Korea Cast Iron Pipe makes and sells the ductile cast-iron pipe and steel pipe buried for water and sewage systems; because its mainstay is large water-carrying pipe laid underground, revenue hinges heavily on the volume of municipal and public-agency water-and-sewer works and on the flow of aging-pipe replacement and new infrastructure investment. A dividend decision in February 2026 and Q1 revenue of ₩92.1 billion, operating profit of ₩2.5 billion, and net profit of ₩2.8 billion in May were confirmed, and returns with a payout ratio in the 50s% and a yield in the 6s% are backed by a solid balance sheet — a 19.4% debt-to-equity ratio and a 452% current ratio. What stands out lately is that in phases where infrastructure and replacement demand hold up, the discount at a P/E of 8.3x and P/B of 0.39x and the high-dividend value come into focus, and it stays profitable while many peers post losses — yet if public ordering contracts, this is a stability-oriented name whose top line, gently shrinking for three straight years, recovers only slowly.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 3.0% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 0.8% higher than a year earlier.
- ROE is 4.7% (controlling-interest basis). It is above the sector average.
- Operating margin is 3.3%.
- P/B is low versus peers too, so it looks cheap on an asset basis as well.
Ownership & governance As of 2025-12-31
Largest shareholder Machen Cast 15.2% (corporate)
Controlling bloc incl. related parties 50.46%
With the controlling bloc holding 50%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Korea Cast Iron Pipe makes and sells the ductile cast-iron pipe and steel pipe buried for water and sewage systems.
- Because its mainstay product is large water-carrying pipe laid underground, revenue hinges heavily on the volume of water-and-sewer works ordered by local governments and public agencies, and on the flow of government aging-pipe replacement and new infrastructure investment.
- As a small- to mid-cap name with a market cap of ₩140.2 billion, it is worth watching how a single disclosure affects results and share count, rather than large changes in the business itself.
- The latest close is ₩6,420, with a market cap of ₩146.4 billion.
- The price sits below both the 20-day line (₩6,578) and the 60-day line (₩6,837).
- Trading beneath both the short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a gauge comparing upward and downward strength over the last 14 days on a 0–100 scale) is 42.5, a neutral level.
- The one-month change is -3.5%, the three-month change is -4.9%, and the price stands -14.1% from its 52-week high.
- Relative strength versus the KOSPI is 25 (on a 1–99 scale that weights recent returns against the index over the past year more heavily; higher means stronger than the market).
- That places it in roughly the top 76% of all stocks by strength.
- Over the past three months it has lagged the index by 25.2%.
- Chart signals are best read alongside trading volume and the dates of disclosures.
- Recent annual (2025) revenue was ₩406.6 billion, with operating profit of ₩13.3 billion and net profit of ₩17.0 billion.
- The operating margin is 3.3% and ROE (how much a company earns in a year on its own equity) is 4.7% — not dazzling, but above the peer average in the diagnostic.
- The standout strength is balance-sheet stability.
- The debt-to-equity ratio (borrowings relative to equity) is very low at 19.4%, the current ratio is 452%, and interest coverage is 5.87x, so the debt burden is small and short-term liquidity is ample.
- On valuation, the P/E (how many times a year's earnings the price represents) is 8.63x and the P/B (how many times book value the price represents) is 0.40x.
- A P/B of 0.39x means the price is set at about 40% of the company's net assets — clearly cheap on an asset basis too.
- The forward P/E of 11.88x reflecting this year's earnings is simply the result of somewhat conservative profit assumptions versus last year; given that most of the peer set is loss-making and comparison is difficult, it is hard to view this as a burdensome level.
- The payout ratio is 50.3%, returning about half of earnings as dividends, and the key to this stock is that the dividend is backed by low debt and abundant cash-equivalent assets.
- The top line is in gentle decline.
- Revenue fell from ₩456.3 billion in 2023 to ₩419.4 billion in 2024 and ₩406.6 billion in 2025 (-3.0% year over year), and operating profit slipped from ₩20.4 billion in 2023 to ₩13.3 billion in 2025.
- Net profit, however, rose 24.3% from ₩13.6 billion in 2024 to ₩17.0 billion in 2025 — a change in direction, holding onto profit even as the top line shrank.
- Q1 2026 came in at revenue of ₩92.1 billion (+0.8%), operating profit of ₩2.5 billion, and net profit of ₩2.8 billion, with revenue recovering to the prior-year level but operating profit down from the same period a year ago.
- The annual outlook box points to revenue of ₩417.6 billion, operating profit of ₩12.6 billion, net profit of ₩12.3 billion, and a forward P/E of 11.88x.
- This figure is derived by combining the finalized Q1 results with the quarterly patterns of the past three years, painting a picture in which the top line holds near last year's ₩410 billion range while profit continues stably near last year's level.
- Because demand for water-and-sewer pipe is tied to government and municipal infrastructure investment, the structure leans on steady replacement demand rather than explosive growth, and this year's outlook is consistent with that flow.
- Recent disclosures center on shareholder returns and corporate value.
- The corporate value-up plan (voluntary disclosure) of March 30, 2026 is planning material the company issued itself — read as a primary basis for the outlook if it contains numbers, or as directional material if not.
- The cash-and-in-kind dividend decision of February 24, 2026 is a disclosure that supports the payout ratio in the 50s% and yield in the 6s%; check alongside it whether earnings strength and cash flow back this up.
- The quarterly report (2026.03) of May 15, 2026 confirmed Q1 revenue of ₩92.1 billion, operating profit of ₩2.5 billion, and net profit of ₩2.8 billion.
- It is worth checking whether this points the same way as the annual trend and whether any one-off factors are present.
- This is a stock with clear strengths.
