PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩300 per share · Prices as of the 2026-10-02 close
Cheryong Industrial has shown parallel improvement in revenue and operating margin since 2025 on the back of new HVDC insulator and fitting products, with quarterly results continuing to build through 2026.
2025 consolidated revenue reached KRW 37.9bn (+29.3% YoY) with operating profit of KRW 10.6bn (+158.6%), lifting the operating margin to 27.9%
Q2 2026 revenue of KRW 16.3bn and operating profit of KRW 5.8bn mark one of the strongest quarterly readings on record
HVDC insulator and fitting supply contracts via the Korea Electric Industry Cooperative were signed twice in 2025 (KRW 22.2bn in January, KRW 9.0bn in August)
New 500kV HVDC insulator sets, spacer dampers and assembled jumper devices have completed development and are moving toward mass production
Revenue remains heavily reliant on domestic public-sector orders centered on KEPCO, leaving results sensitive to the timing and size of individual contracts
Cheryong Industrial was established in 2011 through a spin-off from Cheryong Electric, with the heavy electrical equipment business (transformers, etc.) retained by Cheryong Electric while the metal and synthetic resin products business became Cheryong Industrial.
Its core products include suspension insulators that support power lines, tension clamps for fixing, and cut-out switches for circuit protection—essential components for building and maintaining transmission and distribution lines—alongside telecom line fittings and synthetic resin products such as underground cable protection plates.
More recently the company has expanded its lineup with HVDC (high-voltage direct current) products including insulator sets, spacer dampers, and assembled jumper devices.
It also holds related patents in fall-prevention safety systems used by workers at height on transmission towers and transformers, claiming a technological edge in that niche.
Headquartered in Gwangjin-gu, Seoul, the company operates a plant in Okcheon, North Chungcheong Province and an R&D center in Yuseong-gu, Daejeon, supplying a wide variety of low-volume products to KEPCO and other public and private customers.
Because its customer base is concentrated around KEPCO, results are heavily influenced by the state utility's grid investment plans and procurement schedules.
Contracts are frequently arranged through joint bidding and purchasing via the Korea Electric Industry Cooperative, with fittings makers such as Semyung Electric among the competitors.
Cheryong Electric, which shares a similar name and focuses on transformers, is a separately listed company that shares common roots with Cheryong Industrial from before the 2011 split but now operates as an independent business with a distinct governance structure.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩9.8B | ₩3.2B | 32.5% |
| 2025Q3 | ₩8.4B | ₩1.5B | 17.6% |
| 2025Q4 | ₩12.1B | ₩3.4B | 28.0% |
| 2026Q1 | ₩13.9B | ₩4.8B | 34.8% |
| 2026Q2 | ₩16.3B | ₩5.8B | 35.8% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩59.3B | ₩9.6B | ₩9.1B | 16.2% | 12.4% | 12.4% |
| 2023 | ₩40.9B | ₩5.6B | ₩7.3B | 13.6% | 9.6% | 7.0% |
| 2024 | ₩29.3B | ₩4.1B | ₩6.2B | 13.9% | 7.9% | 7.4% |
| 2025 | ₩37.9B | ₩10.6B | ₩11.5B | 27.9% | 13.3% | 11.4% |
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
2025 consolidated revenue came to KRW 37.9bn, up 29.3% from KRW 29.3bn a year earlier, while operating profit surged 158.6% to KRW 10.6bn, lifting the operating margin from 13.9% to 27.9%.
This broke a three-year decline in revenue from KRW 59.3bn in 2022 to KRW 40.9bn in 2023 and KRW 29.3bn in 2024, with growth in HVDC insulator and wire fitting sales driving the turnaround. Net profit attributable to owners also jumped 84% to KRW 11.5bn from KRW 6.2bn in 2024, marking a clear recovery in profitability.
On a quarterly basis, Q2 2025 revenue was KRW 9.8bn with operating profit of KRW 3.2bn (a 32.5% margin), already a high level, before Q3 revenue slipped to KRW 8.4bn and the operating margin eased to 17.6%; net profit nonetheless rose to KRW 2.0bn, suggesting non-operating items played a role.
