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Hyosung Heavy Industries Corp (298040) Fair Value & Analysis

Industrials · KR · Market cap 26.0T KRW (≈ $18.2B) · ISIN KR7298040007

What is Hyosung Heavy Industries Corp really worth?

HH Hyosung Heavy Industries Corp 298040 · KO
Price2,732,000 KRW
Fair Value1,013,099 KRW
Upside−62.9%
Quality58/100

A solid business, but trading 170% above our fair value of 1,013,099 KRW.

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Strengths

Healthy Growth (revenue 5y +14.9 %/yr)
Low debt · generates free cash flow
Ranks above peers (7/10)

Risks

!Thin margins · 8.1% net margin
!Moderate moat 56/100
!Evidence only medium, so the estimate is less certain
!Weak on dividend: 5 out of 100

For context

·0.27% dividend yield
Evidence: Medium Range 513,464 KRW – 1,347,446 KRW

Fair value as of: Aug 21, 2026

From 26 valuation models · updated 15 days ago

Share price +9.5% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (1,347,446 KRW). The favourable scenario is already priced in.
  • The model range is unusually wide (513,464 KRW to 1,347,446 KRW). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (58/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

4,601,000 KRW 43,845 KRW Fair Value 1,013,099 KRW Apr 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 21, 2026.

How to read this chart

60‑month range 43,845 KRW – 4,601,000 KRW · fair‑value band 513,464 KRW – 1,347,446 KRW · the 2,732,000 KRW price screens above the 1,013,099 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 21, 2026.

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Analysis

Hyosung Heavy Industries Corp (298040) currently trades at 2,732,000 KRW, while our model-based Fair Value estimate is 1,013,099 KRW, implying the stock looks roughly 169.7% overvalued today. The Quality Score stands at 58/100 (solid quality), in the Industrials sector. Bull case: the DCF Models group reads highest at a median of 1,250,775 KRW per share, and 0 of the 26 models we run sit above the 2,732,000 KRW price. Bear case: the Asset-Based group reads lowest at 169,212 KRW, and 26 of the 26 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Hyosung Heavy Industries Corp generated revenue of 6.3T KRW at a net margin of 8.1%. Revenue grew 26.2% year over year. It earns a return on equity of 21.1%. Net debt stands at 586B KRW. Fundamentals as of Aug 21, 2026

Our scenario range runs from 513,464 KRW (bear case) to 1,347,446 KRW (bull case); at 2,732,000 KRW, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Industrials peers we cover trades at −44% fair-value upside, at −63%, 298040 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF 468,437 KRW 945,924 KRW 1,965,880 KRW 75
EPV 671,432 KRW 794,614 KRW 904,108 KRW 74
Growth DCF 459,293 KRW 910,262 KRW 1,766,869 KRW 74
All 26 models by family
DCF Models
FCF DCF 468,437 KRW 945,924 KRW 1,965,880 KRW 75
Owner Earnings 646,059 KRW 1,335,115 KRW 2,680,793 KRW 72
5Y Revenue Exit 624,413 KRW 1,250,775 KRW 2,145,025 KRW 70
5Y EBITDA Exit 684,642 KRW 1,381,636 KRW 2,300,358 KRW 72
5Y P/E Exit 706,824 KRW 1,429,833 KRW 2,301,814 KRW 68
10Y Revenue Exit 547,414 KRW 1,147,663 KRW 2,159,346 KRW 63
10Y EBITDA Exit 616,150 KRW 1,248,797 KRW 2,299,443 KRW 65
10Y P/E Exit 631,527 KRW 1,286,045 KRW 2,300,756 KRW 61
Earnings-Based
Graham-Dodd 379,658 KRW 2,085,390 KRW 2,893,273 KRW 63
Lynch FV 580,374 KRW 829,106 KRW 1,077,838 KRW 61
PEG = 1.0 580,374 KRW 829,106 KRW 1,077,838 KRW 57
EPV 671,432 KRW 794,614 KRW 904,108 KRW 74
Dividend Discount
Gordon GGM 48,095 KRW 105,000 KRW 176,667 KRW 65
DDM Multi-Stage 48,095 KRW 86,012 KRW 109,427 KRW 66
Multiples
P/E Multiple 879,355 KRW 1,172,473 KRW 1,465,592 KRW 63
P/S Multiple 711,859 KRW 949,145 KRW 1,186,431 KRW 58
P/B Multiple 711,859 KRW 949,145 KRW 1,186,431 KRW 55
EV/EBIT 962,278 KRW 1,291,903 KRW 1,621,528 KRW 66
EV/EBITDA 819,607 KRW 1,101,675 KRW 1,383,743 KRW 67
EV/Revenue 679,188 KRW 981,667 KRW 1,284,147 KRW 53
Asset-Based
NCAV (Graham) 126,278 KRW 169,212 KRW 252,555 KRW 54
Growth DCF
Growth DCF 459,293 KRW 910,262 KRW 1,766,869 KRW 74
Rev-Margin DCF 624,413 KRW 1,221,231 KRW 2,037,073 KRW 70
Economic Profit
Residual Income 401,346 KRW 570,415 KRW 3,745,801 KRW 64
ROIC Compounder 795,812 KRW 1,117,992 KRW 1,549,011 KRW 71
Growth Earnings
Growth-Adj P/E 843,665 KRW 1,205,236 KRW 1,566,806 KRW 67

