KBI Metal produces copper 'copper rod', the raw material for electrical wire, and supplies it to wire makers, sitting in an upstream position in the value chain. As of the first quarter its metal division accounts for the bulk of the business at ₩177.9 billion, joined by a wire division and an electrical-equipment division that makes magnetic cores and generators. The May first-quarter report confirmed a margin improvement, with operating profit jumping to three times the year-earlier level and gross margin rising from 4.3% to 10.2%. That same May, however, it received advance notice of designation as an unfaithful-disclosure company for a late-disclosure reason, followed by conversion requests on its fourth convertible bond. The notable point is that a forward P/E of around 7x and a P/B of about 1.1x on this year's expected earnings, a low valuation at the bottom of the value chain versus wire makers, are strengths. On the other hand, a debt ratio of 320%, an interest-coverage ratio below 1, convertible-bond dilution, and the outcome of the unfaithful-disclosure advance notice are all variables to watch together.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 320.7%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The most recent full-year net result was a loss.
- Revenue rose 8.0% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 14.2% higher than a year earlier.
- ROE is -0.0% (controlling-interest basis). It is below the sector average.
- Operating margin is 3.2%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder KBI Tec 12.12% (corporate)
Controlling bloc incl. related parties 31.32%
With the controlling bloc holding 31%, the ownership structure is stable.
🔎 In-depth analysis
- KBI Metal produces copper 'copper rod', the copper material used to make electrical wire.
- Looking at first-quarter 2026 revenue by segment, the metal division (copper rod) accounts for the bulk of the total at ₩177.9 billion, and the copper wire it produces is supplied to wire makers such as KBI Cosmolink, Korea Electric Wire and Seoul Electric Wire.
- In other words, it sits 'one step upstream', feeding raw materials to wire companies.
- Added to this are a wire division (about ₩67.7 billion), in which Vietnamese and domestic subsidiaries directly make high-voltage cables and communication lines, and an electrical-equipment division (about ₩9.8 billion) that makes magnetic cores (CORE) for automobiles and home appliances as well as generators and starter motors.
- The latest close is ₩4,220 and the market cap is ₩175.2 billion.
- The price sits below its 20-day line (₩4,466) and below its 60-day line (₩4,997).
- Trading beneath both its short- and mid-term moving averages, the trend is subdued.
- The RSI (a supplementary gauge that compares upward and downward momentum over the past 14 days on a 0-100 scale) is 46.1, a neutral level.
- The one-month change is -9.3%, the three-month change is +76.2%, and the price sits -57.7% below its 52-week high.
- Relative strength versus the KOSDAQ is 96 (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 3% of all stocks by strength.
- Over the past three months it outpaced the index by 132.6%.
- Chart readings are best interpreted alongside trading volume and disclosure dates.
- 2025 annual revenue was ₩758.6 billion and operating profit ₩24.3 billion (up 39%), but net profit was essentially zero (about -₩44 million).
- It earned money at the operating level but was left with no net profit once financial costs were accounted for, a year in which profit hit bottom.
- As a result, a P/E (how many times a year's earnings the share price is worth) calculated on last year's confirmed earnings does not produce a figure because of the loss.
- But this is not because the stock is 'expensive' but because 'the prior year's earnings were at the bottom of an inflection point', so there is no basis to call it expensive from last year's numbers alone.
- In fact, the forward P/E on this year's expected earnings, once profit returns to a normal track, is around 7x, and the P/B (how many times the company's book net assets the share price is worth) on the same basis is about 1.1x.
- That is clearly a low spot within the same value chain compared with wire makers whose P/E is in the 70s-90s and P/B in the 4x-10x range.
- On the finances, the debt ratio (debt relative to equity) is high at 320.7% and the interest-coverage ratio (how many times operating profit covers interest) is still below 1, so the next thing to confirm is whether this burden eases as profit thickens.
- Revenue rose steadily from ₩683.0 billion in 2021 to ₩758.6 billion in 2025, and operating profit recovered over the same period from ₩13.5 billion to ₩24.3 billion.
- The heart of the change is margin.
