Korea Line, founded in 1968, is an ocean-going cargo shipping company whose core is bulk carriers hauling iron ore, coal, and grain, complemented by LNG carriers. A large share of its revenue comes from multi-year long-term shipping contracts with power companies, steelmakers, and grain shippers, so a stable base of income combines with additional earnings from the freight-rate cycle. Long-term shipping contract (single sales and supply agreement) disclosures came repeatedly in October 2025 and March 2026, in February the swing in last year's annual results (revenue -26.9%, operating profit -37.0%) was formalized, and this year's Q1 operating profit rose again. What stands out lately is that multi-year long-term contracts underpin the revenue floor, and a mid-teens operating margin, ROE of 8.3%, and a low valuation versus peers are strengths; on the other side, shipping's inherent nature means revenue and profit swing year to year with the freight-rate cycle, so the key checkpoints are whether Q1's improved margins carry through the full year and whether new long-term contracts keep filling steadily.
At-a-glance assessment financial health · growth · profitability · valuation
- Revenue fell 26.9% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 16.0% lower than a year earlier.
- ROE is 8.3% (controlling-interest basis). It is above the sector average.
- Operating margin is 16.2%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder SM Line 23.58% (corporate)
Controlling bloc incl. related parties 48.81%
With the controlling bloc holding 49%, the ownership structure is stable.
🔎 In-depth analysis
- Korea Line, founded in 1968, is an ocean-going cargo shipping company.
- Its core is the bulk-carrier (dry-bulk) business, hauling raw materials such as iron ore, coal, and grain in large volumes, complemented by an LNG (liquefied natural gas) carrier business.
- A large share of revenue comes from multi-year long-term shipping contracts (dedicated-vessel contracts) with power companies, steelmakers, and grain shippers; the 'single sales and supply agreement' disclosures that recur on DART are exactly these long-term cargo-transport contracts.
- Long-term contracts underpin the floor on freight income, while vessels not tied to contracts add earnings according to prevailing market rates (the bulk freight index), so a stable base of income meshes with additional earnings from market conditions.
- Part of the SM Group (Samra Midas), the company itself operates vessels and earns from freight as an operating business.
- The latest close is ₩1,842 and the market cap is ₩594.5 billion.
- The price sits below its 20-day line (₩1,935) and below its 60-day line (₩2,288).
- Trading beneath both the short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that weighs upward versus downward force over the past 14 days on a 0-100 scale) is 38.2, a neutral level.
- The one-month change is -4.1%, the three-month change is -19.6%, and it stands -40.4% off its 52-week high.
- Its relative strength versus the KOSPI is 33 (1-99, converting the past year's return relative to the index with heavier weight on recent periods; higher means stronger than the market), placing it in roughly the top 67% for strength among all stocks.
- Over the past three months it lagged the index by 37.0%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- On confirmed full-year (2025) figures, the P/E (how many times a year's net profit the price is) is 3.30x and the P/B (how many times net asset value the price is) is 0.28x.
- ROE (how much is earned in a year on equity) is 8.3%, above the average for shipping peers, and with an operating margin of 16.2% and a net margin of 14.1%, profitability is healthy too.
- The debt ratio (debt relative to equity) is 190.5%, a common level in shipping, where companies use financing to purchase vessels, and the current ratio of 182.8% leaves short-term liquidity comfortable.
- One point to note is that the P/E and P/B above are on 2025 confirmed results (trailing), a year when freight rates paused.
- Shipping is an industry where profit inflects year to year with freight rates, so in a phase of recovering earnings, a forward metric looking at future earnings is closer to the real picture than last year's figures.
- Five-year revenue ran from ₩1.2 trillion in 2021 to ₩1.6 trillion in 2022, ₩1.4 trillion in 2023, ₩1.7 trillion in 2024, and ₩1.3 trillion in 2025, rising and falling with the freight-rate cycle.