Widest divergence: DCF Models (1,250,775 KRW) versus Dividend Discount (86,012 KRW). Highest evidence: FCF DCF (75).

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Key figures & financial health

P/S ratio 5.04 TTM
Dividend yield 0.3%
Net margin 8.7% FY2025
Return on equity 21.1% TTM
Return on assets (EBIT) 5.8% avg 5y
Operating margin 9.9% TTM
More key figures
Growth
Revenue (TTM) 6.3T KRW TTM
Revenue growth (YoY) +26.2% 3y avg +19.4%
EPS growth (YoY) −14.6%
Balance sheet & cash flow
Free cash flow 314B KRW FY2025
Net debt 586B KRW FY2025 · ≈ 1.9 yrs of FCF

Figures from reported company fundamentals · as of Aug 21, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 58/100

Of which business quality 56 · Market factors (momentum, volatility) 42

Profitability 53
Margins and returns on capital today
Quality Growth 77
Are margins and returns improving?
Cashflow 38
Earnings quality: real cash, not paper profit
Fin. Strength 58
Balance sheet, leverage, solvency risk
Investment 39
Disciplined investing over empire-building
Low Volatility 0
Calm price path (market factor)
Momentum 52
Price trend over the last 3–12 months (market factor)
52W Momentum 73
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Hyosung Heavy Industries Corporation manufactures and sells heavy electrical equipment in South Korea. The company offers transmission and distribution products, such as power, oil-immersed distribution, cast-resin, and special transformers; shunt reactors, high voltage switchgears, medium/ low voltage switchgears, and high voltage direct current …

Full company description

Hyosung Heavy Industries Corporation manufactures and sells heavy electrical equipment in South Korea. The company offers transmission and distribution products, such as power, oil-immersed distribution, cast-resin, and special transformers; shunt reactors, high voltage switchgears, medium/ low voltage switchgears, and high voltage direct current transmission systems; STATCOM, a power electronic based device to enhance the power system stability and quality; and turnkey solutions. It also provides system and engineering solutions, including condition monitoring systems; asset health management, power system maintenance, power automation, and process automation solutions; and renewable energy products comprising energy storage systems, solar inverters, and wind turbines, as well as engineering, procurement, and construction services for solar energy projects. In addition, the company offers high and low voltage motors, DC motors, general industrial and special-purpose motors, commercial generators, and emergency power generators; chemical equipment, filling stations, and industrial gas supplying systems; gear boxes, motors, and special gear units; and ARC, resistance, and special spot welding machines. Further, it undertakes various construction projects, including housing, redevelopment and reconstruction, business and commercial facilities, civil engineering and environment, and SOC. Additionally, the company provides power conditioning systems and power management systems. It also exports its products to North and Central America, Europe, Asia, and internationally. Hyosung Heavy Industries Corporation was founded in 1962 and is headquartered in Seoul, South Korea.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hyosung Heavy Industries Corp reported revenue of 6.0T KRW in FY2025 versus 3.1T KRW in FY2021, a compound +17.8%/yr. Reported net income was 520B KRW in FY2025, compounding +73.3%/yr from FY2021.

