PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩230 per share · Prices as of the 2026-10-02 close
YW is steadily lifting its operating margin across two business pillars—rental wholesale and corporate finance—even as revenue mix varies by segment and quarter.
2025 revenue stayed roughly flat versus 2024 at around KRW 16.5 billion, but operating profit rose to KRW 5.78 billion, lifting the operating margin to 34.9%.
Quarterly revenue swings widely between roughly KRW 2.7 billion and KRW 4.8 billion, while the operating margin fluctuates from the mid-30% range to over 50%, showing high volatility.
The debt ratio fell from 27.7% in 2022 to 15.8% in 2025, and operating cash flow turned from negative in 2022–2023 to sharply positive in 2024–2025.
The rental business is expanding into advanced equipment such as semiconductor, AI server, and aerospace assets, while the corporate finance business runs parallel fund management through purchasing and lending investment-grade bonds.
The current total share count (about 11.36 million) exceeds the weighted-average share count (about 8.03 million), indicating the share base has expanded over the past year.
YW was founded in 1995 as YoungWoo Telecom, initially operating wireless communication relay equipment business, before renaming itself YW and restructuring its operations in March 2015. Today the company's revenue is built on two pillars: a wholesale rental business and a corporate finance business.
The wholesale business supplies rental products that let customers access expensive durable goods and industrial machinery while paying rental fees in installments over the rental period. The corporate finance business focuses on efficient use of funds through purchasing and lending investment-grade corporate bonds.
More recently, the rental lineup has expanded into advanced equipment such as high-performance servers and GPUs for AI data centers, high-bandwidth memory manufacturing equipment, and facilities for the aerospace, defense, and shipbuilding sectors.
In May 2026, the company launched a dedicated rental brand website to strengthen its B2B rental service touchpoints. Headquartered in Seongnam-si (Pangyo), Gyeonggi Province, the company leverages its legacy communication equipment expertise to operate a hybrid rental-and-finance business model.
The broader domestic rental market is understood to be growing on the back of a consumption trend favoring usage value over ownership, and the company is pursuing further diversification in line with this shift.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩4.8B | ₩1.4B | 29.2% |
| 2025Q3 | ₩2.7B | ₩1.6B | 58.6% |
| 2025Q4 | ₩3.3B | ₩1.5B | 44.1% |
| 2026Q1 | ₩3.5B | ₩1B | 27.9% |
| 2026Q2 | ₩3B | ₩1.2B | 40.1% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩20.3B | ₩3.1B | ₩3B | 15.1% | 4.0% | 27.7% |
| 2023 | ₩37B | ₩6.5B | ₩5.3B | 17.5% | 6.7% | 22.2% |
| 2024 | ₩16.5B | ₩5.4B | ₩4.3B | 32.9% | 5.3% | 19.4% |
| 2025 | ₩16.5B | ₩5.8B | ₩5.1B | 34.9% | 6.0% | 15.8% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
Full-year 2025 revenue was KRW 16.54 billion, almost identical to 2024's KRW 16.54 billion, but operating profit rose to KRW 5.78 billion from KRW 5.44 billion, lifting the operating margin from 32.9% to 34.9%.
Net income attributable to owners also grew from KRW 4.27 billion to KRW 5.08 billion, continuing an earnings recovery trend.
Notably, revenue had surged to KRW 36.99 billion in 2023 before falling to less than half, KRW 16.54 billion, in 2024, yet the operating margin actually improved sharply from 17.5% to 32.9% over that period, illustrating that revenue scale and profitability are not tightly linked in this business.
On a quarterly basis, revenue of KRW 4.76 billion and operating profit of KRW 1.39 billion in Q2 2025 gave way to Q3 2025 revenue of KRW 2.71 billion—yet operating profit rose to KRW 1.59 billion, pushing the operating margin above 58%.
This was followed by Q4 2025 (revenue KRW 3.29 billion, operating profit KRW 1.45 billion), Q1 2026 (revenue KRW 3.55 billion, operating profit KRW 0.99 billion), and Q2 2026 (revenue KRW 3.01 billion, operating profit KRW 1.20 billion), with revenue and margins both showing considerable quarter-to-quarter variation.
