×	₩5,8020.94×	₩10,4171.68×
Price / earnings (last 12 months: ₩789 a share)Now 7.76×	₩8,14710.3×	₩17,39022.1×	₩43,54655.2×
P/E on run-rate earnings (Q2 2026 × 4: ₩507 a share)Now 12.1×	₩5,23610.3×	₩11,17722.1×	₩27,98855.2×

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%
7.5%	₩9,816	₩10,376	₩11,037	₩11,831	₩12,800
8.0%	₩9,086	₩9,549	₩10,090	₩10,728	₩11,493
8.5%	₩8,454	₩8,842	₩9,290	₩9,811	₩10,427
9.0%	₩7,902	₩8,231	₩8,605	₩9,037	₩9,540
9.5%	₩7,417	₩7,697	₩8,014	₩8,375	₩8,792

Now (TTM)

Market cap: ₩93B
Enterprise value: ₩86B
P/E: 7.8×
P/B: 1.0×
P/S: 2.4×
EV/EBITDA: 5.5×
Dividend yield: 3.6%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩8,790	₩4,560	₩2,815	₩2,990	₩4,350
Market cap	₩134B	₩70B	₩43B	₩46B	₩66B
P/E	10.5×	14.8×	32.8×	20.2×	28.5×
P/B	1.5×	0.9×	0.6×	0.6×	0.9×
P/S	4.1×	4.8×	3.6×	3.3×	4.4×
EV/EBITDA	8.1×	16.0×	23.9×	32.5×	27.5×
Dividend yield	2.5%	1.8%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Semyung Electric Machinery	7.8×	1.0×	2.4×	5.5×	3.6%
CS Wind	372.3×	1.3×	0.6×	—	2.6%
Hankuk Carbon	7.8×	1.2×	0.9×	—	2.1%
Taewoong	63.8×	0.8×	1.3×	20.4×	0.0%
YG-1	5.3×	0.8×	0.5×	—	1.8%
Bosung Power Technology	18.9×	2.1×	1.8×	8.6×	0.0%
Hansun Engineering	36.1×	2.6×	3.0×	14.4×	0.0%
Similar companies (median)	27.5×	1.2×	1.1×	14.4×	0.9%

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

Also known as: Semyung Electric Machinery / 세명전기 / 017510 / KRX:017510

Source: KRX statistical information