Kumhwa PSC is a specialist power-plant maintenance company whose largest business is routine maintenance, the ongoing inspection and repair of operating power-plant equipment. It adds scheduled preventive maintenance, water treatment, and plant construction to that base, counts Korea Hydro & Nuclear Power and Hyundai Engineering & Construction among its customers, and books relatively steady revenue through multi-year contracts. In March the company set out a corporate value-up plan built around expanding nuclear and LNG maintenance, and in April its strategy translated into actual orders: a ₩51.69 billion increase on a Hanul-plant water-treatment contract and a ₩65.59 billion increase on a mechanical-piping construction job, while it kept a dividend yield in the 5% range. The strengths worth noting are a business that is less exposed to the economic cycle, a thick cash cushion with a high dividend, and a forward P/E of 12.31x that is still below peers; the offsets to watch are how quickly new maintenance work fills the gap left by shrinking coal-fired generation and whether the core operating margin normalizes.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 24.5% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 2.4% lower than a year earlier.
- ROE is 7.9% (controlling-interest basis). It is below the sector average.
- Operating margin is 10.3%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Kim Seong-gi 14.67% (individual)
Controlling bloc incl. related parties 37.5%
With the controlling bloc holding 38%, the ownership structure is stable.
🔎 In-depth analysis
- Kumhwa PSC is a specialist power-plant maintenance company whose largest revenue base is routine maintenance, the continuous inspection and pre-emptive repair of equipment at operating power plants.
- On top of that it does scheduled preventive maintenance, in which a generator is periodically shut down, disassembled, and serviced, along with the operation and maintenance of water-treatment and wastewater facilities and plant construction such as mechanical-piping installation.
- Its customers are public-sector power utilities such as Korea Hydro & Nuclear Power and large builders such as Hyundai Engineering & Construction, and maintenance contracts are typically bundled over several years, so revenue comes in relatively steadily.
- In other words, this is not a company that builds new power plants; its essence is a service business that keeps already-running plants from stopping and gets paid for it.
- The latest close is ₩32,150 and market capitalization is ₩192.9 billion.
- The price sits below the 20-day line (₩32,200) and below the 60-day line (₩34,466).
- Trading below both the short- and mid-term moving averages, the trend is subdued.
- The RSI (an auxiliary gauge that scores the strength of gains against declines over the past 14 days on a 0-100 scale) is 46.7, a neutral level.
- The one-month change is -1.7%, the three-month change is -11.4%, and the position versus the 52-week high is -21.0%.
- Relative strength against the KOSDAQ is 79 (on a 1-99 scale, converted from the past year's return versus the index with recent performance weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 21% of all stocks by strength.
- Over the past three months it has outpaced the index by 19.3%.
- It is best to read the chart alongside trading volume and disclosure dates.
- The P/E ratio (how many times one year's earnings the price represents) is 6.31x and the P/B (how many times book net assets) is 0.50x, both low relative to peers.
- ROE (how much is earned in a year on equity) is 7.9%, the operating margin is 10.3%, and the net margin is 7.2%, so profitability is solid.
- The balance sheet is especially firm: with a current ratio of 366% (liquid assets against debt due within a year) and an interest coverage ratio of 26x, the company has ample capacity to service debt, and even the 127% debt ratio is largely operating liabilities recognized as construction progresses, so the actual borrowing burden is small.
- One point to flag is that the 6.2x P/E is on a trailing basis (last year's confirmed earnings).
- Because 2024 earnings carried a one-off boost, stripping that base out and computing this year's forward P/E on normalized earnings gives about 8.4x.
- Even so, that figure remains below the peer set (Korea Plant Service & Engineering in the mid-16x range, Iljin Power in the 9x range), so the key point is that the stock sits in a cheap zone even measured on normalized earnings.
- Over five years revenue grew from ₩238.7 billion to ₩423.4 billion, a compound annual rate of about 15%, and 2025 revenue rose 24.5% year over year, so growth actually accelerated.
- As power plants age, maintenance demand rises, and with higher nuclear utilization and LNG combined-cycle plants widening the pool of equipment to service, underlying demand for the core business is favorable.
- Earnings need to be read in layers.
- Operating profit rose 21% in 2025, but net profit fell 23.6% to ₩30.6 billion from ₩40.0 billion the year before.
- That is not a deterioration in the core business but largely a base effect, since 2024 net profit carried a one-off gain.