Net income attributable to owners over the trailing four quarters (Q3 2025 through Q2 2026) totaled roughly KRW 4.86 billion, forming the base for annual results.
On the balance sheet, the debt ratio declined from 27.7% in 2022 to 15.8% in 2025, and operating cash flow improved markedly from negative KRW 7.65 billion in 2022 and negative KRW 4.01 billion in 2023 to positive KRW 6.44 billion in 2024 and KRW 17.30 billion in 2025, indicating that actual cash generation strengthened alongside the earnings recovery.
The domestic rental market appears to be sustaining growth near double digits annually, driven by a consumer shift favoring usage value over ownership.
However, much of this growth accrues to large-scale rental and leasing operators, meaning smaller players like YW must build competitiveness in specialized niches such as industrial and corporate equipment.
The company has been strengthening this niche strategy by expanding into rental supply for semiconductor and AI data-center servers and GPUs, as well as aerospace, defense, and shipbuilding equipment.
Regulatory changes to leasing-industry supervision rules that now permit asset securitization of rental assets also point to a broader diversification of funding channels across the sector.
The corporate finance (bond investment) segment's results are tied to domestic and global policy rate trends; recent repeated rate holds by the U.S. Federal Reserve and the Bank of Korea, cited to geopolitical risk and inflation uncertainty, could act as a source of volatility for this segment's earnings.
Across both the rental and leasing-finance industries, delinquency management and asset quality have become key monitoring metrics, with a broader industry trend toward expanding non-auto financial assets.
Overall, YW occupies a position seeking both the stable cash flow of traditional rental operations and earnings diversification through its corporate finance business.
Since launching a dedicated rental brand website in May 2026, the company has continued extending its rental supply chain—originally centered on telecom and measurement equipment—into semiconductor, AI, aerospace, defense, and shipbuilding sectors.
The corporate finance segment appears to maintain its fund management approach of purchasing and lending investment-grade bonds, which introduces earnings volatility distinct from the core rental revenue stream.
No specific disclosed revenue or profit guidance, nor confirmed large new contracts, have been identified, meaning future quarterly filings will need to be checked for updates.
Whether the recent trend of balance-sheet improvement (lower debt ratio, stronger cash flow) continues, and whether the expansion into advanced-equipment rental translates into tangible revenue and profit contribution, are key points to watch in coming quarters.
Given the expansion in share count over the past year, any further capital raising or conversion-right exercises also warrant monitoring. Tracking the timing and detail of segment-level disclosures for the rental and corporate finance businesses through company filings and its website will be important.
Because the company's earnings mix blends rental revenue with corporate finance gains and losses that vary considerably by quarter, interpreting valuation multiples requires looking at trends across several quarters and years rather than a single period's earnings level.
The share price relative to net asset value has at times traded at a discount to book value, which may reflect a degree of market caution toward this combined rental-and-finance business model.
The earnings multiple has narrowed during past periods of profit recovery, but the large year-to-year swings in revenue itself (a sharp jump in 2023 followed by a sharp drop in 2024) make it difficult to judge the stability of earnings on its own.
Dividend policy should be checked via each year's filings, with more attention to the continuity and direction of the payout ratio than to the absolute yield level.
Ultimately, it is reasonable to view this stock's valuation as shaped jointly by the growth potential of the rental business and the earnings stability of the corporate finance segment.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-23
The operating margin rose steadily to 34.9% in 2025 from 15.1% in 2022, while operating cash flow flipped from negative in 2022–2023 to sharply positive in 2024–2025. The debt ratio also fell from 27.7% to 15.8%, reflecting an improved balance sheet.
There have been years where revenue declined yet margins improved, indicating a structure that can defend profitability independent of top-line size.
The company is expanding from traditional telecom and measurement equipment rental into semiconductor, AI server, and GPU rental, as well as aerospace, defense, and shipbuilding equipment. It also launched a dedicated rental brand website in May 2026 to strengthen its B2B service touchpoints.
