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Han Jung NCS

107640 · KOSDAQ · ₩107640 · 한중엔시에스

₩48,100▲ ₩450 (0.94%)End-of-day · Oct 30, 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

With these assumptions the model gives no positive value.

Enterprise value
−₩193B
Equity value
−₩309B
WACC
7.1%

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 gives no positive value at these assumptions. What we can see:

  • To match today's price of ₩48,100, the model needs an operating margin of 13.4% every year (it uses −1.7%).
  • Margins ranged from −15.7% to 5.4% 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.
  • 100% 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.

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
—
Base
—
Bull
—

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 (−1.7%).

Revenue growth

  • 25%

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

    Default: the last 3 years' revenue growth (25.6% a year, annual reports), fading to 3% by year 5.

  • 19.5%

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

    Default: the last 3 years' revenue growth (25.6% a year, annual reports), fading to 3% by year 5.

  • 14%

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

    Default: the last 3 years' revenue growth (25.6% a year, annual reports), fading to 3% by year 5.

  • 8.5%

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

    Default: the last 3 years' revenue growth (25.6% 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 (25.6% a year, annual reports), fading to 3% by year 5.

Business

  • -1.7%

    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.

  • 12.6%

    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).

  • -1.2%

    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.

  • 4.01%

    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.

  • 0.71

    How much the share moves when the market moves: 1 means just like the market.

    Default: 104 weeks of weekly returns against KOSPI (official index); raw beta 0.57, 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.

  • 5.51%

    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)
₩203B
Net debt (borrowings and leases − cash and deposits)
₩113B
+ Stakes and investments
₩2M
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩2.5B
Shares
9,103,605
Share price
₩48,100
Market cap
₩438B

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₩122B₩177B₩175B₩254B₩303B₩346B₩375B₩386B
Growth37.3%45.8%−1.1%25.0%19.5%14.0%8.5%3.0%
EBIT−₩13B₩9.6B₩4B−₩4.3B−₩5.2B−₩5.9B−₩6.4B−₩6.6B
EBIT margin−10.4%5.4%2.3%−1.7%−1.7%−1.7%−1.7%−1.7%
After-tax EBIT−₩9.2B₩6.9B₩2.9B−₩3.1B−₩3.7B−₩4.3B−₩4.6B−₩4.8B
+ Depreciation———₩32B₩38B₩44B₩47B₩49B
− Capital spending₩17B₩11B₩48B₩40B₩48B₩55B₩59B₩61B
− Working capital−₩14B₩4.9B−₩18B−₩609M−₩594M−₩510M−₩353M−₩135M
Free cash flow———−₩11B−₩13B−₩15B−₩16B−₩17B
Discount factor———0.9340.8720.8140.7600.709
Present value———−₩9.9B−₩11B−₩12B−₩12B−₩12B

Terminal value −₩190B, worth −₩135B today: 70% 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 ₩10,927 a share)Now 4.40×₩27,9222.56×₩39,1703.58×₩68,0316.23×

Low, typical and high are the 10th percentile, middle and 90th percentile of month-end multiples since 2022, 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%
6.1%—————
6.6%—————
7.1%—————
7.6%—————
8.1%—————

Now (TTM)

Market cap
₩438B
Enterprise value
₩551B
P/E
129.1×
P/B
4.4×
P/S
2.2×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩46,950₩23,650₩9,813₩5,564₩5,253
Market cap₩427B₩215B₩89B₩51B₩48B
P/E104.9×12.4×———
P/B4.4×2.6×6.6×1.9×2.7×
P/S2.4×1.2×0.7×0.6×0.5×
EV/EBITDA—————
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Han Jung NCS129.1×4.4×2.2×—0.0%
LS Electric57.7×10.5×3.9×35.7×0.0%
Hyosung Heavy Industries28.8×6.5×2.6×—0.4%
HD Hyundai Electric18.0×6.8×3.5×—0.0%
Gaon Cable105.6×12.8×2.3×55.0×0.0%
Sanil Electric24.9×6.8×7.6×—0.9%
Taihan Cable & Solution—2.1×0.9×—0.0%
Similar companies (median)28.8×6.8×3.1×45.4×0.0%

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

Also known as: Han Jung NCS / 한중엔시에스 / 107640 / KRX:107640

Source: KRX statistical information