- First-quarter 2026 revenue was ₩210.6 billion (up 14.2% from the same quarter a year earlier), but operating profit was ₩15.5 billion (up 202%), far outpacing the revenue growth rate, and gross margin more than doubled from 4.3% to 10.2%.
- When the copper price rises, the margin of an upstream company that makes and sells copper rod widens along with it, and with grid replacement and AI-data-center-driven wire demand overlapping, that effect showed up in the results.
- As a result net profit swung into the black at ₩8.46 billion.
- The forward P/E on this year's expected earnings settling at around 7x means this margin recovery is a change earned at the operating stage rather than a one-off valuation gain, and there is a basis to support that level as long as the copper and grid cycle does not cool.
- That said, this company's quarterly net profit varies widely with the currency and financial gains and losses, so it should be noted that this year's profit could swing quarter to quarter.
- This year's disclosures read in two strands.
- One is results.
- The first-quarter report filed on May 15 confirmed that operating profit jumped to three times the year-earlier level, and gross margin also rose from 4.3% to 10.2%, showing the margin improvement in the numbers.
- The other is a governance-side signal.
- On May 28 the Korea Exchange issued an 'advance notice of designation as an unfaithful-disclosure company', the reason being the late disclosure of a decision to acquire shares in another company (a late disclosure).
- If it is ultimately designated and penalty points accumulate, it could lead to a trading suspension or a substantive listing-eligibility review, so the outcome bears watching.
- Also, from late April through May, conversion requests on the fourth convertible bond (conversion price ₩2,284) came in one after another, increasing the share count, and on May 22 the largest shareholder, KBI Gukin Industry, filed a trading-plan report as well.
- The strengths are distinct.
- In a phase where the copper price and grid- and AI-data-center-driven wire demand rise together, KBI Metal sits upstream making copper rod, the raw material for that wire, so its margin thickened and it swung into the black in the first quarter.
- As a result the forward P/E on this year's expected earnings is around 7x and the P/B about 1.1x, a strikingly low spot compared with wire makers in the same value chain whose P/E has climbed into the 70s-90s and P/B to the 4x-10x range.
- The core of this stock is that even as profit returned to a normal track, the valuation sits at the very bottom of the value chain.
- What to watch alongside is just as clear.
- A debt ratio of 320% and an interest-coverage ratio below 1 narrow the path from operating profit to net profit, the rising share count from convertible-bond conversions partly dilutes per-share value, and the unfaithful-disclosure advance notice leaves open the possibility of a trading suspension or substantive review depending on the outcome.
- In sum, the structure is one where the low valuation works as a strength as long as the copper and wire boom and the thickened margin continue, and that strength is obscured if either the financial burden or the governance risk goes awry.
🔎 Valuation vs peers Fairly valued
A copper-rod and wire value-chain comparison group. KBI Metal makes the raw material for wire, and the wire makers that use its copper wire are the direct comparators.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Taihan Cable & Solution | 64.70x | 3.40x | 5.26% |
| Gaon Cable | 74.84x | 7.95x | 10.62% |
| Daewon Cable | 86.06x | 5.85x | 6.80% |
(a) In the same copper-and-wire value chain, wire makers that take and use the copper wire (Taihan Cable & Solution, Gaon Cable and Daewon Cable) have climbed to a P/B (how many times book value the share price is worth) of 5x-13x on the back of AI grid demand. KBI Metal, which makes the copper rod that is their raw material, has a P/B of 1.65x, markedly low within the same chain. (b) This discount is not simple undervaluation but has reasons. A debt ratio of 320% and an interest-coverage ratio below 1 narrow the path from operating profit to net profit, joined by convertible-bond dilution and the risk of unfaithful-disclosure designation. (c) The trailing P/E on last year's confirmed earnings does not compute because of the loss, but that is because profit was at an inflection point, and on a forward basis using this year's expected earnings the position looks different. In the end it is in a state where it 'looks cheap versus the value chain, but financial and governance risks explain much of the discount', so we view it as fairly valued.
