KOSDAQ · 033100 · Electrical equipment · ₩033100

Cheryong Electric제룡전기

033100 · KOSDAQ · ₩033100 · 제룡전기

₩37,700▼ ₩1,500 (3.83%)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

₩51,710

vs the current price (₩37,700)

Enterprise value: ₩788B
Equity value: ₩831B
WACC: 9.0%

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 37% 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 ₩37,700, the model needs an operating margin of 20.1% every year (it uses 27.1%).
Or revenue growth −9.2 points a year higher than assumed in each of the 5 years.
Margins ranged from 0.2% to 38.1% 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.
45% 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.
Today's P/E is 11.0× against a typical 11.9× 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: ₩37,757; +0.2%
Base: ₩51,710; +37.2%
Bull: ₩72,582; +92.5%

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 (27.1%).

Revenue growth

Revenue growth, year 125%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (37.6% 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 (37.6% 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 (37.6% 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 (37.6% 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 (37.6% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin27.1%
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 & amortisation0.8%
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%
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 rate4.08%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-29.
Beta0.9
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 0.85, 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)5.58%
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): ₩184B
Net debt (borrowings and leases − cash and deposits): −₩39B
+ Stakes and investments: ₩4B; Associates, long-term financial assets and deposits (book value)
Shares: 16,062,409
Share price: ₩37,700
Market cap: ₩606B

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	₩184B	₩263B	₩224B	₩230B	₩275B	₩313B	₩340B	₩350B
Growth	113.7%	42.8%	−14.7%	25.0%	19.5%	14.0%	8.5%	3.0%
EBIT	₩70B	₩98B	₩67B	₩62B	₩74B	₩85B	₩92B	₩95B
EBIT margin	38.1%	37.2%	29.9%	27.1%	27.1%	27.1%	27.1%	27.1%
After-tax EBIT	₩51B	₩71B	₩49B	₩45B	₩54B	₩61B	₩67B	₩69B
+ Depreciation	—	—	—	₩1.8B	₩2.2B	₩2.5B	₩2.7B	₩2.8B
− Capital spending	₩2.2B	₩2.3B	₩2.4B	₩2.3B	₩2.7B	₩3.1B	₩3.4B	₩3.5B
− Working capital	₩44B	₩69B	₩14B	₩18B	₩18B	₩15B	₩11B	₩4.1B
Free cash flow	—	—	—	₩26B	₩35B	₩45B	₩55B	₩64B
Discount factor	—	—	—	0.917	0.841	0.772	0.708	0.649
Present value	—	—	—	₩24B	₩30B	₩35B	₩39B	₩41B

Terminal value ₩952B, worth ₩618B 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 ₩15,425 a share)Now 2.44×	₩25,1251.63×	₩47,5503.08×	₩83,8665.44×
Price / earnings (last 12 months: ₩3,421 a share)Now 11.0×	₩25,5607.47×	₩40,59111.9×	₩81,49823.8×
P/E on run-rate earnings (Q2 2026 × 4: ₩4,489 a share)Now 8.40×	₩33,5457.47×	₩53,27211.9×	₩106,95723.8×

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%
8.0%	₩54,303	₩57,179	₩60,528	₩64,476	₩69,204
8.5%	₩50,566	₩52,989	₩55,778	₩59,026	₩62,855
9.0%	₩47,300	₩49,361	₩51,710	₩54,415	₩57,564
9.5%	₩44,422	₩46,189	₩48,187	₩50,465	₩53,088
10.0%	₩41,867	₩43,394	₩45,107	₩47,044	₩49,253

Now (TTM)

Market cap: ₩606B
Enterprise value: ₩566B
P/E: 11.0×
P/B: 2.4×
P/S: 3.3×
EV/EBITDA: —
Dividend yield: 2.9%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩35,100	₩45,950	₩20,050	₩11,250	₩5,220
Market cap	₩564B	₩738B	₩322B	₩181B	₩84B
P/E	9.6×	9.2×	5.7×	14.5×	71.5×
P/B	2.4×	3.8×	2.6×	2.6×	1.4×
P/S	2.5×	2.8×	1.8×	2.1×	1.7×
EV/EBITDA	—	—	—	—	—
Dividend yield	3.1%	2.2%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Cheryong Electric	11.0×	2.4×	3.3×	—	2.9%
LS Electric	61.1×	11.2×	4.2×	37.8×	0.0%
Hyosung Heavy Industries	30.5×	6.9×	2.8×	—	0.4%
HD Hyundai Electric	18.7×	7.0×	3.7×	—	0.0%
Gaon Cable	110.9×	13.4×	2.5×	57.9×	0.0%
Sanil Electric	26.6×	7.2×	8.2×	—	0.8%
Taihan Cable & Solution	—	2.1×	1.0×	—	0.0%
Similar companies (median)	30.5×	7.1×	3.2×	47.8×	0.0%

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

Also known as: Cheryong Electric / 제룡전기 / 033100 / KRX:033100

Source: KRX statistical information