- 2025 was a year when rates paused, with revenue down 26.9% and operating profit down 37.0% from the prior year, a swing formally confirmed by the official 'change of 30% or more in revenue or profit-loss structure' disclosure (2026-02-12).
- That said, net profit in the same year actually rose 11.2% to ₩180.2 billion, and net profit over the past two years grew sharply (a two-year CAGR of about 62%).
- Above all, the direction turns back up in the first quarter of 2026.
- Q1 revenue was ₩277.8 billion, down 16.0% year over year, but operating profit rose 16.5% to ₩74.4 billion - a clear margin improvement, earning more profit on the same revenue.
- Even through a year of lower rates, long-term shipping contracts underpin the revenue floor, and with contract pricing and operating efficiency in support, profit is reviving.
- Recent disclosures read along two lines.
- First, 'single sales and supply agreement' disclosures recur in October 2025 and March 2026 (including an amended filing); these are the multi-year long-term cargo-transport contracts with shippers, the core events that steadily firm up the company's revenue floor.
- Second, the February 2026 'change of 30% or more in revenue or profit-loss structure' disclosure formalized the large swing in last year's annual results (revenue -26.9%, operating profit -37.0%).
- Beyond that, May brought notice of an investor-relations session and a filing on changes in the largest shareholder's and others' holdings.
- From the disclosures and IR alone - without general news - the two axes of 'securing long-term contracts' and 'last year's rate slowdown,' together with the company's move to explain its business directly, both come through.
- Korea Line's strengths are distinct: a business structure in which multi-year long-term shipping contracts underpin the revenue floor, a mid-teens operating margin and an ROE of 8.3% above the peer average, and a valuation that sits alone at the low end while comparable shipping stocks trade at P/Es in the 8-14x range.
- Revenue fell as rates paused last year, but Q1 operating profit rose again this year, setting the direction of an earnings recovery, and the forward P/E, reflecting that recovery, shows it in undervalued territory within the sector.
- A point to weigh alongside is shipping's inherent nature: revenue and profit swing year to year with the freight-rate cycle, so the more strongly rates hold up, the greater the appeal of this low valuation.
- In sum, this is a stock that is strong when long-term contracts lay the foundation and rates and margins provide support, and relatively weaker when rates fall sharply and earnings volatility rises.
- The key checkpoints are whether Q1's improved margins carry through the full year, and whether new long-term contracts keep filling steadily.
🔎 Valuation vs peers Undervalued
We took the closest listed Korean shipping companies in business substance (ocean-going cargo transport such as bulk and container) as the peer set. All share the same freight-rate cycle.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Pan Ocean | 8.87x | 0.47x | 5.27% |
| HMM | 9.70x | 0.69x | 7.07% |
| Heung-A Shipping | 12.84x | 1.54x | 11.99% |
(a) Position versus the real peer set: against fellow ocean-going cargo carriers Pan Ocean (P/E 8.9x), HMM (P/E 9.5x), and Heung-A Shipping (P/E 14.6x), Korea Line's P/E of 3.5x and P/B of 0.29x sit clearly low. Its ROE of 8.3% also tops Pan Ocean (5.3%) and HMM (7.1%). (b) Discount factors: at a market cap of ₩628.1 billion it is the smallest in the peer set, so a liquidity and size discount may attach; it pays no dividend, so it lacks the cushion of the peers' roughly 3% yields; and a debt ratio of 190% with interest coverage of 2x means financial leverage presses on the multiple. (c) Limits of trailing and the forward basis: the displayed P/E is on last year's confirmed results, which include a stretch of strong rates. Gauging this year's operating profit at about ₩239.2 billion via a DART seasonality approximation points to a recovery direction, but as that is an unverified estimate rather than the company's official outlook, applying it straight to the multiple warrants caution. Taken together, it appears undervalued versus its shipping peers, but the freight-rate cycle and financial leverage must be weighed alongside.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩254.5 billion | approx. ₩51.0 billion | approx. ₩50.1 billion |
Price history Close · MA20 · MA60
The latest close is ₩1,842 and the market capitalization is ₩594.5 billion. The price sits below its 20-day moving average (₩1,935) and below its 60-day moving average (₩2,288). 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 38.2, a neutral level. The one-month change is -4.1%, the three-month change is -19.6%, and the position relative to the 52-week high is -40.4%. Relative strength versus the KOSPI is 33 (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 33% of all stocks. Over the past three months it lagged the index by 37.0%. 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 -37.01% / 6M -35.27% / 12M -53.97%
Key metrics vs sector median
Valuation
The P/E of 3.30x is below the sector median (8.87x). The P/B of 0.28x is below the sector median (0.47x). 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.