This can be seen as an attempt to broaden its business base in line with structural growth in the domestic rental market.
The corporate finance (bond investment) business operates as a profit source distinct from rental revenue, and in a quarter like Q3 2025 it produced higher operating profit even as revenue declined. This structure can provide earnings resilience that the rental business alone might not achieve. Maintaining a strategy focused on investment-grade bonds could offer a relatively stable earnings base.
Revenue surged to KRW 36.99 billion in 2023 before falling to less than half, KRW 16.54 billion, in 2024, and quarterly revenue swings widely between roughly KRW 2.7 billion and KRW 4.8 billion.
Such variability reduces the predictability of results, and it is difficult to judge whether any single quarter's elevated margin is sustainable.
The profit and loss of the corporate finance (bond investment) business can be swayed by domestic and global policy rate conditions and credit market environments. With the U.S.
Federal Reserve and the Bank of Korea repeatedly delaying or holding rate decisions amid ongoing uncertainty, volatility in this segment could affect overall company results. This risk, unrelated to rental revenue, requires separate monitoring.
The current total share count (about 11.36 million) is higher than the weighted-average share count (about 8.03 million), indicating the share base expanded over the past year. The specific cause requires further confirmation through filings, but an increase in share count is a factor that can dilute per-share metrics. As a small-cap stock, limited information access and liquidity constraints are also worth considering.
Running two dissimilar businesses—rental and corporate finance—in parallel increases management complexity because each segment carries a different risk profile. The rental segment faces equipment aging and demand-fluctuation risk, while the corporate finance segment faces credit and interest rate risk. If the two segments move in opposite directions, interpreting overall results can become more difficult.
The corporate finance segment generates income by purchasing and lending bonds, so a deterioration in counterparty credit quality or a rise in market rates could weaken asset quality.
It is also worth noting that delinquency management has become a key focus across the domestic leasing and specialty finance industry broadly. The detailed asset composition and quality metrics of this segment need to be continuously verified through disclosures.
The increase in total shares outstanding relative to the weighted-average share count over the past year suggests possible additional capital raising or conversion-right exercises, and the specific background should be confirmed through future disclosures.
As a small-cap KOSDAQ stock, trading volume and disclosure levels may be more limited compared to large-cap peers. These structural characteristics are a separate factor to consider in any assessment.
The Q3 2026 report is expected around this time; it will be worth checking the revenue and profit contribution of the rental versus corporate finance segments and the trend in quarterly margin volatility.
Watch for additional disclosures on changes in total shares outstanding (such as convertible bond conversions or capital increases) to assess potential dilution.
Full-year 2026 financial results and cash dividend disclosures are expected during this period, providing a chance to check the continuity of dividends and any change in payout ratio.
Any disclosed new contracts or partnerships related to semiconductor, AI, or aerospace equipment rental would provide grounds to judge whether business diversification is translating into actual revenue contribution.
YW runs two parallel businesses—rental wholesale and corporate finance (bond investment)—and has shown an earnings-strength recovery, with the operating margin steadily improving from 15.1% in 2022 to 34.9% in 2025 and operating cash flow flipping from negative to sharply positive over that period.
However, the pattern of a 2023 revenue surge followed by a more-than-halving in 2024, along with large quarter-to-quarter swings in revenue and margin, remains a factor that reduces the predictability of results.
While the balance sheet has improved through a lower debt ratio and expanded equity, the increase in share count over the past year is a variable that needs further confirmation.
The company is broadening its business into advanced-industry equipment rental such as semiconductor, AI, and aerospace assets, offering a growth narrative, though specific guidance or large confirmed contracts have not yet been identified.
The corporate finance segment provides a profit source independent of rental revenue that can add earnings resilience, but it also carries volatility tied to interest rate and credit conditions.
Before forming any investment view, it is important to continuously check the latest information through the upcoming Q3 earnings disclosure and any filings related to share count and dividends.
Report written 2026-09-05 · Data as of 2026-09-04
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