Korea Aerospace Industries (047810) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
Korea Aerospace Industries (KAI) is Korea's only maker of complete aircraft, earning money from domestic defense work delivering air-force trainers, the KF-21 fighter and helicopters to the government, from export complete aircraft selling FA-50 and T-50 jets to Poland, Southeast Asia and elsewhere, and from civil airframe structures that supply parts to Boeing and Airbus; a stable defense-volume base carries an export growth axis on top. In May the company confirmed record first-quarter revenue (₩1.0927 trillion, +56.3%) in its consolidated preliminary results, orders continued through single-sale/supply-contract signings in May and June, and it set a full-year revenue target of ₩5.7306 trillion, 58% above the prior year. The point to note is the strength that, if second-half KF-21 mass-production deliveries and export aircraft handovers go smoothly, a backlog exceeding ₩27 trillion translates into earnings leverage, against the caution that the complete-aircraft business concentrates earnings around delivery timing so quarterly swings are large, and delivery delays, cost increases and geopolitical risk are conditions to watch.
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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 “Defense & Aerospace” (Shipbuilding, Machinery, Defense & Power Equipment), a type typically read first through forward P/E.
Defense and aerospace carry long order backlogs and multi-year program execution, which makes the direction of future results relatively visible. Since booked orders feed into earnings ahead, forward price-to-earnings (P/E on expected profit) is the first lens rather than trailing results.
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 far exceeds equity (debt ratio 494.6%).
- Revenue rose 1.7% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 56.3% higher than a year earlier.
- ROE is 10.6% (controlling-interest basis). It is below the sector average.
- Operating margin is 7.1%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2025-12-31
Largest shareholder Export-Import Bank of Korea 26.41% (corporate)
Controlling bloc incl. related parties 26.41%
With the controlling bloc holding 26%, control is maintained but the free float is relatively large.
🔎 In-depth analysis Reading
Korea Aerospace Industries (KAI) is Korea's only maker of complete aircraft. It earns money along three axes. First, domestic defense work: it develops and mass-produces air-force trainers (the T-50 family), the KF-21 Boramae fighter and the Surion helicopter and delivers them to the government. Second, export complete aircraft: it sells the FA-50 light attack aircraft and T-50-family trainers to Poland, Malaysia, Indonesia and others, with contractor-logistics-support (CLS) revenue for maintenance, parts and training following after delivery. Third, civil airframe structures: it supplies wing and fuselage parts to global aircraft makers such as Boeing and Airbus. In other words, an export complete-aircraft growth axis sits on top of a stable defense-volume base grounded in government budgets.
The latest close is ₩150,100 and the market capitalization is ₩14.6 trillion. The price sits above its 20-day moving average (₩142,300) and above its 60-day moving average (₩149,268). 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 53.8, a neutral level. The one-month change is -6.3%, the three-month change is -15.0%, and the position relative to the 52-week high is -25.7%. Relative strength versus the KOSPI is 49 (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 49% of all stocks. Over the past three months it outpaced the index by 3.9%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
ROE (how much is earned in a year on equity) of 10.2% is respectable for defense margins but on the low side versus peers. An operating margin of 7.3% and a net margin of 5.0% mean profitability itself is good. The eye-catching debt ratio (debt to equity) of 566.6% looks high by manufacturing standards, but in the complete-aircraft business, advances received in advance from government and overseas customers (contract liabilities) are recorded largely as liabilities, a figure that reflects an industry trait and is different in nature from ordinary borrowing burden. That said, the trailing P/E (how many times last year's one-year earnings the price is) of 78.71x looks exaggerated because 2025 was a year when net profit was depressed, so it is right to view it again on this year's earnings (forward).
Revenue rose from ₩2.56 trillion in 2021 to ₩3.70 trillion in 2025, a five-year average of about 9.6%, and over that span operating profit improved sharply from ₩58.3 billion to ₩269.2 billion. 2025 was a year when net profit was depressed to ₩185.9 billion by a gap in high-margin work such as Iraqi CLS and by costs recognized ahead of Poland FA-50 delivery preparation. Yet in the first quarter of 2026 revenue reached ₩1.0927 trillion, a record high (+56.3%), with operating profit of ₩67.1 billion (+43.4%) and net profit of ₩41.3 billion (+41.7%). The company set a 2026 full-year revenue target of ₩5.7306 trillion, 58% above the prior year, and an order target of ₩10.4383 trillion. The order backlog at the end of 2025 exceeded ₩27 trillion, so on current revenue several years' worth is already secured. The drivers of this surge are the KF-21 finishing more than a decade of systems development and moving to mass production so revenue begins to be booked, and export complete-aircraft deliveries such as Indonesia's T-50i, Malaysia's FA-50M and Poland's FA-50 concentrated in the second half. In other words, this year's profit is a picture not of last year's depressed base but of revenue jumping more than half, preparation costs converting into revenue, and margins recovering. Even though last year's trailing P/E looks high, on this year's earnings it drops considerably, a textbook earnings-inflection stock.
Two single-sale/supply-contract (amended) disclosures came out in May and June 2026, showing that orders are continuing. On May 7 the consolidated preliminary-results fair disclosure confirmed record first-quarter revenue, and on May 12 the company gave notice of an investor-relations (IR) session. The dividend of ₩500 per share (payout ratio 26.2%) returns part of profit to shareholders, but the cash dividend yield is a low 0.34%, so this is a phase weighted toward growth over dividends.
