KOSDAQ · 101930 · Shipbuilding · ₩101930

Inhwa Precision인화정공

101930 · KOSDAQ · ₩101930 · 인화정공

₩6,400▼ ₩440 (6.43%)End-of-day · Oct 29, 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

₩3,719

vs the current price (₩6,400)

Enterprise value: ₩109B
Equity value: ₩170B
WACC: 7.0%

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 42% 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 ₩6,400, the model needs an operating margin of 18.9% every year (it uses 9.2%).
Or revenue growth +24.8 points a year higher than assumed in each of the 5 years.
Margins ranged from 3.3% to 14.4% 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.
48% 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 11.8× against a typical 11.4× 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: ₩2,831; −55.8%
Base: ₩3,719; −41.9%
Bull: ₩5,317; −16.9%

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 (9.2%).

Revenue growth

Revenue growth, year 1-10%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-10.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-6.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-10.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 3-3.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-10.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 4-0.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-10.1% 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 (-10.1% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin9.2%
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 & amortisation4.7%
The non-cash cost of wearing out equipment, added back to cash flow (% of revenue).
Default: average of the last 3 annual reports (cash flow statements; equipment and intangibles).
Capital spending3.9%
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 capital40%
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 rate4.01%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-30.
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)5.51%
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): ₩112B
Net debt (borrowings and leases − cash and deposits): ₩28B
+ Stakes and investments: ₩89B; Associates, long-term financial assets and deposits (book value)
Shares: 45,694,671
Share price: ₩6,400
Market cap: ₩292B

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	₩104B	₩93B	₩108B	₩101B	₩94B	₩91B	₩91B	₩93B
Growth	−29.9%	−10.7%	16.4%	−10.0%	−6.7%	−3.5%	−0.2%	3.0%
EBIT	₩4.9B	₩10B	₩16B	₩9.3B	₩8.7B	₩8.4B	₩8.3B	₩8.6B
EBIT margin	4.7%	11.1%	14.4%	9.2%	9.2%	9.2%	9.2%	9.2%
After-tax EBIT	₩3.5B	₩7.4B	₩11B	₩6.7B	₩6.3B	₩6.1B	₩6B	₩6.2B
+ Depreciation	₩6.5B	₩4B	₩3.9B	₩4.7B	₩4.4B	₩4.3B	₩4.3B	₩4.4B
− Capital spending	₩2.6B	₩2.9B	₩6.5B	₩3.9B	₩3.7B	₩3.5B	₩3.5B	₩3.6B
− Working capital	−₩35B	₩7.7B	₩124B	−₩4.5B	−₩2.7B	−₩1.3B	−₩73M	₩1.1B
Free cash flow	₩43B	₩891M	−₩116B	₩12B	₩9.7B	₩8.1B	₩6.8B	₩5.9B
Discount factor	—	—	—	0.934	0.873	0.816	0.762	0.712
Present value	—	—	—	₩11B	₩8.5B	₩6.6B	₩5.2B	₩4.2B

Terminal value ₩102B, worth ₩73B today: 67% 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 ₩7,776 a share)Now 0.82×	₩4,5660.59×	₩6,0100.77×	₩10,4951.35×
Price / earnings (last 12 months: ₩544 a share)Now 11.8×	₩2,1053.87×	₩6,19011.4×	₩23,78343.8×
P/E on run-rate earnings (Q2 2026 × 4: ₩822 a share)Now 7.79×	₩3,1823.87×	₩9,35711.4×	₩35,95243.8×

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%
6.0%	₩3,921	₩4,059	₩4,231	₩4,451	₩4,743
6.5%	₩3,712	₩3,818	₩3,947	₩4,107	₩4,311
7.0%	₩3,538	₩3,620	₩3,719	₩3,838	₩3,986
7.5%	₩3,390	₩3,455	₩3,531	₩3,622	₩3,733
8.0%	₩3,263	₩3,315	₩3,375	₩3,445	₩3,529

Now (TTM)

Market cap: ₩292B
Enterprise value: ₩320B
P/E: 11.8×
P/B: 0.8×
P/S: 2.6×
EV/EBITDA: 15.0×
Dividend yield: 2.3%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩9,240	₩6,010	₩2,328	₩2,520	₩2,760
Market cap	₩422B	₩275B	₩106B	₩115B	₩126B
P/E	16.5×	6.9×	42.6×	—	8.3×
P/B	1.2×	1.1×	0.6×	0.7×	0.7×
P/S	3.9×	3.0×	1.0×	0.8×	1.1×
EV/EBITDA	23.3×	23.8×	17.3×	14.9×	21.4×
Dividend yield	1.6%	2.3%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Inhwa Precision	11.8×	0.8×	2.6×	15.0×	2.3%
HD Hyundai Heavy Industries	11.3×	2.7×	1.3×	—	2.1%
Hanwha Ocean	7.5×	2.1×	1.0×	—	0.0%
Samsung Heavy Industries	24.5×	2.9×	1.2×	—	0.0%
Daehan Shipbuilding	4.5×	1.1×	1.1×	—	0.7%
Sejin Heavy Industries	6.3×	1.6×	1.0×	—	3.2%
Hyundai Hyms	14.1×	1.3×	1.3×	—	1.3%
Similar companies (median)	9.4×	1.8×	1.1×	—	1.0%

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

Also known as: Inhwa Precision / 인화정공 / 101930 / KRX:101930

Source: KRX statistical information