Kolon Corporation is the holding company of the Kolon group; rather than making products itself, it holds stakes in affiliates such as Kolon Industries, Kolon Global, and Kolon Life Science, and earns money from their dividends and trademark income. Q1 2026 consolidated revenue was ₩1,518.8 billion, up 7.7% from a year earlier, and operating profit recovered sharply to ₩98.8 billion, but net profit and loss remained a ₩44.7 billion loss owing to equity-method accounting that reflects subsidiary results. Worth noting recently: the market capitalization is about 39% below the value of its listed subsidiary stakes, giving it the undervaluation appeal typical of a holding company, while whether that discount is justified depends on whether subsidiary earnings actually recover.
At-a-glance assessment financial health · growth · profitability · valuation
- For financial companies, debt and interest costs are large by the nature of the business, so the debt ratio and interest coverage cannot be read on the same yardstick as an ordinary company.
- The most recent full-year net result was a loss.
- Revenue fell 0.6% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 7.7% higher than a year earlier.
- ROE is -8.5% (controlling-interest basis). It is below the sector average.
- Operating margin is 1.0%.
- Valued against the net asset value (NAV) of its listed holdings rather than a consolidated P/E — see the in-depth valuation for the detailed basis.
Ownership & governance As of 2025-12-31
Largest shareholder Lee Woong-yeul 48.69% (individual)
Controlling bloc incl. related parties 50.78%
With the controlling bloc holding 51%, control is very secure but the free float is thin.
Net asset value (NAV) assessment Fairly valued39% discount to NAV
💡 How to read a holding company · A holding company owns stakes in several subsidiaries. Its P/E swings with equity-method gains and losses on those stakes, so read it only as a rough guide. P/B is more meaningful because subsidiary stakes sit in equity, but book value carries them at low historical cost (so P/B looks higher than reality). The most accurate view is the price against the market value of those stakes (NAV) ↓
Valued against the net asset value (NAV) of its listed holdings rather than a consolidated P/E — see the in-depth valuation for the detailed basis.
Listed subsidiaries ownership
| Kolon Global | 75.23% |
| Kolon Industries | 33.43% |
| Kolon Life Science | 25.11% |
| Kolon Global | 6.36% |
🔎 In-depth analysis
- Kolon Corporation does not run large factories itself; it is a holding company that owns and manages the affiliates of the Kolon group.
- It makes money in three main ways: dividends paid by its subsidiaries, royalties from lending out the group trademark (brand), and real-estate rental income.
- The consolidated revenue of about ₩5.9 trillion that appears in the financial statements is mostly the combined revenue of subsidiaries Kolon Industries (industrial materials such as tire cord and aramid) and Kolon Global (construction and auto distribution).
- In other words, Kolon's own business scale is small, and its real value comes from which subsidiaries it holds and how much.
- The share price is ₩43,100, below the 20-, 60-, and 120-day moving averages.
- Over the past three months it fell 34%, and on a one-month basis it dropped 10%.
- That means the short-term trend points down.
- RSI (a gauge that expresses recent up and down force on a 0-100 scale) is 35, closer to oversold than overbought.
- It sits about 48% below its 52-week high.
- On price alone, the flow reflects more concern about weak subsidiary earnings than expectation of a recovery in stake value.
- This company is hard to view through the P/E ratio (how many times one year's earnings the price represents), because last year's net result was a loss, so the P/E cannot be calculated.
- Instead, the P/B (how many times book net assets the price represents) is a very low 0.3x.
- That said, holding companies often record subsidiary stakes on the books at their old purchase price (acquisition cost), so the P/B can look higher than reality — an optical effect.
- It is therefore more accurate to gauge value by market price than by book value.
- On the balance sheet, the debt ratio (debt to equity) is about 400%, high because it is a consolidated figure that also combines the debt of subsidiaries engaged in construction and distribution.
- Net debt is negative — a net cash position, with about ₩201.3 billion more cash held than borrowed.
- EV/EBITDA (enterprise value, reflecting debt and cash, divided by operating profit before depreciation) is a low 2.6x.
- However, these figures are consolidated numbers with subsidiary finances mixed in, so they do not directly show the strength of the holding company itself.
- Revenue has stalled around the high ₩5 trillion range for five years with little change.
- Last year's consolidated revenue was ₩5,886.1 billion, down 0.6% from the prior year.
- Profit swings widely.
- Net result was a small profit in 2023 and a ₩184.7 billion profit in 2024, then turned to a ₩158.5 billion loss in 2025.
- This is because the holding company's earnings hinge on subsidiary results and equity-method gains and losses, which fluctuate sharply year to year.
- The welcome signal is Q1 2026: consolidated revenue rose 7.7% from a year earlier, and operating profit surged 158% to ₩98.8 billion.
- Core profitability is showing signs of recovery.
- However, net result was still a ₩44.7 billion loss, as it takes time for subsidiary earnings to flow fully through the equity-method line.
- Holding-company net profit is uneven from quarter to quarter, so it is hard to judge the full year from one or two quarters' figures.
- Most recent disclosures come from subsidiary activity.
- In May 2026 there were several disclosures of single sales and supply contracts by subsidiaries.
- This means subsidiary orders are indirectly reflected in the holding company's value.
- In June a disclosure of the acquisition of another company's shares (a subsidiary's equity investment) appeared, showing that group-level restructuring and investment are under way.
- Around the same time, disclosures on large business-group status and the corporate governance report were also filed.
- The dividend is ₩550 per share, a yield of about 1.3% at the current price.
- The structure of a holding company receiving subsidiary dividends and passing them back to shareholders remains in place.
- The most important thing when looking at Kolon is not the P/E or P/B but the market value of the subsidiary stakes it holds.
