Keyang Electric Machinery, founded in 1977, built its business on motor technology, making power tools and other industrial products, and from 1987 expanded into automotive motors and electrical components. As a result, its tool-making operation and its business supplying parts to finished-vehicle makers run side by side. In December 2025 the company signed a single-sale supply contract, and in May-June 2026 it decided on a rights offering, issuing 8,200,000 new common shares to fund ₩4.8 billion in facilities, ₩16.4 billion in operations, and ₩19.7 billion in debt repayment; in Q1 2026 net profit swung back into the black. What stands out lately is that revenue has held steady in the ₩380-390 billion range and roughly half of the offering proceeds are earmarked for debt repayment, leaving room to ease a heavy debt load, but the full-year operating and net losses, a debt ratio of 1,059.5%, a current ratio below 100%, and the increase in share count from the offering all need to be weighed together.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 1059.5%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 84.6%).
- The most recent full-year net result was a loss.
- Revenue rose 5.6% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 5.4% higher than a year earlier.
- ROE is -177.2% (total-net basis). It is below the sector average.
- Operating margin is -7.0%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2022-12-31
Largest shareholder Haesung Industrial 34% (corporate)
Controlling bloc incl. related parties 34.71%
With the controlling bloc holding 35%, the ownership structure is stable.
🔎 In-depth analysis
- Keyang Electric Machinery has been making power tools on the back of its motor technology since it was founded in 1977, and from 1987 it broadened into automotive motors.
- The business splits into two main lines: an industrial-products segment that includes power tools, and a segment for automotive motors and electrical components (vehicle parts driven by electricity).
- In other words, a tool-making operation and a parts-supply operation for finished-vehicle makers run in parallel.
- Because the market capitalization is not large, this is a stock where you need to watch not only the flow of the business itself but also how a single disclosure such as a contract or an equity issue affects earnings and the share count.
- The latest close is ₩4,215 and the market cap is ₩114.7 billion.
- The price sits below the 20-day line (₩5,366) and the 60-day line (₩6,793).
- Trading under both the short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that measures upward versus downward momentum over the last 14 days on a 0-100 scale) is 31.9, a neutral level.
- The one-month change is -28.1%, the three-month change is -32.0%, and the position versus the 52-week high is -66.1%.
- Relative strength versus the KOSPI is 94 (on a 1-99 scale, computed from returns against the index over the past year with heavier weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 5% of all stocks by strength.
- Over the past three months it lagged the index by 47.4%.
- Chart reading is best done alongside trading volume and the dates of disclosures.
- The most recent annual results (2025) were revenue of ₩389.8 billion, an operating loss of ₩27.1 billion, and a net loss of ₩36.9 billion.
- ROE (how much is earned in a year on equity) was -177.2% and the operating margin was -7.0%, so profitability is still in loss territory.
- The debt ratio (debt against equity) is 1,059.5% and the current ratio (assets quickly convertible to cash against debt due within a year) is 84.6%, meaning debt exceeds equity and short-term liquidity is tight.
- The P/E ratio (how many times a year's earnings the price is worth) cannot be calculated because of the loss, and the P/B (how many times book value the price is worth) is 5.51x.
- The P/B looks high largely because accumulated losses have sharply reduced equity (book value), shrinking the denominator.
- So this figure is more accurately read as a reflection of thin equity than as a sign the stock is 'expensive'.
- Revenue was ₩381.6 billion in 2023, ₩369.1 billion in 2024, and ₩389.8 billion in 2025, holding in the ₩380-390 billion range without major swings, and in 2025 it turned upward with a +5.6% gain over the prior year.
- The most recent quarter (Q1 2026) showed revenue of ₩98.9 billion (+5.4% year on year) and net profit of ₩0.8 billion, notably swinging back into the black from the prior loss.
- Full-year revenue this year is expected to hold near the current scale at around ₩396 billion.
- Whether full-year operating and net profit settle into positive territory, however, is too early to conclude from a single quarter of profit; this is the stage of watching whether quarterly results string together another quarter or two in the black.
- Since revenue is holding up, the key is whether costs and the size of the loss shrink enough for profit to return in a stable way.
- On December 17, 2025 there was a single-sale supply contract disclosure, where the contract amount and term, and whether it is a one-off deal or a repeatable supply relationship, are central to how future revenue is recognized.
- On May 8, 2026 and June 11, 2026 (a corrective refiling), the company disclosed a rights-offering decision: it plans to issue 8,200,000 new common shares and use the proceeds for ₩4.8 billion in facilities, ₩16.4 billion in operations, and ₩19.7 billion in debt repayment.
- Because a large share of the funds is earmarked for repaying debt, completing the offering could ease the debt burden, while the larger share count dilutes each existing shareholder's stake.
- In other words, this is a disclosure that carries both an improved financial structure and dilution, so it matters to track the actual deployment of the funds and its effect.
- Starting with the strengths: revenue has held steady in the ₩380-390 billion range, net profit swung back into the black in Q1 2026, and about half of the rights-offering proceeds are earmarked for debt repayment, creating room to shed a heavy debt burden.
- On the cautionary side, on a full-year basis the company is still running operating and net losses, the debt ratio is a high 1,059.5%, the current ratio is below 100%, and the offering increases the share count.
