KOSDAQ · 043260 · Electronic components · ₩043260

Sungho Electronics성호전자

043260 · KOSDAQ · ₩043260 · 성호전자

₩28,700▲ ₩1,500 (5.51%)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

₩2,141

vs the current price (₩28,700)

Enterprise value: ₩71B
Equity value: ₩162B
WACC: 7.4%

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 93% 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 ₩28,700, the model needs an operating margin of 43.5% every year (it uses 3.3%).
Margins ranged from 0.9% to 12.4% 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.
97% 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.
In the projection, spending on equipment, software and working capital takes most or all of the after-tax operating profit, so free cash flow is thin. Companies that invest heavily often look like this until spending slows.
Today's P/E is 6.0× against a typical 13.1× 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: ₩933; −96.7%
Base: ₩2,141; −92.5%
Bull: ₩4,382; −84.7%

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 (3.3%).

Revenue growth

Revenue growth, year 114.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (14.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 211.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (14.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 38.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (14.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 45.9%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (14.7% 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 (14.7% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin3.3%
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 & amortisation6%
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 spending7.5%
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 capital17.3%
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 0.35, 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): ₩267B
Net debt (borrowings and leases − cash and deposits): ₩23B
+ Stakes and investments: ₩121B; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩7.4B
Shares: 75,451,848
Share price: ₩28,700
Market cap: ₩2.2T

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	₩208B	₩207B	₩232B	₩306B	₩342B	₩373B	₩395B	₩406B
Growth	35.5%	−0.4%	11.7%	14.7%	11.8%	8.8%	5.9%	3.0%
EBIT	₩26B	₩6.3B	₩7.6B	₩10B	₩11B	₩12B	₩13B	₩13B
EBIT margin	12.4%	3.0%	3.3%	3.3%	3.3%	3.3%	3.3%	3.3%
After-tax EBIT	₩19B	₩4.6B	₩5.5B	₩7.3B	₩8.2B	₩8.9B	₩9.4B	₩9.7B
+ Depreciation	—	—	—	₩18B	₩21B	₩22B	₩24B	₩24B
− Capital spending	₩6.2B	₩36B	₩4.7B	₩23B	₩26B	₩28B	₩30B	₩30B
− Working capital	₩2.3B	₩32B	−₩166B	₩6.8B	₩6.3B	₩5.2B	₩3.8B	₩2B
Free cash flow	—	—	—	−₩4.1B	−₩3.2B	−₩1.9B	−₩281M	₩1.6B
Discount factor	—	—	—	0.931	0.867	0.808	0.752	0.701
Present value	—	—	—	−₩3.8B	−₩2.8B	−₩1.5B	−₩212M	₩1.1B

Terminal value ₩112B, worth ₩78B today: 110% 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 ₩5,478 a share)Now 5.24×	₩3,3520.61×	₩6,5541.20×	₩23,9334.37×
Price / earnings (last 12 months: ₩4,786 a share)Now 6.00×	₩15,7183.28×	₩62,56813.1×	₩268,63456.1×

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%
6.4%	₩2,307	₩2,366	₩2,438	₩2,527	₩2,641
6.9%	₩2,180	₩2,223	₩2,274	₩2,335	₩2,412
7.4%	₩2,073	₩2,105	₩2,141	₩2,184	₩2,237
7.9%	₩1,983	₩2,006	₩2,032	₩2,062	₩2,098
8.4%	₩1,905	₩1,922	₩1,940	₩1,961	₩1,985

Now (TTM)

Market cap: ₩2.2T
Enterprise value: ₩2.2T
P/E: 6.0×
P/B: 5.2×
P/S: 8.1×
EV/EBITDA: —
Dividend yield: 0.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩9,240	₩1,121	₩1,399	₩1,185	₩1,595
Market cap	₩697B	₩85B	₩106B	₩89B	₩120B
P/E	7.7×	10.5×	6.0×	—	38.0×
P/B	2.8×	0.6×	1.0×	1.1×	1.3×
P/S	3.0×	0.4×	0.5×	0.6×	0.9×
EV/EBITDA	—	—	—	—	—
Dividend yield	0.0%	—	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Sungho Electronics	6.0×	5.2×	8.1×	—	0.0%
Samsung Electro-Mechanics	96.8×	9.5×	7.8×	—	0.2%
Doosan	39.2×	5.5×	0.7×	—	0.4%
Hanwha Systems	71.2×	2.8×	3.0×	—	0.8%
LG Innotek	13.1×	1.4×	0.4×	—	0.5%
Isupetasys	35.4×	8.3×	5.4×	—	0.0%
Daeduck Electronics	44.8×	7.0×	5.0×	—	0.4%
Similar companies (median)	42.0×	6.3×	4.0×	—	0.4%

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

Also known as: Sungho Electronics / 성호전자 / 043260 / KRX:043260

Source: KRX statistical information