Kyungdong Navien is a manufacturer of residential gas boilers and water heaters, centered on condensing boilers that recycle exhaust heat and tankless gas water heaters. About 70% of revenue comes from overseas, with North America making up around 60% of the total, and it has long held the No. 1 share in the North American wall-hung condensing boiler and water-heater market. Its preliminary Q1 2026 results in May showed revenue of ₩425.3 billion and operating profit of ₩63.8 billion, up 16.5% and 61.7% year over year respectively, and it raised the 2025 dividend about 15% to ₩750 per share — the highest in five years — while investing cash in an expansion of the Seotan plant in Pyeongtaek and in new businesses. What stands out is that on its No. 1 position in North American water heaters and boilers, earnings are reviving as tariff and cost pressures ease, so the multiple on this year's recovering earnings falls. On the other side, with about 60% of revenue in North America, results swing heavily with U.S. tariff policy and the housing cycle, and plant expansion and acquisitions mean sizable cash outlays for the time being.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 11.0% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 16.5% higher than a year earlier.
- ROE is 11.6% (total-net basis). It is above the sector average.
- Operating margin is 9.5%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Kyungdong One 56.72% (corporate)
Controlling bloc incl. related parties 57.61%
With the controlling bloc holding 58%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Kyungdong Navien is a manufacturer that makes and sells residential gas boilers and water heaters.
- At its core are condensing boilers (boilers that recycle exhaust heat to raise efficiency) and tankless gas water heaters (which heat water on demand rather than storing it).
- About 70% of revenue comes from overseas, and North America makes up around 60% of the total.
- It has long held the No.
- 1 share in the North American wall-hung condensing gas boiler and tankless gas water-heater market.
- More recently it has been broadening into HVAC spanning heating, cooling, and ventilation, plus kitchen appliances and life-safety fields.
- The latest close is ₩60,900 and market cap is ₩887.2 billion.
- The price sits below the 20-day line (₩64,890) and below the 60-day line (₩68,998).
- Trading beneath both the short- and mid-term moving averages, the trend is on the subdued side.
- The RSI (a supplementary gauge that scores upward versus downward strength over the past 14 days on a 0-100 scale) is 40.5, a neutral level.
- The one-month change is -10.2%, the three-month change is -2.1%, and the position relative to the 52-week high is -34.4%.
- Relative strength versus KOSPI is 26 (1-99, computed from returns against the index over the past year with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 75% of all stocks by strength.
- Over the past three months it lagged the index by 24.6%.
- Chart reading is best done alongside trading volume and disclosure dates.
- The P/E ratio (how many times one year's earnings the price represents) is 9.89x.
- The P/B (how many times net assets the price represents) is 1.15x.
- Both metrics are on the low side versus peers.
- ROE (how much is earned on equity in a year) is 11.6%, showing efficient use of capital.
- The debt ratio (debt against equity) is 97.6%, not a heavy burden by manufacturing standards.
- EV/EBIT (enterprise value divided by operating profit, a debt-inclusive analog of P/E) is a low 7.9x.
- That said, free cash flow (FCF, the cash actually in hand) is negative.
- This is not because results are poor but because the company spent heavily on plant expansion and acquisitions.
- Read it as a phase of investing in future production capacity.
- Revenue rose steadily across five years to ₩1.5022 trillion in 2025.
- Operating profit also improved markedly over the five years from ₩64.3 billion to ₩143.4 billion.
- By contrast, 2025 net profit fell 28% year over year to ₩89.7 billion, hit by a combination of U.S. tariffs and steel and aluminum cost pressures.
- But the picture changes in Q1 2026.
- As the U.S. universal tariff rate fell from 15% to 10% and raw-material pressure eased, operating profit surged 61.7% year over year, and net profit also rose 53.8%.
- It is an inflection point where earnings, once depressed, are reviving.
- If this trend continues through the remaining quarters, this year's net profit is likely to climb onto a recovery track after last year's slump.
- So even though the P/E on last year's basis looks high, on this year's basis with earnings recovering the actual valuation comes down further.
- In May 2026 the company disclosed preliminary Q1 results: revenue of ₩425.3 billion and operating profit of ₩63.8 billion, up 16.5% and 61.7% year over year respectively.
- Ahead of that, decisions on a rights issue through a subsidiary and on tangible-asset acquisitions came in succession.
- This is cash going into the expansion of the Seotan plant in Pyeongtaek and into new businesses.
- When the Seotan plant is completed, annual production capacity will rise substantially, laying the groundwork to meet expanding North American demand.
- The 2025 dividend was set at ₩750 per share, up about 15% from the prior year and the highest level in five years.
- The strengths are clear: a firm No.
- 1 position in the North American water-heater and boiler market.
- Added to that is a recovery trend in which earnings revive as tariff and cost pressures ease.
- A P/E of 10.3x on last year's basis may not look especially cheap.
- But 2025 net profit was a trough pressed down by tariffs.
- On this year's basis with earnings recovering, the actual multiple comes down below that.
- There are cautions too.
- With about 60% of revenue in North America, results swing heavily with U.S. tariff policy and the housing cycle.
