Cheryong Electric제룡전기

Cheryong Electric remains very profitable on trailing numbers, but its share price has fallen sharply over the past month and revenue shrank in 2025.

Cheryong Electric is a KOSDAQ-listed maker of transformers, with about 88.8% of 2025 sales coming from exports. Over the trailing twelve months to H1 2026 it reported revenue of ₩183.8B, operating income of ₩41.7B and net income of ₩54.9B, with a 22.7% operating margin. The share price closed at ₩38,400 on 2026-10-23, down 19.4% over one month but still 3.5% higher over one year and far below its 52-week high of ₩93,800.

What stands out

• Revenue fell 14.7% in 2025 to ₩224.0B after very strong growth in 2022 to 2024, and operating margin dropped from 37.2% in 2024 to 29.9% in 2025.
• Trailing net income (₩54.9B) is well above trailing operating income (₩41.7B), which the data does not explain.
• The filed balance sheet shows low leverage: liabilities to equity of 14.4%, cash of ₩39.5B, and no borrowings reported.
• The internal DCF model gives a base value of ₩51,179 against the ₩38,400 close, with a bear case of ₩37,428 and a bull case of ₩71,697; these are model outputs, not forecasts.
• Foreign ownership rose from 4.2% to 7.6% over about 60 days, while retail investors were net sellers of about ₩6.6B over the last 20 days; short balance is 8.5%.

What to watch

• The Q3 2026 quarterly report and the full-year 2026 results, to see whether revenue and margins keep falling from 2024 levels.
• Further 5%+ holding reports, given recent filings of this type in March, June and July 2026.
• Whether the share price stays well below its 52-week high; the data does not say what caused the recent one-month drop.