- In sum, this is a company with a solid revenue base but profitability and financial structure still in recovery: it grows stronger if quarterly profits continue and the offering proceeds genuinely reduce debt, and weaker if losses deepen again or the funds fail to translate into revenue and profit.
- Rather than drawing conclusions from figures like P/B or the debt ratio alone, it is better to watch how the quarterly results and the effect of the offering actually play out.
🔎 Valuation vs peers Overvalued
A comparison set of similarly-sized companies within the machinery and equipment sector.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| FNS Tech | 12.74x | 1.32x | 10.37% |
| PIE | — | 1.96x | -39.68% |
| KSP | 16.42x | 1.30x | 7.89% |
We looked first at a public-data comparison set of similarly-sized companies within machinery and equipment. The current P/E (how many times a year's earnings the price is worth) is not available, and the P/B (how many times book value the price is worth) is 5.51x. That said, because smaller-cap names are heavily swayed by earnings swings and financing disclosures, we did not draw firm conclusions from metrics based solely on last year's confirmed results. The basis for the forward box is a DART seasonality approximation.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩396.0 billion | — | — |
| Next quarter | Q2 2026 | ₩103.5 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩4,215 and the market capitalization is ₩114.7 billion. The price sits below its 20-day moving average (₩5,366) and below its 60-day moving average (₩6,793). 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 31.9, a neutral level. The one-month change is -28.1%, the three-month change is -32.0%, and the position relative to the 52-week high is -66.1%. Relative strength versus the KOSPI is 94 (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 95% of all stocks. Over the past three months it lagged the index by 47.4%. 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 -47.45% / 6M -69.04% / 12M +23.46%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 5.51x is above the sector median (1.44x).
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 -177.2%, below the sector average (5.0%). The operating margin is -7.0%. The debt ratio is 1059.5%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $252.9M | $244.6M | $258.3M | +5.60% ↑ faster |
| Operating profit | -$2.6M | -$10.1M | -$18.0M | — |
| Net profit | -$838,226 | -$40.6M | -$24.4M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $252.0M | $242.0M | $252.9M | $244.6M | $258.3M |
| Operating profit | $1.9M | -$7.0M | -$2.6M | -$10.1M | -$18.0M |
| Net profit | -$4.1M | -$16.3M | -$838,226 | -$40.6M | -$24.4M |
| Revenue CAGR | 4-yr avg 0.63% | ||||
Revenue rose 5.6% year over year (2023 ₩381.6 billion → 2024 ₩369.1 billion → 2025 ₩389.8 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating results are in the red, so a swing back to profit matters more than the growth rate here. Over the 5 years on record, revenue compound annual growth (CAGR) is 0.6%. The two-year revenue CAGR is 1.1%. In the most recent quarter (Q1 2026), revenue was 5.4% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- Debt far exceeds equity (debt ratio 1059.5%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 84.6%).
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2025-12-17ContractSingle-sale supply contract signed: check the detailed terms in the original filingThe contract amount and term are central to how future revenue is recognized. Whether it is a one-off or a repeatable transaction shapes the medium-term read. Source
- 2026-06-11Update[Corrective refiling] Material-event report (rights-offering decision): 8,200,000 common shares · ₩4.8 billion facilities · ₩16.4 billion operations · ₩19.7 billion debt repaymentThis disclosure requires weighing the purpose of the incoming funds together with the change in share count. When facilities and operating purposes are stated, the key is whether the investment is actually deployed and links through to revenue. Source
- 2026-05-08UpdateMaterial-event report (rights-offering decision): 8,200,000 common shares · ₩4.8 billion facilities · ₩16.4 billion operations · ₩19.7 billion debt repaymentThis disclosure requires weighing the purpose of the incoming funds together with the change in share count. When facilities and operating purposes are stated, the key is whether the investment is actually deployed and links through to revenue. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩4,215 | ₩4,215 | Confirmed | link |
| Latest quarterly results | revenue ₩98.9 billion, operating profit -₩1.9 billion | revenue ₩98.9 billion, operating profit -₩1.9 billion | Confirmed | link |
| Annual results | revenue ₩389.8 billion, operating profit -₩27.1 billion | revenue ₩389.8 billion, operating profit -₩27.1 billion | Confirmed | link |
| Contract disclosure (original filing) | ㆍapprox. : | ㆍapprox. : | Confirmed | link |
| Financing disclosure (original filing) | []: 8,200,000 · ₩4.8 billion· ₩16.4 billion· ₩19.7 billion | []: 8,200,000 · ₩4.8 billion· ₩16.4 billion· ₩19.7 billion | Confirmed | link |
| Financing disclosure (original filing) | : 8,200,000 · ₩4.8 billion· ₩16.4 billion· ₩19.7 billion | : 8,200,000 · ₩4.8 billion· ₩16.4 billion· ₩19.7 billion | Confirmed | link |
| Basis for the forward box | DART | DART | Confirmed | link |
Recent filings
- 2026-06-02Corporate governance report (amended)
- 2026-06-01Corporate governance report
- 2026-05-27Amended filing
- 2026-05-19Disclosure
- 2026-05-13Amended filing
- 2026-05-13PeriodicQuarterly report
- 2026-05-08Disclosure
- 2026-05-08Material-fact report
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-19PeriodicAnnual business report (amended)
- 2026-03-17PeriodicAnnual business report
📖 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.