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Leeno Industrial

058470 · KOSDAQ · ₩058470 · 리노공업

₩59,000▼ ₩2,600 (4.22%)End-of-day · Oct 26, 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

₩34,813

vs the current price (₩59,000)

Enterprise value
₩2.6T
Equity value
₩2.7T
WACC
7.5%

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 41% 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 ₩59,000, the model needs an operating margin of 74.4% every year (it uses 44.8%).
  • Or revenue growth +13.6 points a year higher than assumed in each of the 5 years.
  • Analysts' forecasts for 2026: revenue —, operating profit ₩207B (1 broker). The model starts from the last 12 months reported.
  • Analysts' forecasts for 2027: revenue —, operating profit ₩244B (1 broker). The model starts from the last 12 months reported.
  • Today's P/E is 23.9× against a typical 26.9× 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
₩25,074
−57.5%
Base
₩34,813
−41.0%
Bull
₩50,307
−14.7%

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

Assumptions

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Cycle options

Margin path

Every year uses the cycle-average margin (44.8%).

Revenue growth

  • 4.9%

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

    Default: the last 3 years' revenue growth (4.9% a year, annual reports), fading to 3% by year 5.

  • 4.4%

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

    Default: the last 3 years' revenue growth (4.9% a year, annual reports), fading to 3% by year 5.

  • 4%

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

    Default: the last 3 years' revenue growth (4.9% a year, annual reports), fading to 3% by year 5.

  • 3.5%

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

    Default: the last 3 years' revenue growth (4.9% 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 3 years' revenue growth (4.9% a year, annual reports), fading to 3% by year 5.

Business

  • 44.8%

    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.

  • 27.5%

    Share of operating profit paid as corporate tax.

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

  • 12.7%

    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).

  • 15.8%

    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).

  • 40%

    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.

  • 4.03%

    Yield on Korea's 10-year government bond: the return with almost no risk.

    Default: Korea Treasury Bond 10-year yield on 2026-10-27.

  • 0.63

    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 0.44, 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.

  • 5.53%

    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)
₩425B
Net debt (borrowings and leases − cash and deposits)
−₩87B
Shares
76,211,850
Share price
₩59,000
Market cap
₩4.5T

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₩256B₩278B₩373B₩445B₩465B₩484B₩500B₩515B
Growth−20.7%8.8%33.9%4.9%4.4%4.0%3.5%3.0%
EBIT₩114B₩124B₩177B₩200B₩208B₩217B₩224B₩231B
EBIT margin44.8%44.6%47.5%44.8%44.8%44.8%44.8%44.8%
After-tax EBIT₩83B₩90B₩128B₩145B₩151B₩157B₩163B₩167B
+ Depreciation———₩57B₩59B₩61B₩64B₩65B
− Capital spending₩69B₩12B₩60B₩70B₩73B₩76B₩79B₩81B
− Working capital₩4.8B₩49B₩28B₩8.3B₩7.8B₩7.4B₩6.8B₩6B
Free cash flow———₩123B₩129B₩135B₩140B₩145B
Discount factor———0.9300.8650.8050.7490.697
Present value———₩114B₩111B₩108B₩105B₩101B

Terminal value ₩2.9T, worth ₩2T 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 ₩10,192 a share)Now 5.79×₩45,1944.43×₩58,5995.75×₩78,3267.68×
Price / earnings (last 12 months: ₩2,465 a share)Now 23.9×₩45,88818.6×₩66,41826.9×₩96,78639.3×
P/E on run-rate earnings (Q2 2026 × 4: ₩3,460 a share)Now 17.1×₩64,42318.6×₩93,24626.9×₩135,88039.3×

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%
6.5%₩36,373₩39,122₩42,479₩46,674₩52,066
7.0%₩33,349₩35,583₩38,262₩41,534₩45,622
7.5%₩30,793₩32,636₩34,813₩37,424₩40,613
8.0%₩28,604₩30,145₩31,941₩34,063₩36,608
8.5%₩26,708₩28,011₩29,513₩31,264₩33,332

Now (TTM)

Market cap
₩4.5T
Enterprise value
₩4.4T
P/E
23.9×
P/B
5.8×
P/S
10.6×
EV/EBITDA
—
Dividend yield
1.4%

Over time (at each year end)

20252024202320222021
Price₩60,300₩38,366₩40,549₩31,137₩39,708
Market cap₩4.6T₩2.9T₩3.1T₩2.4T₩3T
P/E30.2×25.8×27.9×20.7×29.2×
P/B6.3×4.7×5.5×4.8×7.2×
P/S12.3×10.5×12.1×7.4×10.8×
EV/EBITDA—————
Dividend yield1.3%7.8%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Leeno Industrial23.9×5.8×10.6×—1.4%
Samsung Electro-Mechanics82.9×8.2×6.7×—0.2%
Doosan34.9×4.9×0.6×—0.4%
Hanwha Systems68.5×2.7×2.9×—0.8%
LG Innotek13.1×1.4×0.4×—0.5%
Isupetasys30.5×7.1×4.7×—0.0%
Daeduck Electronics38.9×6.1×4.4×—0.4%
Similar companies (median)36.9×5.5×3.6×—0.4%

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

Also known as: Leeno Industrial / 리노공업 / 058470 / KRX:058470

Source: KRX statistical information