Sungho Electronics성호전자

Sungho Electronics' shares have risen sharply over the past year, but its trailing profit is inflated by a one-off style gain and its cash flow is negative.

Sungho Electronics makes power supplies and film capacitors for printers, appliances, displays and data centers. Trailing twelve-month revenue to H1 2026 was ₩267B with an operating margin of 5.5%, but net income of ₩361B far exceeds operating income of ₩14.7B, which the data does not explain. Free cash flow was negative at ₩-63B against borrowings of ₩90B.

What stands out

• Operating income of ₩14.7B on ₩267B revenue gives a 5.5% margin, well above the 3.3% in 2025 but the net income figure is many times operating profit, so it likely includes non-operating items not detailed in the data.
• Liabilities are 223% of equity and borrowings total ₩90B against cash of ₩45B.
• Share price closed at ₩26,500 on 2026-10-26, up 1,390% over one year, with a 52-week range of ₩1,780 to ₩59,600.
• The company has issued a convertible bond and a bond with warrants in 2026, and its largest shareholder changed, according to recent filings.
• Foreign ownership fell from 5% to 1.7% over the past 60 days, while retail investors were net buyers over the last 20 days.

What to watch

• Whether the bond and warrant issues, which were amended in October, lead to dilution of the 75.5M listed shares.
• Next periodic results, to check whether net income is supported by operating cash flow.
• Ownership and capital changes flagged in recent filings, including the change of largest shareholder.