Fact Summary
Jeryong Electric is a KOSDAQ-listed power equipment manufacturer that produces distribution transformers, switchgear, and GIS (gas-insulated switchgear), exporting mainly to the United States (founded in 1986; the current corporate entity was established via a spin-off in 2011). Per the FY2025 business report, revenue was KRW 224.017 billion (-14.7% YoY) and operating profit was KRW 67.027 billion (-31.4%), while H1 2026 (cumulative) revenue was KRW 70.323 billion, operating profit KRW 11.123 billion, and net income KRW 26.086 billion (disclosure receipt no. 20260813001320). On 2025-12-22 the company signed a distribution transformer supply contract with PSE&G in the US, and the contract value was increased to KRW 53.1 billion via a correction disclosure on 2026-01-08. The closing price on 2026-08-14 was KRW 48,700, with a market cap of KRW 781.4 billion.
Context Note
After several years of large average annual revenue growth from 2021 to 2024 (+113.7% in 2023, +42.8% in 2024), both revenue and operating profit turned to decline in 2025; the company attributed this to intensifying competition amid supply-chain stabilization in the North American distribution transformer market, US tariffs, and higher fixed costs from preemptive investment (Digital Today, 2026-02-09). Over the same period, the US Trade Act Section 232 tariff rate on large transformers was temporarily reduced from 25% to 15% effective 2026-06-08. Over the most recent month (2026-07-16 to 2026-08-14), supply-demand flows showed net inflows from institutions and foreign investors (+81,917 / +37,187 shares) and a net outflow from retail investors (-121,240 shares), though in the most recent week (2026-08-10 to 08-14) foreign investors switched to a net outflow (-5,861 shares) (alphasquare, as of 2026-08-14).
Business Overview
The company mass-produces distribution-class (small-to-medium) transformers for export to US utilities, and its share of self-manufactured extra-high-voltage (large) transformers is believed to be relatively low (Electric Times, C).
Key Contracts & Disclosures
| Date | Details |
|---|---|
| 2025-12-22 | Signed distribution transformer supply contract with PSE&G (US) (KRW 44.1 billion) |
| 2026-01-08 | Correction disclosure — contract value increased to KRW 53.1 billion, delivery by Dec 2027 |
| 2026-03-17 | Voluntary disclosure of 2026 Corporate Value-Up Plan — resolved cash dividend of KRW 1,100 per common share (payout ratio 30.1%) |
5-Year Financial Trend
Financial Stability & Profitability (Annual, Non-Consolidated)
Peer Comparison
Sangil Electric, a competitor with a high share of extra-high-voltage transformers, saw 2025 revenue and operating profit grow +50.3% and +65.9% YoY respectively, in contrast to Jeryong Electric's -14.7% revenue and -31.4% operating profit over the same period (CBC News, C).
Valuation (Factual Multiples)
As of a 2026-08-11 report, the stock is believed to have traded at a level below the industry average PER of 51.15x (JoongAng Economy News, C). EV/EBITDA and TTM PER are unavailable, as depreciation figures and prior-year-period details are not present in confirmed data.
Supply & Demand Trends
Over the most recent 1-month cumulative period, institutions and foreign investors recorded net inflows while retail investors recorded net outflows; however, narrowing to the most recent week, foreign investors switched to a net outflow, indicating direction has frequently reversed in recent days (alphasquare, C — not cross-checked against official KRX data). 3-month cumulative net flow, margin balance, and foreign ownership limit utilization are not available.
