Korea Movenex is an auto-parts maker that supplies axles and drivetrain and power-transmission components — the parts that carry an engine's power to the wheels — to vehicle assemblers. Revenue is sizeable at ₩1.5 trillion a year, yet its market capitalization is light at ₩106.3 billion. A February 2026 filing confirmed full-year revenue of ₩1.5 trillion, operating profit of ₩25.3 billion and net profit of ₩20.9 billion, showing a year in which the top line grew while earnings shrank; the same day the company approved a cash and in-kind dividend, keeping shareholder returns going even in a weaker profit year (payout ratio of roughly 15%). The key thing to note is a two-sided picture: the stock trades at about a quarter of book value (P/B of 0.26x) and its forward P/E on this year's earnings is a low 4.65x, so undervaluation would become apparent if profit recovers — but the operating margin is a thin 1.6%, leaving earnings sensitive to cost and pricing swings, and the debt ratio is high at 251.4%.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 251.4%).
- Revenue rose 8.2% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 3.8% higher than a year earlier.
- ROE is 5.2% (controlling-interest basis). It is below the sector average.
- Operating margin is 1.6%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Kim Yoon-soo 23.49% (individual)
Controlling bloc incl. related parties 42.27%
With the controlling bloc holding 42%, the ownership structure is stable.
🔎 In-depth analysis
- Korea Movenex is in the auto-parts business.
- Its mainstay products are axles and drivetrain and power-transmission components — the parts that deliver an engine's power to the wheels — which it supplies to finished-vehicle makers.
- Revenue is not small at ₩1.5 trillion a year, but the market capitalization is light at ₩106.3 billion, so it helps to watch part pricing, changes in vehicle sales volumes, and the effect any single disclosure can have on results and the share price.
- The latest close is ₩3,490 and the market cap is ₩106.3 billion.
- The price sits below both its 20-day (₩3,796) and 60-day (₩4,240) moving averages.
- Trading below both the short- and mid-term averages, the trend looks subdued.
- The RSI (a supplementary gauge comparing upward and downward force over the past 14 days on a 0-100 scale) is 38.9, a neutral reading.
- The price is down 4.9% over one month and 16.1% over three months, and stands 51.8% below its 52-week high.
- Relative strength versus the KOSPI is 10 (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 91% by strength among all stocks.
- Over the past three months it has lagged the index by 37.2%.
- Chart readings are best considered alongside trading volume and disclosure dates.
- Recent annual revenue was ₩1.5 trillion, operating profit ₩25.3 billion and net profit ₩20.9 billion.
- The operating margin was 1.6% and ROE (how much is earned in a year on equity) was 5.2%, so profitability itself is not striking.
- The valuation, however, is clearly low.
- The P/E (how many times one year's earnings the price is) is 5.10x and the P/B (how many times book value the price is) is 0.26x, meaning the stock trades at a quarter of the company's net asset value.
- The important point here is that this is a stock whose prior-year earnings fell, so future earnings matter more than the current trailing P/E and P/B.
- The forward P/E on this year's earnings is 4.65x, lower than trailing, and sits on the low side even among auto-parts peers.
- In other words, this is not a stage where trailing metrics look like a burden; rather, the undervaluation grows more attractive if earnings recover.
- Meanwhile, the debt ratio is 251.4%, with debt exceeding equity, and the interest coverage ratio is 1.89x, so whether earnings power holds up is worth checking each quarter.
- Revenue rose steadily from ₩1.37 trillion in 2023 to ₩1.43 trillion in 2024 and ₩1.55 trillion in 2025, with the pace gradually quickening (up 8.2% year on year).
- Operating profit, by contrast, fell from ₩59.3 billion in 2023 to ₩25.3 billion in 2025, a stretch that can be read as one where part pricing and cost pressure weighed on earnings.
- This year's (2026) outlook has revenue stepping up another notch to the ₩1.6 trillion range, with operating profit at ₩45.0 billion and net profit at ₩23.1 billion.
- In other words, on a base of continued revenue growth, earnings recover from the 2025 trough (₩25.3 billion).
- First-quarter revenue growth of 3.8% year on year, extending the top-line expansion, is the starting point for this recovery outlook.
- There were stretches where operating profit wobbled versus the prior quarter and prior year, but a balanced reading is that as long as revenue scale and utilization hold, there is room for earnings to normalize.
- There is no evidence that next year's earnings will be lower than this year's, so it is not yet the stage to declare this a cycle top.
- On February 27, 2026, results and shareholder-return disclosures came out together.
- First, an earnings-structure change filing confirmed full-year revenue of ₩1.5 trillion, operating profit of ₩25.3 billion and net profit of ₩20.9 billion, showing a year in which the top line grew but earnings shrank.
- The same day brought a cash and in-kind dividend decision and a dividend record-date (register closing) notice, confirming that shareholder returns continued even in a lower-earnings year (payout ratio of roughly 15%).
- Going forward, it is worth watching, alongside quarterly results, whether these returns are backed by an earnings recovery and cash flow.
- The strengths are clear.
- Revenue has grown steadily to the ₩1.5 trillion range, the stock trades at a quarter of book value (P/B of 0.26x), and the forward P/E on this year's earnings of 4.65x is low even among peers.
