KZ Precision (036560) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
KZ Precision is a precision-parts and machinery maker in the machinery/equipment sector that has been turning a steady profit in its core business of making and selling products, with recent annual revenue of ₩110.5 billion and operating profit of ₩10.2 billion (a 9.2% operating margin). It voluntarily disclosed a corporate value-up plan in March 2026, a May fair disclosure confirmed first-quarter revenue of ₩23.0 billion, operating profit of ₩1.8 billion, and net profit of ₩8.5 billion, and its dividend yield is on the high side in the 7% range. What stands out recently is that the price is cheap relative to assets and earnings at 0.31x net assets (P/B) and a forward P/E of 8.22x, with a stable financial structure, so the undervaluation signal is distinct; on the other hand, annual revenue has shown a flat trend and ROE is still low at 1.6%, so it needs to be confirmed whether this year's profit recovery comes not as a one-off but sustains across several quarters from core-business profitability.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Machinery & Electrical Equipment” (Shipbuilding, Machinery, Defense & Power Equipment), a type typically read first through P/E.
Machinery and electrical-equipment makers build and sell industrial gear, and orders and shipments feed fairly directly into profit. Because revenue translates cleanly into current-year net income, price-to-earnings (P/E) is the natural first lens.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 1.9% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 5.8% higher than a year earlier.
- ROE is 2.5% (total-net basis). It is above the sector average.
- Operating margin is 9.0%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2022-12-31
Largest shareholder Yoo Jung-geun 6.27% (individual)
Controlling bloc incl. related parties 36.72%
With the controlling bloc holding 37%, the ownership structure is stable.
🔎 In-depth analysis Reading
KZ Precision (036560) is a precision-parts and machinery maker in the machinery/equipment sector. Recent annual revenue is ₩110.5 billion and operating profit is ₩10.2 billion (a 9.2% operating margin), so it turns a steady profit in the core business of making and selling products. As a small/mid-cap with a market capitalization of ₩178.9 billion, swings in quarterly results or a single disclosure have a relatively large impact on the overall numbers.
The latest close is ₩12,230 and the market capitalization is ₩192.6 billion. The price sits above its 20-day moving average (₩11,628) and above its 60-day moving average (₩12,072). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 59.8, a neutral level. The one-month change is +6.8%, the three-month change is -14.9%, and the position relative to the 52-week high is -28.7%. Relative strength versus the KOSDAQ is 65 (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 65% of all stocks. Over the past three months it outpaced the index by 29.2%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
The financial structure is on the stable side. The debt ratio (debt relative to equity) is 126.3%, the current ratio (assets convertible to cash within a year against debt due within a year) is 184.6%, and the interest coverage ratio (how many times interest can be covered by operating profit) is 4.6x, so the burden is not heavy. The P/B (how many times book value the price represents) is 0.31x, meaning it trades at a third of the company's net assets. The P/E based on last year's confirmed earnings (how many times a year's earnings the price represents) looks somewhat high at 19.23x, but that largely reflects last year's temporarily low net profit. With earnings rebounding quickly this year, the forward P/E — recalculating the same price on this year's earnings flow — comes down to 7.63x. For a stock passing an inflection point, this year's earnings flow is closer to the real picture than a single past year's number.
Annual revenue fell from ₩138.7 billion in 2023 to ₩110.5 billion in 2025, so the top line passed through a flat-to-shrinking phase. But this year a meaningful reversal is visible on the profit side. First-quarter 2026 revenue was ₩23.0 billion, up +5.8% from the same period last year, turning revenue back to growth, and net profit jumped more than threefold (+221.9%) from a year earlier to ₩8.5 billion. This one quarter's net profit is nearly equal to last year's full-year net profit (₩9.3 billion). On the assumption that this quarterly flow continues, this year's net profit is estimated at around ₩23.4 billion, and dividing the current market cap (₩178.9 billion) by this earnings figure yields a forward P/E of 8.22x. In other words, the core of this year is profitability recovery and improving earnings quality rather than top-line growth. That said, with net profit running well ahead of operating profit (₩1.8 billion for the quarter, -4.3% year over year), it is worth confirming how much non-operating or one-off factors are mixed into the net-profit jump.
On 2026-03-19, through a corporate value-up plan (voluntary disclosure), the company directly presented plans related to shareholder value. Then a 2026-05-07 preliminary-results fair disclosure confirmed first-quarter 2026 revenue of ₩23.0 billion, operating profit of ₩1.8 billion, and net profit of ₩8.5 billion (the same quarter's preliminary figure was also disclosed once on 2026-02-02). Understanding comes faster by viewing together whether the disclosed results move in the same direction as the annual trend and whether one-off factors are mixed into the net-profit improvement.
The strengths are clear. The price is cheap relative to assets and earnings at 0.31x net assets (P/B) and a forward P/E of 8.22x on this year's earnings flow, and the dividend yield is also high in the 7% range. The financial structure, including debt and liquidity, is also stable. Even against the peer set, a forward P/E of 7.6x is on the low side and reads as an undervaluation signal. On the other side, points to examine are that annual revenue has followed a flat, declining trend and that ROE (how much is earned in a year on equity) is still low at 1.6%. If this year's profit recovery sustains across several quarters rather than being a single quarterly jump, and the net-profit improvement comes from core-business profitability rather than one-offs, the undervaluation appeal strengthens. Conversely, if the revenue stagnation drags on or one-off factors made up a large share of first-quarter net profit, the durability of the profit recovery needs to be watched further.