Macro Environment
| Factor | Current Value (as of) | Transmission Channel & Impact |
|---|---|---|
| KRW/USD Exchange Rate | KRW 1,417–1,421 (2026-08-14) | Won weakness tends to boost won-denominated export unit prices and revenue (Investing.com) |
| US Trade Act Section 232 Tariff Rate | Temporarily reduced from 25% to 15% (effective 2026-06-08) | Tends to improve DDP-basis export price competitiveness and margins; as a temporary measure, a re-hike could be a headwind (SKS Research) |
| US Data Center Power Demand | Step-up transformer lead time exceeding 160 weeks (Q1 2026) | Supports both order intake and pricing (via Reuters) |
| US Utility Capex | 2026 aggregate capex projected to rise approx. 30% YoY | Directly translates into expanded orders for transformers and other power equipment (Visible Alpha consensus) |
| Copper Price | approx. $6.55–6.59/lb (2026-08-14, +47.4% YoY) | Upward pressure on transformer winding cost ratio (TradingEconomics) |
| Grain-Oriented Electrical Steel | Exceeded $2,500/ton in 2024 (latest price unavailable) | Constrains core production — acts as both upward cost pressure and a moat defending incumbent suppliers' order backlogs |
Governance & Capital Structure
As of 2026-08-14 · Source: WiseReport (linked to DART, C — not yet cross-checked against original filing)
Affiliate & Sister Company Relationships
| Company | Relationship | Notes |
|---|---|---|
| Jeryong Industrial (147830) | Separately listed sister company under the same controlling shareholder (Park Jong-tae family) | Established via Jeryong Electric's 2011 spin-off; not a subsidiary of Jeryong Electric |
| Woojin Electric (unlisted) | Equity-method minority investment | Held 9.52% by Jeryong Electric, 9.52% by Jeryong Industrial, 30.36% by Park Jong-tae personally |
The number of consolidated subsidiaries is confirmed to be zero (FnGuide, WiseReport, C). Board composition (including whether outside directors are present) is left unavailable due to conflicting descriptions across sources.
Risk Factors
- Customer Concentration As of 2025, the top 3 customers are believed to account for 74.6% of revenue, with the largest single customer at 37.9% (web research, C — needs cross-check against the original business report).
- Trade & Tariffs The US Trade Act Section 232 tariff rate was temporarily reduced from 25% to 15% (effective 2026-06-08), but the expiration date is unavailable, and a re-hike could negatively affect margins.
- Intensifying Competition Competitor HD Hyundai Electric surpassed cumulative production of 1,000 transformers at its Alabama, US plant and began a $200 million expansion (2026-08-07, Global Economic).
- Raw Materials Copper prices rose 47.4% YoY as of 2026-08-14, exerting upward pressure on the cost ratio (TradingEconomics).
- Fair Trade / Antitrust Following the detection of bid-rigging in a KEPCO GIS procurement tender, the company received a 6-month bidding eligibility restriction and was designated as an ineligible bidder (exact effective date unavailable, thebell, 2026-03-12).
- Exchange Rate A shift to won strength could pressure export profitability; as of 2026-08-14, the KRW/USD rate was around 1,417–1,421.
- Data Consistency Some web sources' figures for Q2 and H1 2026 results were inconsistent with confirmed financial data (H1 cumulative revenue of KRW 70.323 billion) and were discarded in this report.
News & Disclosure Timeline
| Date | Event |
|---|---|
| 2025-12-22 | Signed distribution transformer supply contract with PSE&G, US (KRW 44.1 billion) |
| 2026-01-08 | Correction disclosure for above contract — increased to KRW 53.1 billion |
| 2026-02-09 | Disclosed preliminary FY2025 annual results (revenue -14.7%, operating profit -31.4%) |
| 2026-03-12 | Report of bidding eligibility restriction related to KEPCO GIS bid-rigging (thebell) |
| 2026-03-17 | Voluntary disclosure of 2026 Corporate Value-Up Plan |
| 2026-04-27 | Reported closing at KRW 58,800 (+6.14%) on North American power equipment demand expectations |
| 2026-05-04 | Static VI triggered twice, intraday high of KRW 88,700 (+23.43% vs. previous close) |
| 2026-05-13 | Filed Q1 2026 quarterly report; contract to acquire Daejeon Plant 2 |
| 2026-06-08 | US Trade Act Section 232 large transformer tariff temporarily reduced from 25% to 15%, effective |
| 2026-08-07 | Report of competitor HD Hyundai Electric beginning expansion of its Alabama, US plant |
| 2026-08-11 | Reported closing at KRW 48,450 (+0.62%), PER of 14.95x (JoongAng Economy News) |
| 2026-08-13 | Filed H1 2026 semiannual report (estimated, receipt no. 20260813001320) |
Theme Relevance
Fact Highlights
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