Korea Electric Terminal (KET) makes ultra-precision connectors and terminals for vehicles and electronics. About 74-80% of revenue is automotive, much of it supplied to Hyundai Motor and Kia, and because an electric vehicle uses more connectors at higher unit prices per car, the spread of EVs is a structural growth driver. In March 2026 it published a value-up plan and set a dividend of ₩3,200 per share (a payout ratio of about 30%, a yield of 4.7% at the current price), and its first-quarter report confirmed net profit rose 30% from a year earlier. The strengths worth noting are its Hyundai Motor and Kia customer base, demand for EV connectors, ₩99.1 billion of net cash with a 4.7% dividend, and a low valuation; the cautions are that revenue is heavily tied to automaker volumes, that 2025 profit declined and first-quarter revenue is still contracting, and that much of the net-profit recovery is financial income in nature.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 4.4% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 5.7% lower than a year earlier.
- ROE is 9.1% (controlling-interest basis). It is above the sector average.
- Operating margin is 9.7%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder K.E.T. International 9.89% (corporate)
Controlling bloc incl. related parties 34.28%
With the controlling bloc holding 34%, the ownership structure is stable.
🔎 In-depth analysis
- Korea Electric Terminal (KET) makes ultra-precision connectors and terminals for vehicles and electronics.
- A connector is a component that electrically joins wire to wire and part to part.
- About 74-80% of revenue is automotive, and a large share of that is volume supplied to Hyundai Motor and Kia.
- The rest comes from connectors for home appliances and electronics and from wireless-module parts.
- Because electric vehicles carry more batteries, motors and electrical systems, a single car uses more connectors at higher unit prices than an internal-combustion car, making the spread of EVs a structural growth driver for the company.
- The latest close is ₩66,300 and the market cap is ₩670.6 billion.
- The price sits below both the 20-day line (₩70,665) and the 60-day line (₩78,678).
- Trading beneath both the short- and mid-term moving averages, the trend looks subdued.
- The RSI (a gauge that scores upward versus downward momentum over the past 14 days on a 0-100 scale) is 38.6, a neutral reading.
- It is down 10.9% over one month and 11.5% over three months, and stands 27.5% below its 52-week high.
- Relative strength versus the KOSPI is 30 (on a 1-99 scale that weights recent one-year return against the index more heavily toward recent moves; higher means stronger than the market), placing it in roughly the top 71% of all stocks by strength.
- Over the past three months it lagged the index by 29.3%.
- Chart readings are best considered alongside trading volume and the dates of disclosures.
- The P/E ratio (how many times one year of earnings the share price represents) is 6.33x, on the low side.
- The P/B (price relative to book equity) is 0.58x, meaning the stock trades below its net asset value.
- ROE (return on equity, how much is earned in a year on shareholders' equity) is a respectable 9.1%.
- The balance sheet is solid.
- Net debt (total borrowings minus cash; negative means net cash) is about ₩-99.1 billion, meaning the company holds ₩99.1 billion more cash than debt, a net-cash position — equivalent to about 14% of the market cap.
- The debt ratio (borrowings relative to equity) is 134%, but much of that is operating liabilities such as trade payables; interest-bearing debt is small, so the interest coverage ratio is a very comfortable 31x.
- EV/EBIT (enterprise value divided by operating profit, a P/E cousin that reflects debt and cash) is a low 4.2x.
- The FCF yield (free cash actually generated relative to market cap; higher means stronger cash generation) is a high 22.7%.
- Once net cash and cash flow are reflected, the structure looks cheaper than the headline P/E suggests.
- Revenue passed ₩1 trillion in 2022 and grew to ₩1.5098 trillion by 2024.
- In 2025 it dipped 4.4% to ₩1.4428 trillion.
- Operating profit also fell 18.7% to ₩139.3 billion in 2025, and net profit declined 25.5% to ₩106.0 billion.
- That is largely a step down from an unusually strong 2024, though.
- Over the five-year arc (2021 to 2025), net profit trended up, from ₩62.9 billion to ₩106.0 billion.
- Signs of change appeared in the first quarter of 2026.
- Revenue fell 5.7% to ₩337.4 billion, but net profit rose 30% from a year earlier to ₩35.2 billion, helped by financial income from the net-cash position.
- Extending this first-quarter trend across the year, this year's net profit has room to exceed last year's.
- On an in-house estimate the forward P/E is about 5.6x, below the 6.5x on last year's results.
- As earnings enter a recovery phase, the current price looks cheaper still on a forward basis.
- In March 2026 the company published a value-up plan via electronic disclosure.
- It positions automotive and connectors as core businesses and sets out a direction for shareholder returns.
- The dividend is ₩3,200 per share, and the payout ratio (the share of net profit paid out) is about 30%, giving a yield of 4.7% at the current price.
- The first-quarter report confirmed net profit rose 30% from a year earlier.
- There were also disclosures related to governance and investment, including changes in the largest shareholder's stake and equity investments in other entities.