- The sizable cash outlays from plant expansion and acquisitions for the time being are also something to watch.
- In sum, it is strong when tariff relief and North American demand hold, and weaker if tariffs tighten again or the North American economy turns down.
🔎 Valuation vs peers Undervalued
Compared by business character as a consumer-goods manufacturer and exporter that makes residential heating, hot-water, and climate-control equipment and sells it overseas. Direct domestic boiler rivals (Kiturami, Rinnai, etc.) are unlisted, making public-metric comparison difficult. Here, consumer-goods manufacturers and exporters with high overseas exposure serve as the reference group.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Youngone Corporation | 7.42x | 0.89x | 12.03% |
It sits at a low valuation versus the reference group of consumer-goods manufacturers and exporters with high overseas exposure. The P/E of 10.3x on last year's basis reflects 2025 net profit at a trough pressed down by tariffs. On this year's basis with earnings recovering, the actual multiple comes down below that. Factoring in the moat of a North American No. 1 position and 11.6% ROE profitability, we judge it in undervalued territory. That said, given its high dependence on North American tariffs and the housing cycle, the earnings volatility must be taken into account.
Price history Close · MA20 · MA60
The latest close is ₩60,900 and the market capitalization is ₩887.2 billion. The price sits below its 20-day moving average (₩64,890) and below its 60-day moving average (₩68,998). 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 40.5, a neutral level. The one-month change is -10.2%, the three-month change is -2.1%, and the position relative to the 52-week high is -34.4%. Relative strength versus the KOSPI is 26 (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 25% of all stocks. Over the past three months it lagged the index by 24.6%. 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 -24.55% / 6M -31.90% / 12M -65.39%
Key metrics vs sector median
Valuation
The P/E of 9.89x is below the sector median (19.17x). The P/B of 1.15x is below the sector median (2.15x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets. That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
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 10.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 11.6%, above the sector average (2.0%). The operating margin is 9.5%. The debt ratio is 97.6%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $798.2M | $897.3M | $995.6M | +10.96% ↓ slower |
| Operating profit | $70.2M | $87.9M | $95.0M | +8.15% ↓ slower |
| Net profit | $55.1M | $82.4M | $59.5M | -27.86% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $731.0M | $769.4M | $798.2M | $897.3M | $995.6M |
| Operating profit | $42.6M | $39.6M | $70.2M | $87.9M | $95.0M |
| Net profit | $53.5M | $35.5M | $55.1M | $82.4M | $59.5M |
| Revenue CAGR | 4-yr avg 8.03% | ||||
Revenue rose 11.0% year over year (2023 ₩1.2 trillion → 2024 ₩1.4 trillion → 2025 ₩1.5 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 8.2% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 8.0%. The two-year revenue CAGR is 11.7%. In the most recent quarter (Q1 2026), revenue was 16.5% 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 11.6% points to solid profitability.
- Revenue grew 11.0% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-05-13EarningsPreliminary consolidated Q1 2026 results disclosed. Revenue ₩425.3 billion (+16.5% YoY), operating profit ₩63.8 billion (+61.7%), with net profit also up sharply.Profitability clearly improved as the tariff rate was cut and cost pressure eased. Confirms an earnings-recovery inflection after the 2025 net-profit slump. Source
- 2026-04-08FilingDecisions on a subsidiary rights issue and tangible-asset acquisitions. Investment tied to the Seotan plant expansion and new businesses.Cash going into capacity expansion and business diversification. It raises cash outlays in the short term but is a medium-term growth base. Source
- 2026-04-03Filing2025 business report filed. Annual revenue of ₩1.5022 trillion, holding above ₩1 trillion for a fourth straight year, with operating profit of ₩143.4 billion.Top-line growth is steady, but net profit fell year over year on tariffs and costs. Whether the earnings direction turns is the point to watch. Source
- 2026-03-31Dividend2025 fiscal-year dividend set at ₩750 per share. Up about 15% year over year, the highest in five years.A signal of expanded shareholder returns amid an earnings-recovery phase. A dividend yield of about 1.2% on market price. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 revenue and operating profit | revenue ₩425.3 billion / operating profit ₩63.8 billion | revenue ₩425.3 billion(+16.5%) / operating profit ₩63.8 billion(+61.7%) | Confirmed | link |
| 2025 full-year net profit | ₩89.7 billion | ₩89.7 billion | Confirmed | link |
| 2025 dividend (DPS) | ₩750 | ₩750 | Confirmed | link |
| 2026 in-house net-profit estimate | approx. ₩118.0 billion(forward PER 7.8x) | — | Unverified | link |
Recent filings
- 2026-06-01Corporate governance report
- 2026-05-18PeriodicQuarterly report (amended)
- 2026-05-15PeriodicQuarterly report
- 2026-05-13EarningsFair-disclosure notice
- 2026-04-08Amended filing
- 2026-04-08Paid-in capital increase (amended)
- 2026-04-08Amended filing
- 2026-04-03PeriodicAnnual business report (amended)
- 2026-04-01OwnershipOwnership-change filing
- 2026-03-31Paid-in capital increase (amended)
- 2026-03-31Amended filing
- 2026-03-31Amended 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.