Q4 revenue rebounded to KRW 12.1bn with operating profit of KRW 3.4bn and net profit of KRW 3.7bn, approaching a quarterly record.
In Q1 2026, revenue reached KRW 13.9bn, operating profit KRW 4.8bn and net profit KRW 5.3bn, extending the sharp year-on-year growth, and Q2 2026 revenue climbed further to KRW 16.3bn with operating profit of KRW 5.8bn, again a record level.
However, Q2 net profit of KRW 9.4bn rose far faster than operating profit, hinting at non-operating gains or one-off items whose specific details are not confirmed in the materials reviewed here.
Over the trailing four quarters (Q3 2025 through Q2 2026), combined revenue reached KRW 50.7bn and net profit KRW 20.4bn, a scale that already exceeds full-year 2025 results.
Korea's power equipment sector is generally viewed as being in a structural growth phase, driven simultaneously by aging grid replacement needs, renewable energy expansion, and rising power demand tied to data center growth.
KEPCO has finalized its 10th long-term transmission and substation facilities plan, committing KRW 56.5tn over 15 years through 2036, with construction of a high-voltage direct current (HVDC) backbone linking the West Sea/Honam region to the greater Seoul area identified as a key task.
Within this backdrop, Cheryong Industrial has said it completed development of 500kV HVDC insulator sets, spacer dampers, and assembled jumper devices, positioning itself for national grid backbone projects such as the East Coast-to-Seoul transmission line.
Competitor Semyung Electric has also signed similar HVDC fitting supply contracts through the Korea Electric Industry Cooperative, indicating that multiple players are competing for a share of this market.
Unlike large heavy-equipment makers such as HD Hyundai Electric and Hyosung Heavy Industries, which have posted earnings surprises on strong transformer and circuit-breaker demand, Cheryong Industrial operates in the comparatively smaller fittings and insulator segment using a low-volume, high-variety production model.
Because the domestic market depends heavily on public-sector orders, government policy on opening the grid business to private participation and procurement scheduling directly affect industry conditions.
Raw material price volatility is another variable, with recent Middle East tensions cited as a factor behind higher input costs.
The company has stated that it completed development of new 500kV HVDC insulator sets, spacer dampers, and assembled jumper devices and is preparing for mass production, describing these as materials destined for national grid backbone projects such as the East Coast-to-Seoul transmission line.
It has also cooperated with KEPCO subsidiary KEPCO KDN on developing new fittings and exchanging technology related to OPGW (optical fiber composite overhead ground wire) construction.
The HVDC insulator and fitting supply contracts underpinning revenue with the Korea Electric Industry Cooperative were signed twice in 2025—in January (KRW 22.2bn) and August (KRW 9.0bn)—and the company has noted that contract terms and amounts can change, leaving future contract renewals as a key variable for results.
There has also been mention that overseas projects pursued by KEPCO, such as HVDC installation cooperation with Indonesia's PLN and Siemens Energy, could open participation opportunities for domestic suppliers.
However, these overseas initiatives remain at an early MOU stage, and it is unconfirmed whether they will translate into actual orders for Cheryong Industrial.
The timing of mass production launch for the new HVDC products and the pace of initial volume ramp-up will likely be key points to watch for the sustainability of future revenue growth.
As results have clearly recovered from the 2024 trough through 2025 and into the first half of 2026, the market's valuation assessment sits in a different phase than in prior years.
The share price relative to net assets has moved toward the upper end of its historical trading band, reflecting the recent pace of profit recovery, suggesting that much of the earnings improvement may already be reflected in the price.
The company maintains a policy of paying a per-share cash dividend, though the dividend yield itself tends to run below the sector average, consistent with a growth-oriented profile.
With profits having moved from losses to profitability and then to further expansion, market attention is focused on how long this trajectory can be sustained.
However, because results depend on a small number of large contracts, valuation metrics could also swing back down quickly during any gap between contract awards, a volatility factor worth weighing alongside the recovery.
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 company has completed development of 500kV HVDC insulator sets, spacer dampers, and assembled jumper devices, equipping it to serve national grid backbone projects. These are higher-value products than conventional fittings and are cited as a factor behind the operating margin rising to 27.9% in 2025. Full-scale mass production of these new products could further improve the revenue mix.