- The strengths are clear: a stable customer base in Hyundai Motor and Kia, rising demand for EV connectors, ₩99.1 billion of net cash with a 4.7% dividend, and a low valuation.
- The 30% rise in first-quarter 2026 net profit is also a sign that earnings are firming a base.
- There are cautions, too.
- Because revenue is heavily linked to Hyundai Motor and Kia sales and production plans, results are pressured when vehicle volumes fall.
- Operating and net profit declined in 2025, and first-quarter revenue is still contracting.
- A large part of the net-profit recovery is financial income in nature, which brings quarterly volatility.
- In sum, the stock enters a strong phase when vehicle production recovers and EV-parts adoption rises, and weakens when vehicle volumes shrink.
🔎 Valuation vs peers Undervalued
Compared against automotive and electronic connectors and auto-parts businesses. Woojoo Electronics is a direct connector competitor, while HL Mando and Hyundai Wia are auto-parts peers in the context of supplying Hyundai Motor and Kia.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Woojoo Electronics | 11.48x | 0.94x | 8.21% |
| HL Mando | 22.70x | 0.84x | 3.69% |
| Hyundai Wia | 16.31x | 0.45x | 2.74% |
Against the direct competitor Woojoo Electronics (P/E 12x) and the auto-parts peers (HL Mando 23x, Hyundai Wia 18x), a P/E of 6.5x is markedly lower. Profitability (ROE 9.1%) is in fact higher than theirs. At a P/B of 0.59x it trades below net asset value. The 2025 decline in net profit can make the trailing P/E look somewhat high, but the first quarter of 2026 marks an earnings rebound, with net profit up 30%. On an in-house forward estimate the P/E falls further to about 5.6x. Adding the net cash and a 22.7% FCF yield, the effective valuation is lower than the headline metrics suggest.
Price history Close · MA20 · MA60
The latest close is ₩66,300 and the market capitalization is ₩670.6 billion. The price sits below its 20-day moving average (₩70,665) and below its 60-day moving average (₩78,678). 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 38.6, a neutral level. The one-month change is -10.9%, the three-month change is -11.5%, and the position relative to the 52-week high is -27.5%. Relative strength versus the KOSPI is 30 (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 29% of all stocks. Over the past three months it lagged the index by 29.3%. 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 -29.28% / 6M -41.22% / 12M -57.07%
Key metrics vs sector median
Valuation
The P/E of 6.33x is below the sector median (19.17x). The P/B of 0.58x is below the sector median (2.15x). 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 9.1%, above the sector average (2.0%). The operating margin is 9.7%. The debt ratio is 134.1%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $859.6M | $1.0B | $956.3M | -4.43% ↓ slower |
| Operating profit | $74.1M | $113.5M | $92.3M | -18.71% ↓ slower |
| Net profit | $48.3M | $94.3M | $70.3M | -25.46% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $637.7M | $774.2M | $859.6M | $1.0B | $956.3M |
| Operating profit | $50.5M | $42.6M | $74.1M | $113.5M | $92.3M |
| Net profit | $41.7M | $32.3M | $48.3M | $94.3M | $70.3M |
| Revenue CAGR | 4-yr avg 10.66% | ||||
Revenue fell 4.4% year over year (2023 ₩1.3 trillion → 2024 ₩1.5 trillion → 2025 ₩1.4 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 18.7% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 10.7%. The two-year revenue CAGR is 5.5%. In the most recent quarter (Q1 2026), revenue was 5.7% 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.
- The dividend yield, at 4.8%, is on the high side.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 4.4% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-03-20Filing2026 value-up plan disclosed. Identifies automotive and connectors as core businesses and sets out a direction for shareholder returns.Over the medium term it signals the durability of shareholder-return policy such as dividends. It could serve as a catalyst for a re-valuation. Source
- 2026-05-15EarningsQ1 2026 report. Revenue ₩337.4 billion (-5.7%), operating profit ₩25.8 billion (-9.9%), net profit ₩35.2 billion (+30.0%).In the short term a signal of net-profit recovery. Revenue is still contracting, so a recovery in automaker volumes is the key. Source
- 2026-04-01DividendReport on major holdings of shares. The dividend is around ₩3,200 per share, a yield of about 4.7% at the current price.A stable, high dividend is a factor supporting the share-price downside. Source
- 2026-04-15FilingDisclosure of decisions on acquiring/disposing shares of other entities. Matters related to equity investment and structural adjustment.A possible shift in the medium-term business portfolio and equity structure. Depending on scale, the impact is limited. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-29Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-04-15Disclosure
- 2026-04-15Fair-disclosure notice (amended)
- 2026-04-01OwnershipOwnership-change filing
- 2026-03-20Disclosure
- 2026-03-20Shareholders' meeting notice
- 2026-03-20Disclosure
- 2026-03-17PeriodicAnnual business report (amended)
- 2026-03-17Audit report (amended)
- 2026-03-12PeriodicAnnual business report
- 2026-03-12Audit 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.