KOSDAQ · 024060 · Retail & Trade · ₩024060

HeunguOil흥구석유

024060 · KOSDAQ · ₩024060 · 흥구석유

₩11,620▲ ₩250 (2.20%)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

With these assumptions the model gives no positive value.

Enterprise value: −₩1.4B
Equity value: −₩4.6B
WACC: 7.3%

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 ₩11,620, the model needs an operating margin of 15.7% every year (it uses −0.1%).
100% 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.

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: ₩1,766; −84.8%

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 (−0.1%).

Revenue growth

Revenue growth, year 1-9.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-9.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-6.6%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-9.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 3-3.4%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-9.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 4-0.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-9.7% 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 (-9.7% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin-0.1%
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 & amortisation0.1%
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 spending0.1%
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 capital1.6%
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 -0.31, 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): ₩107B
Net debt (borrowings and leases − cash and deposits): ₩3.3B
+ Stakes and investments: ₩103M; Associates, long-term financial assets and deposits (book value)
Shares: 15,000,000
Share price: ₩11,620
Market cap: ₩174B

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	₩127B	₩117B	₩108B	₩96B	₩90B	₩87B	₩87B	₩89B
Growth	−13.6%	−7.8%	−7.7%	−9.7%	−6.6%	−3.4%	−0.2%	3.0%
EBIT	₩87M	−₩283M	−₩995M	−₩96M	−₩90M	−₩87M	−₩87M	−₩89M
EBIT margin	0.1%	−0.2%	−0.9%	−0.1%	−0.1%	−0.1%	−0.1%	−0.1%
After-tax EBIT	₩63M	−₩205M	−₩721M	−₩70M	−₩65M	−₩63M	−₩63M	−₩65M
+ Depreciation	—	—	—	₩96M	₩90M	₩87M	₩87M	₩89M
− Capital spending	₩309M	₩41M	₩88M	₩96M	₩90M	₩87M	₩87M	₩89M
− Working capital	−₩1.4B	−₩1B	−₩1.3B	−₩165M	−₩102M	−₩49M	−₩2.8M	₩42M
Free cash flow	—	—	—	₩96M	₩36M	−₩14M	−₩60M	−₩106M
Discount factor	—	—	—	0.932	0.868	0.808	0.753	0.702
Present value	—	—	—	₩89M	₩32M	−₩11M	−₩45M	−₩75M

Terminal value −₩1.9B, worth −₩1.4B today: 99% 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 ₩5,507 a share)Now 2.11×	₩5,9231.08×	₩10,9231.98×	₩16,2552.95×

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%
6.3%	—	—	—	—	—
6.8%	—	—	—	—	—
7.3%	—	—	—	—	—
7.8%	—	—	—	—	—
8.3%	—	—	—	—	—

Now (TTM)

Market cap: ₩174B
Enterprise value: ₩177B
P/E: 1,055.2×
P/B: 2.1×
P/S: 1.6×
EV/EBITDA: —
Dividend yield: 0.2%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩11,860	₩12,490	₩8,000	₩5,680	₩7,160
Market cap	₩178B	₩187B	₩120B	₩85B	₩107B
P/E	1,123.7×	302.0×	106.3×	32.1×	76.8×
P/B	2.3×	2.4×	1.5×	1.1×	1.4×
P/S	1.6×	1.6×	0.9×	0.6×	0.8×
EV/EBITDA	—	—	—	—	—
Dividend yield	0.2%	0.2%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
HeunguOil	1,055.2×	2.1×	1.6×	—	0.2%
Samsung C&T	18.8×	0.5×	1.2×	—	0.9%
POSCO International	10.6×	1.3×	0.3×	—	3.7%
ISC	45.3×	6.0×	12.6×	—	0.5%
Youngone	5.1×	0.7×	0.7×	—	3.1%
Dong SUH Companies	18.9×	1.6×	5.1×	—	4.2%
Shinsegae	14.4×	0.5×	0.3×	—	2.0%
Similar companies (median)	16.6×	1.0×	1.0×	—	2.6%

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

Also known as: HeunguOil / 흥구석유 / 024060 / KRX:024060

Source: KRX statistical information