Cheryong Industrial제룡산업

Cheryong Industrial posted strong first-half 2026 profits on a recovering revenue base, though its share price has fallen over the past month.

Cheryong Industrial, a Seoul-based maker of power transmission and distribution materials, reported trailing twelve-month revenue of ₩50.7B and net income of ₩17.8B to the half-year ended June 2026, well above its 2025 full-year figures. The shares closed at ₩6,380 on 22 October 2026, about 10% lower over one month but up 2.6% over one year, with a market value of ₩127.6B. Its base-case fair value model gives ₩5,753, which is below the current price.

What stands out

• Trailing revenue of ₩50.7B is up from ₩37.9B in 2025, and the operating margin is 30.6% against 27.9% for 2025 as a whole.
• Net income of ₩17.8B is higher than operating income of ₩15.6B, which the data does not explain; the reason is not stated in the figures provided.
• The balance sheet is light, with liabilities at 12.2% of equity, no borrowings listed and cash of ₩20.0B.
• Valuation metrics show a P/E of 7.2 and P/B of 1.3, with a dividend yield of 4.7%, but the data gives no analyst views to compare against.
• Filings include a half-year report in August 2026 and several amended major sales or supply contracts in 2026, but the data does not give contract values or customers beyond Korea Electric Power Corporation as a main customer.
• Foreign ownership fell from 4.4% to 3.7% over 60 days, and foreign investors were net sellers over the last 20 days.

What to watch

• Details of the amended major supply contracts, since the filing titles alone do not show their size or terms.
• Whether the half-year profit level holds in the next reporting period, given that the data shows a sharp jump from 2025 results.
• Foreign investor flows and the share price relative to the ₩5,753 base-case fair value model estimate, which is a model output and not a forecast.