Price history Close · MA20 · MA60
The latest close is ₩4,220 and the market capitalization is ₩175.2 billion. The price sits below its 20-day moving average (₩4,466) and below its 60-day moving average (₩4,997). 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 46.1, a neutral level. The one-month change is -9.3%, the three-month change is +76.2%, and the position relative to the 52-week high is -57.7%. Relative strength versus the KOSDAQ is 96 (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 97% of all stocks. Over the past three months it outpaced the index by 132.6%. 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 +132.63% / 6M +173.02% / 12M +105.68%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 1.43x is above the sector median (0.50x).
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 -0.0%, below the sector average (2.0%). The operating margin is 3.2%. The debt ratio is 320.7%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $454.0M | $465.7M | $502.8M | +7.95% ↑ faster |
| Operating profit | $5.2M | $11.6M | $16.1M | +39.15% ↓ slower |
| Net profit | $41,512 | $536,555 | -$29,309 | -105.46% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $452.7M | $470.9M | $454.0M | $465.7M | $502.8M |
| Operating profit | $9.0M | $3.6M | $5.2M | $11.6M | $16.1M |
| Net profit | -$734,019 | $1.1M | $41,512 | $536,555 | -$29,309 |
| Revenue CAGR | 4-yr avg 2.66% | ||||
Revenue rose 8.0% year over year (2023 ₩685.0 billion → 2024 ₩702.7 billion → 2025 ₩758.6 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 39.1% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 2.7%. The two-year revenue CAGR is 5.2%. In the most recent quarter (Q1 2026), revenue was 14.2% 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 320.7%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- 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
- 2026-05-15EarningsFirst-quarter 2026 report filed. Revenue of ₩210.6 billion (up 14.2% from the same quarter a year earlier), operating profit of ₩15.5 billion (up 202%), and net profit of ₩8.46 billion, swinging into the black. Gross margin improved from 4.3% to 10.2%.Short term: confirmation in the results that operating margins thickened on the back of the copper-and-wire boom. Medium term: however, with quarterly net profit varying widely, the key is whether the first-quarter strength persists. Source
- 2026-05-28UpdateThe Korea Exchange issued an advance notice of designation as an unfaithful-disclosure company. The reason is the late disclosure of a decision to acquire shares and equity securities in another company. The deadline for the designation decision is June 23, 2026.Short term: a burden on governance trust. Medium term: if ultimately designated, depending on penalty points it could face a one-day trading suspension, or a substantive listing-eligibility review if cumulative penalty points reach 15 or more. Source
- 2026-05-21FilingExercise of conversion rights on the fourth convertible bond (₩20.0 billion face value, conversion price ₩2,284) was received continuously in April-May. Cumulative converted shares reached 1.31% of total shares outstanding.Short term: dilution of per-share value as the share count rises at a conversion price well below the current price (₩4,900). Medium term: dilution could continue if the remaining unconverted bonds are further converted. Source
- 2026-05-22FilingLargest shareholder KBI Gukin Industry filed an officer/major-shareholder specified-securities trading-plan report (trading start date June 21, 2026).Short term: the largest shareholder's trading plan is reference information that could affect supply and demand. Medium term: the direction and scale of the trades need to be confirmed in the actual report. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Latest quarterly results (revenue, operating profit, net profit) | revenue ₩210.6 billion, operating profit ₩15.5 billion, net profit ₩8.5 billion | revenue ₩210,596,940,422, operating profit ₩15,533,334,373, net profit ₩8,459,679,433 | Confirmed | link |
| Revenue composition by business segment | revenue | ₩177.9 billion, approx. ₩67.7 billion, ₩9.8 billion | Confirmed | link |
| Advance notice of unfaithful-disclosure designation | — | 2026-06-23 | Confirmed | link |
| Forward basis (this year's expected earnings) | 1 | — | Unverified | link |
Recent filings
- 2026-05-28Disclosure
- 2026-05-22OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-21Disclosure
- 2026-05-21OwnershipOwnership-change filing
- 2026-05-15PeriodicQuarterly report
- 2026-05-06Disclosure
- 2026-05-04Amended filing
- 2026-05-04Disclosure
- 2026-04-30Disclosure
- 2026-04-30Disclosure
- 2026-04-30Amended filing
- 2026-04-29Disclosure
📖 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.