Korea Airport Service is a company where ground handling — marshalling arriving aircraft, loading and unloading baggage and cargo, and assisting with cabin cleaning and refueling — together with cargo-terminal operations makes up about 83% of revenue. Its main customers are Korean Air and foreign airlines, so it earns more as air passenger and cargo volumes rise and handling counts and cargo throughput grow with them. Q1 preliminary results disclosed on May 14 showed operating profit +35.5% and net profit +39%, a different tone from last year's flat trend; a March business report confirmed annual revenue of about ₩663.2 billion and net profit of ₩40.5 billion, and a dividend of ₩1,000 per share (a payout ratio of about 7.5%) was processed. What stands out lately is that at a P/E of 6.3 and P/B of 0.63, its forward P/E is far below parent Korean Air's (about 13.7x), its ROE of 10% is higher than peers', and Q1 profits rebounded in the 30% range; against this, more than 80% of revenue is airport ground handling, so it is tightly tied to the air passenger and cargo cycle and to the Korean Air group, and it gets pressed along with them when air conditions turn down.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 5.9% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 13.5% higher than a year earlier.
- ROE is 10.0% (controlling-interest basis). It is above the sector average.
- Operating margin is 7.1%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Korean Air 59.54% (corporate)
Controlling bloc incl. related parties 59.54%
With the controlling bloc holding 60%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Korea Airport Service is a company that carries out, on behalf of airlines, the ground work needed as planes take off and land.
- 'Ground handling' — marshalling arriving aircraft, loading and unloading baggage and cargo, cleaning cabins and assisting with refueling — together with airport cargo-terminal operations makes up about 83% of revenue.
- Its main customers are Korean Air and foreign airlines flying into Korea.
- The rest comes from side businesses such as a limestone mine in Gangwon Province, Jeju spring water and livestock, and the Jeju Folk Village; small in weight, these partly offset the cyclicality of the core aviation business.
- It is a service business directly linked to the aviation industry, earning more as air passenger and cargo volumes rise and handling counts and cargo throughput grow with them.
- The latest close is ₩79,400 and the market cap is ₩251.4 billion.
- The price sits below its 20-day line (₩82,955) but above its 60-day line (₩72,918).
- With the short- and mid-term trends diverging, the direction should be read separately.
- RSI (a gauge comparing upward and downward strength over the past 14 days on a 0-100 scale) is 48.5, a neutral level.
- The price is up 8.0% over one month and 44.4% over three months, and sits 11.5% below its 52-week high.
- Relative strength versus the KOSPI is 53 (on a 1-99 scale, converting the past year's return versus the index while weighting recent performance more heavily; higher means stronger than the market).
- That places it in roughly the top 47% of all stocks by strength.
- Over the past three months it outpaced the index by 9.1%.
- Chart readings are best considered alongside trading volume and disclosure dates.
- The P/E (how many times one year's earnings the price is) is 6.20x and the P/B (how many times net assets the price is) is 0.62x.
- At about 6x earnings and 0.63x net assets, the stock is priced low relative to both earnings and assets.
- ROE (how much it earns in a year on its equity) is 10.0%, sound for an asset-heavy infrastructure-type business and higher than parent Korean Air's (about 7%).
- The debt ratio (debt relative to equity) is about 131%, the current ratio 256% and the interest-coverage ratio 54x, so its capacity to service debt is ample.
- The P/E of 6.3x here is on last year's finished, confirmed earnings (trailing).
- The forward P/E on this year's expected earnings falls further once you factor in that Q1 profits jumped back into the 30% range — that is, viewing the same share price against 'this year's earnings' makes it cheaper still.
- In an inflection phase where earnings turn up, the forward side fits the company's actual picture better than last year's numbers.
- Over five years, revenue grew at an annual average of about 18%, riding the recovery in air volumes out of the COVID slump.
- Last year the revenue growth rate slowed a beat to 5.9% from the prior year's 15.0%, and net profit was roughly flat versus the year before at ₩40.5 billion.
- But in Q1 this year growth clearly reaccelerated, with revenue +13.5%, operating profit +35.5% and net profit +39%.
- As air passenger and cargo volumes revived, handling counts and cargo throughput rose together, and operating profit jumping 35% while revenue rose 13% reflects operating leverage — the effect whereby, in a fixed-cost handling business, the profit left over widens as volumes grow.
- This year's forward P/E reflects earnings assuming this Q1 trend carries through the full year, capturing not last year's flat phase but a growth phase that has picked up again.
- That said, this forward profit reflects one year's recovery, not a signal of a cycle peak, and as long as the air-volume trend holds there is no visible basis to preemptively deny its continuity into next year.
- Disclosures center on periodic reports and routine items such as governance and the shareholder meeting.
- The most meaningful fact is the Q1 2026 preliminary results announced via fair disclosure on May 14, which showed operating profit +35.5% and net profit +39% — a tone clearly different from last year's flat trend.
- The next day's quarterly-report filing formally confirmed the detailed financials and segment content of these preliminary figures.
- In March the 2025 business report was filed, confirming annual revenue of about ₩663.2 billion and net profit of ₩40.5 billion, and a cash dividend of ₩1,000 per share (a payout ratio of about 7.5%) was processed at the annual shareholder meeting.
- In June the company also met its periodic disclosure duty with a corporate-governance report.
- Rather than one-off events such as single contracts or large investments, it is a stock whose trend has been driven by the direction of quarterly results.
- Starting with what look like strengths: the price is low relative to earnings (P/E 6.3, P/B 0.63), and this year's forward P/E sits far below parent Korean Air's (about 13.7x).
