Daeyang Electric대양전기공업

Daeyang Electric's trailing profits look solid on paper, but the share price has fallen about 47% over the past year.

Daeyang Electric makes marine lighting, electrical systems, defense equipment and submarine batteries, with a smaller automotive pressure sensor business. For the twelve months to H1 2026 it reported revenue of ₩240B and operating income of ₩29B, with cash of ₩44B and borrowings of only ₩0.4B. The share price sits near its 52-week low, at ₩15,320 against a high of ₩36,650.

What stands out

• Revenue rose 17.2% in 2025 to ₩230B, and operating margin improved from 2.4% in 2023 to 11.8% in 2025.
• Trailing operating margin is 12.3% and net income is ₩29.5B, which is higher than operating income, though the data does not explain the gap.
• The company's DCF-based fair value model gives a base of ₩32,349, a bear case of ₩18,438 and a bull case of ₩57,029; these are model outputs, not forecasts.
• Valuation multiples are low: P/E about 5, P/B 0.5, and a dividend yield of 1.3%, compared with a peer range of roughly 4.7 to 26.2 on P/E.
• Foreign ownership rose from 6.0% to 8.1% over the past 60 days, while institutions were net sellers over the last 20 days.
• A July 2026 filing on a treasury share sale and a news report from 20 October on a shareholder's demand for a ₩30B treasury share cancellation suggest capital allocation is under debate.

What to watch

• The full-year 2026 results and any change to the dividend, which the October news report says the company is considering raising.
• The outcome of the ₩30B treasury share cancellation demand, and whether the company proceeds with it.
• Whether the margin improvement holds, since the data shows a sharp swing from losses in 2022 and a 16.5% share price fall over the past month.