The strong conditions are clear. If second-half KF-21 mass-production deliveries begin on schedule and Poland and Southeast Asia export complete-aircraft handovers go smoothly, the company's ₩5.7 trillion revenue target translates into earnings leverage, and this year's net profit has room to far exceed last year's. In that case the trailing P/E is merely an optical effect, and the burden falls considerably on a forward basis. Conversely, the weak conditions are delivery-schedule delays, cost increases, or disruption to high-margin CLS work from Middle East geopolitical risk. Because the complete-aircraft business concentrates revenue and profit around delivery timing, quarterly swings are large, so whether second-half deliveries are executed is the key variable that decides this year's results.
🔎 Valuation vs peers Fairly valued
Compared against domestic defense and complete-aircraft/weapon-systems makers whose business substance overlaps.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hanwha Aerospace | 38.68x | 5.46x | 17.56% |
| LIG Defense & Aerospace | 60.96x | 10.23x | 20.46% |
The trailing P/E of 76.8x uses depressed 2025 net profit as the denominator, so the burden looks larger than it is. In 2026, with revenue jumping more than half to ₩5.7 trillion (the company target) and preparation costs converting into revenue, net profit has room to rise sharply, bringing the forward P/E down to the mid-40s. That is a mid-range level, higher than peer Hanwha Aerospace (36.5x) and lower than LIG Defense & Aerospace (62.4x), and given the scarcity of complete-aircraft capability and this year's earnings rebound, it is hard to view as an extreme overvaluation. That said, because profit is heavily swung by second-half delivery execution and volatility is high, we view it as a fair range.
Earnings outlook Estimate company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | 5 ₩730.6 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩150,100 and the market capitalization is ₩14.6 trillion. The price sits above its 20-day moving average (₩142,300) and above its 60-day moving average (₩149,268). 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 53.8, a neutral level. The one-month change is -6.3%, the three-month change is -15.0%, and the position relative to the 52-week high is -25.7%. Relative strength versus the KOSPI is 49 (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 49% of all stocks. Over the past three months it outpaced the index by 3.9%. 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 +3.93% / 6M -26.25% / 12M -17.90%
Key metrics Computed vs sector median
Valuation
The P/E of 78.71x is above the sector median (46.67x). The P/B of 7.85x is above the sector median (4.89x).
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 9.2%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 10.6%, in line with the sector average (11.0%). The operating margin is 7.1%. The debt ratio is 494.6%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $2.7B | $2.6B | $2.6B | +1.72% ↑ faster |
| Operating profit | $173.9M | $169.1M | $189.1M | +11.83% ↑ faster |
| Net profit | $157.4M | $120.9M | $130.6M | +8.03% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.8B | $2.0B | $2.7B | $2.6B | $2.6B |
| Operating profit | $40.9M | $99.5M | $173.9M | $169.1M | $189.1M |
| Net profit | $44.9M | $83.2M | $157.4M | $120.9M | $130.6M |
| Revenue CAGR | 4-yr avg 9.59% | ||||
Revenue rose 1.7% year over year (2023 ₩3.8 trillion → 2024 ₩3.6 trillion → 2025 ₩3.7 trillion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit rose 11.8% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 9.6%. The two-year revenue CAGR is -1.6%. In the most recent quarter (Q1 2026), revenue was 56.3% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- ROE of 10.6% points to solid profitability.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-07EarningsFirst-quarter 2026 consolidated preliminary-results fair disclosure — revenue ₩1.0927 trillion (+56.3%), operating profit ₩67.1 billion (+43.4%), net profit ₩41.3 billion (+41.7%), a record quarterly revenue.Clear confirmation of the revenue growth trend. That said, the net margin was around 3.8% as preparation costs were reflected, so a second-half margin recovery is the key issue. Source
- 2026-06-09UpdateAmended disclosure adjusting the completion schedule of the KF-21 Boramae systems-development contract (ordered by DAPA, total ₩7.9210 trillion, 342.2% of recent revenue) to June 30, 2026. Confirms that development of the domestic supersonic fighter is in its final stage.Positive in the medium term. Ending development means the transition to mass production, forming the footing for future complete-aircraft revenue recognition. Source
- 2026-05-14UpdateReconfirmed an Airbus single-aisle passenger-jet wing-assembly supply contract at about ₩1.0559 trillion (contract period 2026-01-01 to 2030-12-31, 37.4% of recent revenue). A recovery signal for civil airframe-structure exports.Positive in the medium term. The non-defense civil revenue axis is expanding again, contributing to business diversification. Source
- 2026-05-12IRInvestor-relations (IR) session notice disclosure — explaining first-quarter results and the second-half business direction to the market.A venue for the company to communicate directly on the direction of second-half results and order improvement. Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-06-09Single supply/sales contract (amended)
- 2026-06-04OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-04OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-01Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-29Large-business-group status disclosure
- 2026-05-29OwnershipOwnership-change filing
- 2026-05-26OwnershipOwnership-change filing
- 2026-05-15PeriodicQuarterly report
- 2026-05-14Single supply/sales contract (amended)
- 2026-05-12Disclosure
- 2026-05-07EarningsFair-disclosure 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.