- At a P/E of 8.3x and P/B of 0.39x, both earnings and assets are cheaply priced, and shareholder returns are thick with a dividend yield in the 6s% and a payout ratio in the 50s%.
- The core of the appeal is that this dividend is backed by a solid balance sheet — a 19.4% debt-to-equity ratio and a 452% current ratio.
- While most of the peer set is loss-making (KBI Metal and Dongkuk CM have negative ROE), it simultaneously holds a profit and a low P/B, so the signal of undervaluation relative to asset value is clear.
- The point to watch is that this is a business weighted toward stability over growth.
- With revenue shrinking gently for three years and the operating margin in the low single digits, the earnings upside widens when water-and-sewer pipe demand and infrastructure investment revive, and conversely the top-line recovery slows if public ordering contracts.
- In sum, this is a stability-oriented, undervalued dividend stock: in phases where infrastructure and replacement demand hold up, the low-P/B, high-dividend value comes into focus, while in phases of weak ordering, top-line stagnation can drag on.
🔎 Valuation vs peers Undervalued
A comparison set of steel and primary-metals names with adjacent market capitalization.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| KBI Dongyang Steel Pipe | — | 0.81x | -2.19% |
| Dongkuk CM | — | 0.14x | -5.39% |
| Igu Industrial | 11.67x | 0.87x | 7.50% |
We looked first at a public-data comparison set of steel and primary-metals names with nearby market capitalization. The current P/E (how many times a year's earnings the price represents) is 8.63x, and the P/B (how many times book value the price represents) is 0.40x. That said, smaller-cap names are heavily swayed by earnings volatility and financing disclosures, so we did not draw firm conclusions from metrics based solely on last year's finalized results. The outlook box is based on a DART seasonality approximation.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩417.6 billion | ₩12.6 billion | ₩12.3 billion |
| Next quarter | Q2 2026 | ₩112.8 billion | ₩3.9 billion | ₩3.8 billion |
Price history Close · MA20 · MA60
The latest close is ₩6,420 and the market capitalization is ₩146.4 billion. The price sits below its 20-day moving average (₩6,578) and below its 60-day moving average (₩6,837). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 42.5, a neutral level. The one-month change is -3.5%, the three-month change is -4.9%, and the position relative to the 52-week high is -14.1%. Relative strength versus the KOSPI is 25 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 24% of all stocks. Over the past three months it lagged the index by 25.2%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -25.18% / 6M -41.49% / 12M -61.52%
Key metrics vs sector median
Valuation
The P/E of 8.63x is below the sector median (16.39x). The P/B of 0.40x is below the sector median (0.50x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 10.1%, initial growth 2.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 0.726x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 4.7%, above the sector average (2.0%). The operating margin is 3.3%. The debt ratio is 19.4%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $302.4M | $278.0M | $269.5M | -3.05% ↑ faster |
| Operating profit | $13.5M | $10.2M | $8.8M | -13.92% ↑ faster |
| Net profit | $11.2M | $9.0M | $11.2M | +24.31% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $338.1M | $321.0M | $302.4M | $278.0M | $269.5M |
| Operating profit | $32.2M | $9.3M | $13.5M | $10.2M | $8.8M |
| Net profit | $43.6M | $8.0M | $11.2M | $9.0M | $11.2M |
| Revenue CAGR | 4-yr avg -5.51% | ||||
Revenue fell 3.0% year over year (2023 ₩456.3 billion → 2024 ₩419.4 billion → 2025 ₩406.6 billion), and the three-year trend is 'falling'. That said, the rate of decline narrowed from the prior year. Operating profit fell 13.9% year over year. That said, the decline narrowed. Over the 5 years on record, revenue compound annual growth (CAGR) is -5.5%. The two-year revenue CAGR is -5.6%. In the most recent quarter (Q1 2026), revenue was 0.8% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- The dividend yield, at 6.2%, is on the high side.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 3.0% year over year (3-year trend: falling).
Recent news & events searched · sourced
- 2026-03-30UpdateCorporate value-up plan (voluntary disclosure): confirming the company plan (original text)Planning material the company itself laid out. If it contains numbers, treat it as a primary basis for the outlook box; if not, treat it only as directional material. Source
- 2026-02-24UpdateCash and in-kind dividend decision: confirming return conditionsA disclosure related to cash returns or changes in share count. Check whether earnings strength and cash flow support it. Source
- 2026-05-15EarningsQuarterly report (2026.03): Q1 2026 revenue ₩92.1 billion, operating profit ₩2.5 billion, net profit ₩2.8 billionRecently finalized or preliminary results. Check alongside whether they point the same way as the annual trend and whether any one-off factors are present. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩6,420 | ₩6,420 | Confirmed | link |
| Latest quarterly results | revenue ₩92.1 billion, operating profit ₩2.5 billion | revenue ₩92.1 billion, operating profit ₩2.5 billion | Confirmed | link |
| Annual results | revenue ₩406.6 billion, operating profit ₩13.3 billion | revenue ₩406.6 billion, operating profit ₩13.3 billion | Confirmed | link |
| Outlook/plan disclosure (original text) | : | : | Confirmed | link |
| Shareholder-return disclosure (original text) | ㆍ: | ㆍ: | Confirmed | link |
| Results disclosure (original text) | (2026.03): 2026 1 revenue ₩92.1 billion · operating profit ₩2.5 billion · net profit ₩2.8 billion | (2026.03): 2026 1 revenue ₩92.1 billion · operating profit ₩2.5 billion · net profit ₩2.8 billion | Confirmed | link |
| Outlook-box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-06-02OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-01Corporate governance report
- 2026-05-26OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-19OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-15PeriodicQuarterly report
- 2026-05-13OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-28OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-21OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-31OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-30Disclosure
- 2026-03-27Disclosure
- 2026-03-27Shareholders' meeting notice
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.