- This year's forward P/E of 12.31x is precisely the figure obtained by removing that one-off and converting to normalized earnings, and it still sits below peers.
- The first quarter of 2026 opened weakly, with revenue -2.4% and operating profit -79.4%, but in the maintenance business scheduled preventive work is concentrated in the second half and year-end, making the first quarter a seasonally slow period, so one quarter's figure is too little to judge the full year.
- The broad thread of top-line growth and rising maintenance demand remains intact.
- Entering 2026, the company signaled a shift in its business mix through disclosures.
- In its March corporate value-up plan it explicitly set a goal of minimizing the impact of declining coal-fired generation and put winning routine-maintenance work for LNG combined-cycle and new nuclear plants at the center.
- In April it amended its Hanul-plant (nuclear) water-treatment operation-and-maintenance contract with Korea Hydro & Nuclear Power upward to ₩51.69 billion, and it also amended a mechanical-piping installation job ordered by Hyundai Engineering & Construction upward to ₩65.59 billion.
- Both are amended contracts with larger amounts, showing that the company's stated shift is not just words but is turning into actual order figures.
- On dividends, the 2025 payout ratio was 30.9% and the per-share dividend was ₩1,600, qualifying the company as a high-dividend firm for the first time and keeping the dividend yield in the 5% range, while the total dividend amount rose 14.3% year over year.
- This is a stock with clear strengths.
- A business that keeps power plants from stopping is less swayed by the economic cycle, and with contracts running over several years, revenue is steady; on top of that, the shift toward widening the maintenance base into nuclear, LNG, and water treatment is confirmed by actual contract-increase disclosures.
- The balance sheet carries thick cash with a light borrowing burden, and the dividend yield is high at around 5%.
- On valuation, not only the 6.2x trailing P/E on last year's confirmed earnings but also this year's forward P/E of 12.31x on normalized earnings sits below the peer set, so the undervaluation signal is distinct.
- There are, however, points to watch.
- The biggest variable is the structural decline in coal-fired generation, and the question is how quickly new nuclear and LNG maintenance can offset the shrinking coal maintenance.
- Because net profit also leans partly on non-operating interest income, the core operating margin's return to a normal track needs to be checked quarter by quarter.
- In short, when the shift orders accumulate smoothly and the core margin recovers, the low valuation and high dividend shine together; conversely, if coal maintenance shrinks faster than new orders arrive, the recovery may lag.
🔎 Valuation vs peers Inconclusive
Based on the substance of power-plant maintenance and plant upkeep, the peer set is the leading maintenance name Korea Plant Service & Engineering and the similarly sized plant-maintenance and construction firm Iljin Power (companies with different business structures, such as wind-tower makers, are excluded).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| KEPCO KPS | 16.21x | 1.50x | 9.23% |
| Iljin Power | 9.02x | 1.15x | 12.80% |
Looking only at absolute P/E and P/B levels, the stock is clearly below peers and appears undervalued on the surface. But the 6.3x P/E is on a trailing basis (last year's confirmed earnings), and with 2025 net profit down and first-quarter 2026 operating profit sharply lower, the multiple rises when measured on this year's forward earnings. In other words, at an earnings inflection point it is hard to conclude the stock is cheap on trailing P/E alone. On the other hand, the 0.5x P/B is low even against net assets, the shift orders toward nuclear and LNG maintenance are confirmed in the figures, and the thick dividend all offer room to narrow the discount. If the core margin recovers, the picture leans toward the undervaluation resolving; if coal maintenance shrinks faster than new orders come in, the discount could be justified. Rather than settle on either side, the verdict is left inconclusive.