After bottoming out in 2024, revenue and profit have expanded sequentially on a quarterly basis through 2025 and into the first half of 2026. Q2 2026 revenue and operating profit were among the highest on record for the company. The speed of this earnings turnaround can be read as a signal of business momentum.
KEPCO's 15-year, KRW 56.5tn transmission and substation investment plan and its HVDC backbone construction policy form a long-term demand base for related materials. Cheryong Industrial, having maintained a long-standing relationship with KEPCO as a core customer, is positioned to participate in related orders.
Because this is policy-backed infrastructure investment, it provides a basis for the durability of the business.
The HVDC contracts that drove 2025 results take the form of individual supply agreements via the Korea Electric Industry Cooperative, and the company itself has noted that size and timing can vary each time. This structure means quarterly results can swing significantly during any gap between contracts. A case in point is Q3 2025, when both revenue and operating margin declined simultaneously.
With revenue concentrated on public-sector orders centered on KEPCO, results are directly exposed to changes in the pace of government grid investment or procurement policy. Institutional changes, such as discussions on opening grid business to private participation, could affect the competitive landscape.
A structure heavily dependent on specific customers or agencies can also be a constraint in terms of bargaining power.
In both Q3 2025 and Q2 2026, net profit grew far faster than operating profit, yet the specific non-operating items behind this have not been confirmed. Net profit growth that relies on non-operating factors makes it harder to assess sustainability. Details will need to be confirmed through future quarterly and annual reports.
A significant portion of revenue comes from individual supply contracts via the Korea Electric Industry Cooperative, and the company has disclosed that contract amounts and periods can be renegotiated each time.
When large contracts concentrate in a particular quarter, the higher comparison base raises the risk of slower growth in subsequent quarters. Delays in signing new contracts could create a revenue gap.
Recent Middle East tensions have been cited as a factor behind a surge in raw material prices, adding to cost pressure. Given that fittings products rely heavily on metal raw materials, cost fluctuations can directly affect margins. If cost increases cannot be fully passed through to selling prices, the operating margin could decline again.
If the government's policy of opening grid business to private participation is applied to the KEPCO-centered grid business structure, procurement methods and the competitive landscape could change.
The pace of execution of national transmission and substation investment plans could also be delayed depending on budget or policy priorities. Opportunities to participate in overseas projects remain at the MOU stage, carrying the risk that they may not translate into actual orders.
Check the Q3 2026 (Jul-Sep) quarterly report filing to see whether Q2's outsized net profit reflected non-operating items and whether revenue growth is continuing.
Watch for disclosure of any new HVDC insulator/fitting supply contract with the Korea Electric Industry Cooperative, as repetition of the January and August 2025 contract pattern is a key variable for earnings continuity.
Confirm whether new products such as the 500kV HVDC insulator sets have moved from development completion into actual mass production and revenue recognition.
Check the FY2026 audit report and annual earnings disclosure to see the finalized full-year figures combining all four 2026 quarters.
Cheryong Industrial has moved past its 2024 earnings trough, building a trend of simultaneous revenue and operating-margin improvement since 2025 on the back of expanded HVDC insulator and fitting sales, and that trend continued through sequential quarterly gains in the first half of 2026.
However, this growth depends substantially on individual large contracts via the Korea Electric Industry Cooperative, meaning quarterly results can swing depending on contract timing and size.
The outsized net profit growth relative to operating profit seen in Q3 2025 and Q2 2026 points to non-operating factors, but without confirmed details it is premature to judge their sustainability.
The business remains concentrated on public-sector orders centered on KEPCO, making it sensitive to policy and procurement changes, and the timing of actual mass production and revenue recognition for the new 500kV HVDC products will be a key variable for future growth continuity.
On balance, this is a phase where a positive shift in profit structure coexists with volatility stemming from a contract-dependent revenue base, making upcoming quarterly reports and any new contract disclosures important to watch for confirmation of the trend's persistence.
Report written 2026-09-05 · Data as of 2026-09-04
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