Growth Quality 90/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
6.0T KRW
Latest YoY
+21.9%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+19.4%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+14.9%
Avg. revenue growth/yr (7Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+15.5%
Value creation/yr (5Y, in KRW) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in KRW: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+71.5% (71.2 + 0.3)
Revenue +17.8%/yr
FY21 3.1T KRW
FY22 3.5T KRW
FY23 4.3T KRW
FY24 4.9T KRW
FY25 6.0T KRW
Net income +73.3%/yr
FY21 57.6B KRW
FY22 10.2B KRW
FY23 116B KRW
FY24 223B KRW
FY25 520B KRW

298040 screens 170% overvalued. Compare with Contemporary Amperex Technology Co →

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Cite: Fair Value Calculator (2026). "Hyosung Heavy Industries Corp Fair Value". https://www.fairvalue-calculator.com/stock/298040

Peer Group

Electrical Equipment & Parts · 542 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 58 · Above median
Fair Value upside −63% · Below median
Return on equity (TTM) 21% · Top 25%
Return on assets 6% · Top 25%
Net margin (TTM) 8% · Above median
Operating margin (TTM) 10% · Above median
Revenue growth 26% · Above median
Dividend yield (TTM) 0.3% · Bottom 25%
Debt / equity 0.20× · Higher than median

Valuation Multiples vs Electrical Equipment & Parts median · lower = cheaper

P/FCF 0.1× · Cheaper than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE100 · sector 56
PAST84 · sector 26
HEALTH90 · sector 97
DIVIDEND5 · sector 23

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Electrical Equipment & Parts stocks, each showing price versus our Fair Value estimate (as of Aug 21, 2026).

Stock Price Fair Value vs Fair Value
Contemporary Amperex Technology Co 3750 HK$652.50 HK$394.19 −40%
ABB Ltd ABBN CHF 80.10 CHF 28.70 −64%
Delta Electronics (Thailand) Public Company TDED 10.40 SGD 1.47 SGD −86%
Vertiv Holdings VRT $257.08 $63.13 −75%
LG Energy Solution, Ltd 373220 365,500 KRW 201,455 KRW −45%
Prysmian S.p.A PRY €117.10 €84.15 −28%
Legrand SA LR €139.65 €78.82 −44%
Sungrow Power Supply Co 300274 ¥86.40 ¥123.83 +43%
Hubbell Incorporated HUBB $443.31 $285.77 −36%
Shenzhen Inovance Technology Co 300124 ¥61.07 ¥33.04 −46%

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Frequently asked questions

Is Hyosung Heavy Industries Corp (298040) overvalued or undervalued?
As of Aug 21, 2026, our model estimates a fair value of 1,013,099 KRW versus a price of 2,732,000 KRW, about −63% upside (overvalued).
What is the fair value of 298040?
Our model-based fair value for Hyosung Heavy Industries Corp is 1,013,099 KRW (as of Aug 21, 2026), built from audited fundamentals. The current price: 2,732,000 KRW.
What is the quality score of 298040?
Hyosung Heavy Industries Corp has a Quality Score of 58/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Hyosung Heavy Industries Corp (298040)?
Hyosung Heavy Industries Corp reported trailing-twelve-month revenue of about 6.3T KRW (latest available figure, as of Aug 21, 2026).
What is the net profit margin of 298040?
The net profit margin of Hyosung Heavy Industries Corp is about 8.1%, meaning it keeps roughly 8.1% of revenue as net income. Based on the latest reported figures.
Does Hyosung Heavy Industries Corp pay a dividend?
Hyosung Heavy Industries Corp currently shows a dividend yield of about 0.27% relative to its recent price (as of Aug 21, 2026).
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