- The current market cap is about 39% below the value of its listed subsidiary stakes — right in the middle of the 30-50% discount commonly seen at holding companies.
- The strong condition is this: if the industrial materials of subsidiary Kolon Industries or the construction and distribution of Kolon Global revive, the stake value rises and dividends grow at the same time, lifting the holding company's value with them.
- Being in a net cash position also gives it financial headroom.
- The cautionary condition is just as clear.
- If subsidiary earnings stay weak, the holding company's net losses continue and the discount is unlikely to narrow.
- In particular, Kolon Life Science, a large NAV contributor, is already highly valued, so with mixed subsidiary quality, that is one factor justifying the discount.
- Ultimately this stock's strength or weakness turns on whether subsidiary earnings actually recover.
🔎 Valuation vs peers Fairly valued
Rather than other holding or conglomerate peers, the discount structure is viewed against the core listed subsidiaries that make up Kolon's net asset value (NAV).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Kolon Industries | 42.63x | 0.42x | 0.97% |
| Kolon Life Science | 21.29x | 0.91x | 4.27% |
| Kolon Global | 0.00x | 0.33x | -27.51% |
Kolon is a textbook holding company that is hard to judge high or low by P/E or P/B. Last year's net result was a loss, so there is no P/E, and the P/B of 0.3x cannot fully show the true degree of undervaluation because subsidiary stakes are carried low on the books. It should therefore be viewed by the market value of its listed subsidiary stakes (NAV). The current market cap is at about a 39% discount to that NAV — right in the middle of the 30-50% discount common at holding companies. However, the top two NAV contributors, Kolon Industries and Kolon Life Science, already trade at generous levels (a P/E of 42.60x and a P/B of 0.9x respectively), so it is hard to call this discount a deep undervaluation. By contrast, Kolon Global is in undervalued territory at a P/B of 0.33x, so subsidiary quality is mixed. Taken together, rather than pushing to either undervalued or overvalued, viewing it as fairly valued within the usual discount range is the balanced judgment, and whether subsidiary earnings recover is the key to narrowing the discount.
Price history Close · MA20 · MA60
The latest close is ₩43,100 and the market capitalization is ₩556.3 billion. The price sits below its 20-day moving average (₩48,662) and below its 60-day moving average (₩58,290). 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 35.0, a neutral level. The one-month change is -10.4%, the three-month change is -34.2%, and the position relative to the 52-week high is -48.4%. Relative strength versus the KOSPI is 30 (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 29% of all stocks. Over the past three months it lagged the index by 47.0%. 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 -47.01% / 6M -40.56% / 12M -62.86%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 0.30x is below the sector median (0.49x).
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.
Profitability & financials
Return on equity (ROE) is -8.5%, below the sector average (5.0%). The operating margin is 1.0%. The debt ratio is 399.8%, but for financial firms deposits and insurance liabilities count as debt, so it cannot be read on the same yardstick as an ordinary company.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $3.9B | $3.9B | $3.9B | -0.57% ↓ slower |
| Operating profit | $65.8M | -$61.0M | $40.1M | — |
| Net profit | $5.7M | $122.4M | -$105.0M | -185.79% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $3.6B | $3.8B | $3.9B | $3.9B | $3.9B |
| Operating profit | $220.2M | $206.1M | $65.8M | -$61.0M | $40.1M |
| Net profit | $85.1M | $91.0M | $5.7M | $122.4M | -$105.0M |
| Revenue CAGR | 4-yr avg 2.13% | ||||
Revenue fell 0.6% year over year (2023 ₩5.9 trillion → 2024 ₩5.9 trillion → 2025 ₩5.9 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Over the 5 years on record, revenue compound annual growth (CAGR) is 2.1%. The two-year revenue CAGR is 0.1%. In the most recent quarter (Q1 2026), revenue was 7.7% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- For financial companies, debt and interest costs are large by the nature of the business, so the debt ratio and interest coverage cannot be read on the same yardstick as an ordinary company.
- The most recent full-year net result was a loss.
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 0.6% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-05-22UpdateA subsidiary's single sales and supply contract was disclosed. As an order by a subsidiary rather than the holding company itself, it is indirectly reflected in group revenue and profit.Over the medium term it can contribute to subsidiary revenue and profit, working positively for the holding company's stake value and dividend capacity. Source
- 2026-06-08FilingA revised disclosure of a subsidiary's decision to acquire shares and equity securities of another company (voluntary disclosure) was filed, showing that group-level equity investment and business restructuring are under way.Over the medium term it affects the composition of the subsidiary portfolio. Depending on investment performance, the holding company's net asset value may change. Source
- 2026-06-01FilingThe corporate governance report and large business-group status were disclosed, a regular disclosure of the holding-company structure and group governance.As a regular disclosure related to governance transparency, its short-term earnings impact is limited, but it contributes to the holding company's credibility. Source
- 2026-05-15EarningsThe Q1 2026 report was disclosed. Consolidated revenue ₩1,518.8 billion (+7.7%) and operating profit ₩98.8 billion (+158%) showed a core recovery, but net result was a ₩44.7 billion loss.In the short term the recovery in operating profitability is positive, but the continued net loss suggests a need to examine subsidiary factors such as equity-method gains and losses. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-08Amended filing
- 2026-06-04Disclosure
- 2026-06-04Disclosure
- 2026-06-01Corporate governance report
- 2026-06-01Large-business-group status disclosure
- 2026-05-29Large-business-group status disclosure
- 2026-05-22Single supply/sales contract
- 2026-05-19Single supply/sales contract (amended)
- 2026-05-15PeriodicQuarterly report
- 2026-05-15Single supply/sales contract
- 2026-05-12OwnershipLargest-shareholder ownership change report
- 2026-05-12OwnershipOwnership-change filing
📖 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.