Sanil Electric산일전기

Sanil Electric, a transformer maker heavily reliant on US exports, posted strong 2025 growth and high margins, but its share price has fallen sharply over the past month.

The company makes power and distribution transformers, with about 97% of sales from exports and over 75% from the United States. Trailing twelve-month revenue to H1 2026 was ₩589B with an operating margin of 36%, and it carries no borrowings. The share price closed at ₩159,600, down 22.3% over one month but up 10.3% over one year, and sits well below its 52-week high of ₩341,000.

What stands out

• 2025 revenue rose 50.3% to ₩502B and net income reached ₩149B, compared with ₩334B and ₩84B in 2024.
• Trailing free cash flow was ₩155B and cash was ₩95B, with zero borrowings and a liabilities-to-equity ratio of 14.2%.
• The DCF-based fair value model gives a base of ₩98,961, below the current price, with a bear case of ₩74,998 and a bull case of ₩133,584; these are model outputs, not forecasts.
• Valuation is 27.1x trailing earnings and 7.4x book, versus peers such as HD Hyundai Electric at 18.9x and LS Electric at 59x.
• Foreign ownership eased from 17.7% to 17.1% over 60 days, and foreign investors were net sellers over the last 20 days while institutions were net buyers.
• A SK Securities note cited record orders but said exchange rates and a typhoon weighed on Q3, and a brokerage piece in October discussed 40% upside potential.

What to watch

• The advance notice of earnings results filed on 2026-10-27 and the full results that follow, to see whether revenue and margins hold up.
• Concentration risk: most sales go to the United States, so changes in US demand, trade policy or the exchange rate could matter.
• Follow-up filings on major supply contracts and asset acquisitions, which the company has been reporting in 2026.