- As a stock whose prior-year earnings were depressed, it stands where undervaluation would show through directly if earnings recover as forecast.
- On the cautionary side, the operating margin is a thin 1.6%, leaving earnings sensitive to cost and pricing changes, and the debt ratio is high at 251.4%.
- In short, if vehicle volumes and part pricing hold and earnings recover from the 2025 trough, the cheap price relative to assets and earnings works as a strength; conversely, if the earnings recovery is delayed, the thin margin and high debt can weigh on it.
🔎 Valuation vs peers Undervalued
A peer set of auto-parts names with nearby market capitalization.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hwaseung Corporation | 1.68x | 0.46x | 27.54% |
| Dowool | 3.55x | 0.37x | 10.44% |
| KNW | — | 0.80x | -4.72% |
Within auto parts, public-data peers with nearby market capitalization were looked at first. The current P/E (how many times one year's earnings the price is) is 5.10x and the P/B (how many times book value the price is) is 0.26x. That said, for smaller-cap names, earnings swings and financing disclosures carry a large effect, so no firm conclusion was drawn from last year's confirmed-results metrics alone. The basis for the outlook box is a DART seasonality approximation.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩1.6 trillion | ₩45.0 billion | ₩23.1 billion |
| Next quarter | Q2 2026 | ₩422.0 billion | ₩20.4 billion | ₩7.1 billion |
Price history Close · MA20 · MA60
The latest close is ₩3,490 and the market capitalization is ₩106.3 billion. The price sits below its 20-day moving average (₩3,796) and below its 60-day moving average (₩4,240). 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 38.9, a neutral level. The one-month change is -4.9%, the three-month change is -16.1%, and the position relative to the 52-week high is -51.8%. Relative strength versus the KOSPI is 10 (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 9% of all stocks. Over the past three months it lagged the index by 37.2%. 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 -37.19% / 6M -53.12% / 12M -69.81%
Key metrics vs sector median
Valuation
The P/E of 5.10x is below the sector median (7.76x). The P/B of 0.26x is below the sector median (0.56x). 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 5.2%, below the sector average (7.0%). The operating margin is 1.6%. The debt ratio is 251.4%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $905.5M | $947.8M | $1.0B | +8.24% ↑ faster |
| Operating profit | $39.3M | $28.9M | $16.8M | -42.03% ↓ slower |
| Net profit | $31.3M | $29.6M | $13.8M | -53.37% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $665.4M | $908.9M | $905.5M | $947.8M | $1.0B |
| Operating profit | $17.4M | $24.5M | $39.3M | $28.9M | $16.8M |
| Net profit | $12.3M | $22.1M | $31.3M | $29.6M | $13.8M |
| Revenue CAGR | 4-yr avg 11.43% | ||||
Revenue rose 8.2% year over year (2023 ₩1.4 trillion → 2024 ₩1.4 trillion → 2025 ₩1.5 trillion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit fell 42.0% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 11.4%. The two-year revenue CAGR is 6.4%. In the most recent quarter (Q1 2026), revenue was 3.8% 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.
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
- 2026-02-27EarningsChange in revenue or profit structure of 30% or more (15% for large corporations): full-year revenue ₩1.5 trillion, operating profit ₩25.3 billion, net profit ₩20.9 billionThis is recent confirmed or preliminary results data. Check whether it points the same way as the annual trend and whether any one-off factors are involved. Source
- 2026-02-27UpdateDecision on closing the shareholder register (record date) for a cash and in-kind dividend: confirm the return termsA disclosure related to cash returns or a change in share count. Check whether earnings power and cash flow support it. Source
- 2026-02-27UpdateCash and in-kind dividend decision: confirm the return termsA disclosure related to cash returns or a change in share count. Check whether earnings power and cash flow support it. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩3,490 | ₩3,490 | Confirmed | link |
| Latest quarterly results | revenue ₩401.0 billion, operating profit ₩9.8 billion | revenue ₩401.0 billion, operating profit ₩9.8 billion | Confirmed | link |
| Annual results | revenue ₩1.5 trillion, operating profit ₩25.3 billion | revenue ₩1.5 trillion, operating profit ₩25.3 billion | Confirmed | link |
| Results disclosure (original text) | revenue30%: revenue ₩1.5 trillion · operating profit ₩25.3 billion · net profit ₩20.9 billion | revenue30%: revenue ₩1.5 trillion · operating profit ₩25.3 billion · net profit ₩20.9 billion | Confirmed | link |
| Shareholder-return disclosure (original text) | ㆍ: | ㆍ: | Confirmed | link |
| Shareholder-return disclosure (original text) | ㆍ: | ㆍ: | Confirmed | link |
| Outlook-box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-05-29Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-05-12OwnershipLargest-shareholder ownership change report
- 2026-04-03Disclosure
- 2026-03-31Shareholders' meeting notice
- 2026-03-23PeriodicAnnual business report
- 2026-03-23Amended filing
- 2026-03-23Amended filing
- 2026-03-23Audit report
- 2026-03-12Disclosure
- 2026-03-12Shareholders' meeting notice
- 2026-02-27EarningsEarnings 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.