Price history Close · MA20 · MA60
The latest close is ₩32,150 and the market capitalization is ₩192.9 billion. The price sits below its 20-day moving average (₩32,200) and below its 60-day moving average (₩34,466). 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 46.7, a neutral level. The one-month change is -1.7%, the three-month change is -11.4%, and the position relative to the 52-week high is -21.0%. Relative strength versus the KOSDAQ is 79 (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 79% of all stocks. Over the past three months it outpaced the index by 19.3%. 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 +19.27% / 6M +31.66% / 12M -0.24%
Key metrics vs sector median
Valuation
The P/E of 6.31x is below the sector median (7.73x). The P/B of 0.50x is below the sector median (0.79x). 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.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 10.4%, initial growth 2.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 7.9%, in line with the sector average (9.0%). The operating margin is 10.3%. The debt ratio is 127.4%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $223.8M | $225.5M | $280.6M | +24.46% ↑ faster |
| Operating profit | $28.8M | $24.0M | $29.0M | +21.00% ↑ faster |
| Net profit | $25.2M | $26.5M | $20.3M | -23.60% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $158.2M | $164.6M | $223.8M | $225.5M | $280.6M |
| Operating profit | $17.0M | $18.5M | $28.8M | $24.0M | $29.0M |
| Net profit | $15.3M | $18.4M | $25.2M | $26.5M | $20.3M |
| Revenue CAGR | 4-yr avg 15.40% | ||||
Revenue rose 24.5% year over year (2023 ₩337.6 billion → 2024 ₩340.2 billion → 2025 ₩423.4 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 21.0% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 15.4%. The two-year revenue CAGR is 12.0%. In the most recent quarter (Q1 2026), revenue was 2.4% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The dividend yield, at 5.0%, is on the high side.
- Revenue grew 24.5% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-03-23Update2026 corporate value-up plan (voluntary disclosure). With a goal of minimizing the impact of declining coal-fired generation, it presents winning routine-maintenance work for LNG combined-cycle and new nuclear plants as core tasks. The 2025 payout ratio was 30.9%, qualifying as a high-dividend firm for the first time.Over the medium term it formalizes the direction of shifting the business portfolio from coal to nuclear, LNG, and water treatment. No revenue or profit target figures are given, so it is closer to a qualitative plan. Source
- 2026-04-06UpdateAmended contract for operation and routine maintenance of Hanul-plant water-treatment facilities ordered by Korea Hydro & Nuclear Power. The contract value rose from ₩45.26 billion to ₩51.69 billion (21.97% of recent revenue), running from 2022-03-01 to 2026-08-31.Positive over both the short and medium term. With nuclear maintenance orders rising, it verifies actual progress on the company's stated shift toward routine maintenance of new nuclear plants. Source
- 2026-04-14UpdateAmended contract for mechanical-piping installation (subcon-8) ordered by Hyundai Engineering & Construction. The contract value rose from ₩48.43 billion to ₩65.59 billion (19.43% of recent revenue), in Onsan, Ulju, Ulsan, running from 2024-10-07 to 2026-06-30.An increase in plant-construction orders that contributes to near-term revenue. That said, it is due to end in June, so whether follow-on orders continue thereafter is the point to watch. Source
- 2026-03-05DividendCash dividend decision. Per-share dividend of ₩1,600, a 2025 payout ratio of 30.9% (up from 25.1% the prior year), and total dividends of about ₩9.45 billion, up 14.3% year over year.Shareholder returns that support the dividend yield in the 5% range. With the total dividend rising, a stable dividend policy is continuing. Source
- 2026-05-14EarningsFirst-quarter 2026 report. Revenue ₩84.92 billion (-2.4%), operating profit ₩1.28 billion (-79.4%), net profit ₩2.92 billion (-26.3%). Operating profit fell sharply while non-operating income partly cushioned net profit.Weak near-term results. That said, given that the first quarter is a seasonally slow period in the maintenance business, whether the core margin recovers needs to be checked through the second half. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Hanul-plant water-treatment routine-maintenance contract value | base ·approx. (2026-04-06) | ₩51.7 billion(₩51,694,717,218), , revenue 21.97% | Confirmed | link |
| 2025 payout ratio / dividend per share | payout_ratio 30.9%, DPS ₩1,600,x 5.0% | 30.9%, approx. ₩9.4 billion | Confirmed | link |
| First-quarter 2026 results | revenue ₩84.9 billion, operating profit ₩1.3 billion, net profit ₩2.9 billion | (2026.03) | Confirmed | link |
| 2026 estimated net profit (forward) | approx. ₩22.5 billion, forward PER approx. 8.5x | — | Unverified | link |
Recent filings
- 2026-05-14PeriodicQuarterly report
- 2026-04-14Single supply/sales contract (amended)
- 2026-04-06Single supply/sales contract (amended)
- 2026-03-23Amended filing
- 2026-03-20Shareholders' meeting notice
- 2026-03-20Disclosure
- 2026-03-20Disclosure
- 2026-03-19PeriodicAnnual business report (amended)
- 2026-03-12Audit report
- 2026-03-12PeriodicAnnual business report
- 2026-03-05Disclosure
- 2026-03-05DividendCash/stock dividend decision
📖 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.