🔎 Valuation vs peers Undervalued
A comparison set within machinery/equipment with adjacent market caps.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Avaco | 5.70x | 0.78x | 12.91% |
| Samick THK | — | 1.18x | -28.59% |
| Innotech | 13.77x | 1.71x | 14.22% |
The primary comparison is against public-data peers with nearby market caps within machinery/equipment. The current P/E ratio (how many times a year's earnings the price represents) is 20.70x, and the P/B (how many times book value the price represents) is 0.31x. However, smaller-cap names are heavily affected by earnings swings and financing disclosures, so this is not treated as conclusive based on last year's confirmed results alone. The basis for the outlook box is a DART seasonality approximation.
Earnings outlook Estimate company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩102.2 billion | ₩6.3 billion | ₩23.4 billion |
| Next quarter | Q2 2026 | ₩29.4 billion | ₩2.1 billion | ₩6.8 billion |
Price history Close · MA20 · MA60
The latest close is ₩12,230 and the market capitalization is ₩192.6 billion. The price sits above its 20-day moving average (₩11,628) and above its 60-day moving average (₩12,072). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 59.8, a neutral level. The one-month change is +6.8%, the three-month change is -14.9%, and the position relative to the 52-week high is -28.7%. Relative strength versus the KOSDAQ is 65 (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 65% of all stocks. Over the past three months it outpaced the index by 29.2%. 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 +29.20% / 6M +23.94% / 12M -12.86%
Key metrics Computed vs sector median
Valuation
The P/E of 20.70x is above the sector median (14.07x). The P/B of 0.31x is below the sector median (1.01x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
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) Estimate
Model output — not a price target. This is what the formula returns under the assumptions below, not a view on where the share price should go.
DCF (discounted cash flow) estimate — discount rate 10.1%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 2.518x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 2.5%, above the sector average (2.0%). The operating margin is 9.0%. The debt ratio is 28.9%, so the financial structure is stable.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $97.4M | $79.2M | $77.6M | -1.95% ↑ faster |
| Operating profit | $14.6M | $10.7M | $7.2M | -33.04% ↓ slower |
| Net profit | $20.5M | $13.5M | $6.5M | -51.54% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $55.3M | $62.6M | $97.4M | $79.2M | $77.6M |
| Operating profit | $6.0M | $8.4M | $14.6M | $10.7M | $7.2M |
| Net profit | $8.3M | $10.9M | $20.5M | $13.5M | $6.5M |
| Revenue CAGR | 4-yr avg 8.84% | ||||
Revenue fell 1.9% year over year (2023 ₩138.7 billion → 2024 ₩112.7 billion → 2025 ₩110.5 billion), and the three-year trend is 'falling'. That said, the rate of decline narrowed from the prior year. Operating profit fell 33.0% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 8.8%. The two-year revenue CAGR is -10.7%. In the most recent quarter (Q1 2026), revenue was 5.8% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
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 6.5%, is on the high side.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 1.9% year over year (3-year trend: falling).
Recent news & events searched · sourced
- 2026-03-19UpdateCorporate value-up plan (voluntary disclosure): company plan source confirmedThis is planning material presented directly by the company. If it contains figures, it is treated as primary evidence for the outlook box; if not, it is used only as directional material. Source
- 2026-05-07EarningsOperating (preliminary) results (fair disclosure): first-quarter 2026 revenue ₩23.0 billion · operating profit ₩1.8 billion · net profit ₩8.5 billionThis is recently confirmed or preliminary results material. It is examined for whether it moves in the same direction as the annual trend and whether any one-off factors are involved. Source
- 2026-02-02EarningsOperating (preliminary) results (fair disclosure): first-quarter 2026 revenue ₩23.0 billion · operating profit ₩1.8 billion · net profit ₩8.5 billionThis is recently confirmed or preliminary results material. It is examined for whether it moves in the same direction as the annual trend and whether any one-off factors are involved. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩12,230 | ₩12,230 | Confirmed | link |
| Latest quarterly results | revenue ₩23.0 billion, operating profit ₩1.8 billion | revenue ₩23.0 billion, operating profit ₩1.8 billion | Confirmed | link |
| Annual results | revenue ₩110.5 billion, operating profit ₩10.2 billion | revenue ₩110.5 billion, operating profit ₩10.2 billion | Confirmed | link |
| Outlook/plan disclosure source | — | — | Confirmed | link |
| Results disclosure source | 2026 1 revenue ₩23.0 billion · operating profit ₩1.8 billion · net profit ₩8.5 billion | 2026 1 revenue ₩23.0 billion · operating profit ₩1.8 billion · net profit ₩8.5 billion | Confirmed | link |
| Results disclosure source | 2026 1 revenue ₩23.0 billion · operating profit ₩1.8 billion · net profit ₩8.5 billion | 2026 1 revenue ₩23.0 billion · operating profit ₩1.8 billion · net profit ₩8.5 billion | Confirmed | link |
| Outlook box basis | DART | DART | Confirmed | link |
Recent filings Source
- 2026-06-01Large-business-group status disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-07EarningsFair-disclosure notice
- 2026-04-27OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-03OwnershipOwnership-change filing
- 2026-03-19Disclosure
- 2026-03-19Disclosure
- 2026-03-19Shareholders' meeting notice
- 2026-03-11PeriodicAnnual business report
- 2026-03-11Audit report
- 2026-03-04Disclosure
- 2026-03-04Shareholders' meeting notice
📖 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.