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H&SHigh Tech

044990 · KOSDAQ · ₩044990 · 에이치엔에스하이텍

₩10,680▲ ₩290 (2.79%)End-of-day · Oct 28, 2026 · End-of-day prices.
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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

₩23,345

vs the current price (₩10,680)

Enterprise value
₩139B
Equity value
₩179B
WACC
7.8%

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 119% 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 ₩10,680, the model needs an operating margin of 6.3% every year (it uses 14.8%).
  • 35% 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 6.6× against a typical 7.5× 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
₩16,855
+57.8%
Base
₩23,345
+118.6%
Bull
₩34,060
+218.9%

Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.

Assumptions

Sign in to change the assumptions and see the results update. Sign in

Cycle options

Margin path

Every year uses the cycle-average margin (14.8%).

Revenue growth

  • 0.8%

    How much sales grow that year, compared with the year before.

    Default: the last 2 years' revenue growth (0.8% a year, annual reports), fading to 3% by year 5.

  • 1.4%

    How much sales grow that year, compared with the year before.

    Default: the last 2 years' revenue growth (0.8% a year, annual reports), fading to 3% by year 5.

  • 1.9%

    How much sales grow that year, compared with the year before.

    Default: the last 2 years' revenue growth (0.8% a year, annual reports), fading to 3% by year 5.

  • 2.5%

    How much sales grow that year, compared with the year before.

    Default: the last 2 years' revenue growth (0.8% a year, annual reports), fading to 3% by year 5.

  • 3%

    How much sales grow that year, compared with the year before.

    Default: the last 2 years' revenue growth (0.8% a year, annual reports), fading to 3% by year 5.

Business

  • 14.8%

    Operating profit as a share of revenue.

    Default: through-the-cycle average of the last 12 months and the last 3 annual reports' operating margins.

  • 27.5%

    Share of operating profit paid as corporate tax.

    Default: Korea's top corporate tax rate (25%) plus 10% local income tax.

  • 9.7%

    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).

  • 12.1%

    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).

  • 30.4%

    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

  • 2%

    How fast cash flows keep growing every year after year 5.

    Default: about Korea's long-run inflation plus real growth.

  • 4.11%

    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.

  • 0.67

    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 0.51, adjusted toward 1 and kept between 0.6 and 2.0.

  • 5.5%

    The extra return investors want for owning shares instead of bonds.

    Default: a typical premium for Korean shares.

  • 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)
₩90B
Net debt (borrowings and leases − cash and deposits)
−₩36B
+ Stakes and investments
₩4.6B
Associates, long-term financial assets and deposits (book value)
Shares
7,685,425
Share price
₩10,680
Market cap
₩82B

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.

FY2023FY2024FY2025Year 1Year 2Year 3Year 4Year 5
Revenue₩81B₩76B₩82B₩91B₩92B₩94B₩96B₩99B
Growth—−5.5%7.5%0.8%1.4%1.9%2.5%3.0%
EBIT₩14B₩13B₩9.7B₩13B₩14B₩14B₩14B₩15B
EBIT margin17.3%17.6%11.8%14.8%14.8%14.8%14.8%14.8%
After-tax EBIT₩10B₩9.7B₩7B₩9.7B₩9.9B₩10B₩10B₩11B
+ Depreciation———₩8.8B₩8.9B₩9.1B₩9.3B₩9.6B
− Capital spending₩8B₩5.4B₩16B₩11B₩11B₩11B₩12B₩12B
− Working capital—₩3.2B₩4.6B₩219M₩387M₩532M₩713M₩878M
Free cash flow———₩7.3B₩7.3B₩7.3B₩7.3B₩7.4B
Discount factor———0.9280.8610.7980.7410.687
Present value———₩6.8B₩6.3B₩5.8B₩5.4B₩5.1B

Terminal value ₩160B, worth ₩110B today: 79% 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:

LowTypicalHigh
Price / book (book value ₩13,880 a share)Now 0.77×₩11,3700.82×₩17,5851.27×₩33,7102.43×
Price / earnings (last 12 months: ₩1,618 a share)Now 6.60×₩7,0014.33×₩12,1307.50×₩18,27011.3×
P/E on run-rate earnings (Q2 2026 × 4: ₩798 a share)Now 13.4×₩3,4524.33×₩5,9807.50×₩9,00711.3×

Low, typical and high are the 10th percentile, middle and 90th percentile of month-end multiples since 2024, 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%
6.8%₩24,475₩25,733₩27,251₩29,119₩31,475
7.3%₩22,881₩23,902₩25,113₩26,573₩28,370
7.8%₩21,524₩22,363₩23,345₩24,510₩25,915
8.3%₩20,355₩21,053₩21,860₩22,804₩23,924
8.8%₩19,337₩19,923₩20,595₩21,371₩22,278

Now (TTM)

Market cap
₩82B
Enterprise value
₩46B
P/E
6.6×
P/B
0.8×
P/S
0.9×
EV/EBITDA
—
Dividend yield
2.3%

Over time (at each year end)

202520242023
Price₩15,300₩15,840₩16,700
Market cap₩118B₩122B₩128B
P/E13.2×8.3×4.3×
P/B1.1×1.1×1.5×
P/S1.4×1.6×1.6×
EV/EBITDA———
Dividend yield1.6%1.6%—

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
H&SHigh Tech6.6×0.8×0.9×—2.3%
Samsung Electro-Mechanics96.8×9.5×7.8×—0.2%
Doosan39.2×5.5×0.7×—0.4%
Hanwha Systems71.2×2.8×3.0×—0.8%
LG Innotek13.1×1.4×0.4×—0.5%
Isupetasys35.4×8.3×5.4×—0.0%
Daeduck Electronics44.8×7.0×5.0×—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: H&SHigh Tech / 에이치엔에스하이텍 / 044990 / KRX:044990

Source: KRX statistical information