KOSDAQ · 127980 · Electronic components · ₩127980

Finecircuit화인써키트

127980 · KOSDAQ · ₩127980 · 화인써키트

₩2,650▼ ₩20 (0.75%)End-of-day · Oct 28, 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

₩1,296

vs the current price (₩2,650)

Enterprise value: ₩26B
Equity value: ₩15B
WACC: 6.5%

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 51% 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 ₩2,650, the model needs an operating margin of 5.0% every year (it uses 3.8%).
Margins ranged from −1.8% to 6.4% over the last 4 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.
75% 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.
Today's P/E is 654.8× against a typical 25.1× 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: —
Base: ₩1,296; −51.1%
Bull: ₩5,487; +107.1%

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 (3.8%).

Revenue growth

Revenue growth, year 18.3%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (8.3% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 27%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (8.3% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 35.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (8.3% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 44.3%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (8.3% 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 (8.3% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin3.8%
Operating profit as a share of revenue.
Default: through-the-cycle average of the last 12 months and the last 4 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 & amortisation2.7%
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).
Capital spending3.3%
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 capital38.7%
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 rate4.08%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-29.
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 0.11, 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)5.58%
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): ₩69B
Net debt (borrowings and leases − cash and deposits): ₩11B
+ Stakes and investments: ₩6.6B; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩6B
Shares: 11,840,684
Share price: ₩2,650
Market cap: ₩31B

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	₩69B	₩86B	₩82B	₩75B	₩80B	₩84B	₩88B	₩91B
Growth	7.5%	24.1%	−4.8%	8.3%	7.0%	5.7%	4.3%	3.0%
EBIT	₩4.3B	₩4.5B	−₩1.5B	₩2.8B	₩3B	₩3.2B	₩3.3B	₩3.4B
EBIT margin	6.2%	5.3%	−1.8%	3.8%	3.8%	3.8%	3.8%	3.8%
After-tax EBIT	₩3.1B	₩3.3B	−₩1.1B	₩2.1B	₩2.2B	₩2.3B	₩2.4B	₩2.5B
+ Depreciation	—	—	—	₩2B	₩2.2B	₩2.3B	₩2.4B	₩2.4B
− Capital spending	₩3.9B	₩2B	₩1.6B	₩2.5B	₩2.6B	₩2.8B	₩2.9B	₩3B
− Working capital	₩32B	−₩10B	−₩18B	₩2.2B	₩2B	₩1.8B	₩1.4B	₩1B
Free cash flow	—	—	—	−₩605M	−₩301M	₩57M	₩493M	₩932M
Discount factor	—	—	—	0.939	0.882	0.828	0.777	0.730
Present value	—	—	—	−₩568M	−₩265M	₩48M	₩383M	₩680M

Terminal value ₩35B, worth ₩26B today: 99% 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 ₩3,318 a share)Now 0.80×	₩3,3391.01×	₩6,4021.93×	₩12,8803.88×
Price / earnings (last 12 months: ₩4 a share)Now 654.8×	₩389.47×	₩10225.1×	₩24159.5×
P/E on run-rate earnings (Q2 2026 × 4: ₩314 a share)Now 8.43×	₩2,9789.47×	₩7,88725.1×	₩18,70159.5×

Low, typical and high are the 10th percentile, middle and 90th percentile of month-end multiples since 2023, 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%
5.5%	₩1,890	₩1,962	₩2,051	₩2,167	₩2,324
6.0%	₩1,555	₩1,588	₩1,626	₩1,672	₩1,729
6.5%	₩1,282	₩1,290	₩1,296	₩1,301	₩1,305
7.0%	₩1,056	₩1,046	₩1,033	₩1,014	₩988
7.5%	₩865	₩845	₩819	₩785	₩742

Now (TTM)

Market cap: ₩31B
Enterprise value: ₩42B
P/E: 654.8×
P/B: 0.8×
P/S: 0.5×
EV/EBITDA: —
Dividend yield: 6.4%

Over time (at each year end)

	2025	2024	2023
Price	₩6,000	₩5,900	₩8,130
Market cap	₩71B	₩70B	₩96B
P/E	—	15.4×	21.3×
P/B	1.9×	1.5×	2.3×
P/S	0.9×	0.8×	1.4×
EV/EBITDA	—	—	—
Dividend yield	2.8%	5.9%	—

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Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Finecircuit	654.8×	0.8×	0.5×	—	6.4%
Samsung Electro-Mechanics	96.8×	9.5×	7.8×	—	0.2%
Doosan	39.2×	5.5×	0.7×	—	0.4%
Hanwha Systems	71.2×	2.8×	3.0×	—	0.8%
LG Innotek	13.1×	1.4×	0.4×	—	0.5%
Isupetasys	35.4×	8.3×	5.4×	—	0.0%
Daeduck Electronics	44.8×	7.0×	5.0×	—	0.4%
Similar companies (median)	42.0×	6.3×	4.0×	—	0.4%

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

Also known as: Finecircuit / 화인써키트 / 127980 / KRX:127980

Source: KRX statistical information