- ROE of 10% makes it more profitable than peers, and debt, liquidity and interest burden are all stable.
- Above all, Q1 profits rebounded clearly into the 30% range, confirming a move out of last year's flat phase.
- In short, it reads as undervalued: profitable yet with a suppressed multiple, and with earnings reaccelerating in the meantime.
- A point to consider is the structure whereby more than 80% of revenue is airport ground handling, tightly tied to the air passenger and cargo cycle and the Korean Air group.
- So it is strong when air volumes stay firm and the Q1 earnings trend carries through the full year, and it gets pressed along with the aviation cycle when that turns down.
- Rather than settling the conclusion one way, the continuity of air volumes and the earnings trend is the key condition that separates the stock's strong and weak phases.
🔎 Valuation vs peers Undervalued
Since its core business of airport ground handling and cargo processing has few listed KRX peers in the same line, its position is compared against the parent airline and transport-adjacent names on the substance of being aviation-linked transport infrastructure (on-site calculated values).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Korean Air | 12.61x | 0.90x | 7.12% |
| Jeju Air | 0.00x | 1.26x | -42.30% |
| Korea Line | 3.30x | 0.28x | 8.35% |
(a) Position: compared with airlines and transport-adjacent names, Korea Airport Service has higher ROE while its P/E and P/B are lower. Excluding the loss-making low-cost carrier (Jeju Air), its multiple is suppressed relative to profitable, high-ROE peers. (b) Discount: with more than 80% of revenue being ground handling centered on the Korean Air group, there is customer and industry concentration risk, and with limited standalone growth drivers, a certain discount to the parent is structural. (c) Limits of trailing: the P/E of 6.5x is on last year's earnings (flat), so with Q1 profits rebounding in the 30% range this year, forward earnings would be set higher and the same share price could show a lower multiple. Still, the full-year continuity of that rebound is not yet confirmed, so rather than flatly calling it cheap it is seen as a position with large scope for undervaluation if earnings continue.
Price history Close · MA20 · MA60
The latest close is ₩79,400 and the market capitalization is ₩251.4 billion. The price sits below its 20-day moving average (₩82,955) and above its 60-day moving average (₩72,918). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 48.5, a neutral level. The one-month change is +8.0%, the three-month change is +44.4%, and the position relative to the 52-week high is -11.5%. Relative strength versus the KOSPI is 53 (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 53% of all stocks. Over the past three months it outpaced the index by 9.1%. 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 +9.12% / 6M -23.00% / 12M -36.57%
Key metrics vs whole-market median
Valuation
The P/E of 6.20x is below the whole-market median (13.81x). The P/B of 0.62x is below the whole-market median (1.15x). 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 10.4%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 10.0%, above the whole-market average (5.0%). The operating margin is 7.1%. The debt ratio is 130.7%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $361.0M | $415.3M | $439.5M | +5.85% ↓ slower |
| Operating profit | $22.5M | $29.8M | $31.2M | +4.46% ↓ slower |
| Net profit | $20.8M | $26.9M | $26.9M | -0.15% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $229.0M | $265.5M | $361.0M | $415.3M | $439.5M |
| Operating profit | -$598,185 | $1.7M | $22.5M | $29.8M | $31.2M |
| Net profit | $2.2M | $3.8M | $20.8M | $26.9M | $26.9M |
| Revenue CAGR | 4-yr avg 17.70% | ||||
Revenue rose 5.9% year over year (2023 ₩544.7 billion → 2024 ₩626.5 billion → 2025 ₩663.2 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 4.5% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 17.7%. The two-year revenue CAGR is 10.3%. In the most recent quarter (Q1 2026), revenue was 13.5% 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.
- ROE of 10.0% points to solid profitability.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue rose 5.9% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-05-14EarningsQ1 2026 consolidated preliminary results (fair disclosure) — revenue, operating profit and net profit up by double digits year over year (operating profit +35.5%, net profit +39%)Short term: breaks out of last year's flat trend and confirms an earnings rebound, providing grounds for the share-price gain. Medium term: a driver of forward-earnings improvement if it continues through the year. Source
- 2026-05-15FilingQ1 2026 quarterly report filed — confirming the detailed financials and segment content of the preliminary results in the formal reportShort term: verification of the preliminary figures. Medium term: a first basis for checking profitability and financial condition by segment. Source
- 2026-03-18Filing2025 business report filed — disclosing confirmed results including annual revenue of about ₩663.2 billion and net profit of ₩40.5 billion (flat year over year)Short term: confirms last year's slowing growth and flat profit. Medium term: the comparison baseline for this year's Q1 rebound. Source
- 2026-03-26DividendAnnual shareholder meeting result — settlement of the 2025 fiscal year and a cash dividend of ₩1,000 per share (dividend yield of about 1.2%)Short term: ex-dividend effect. Medium term: with a payout ratio of about 7.5%, it suggests dividend capacity remains relative to earnings. Source
- 2026-06-01FilingCorporate-governance report disclosed — periodic disclosure of board and internal-control statusShort term: limited impact. Medium term: reference material for checking the transparency of the group's governance. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-01Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-14EarningsFair-disclosure notice
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-19PeriodicAnnual business report (amended)
- 2026-03-18PeriodicAnnual business report (amended)
- 2026-03-18PeriodicAnnual business report
- 2026-03-10Audit report
- 2026-02-27Large-business-group status disclosure
- 2026-02-24Disclosure
📖 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.