Profitability & financials
Return on equity (ROE) is 8.3%, above the sector average (7.0%). The operating margin is 16.2%. The debt ratio is 190.5%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $926.1M | $1.2B | $846.3M | -26.91% ↓ slower |
| Operating profit | $165.7M | $217.8M | $137.3M | -36.96% ↓ slower |
| Net profit | $45.3M | $107.4M | $119.4M | +11.18% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $764.7M | $1.1B | $926.1M | $1.2B | $846.3M |
| Operating profit | $135.2M | $177.4M | $165.7M | $217.8M | $137.3M |
| Net profit | $163.2M | $104.5M | $45.3M | $107.4M | $119.4M |
| Revenue CAGR | 4-yr avg 2.57% | ||||
Revenue fell 26.9% year over year (2023 ₩1.4 trillion → 2024 ₩1.7 trillion → 2025 ₩1.3 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 37.0% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 2.6%. The two-year revenue CAGR is -4.4%. In the most recent quarter (Q1 2026), revenue was 16.0% lower 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.
Points to watch
- Revenue fell 26.9% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-03-17UpdateAmended filing of a single sales and supply agreement (long-term cargo-transport contract). A multi-year transport contract with a shipper that reinforces the revenue base.A stabilizing factor that underpins the revenue floor even through periods of freight-rate volatility over the medium term. Source
- 2026-02-12EarningsDisclosure of a change of 30% or more in revenue or profit-loss structure. Formalizes that 2025 annual revenue and operating profit swung sharply from the prior year (revenue -26.9%, operating profit -37.0%).A near-term confirmation of negative growth, though net profit rose 11.2%, showing non-operating gains and losses provided a defense. Source
- 2025-10-20UpdateDisclosure of a single sales and supply agreement (long-term cargo-transport contract). Shows a business structure in which the long-term-contract pipeline continues steadily.Contributes to securing revenue visibility over the medium term. Source
- 2026-05-26FilingReport of changes in the largest shareholder's and others' holdings. Discloses the fact of a stake change in the ownership structure.A checkpoint from a short-term supply-demand and governance perspective. Source
- 2026-05-15IRNotice of an investor-relations session. An occasion for the company to explain its results and business status directly.An opportunity to verify information through the company's official channel. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| FY2025 operating profit (confirmed annual) | ₩207.2 billion | 30% | Confirmed | link |
| Q1 2026 cumulative results | revenue ₩277.8 billion(-16.0%) · operating profit ₩74.4 billion(+16.5%) | DART (2026.03) | Confirmed | link |
| Dividend (FY2025) | DPS null | DART | Confirmed | link |
| This year's seasonality-approximated operating profit | approx. ₩239.2 billion | — | Unverified | link |
Recent filings
- 2026-06-02Corporate governance report (amended)
- 2026-06-01Large-business-group status disclosure
- 2026-06-01Large-business-group status disclosure (amended)
- 2026-06-01Corporate governance report
- 2026-06-01Large-business-group status disclosure (amended)
- 2026-06-01Large-business-group status disclosure (amended)
- 2026-06-01Large-business-group status disclosure (amended)
- 2026-06-01Large-business-group status disclosure (amended)
- 2026-05-28Large-business-group status disclosure (amended)
- 2026-05-28Large-business-group status disclosure
- 2026-05-26Disclosure
- 2026-05-26Shareholders' 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.