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Shin Heung Energy & Electronics

243840 · KOSDAQ · ₩243840 · 신흥에스이씨

₩5,940▼ ₩130 (2.14%)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
₩179B
Equity value
−₩174B
WACC
5.4%

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 ₩5,940, the model needs an operating margin of 9.9% every year (it uses 5.2%).
  • Or revenue growth +30.1 points a year higher than assumed in each of the 5 years.
  • 45% 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 11.8× against a typical 15.0× 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
—
Bull
₩6,004
+1.1%

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 (5.2%).

Revenue growth

  • -5.1%

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

    Default: the last 3 years' revenue growth (-5.1% a year, annual reports), fading to 3% by year 5.

  • -3.1%

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

    Default: the last 3 years' revenue growth (-5.1% a year, annual reports), fading to 3% by year 5.

  • -1.1%

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

    Default: the last 3 years' revenue growth (-5.1% a year, annual reports), fading to 3% by year 5.

  • 1%

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

    Default: the last 3 years' revenue growth (-5.1% 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 (-5.1% a year, annual reports), fading to 3% by year 5.

Business

  • 5.2%

    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.

  • 27.5%

    Share of operating profit paid as corporate tax.

    Default: Korea's top corporate tax rate (25%) plus 10% local income tax.

  • 17%

    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).

  • 21.3%

    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).

  • 10.1%

    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.

  • 0.65

    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 0.48, 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)
₩457B
Net debt (borrowings and leases − cash and deposits)
₩353B
Shares
38,558,235
Share price
₩5,940
Market cap
₩229B

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₩540B₩433B₩408B₩434B₩421B₩416B₩420B₩433B
Growth13.0%−19.8%−5.7%−5.1%−3.1%−1.1%1.0%3.0%
EBIT₩44B₩13B₩5.9B₩23B₩22B₩22B₩22B₩22B
EBIT margin8.1%3.0%1.5%5.2%5.2%5.2%5.2%5.2%
After-tax EBIT₩32B₩9.6B₩4.3B₩16B₩16B₩16B₩16B₩16B
+ Depreciation———₩74B₩71B₩71B₩71B₩74B
− Capital spending₩168B₩89B₩50B₩92B₩90B₩89B₩89B₩92B
− Working capital−₩19B−₩10B₩17B−₩2.4B−₩1.4B−₩467M₩420M₩1.3B
Free cash flow———₩55M−₩870M−₩1.7B−₩2.6B−₩3.6B
Discount factor———0.9490.9000.8540.8100.769
Present value———₩53M−₩783M−₩1.5B−₩2.1B−₩2.7B

Terminal value ₩242B, worth ₩186B today: 104% 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 ₩9,457 a share)Now 0.63×₩4,8030.51×₩9,4401.00×₩14,9691.58×
Price / earnings (last 12 months: ₩505 a share)Now 11.8×₩5,12810.1×₩7,55915.0×₩10,60321.0×

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%
4.4%————₩2,354
4.9%—————
5.4%—————
5.9%—————
6.4%—————

Now (TTM)

Market cap
₩229B
Enterprise value
₩580B
P/E
11.8×
P/B
0.6×
P/S
0.5×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩4,840₩5,120₩9,340₩8,260₩12,600
Market cap₩187B₩197B₩360B₩318B₩486B
P/E—9.0×11.6×16.2×18.2×
P/B0.5×0.6×1.1×1.0×1.7×
P/S0.5×0.5×0.7×0.7×1.3×
EV/EBITDA—————
Dividend yield0.0%1.3%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Shin Heung Energy & Electronics11.8×0.6×0.5×—0.0%
LG Energy Solution—3.8×3.2×—0.0%
Samsung SDI1,162.4×1.8×3.1×—0.0%
POSCO Future M323.6×3.4×5.0×—0.2%
Ecopro BM203.3×5.0×3.9×—0.1%
L&F—4.3×1.2×14.9×0.0%
DN Automotive6.1×1.0×0.6×—2.5%
Similar companies (median)263.5×3.6×3.2×14.9×0.1%

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

Also known as: Shin Heung Energy & Electronics / 신흥에스이씨 / 243840 / KRX:243840

Source: KRX statistical information