NHN KCP is a payment-gateway (PG) company that lets card, account, and simple-pay transactions go through at online shopping malls and physical stores by relaying payment information to card issuers and banks and settling the funds. It holds the top share in domestic PG transactions and in online card-approval relay (VAN), earning money from fees on transaction volume. In the first quarter of 2026, revenue was ₩344.9 billion (+22.7% year on year) and operating profit ₩13.8 billion (+26.4%), with growth accelerating, and overseas transaction volume in particular surged 68.3% to ₩2.6 trillion, lifting results. The most important thing to note is that while online payment volume grows and the higher-margin overseas share rises, the company is strong on ROE in the 15% range and a balance sheet with no interest burden, but if domestic consumption freezes or pressure to cut payment fees intensifies, its thin margins mean the growth pace could slow.
At-a-glance assessment financial health · growth · profitability · valuation
- For financial companies, debt and interest costs are large by the nature of the business, so the debt ratio and interest coverage cannot be read on the same yardstick as an ordinary company.
- Revenue rose 11.7% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 22.7% higher than a year earlier.
- ROE is 15.4% (controlling-interest basis). It is above the sector average.
- Operating margin is 4.4%.
Ownership & governance As of 2025-12-31
Largest shareholder NHN Payco 42.33% (corporate)
Controlling bloc incl. related parties 42.72%
With the controlling bloc holding 43%, the ownership structure is stable.
🔎 In-depth analysis
- NHN KCP is a payment-infrastructure company that processes online and offline payments on others' behalf.
- It makes money in three main ways.
- First, payment gateway (PG): it provides payment windows and settlement so that shopping malls do not have to contract individually with card issuers and banks, taking a set fee from transaction volume.
- Second, online and offline VAN services that relay card-payment approvals.
- Third, mobile micropayments.
- It holds the top share in both domestic PG transactions and online VAN.
- As a result, the more online consumption grows and the more large-merchant transactions there are, the larger the processed transaction volume and the higher the revenue.
- The total transaction volume processed annually reaches the ₩50 trillion range.
- The share price sits at a heavily depressed level.
- The current price of ₩12,250 has broken below the 20-day, 60-day, and 120-day moving averages (₩13,521, ₩16,828, and ₩17,946 respectively).
- It is about 49% below the 52-week high, having corrected to roughly half.
- The six-month return is -20.3%, three-month -19.8%, and one-month -16.7%.
- RSI 14 (a gauge of recent upward and downward strength on a 0-100 scale) is 35.4, near oversold.
- With results improving while the share price has instead fallen sharply, this is a phase where the direction of earnings and price diverges.
- Rather than judging on the chart alone, it is best read alongside the flow of results and filings.
- Profitability is this company's strength.
- ROE (how much is earned in a year on equity) is 15.4%, running equity efficiently and clearly higher than payment peers (mostly around 10%).
- The operating margin, by contrast, looks low at 4.4%, but this is not because the company is weak.
- Because revenue includes settlement funds such as card fees paid by merchants that are passed straight through, the revenue figure is booked large, and the margin ratio comes out low as a result, a structure peculiar to the payment business.
- It is therefore closer to the reality to look at ROE than at the margin.
- The P/E ratio (how many times one year's earnings the share price is) is 10.9x and P/B (how many times book net assets) is 1.67x.
- The debt-to-equity ratio of 224% looks high, but a large part of it is settlement funds (accrued amounts) about to be paid out to merchants, different in nature from ordinary manufacturers' borrowings.
- With an interest-coverage ratio (how many times over operating profit can pay interest) of 38x, there is effectively no interest burden.
- The direction of growth is clear.
- Revenue has grown steadily at a five-year average of 13.4% per year.
- In 2025 revenue rose 11.7% to ₩1.2349 trillion, and operating profit rose 24.9% to ₩54.7 billion, with profit growth outpacing revenue.
- The pace quickened further in 2026: first-quarter revenue rose 22.7% to ₩344.9 billion, operating profit 26.4% to ₩13.8 billion, and net profit 62.8% to ₩16.2 billion.
- The core engine of growth is overseas payments.
- First-quarter overseas transaction volume surged 68.3% year on year to ₩2.6 trillion, the result of an expanding base of global e-commerce merchants combined with a recovery in imported-car payments.
- Overseas and large-merchant payments are more profitable than domestic small-value payments, so not only the top line but the quality of earnings is improving together.
- On this trend, 2026 net profit has room to rise from ₩45.3 billion last year to around ₩55 billion.
- In that case, the current share price is at about 9x this year's expected earnings, noticeably lower than the P/E on last year's results.
- Recent filings center on improving results and shareholder returns.
- In May the company announced first-quarter 2026 preliminary results in a fair-disclosure filing, confirming growth of over 20% in both revenue and operating profit.
- The same month it held an investor briefing (IR) to explain the overseas-payment growth directly.
- At the March annual shareholder meeting it confirmed a cash dividend of ₩250 per common share (₩9.4 billion in total).
- The dividend yield is about 2% and the payout ratio about 21%; for a growth stock, it returns a portion of profit to shareholders steadily.
- There are no large-scale change filings such as contract wins or acquisitions, nor risk filings such as rights offerings.
- As a result, what drives value is the trend in payment volume and fees rather than new contracts.
- Separating strengths from cautions makes the assessment clearer.
- There are three strengths.
- First, a stable top position in domestic PG and online VAN share.
- Second, ROE in the 15% range and a balance sheet with almost no interest burden.
- Third, overseas payments as a growth engine lifting both the top line and the quality of earnings.
- The cautions are equally clear.
- If domestic consumption freezes, growth in domestic transaction volume can slow.
- Payment fees are exposed to regulation and competition, so pressure to cut rates is a constant.
- With a thin operating margin, profit is sensitive to changes in costs and fees.
- On valuation, the P/E and P/B on last year's results look higher than at peer payment companies.
- But this can be seen as a premium for the highest ROE and fast growth, and on this year's expected earnings the gap narrows considerably.
- Together with the correction to roughly half the peak price, this reads as a phase where the price is depressed relative to growth and profitability.
- In conclusion, the stock is strong in a phase where online and overseas payments grow, but its growth premium can wobble in a phase where domestic weakness and fee cuts coincide.
🔎 Valuation vs peers Fairly valued
Chose domestic payment-gateway (PG) and card-VAN operators with the same business substance as the peer set, using the shared reality of 'processing online payments to earn fees' rather than a sample based on sector classification.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| KG Inicis | 5.38x | 0.52x | 9.60% |
| NICE Information & Telecommunication | 7.02x | 0.76x | 10.80% |
| Korea Information & Communications | 7.73x | 0.84x | 10.90% |
(a) Position versus the true peer set: compared with same-industry electronic-payment names KG Inicis (P/E 5.4x, P/B 0.5x), Nice Information & Telecommunication (7.0x, 0.8x), and Korea Information & Communications (7.7x, 0.8x), NHN KCP's P/E of 10.9x and P/B of 1.67x on last year's results are on the high side within the industry. (b) Premium/discount: however, NHN KCP's ROE of 15.4% is clearly higher than these peers' (around 10%) and its revenue growth is faster. The premium is not without basis; it is interpreted as consideration for profitability and growth. (c) Limits of the trailing P/E and the forward basis: the P/E on last year's results is a figure before the earnings improvement is reflected. With first-quarter net profit up 62.8%, it can look more expensive than it really is now. If the first-quarter growth trend continues and this year's net profit reaches around ₩55 billion, the P/E on this year's earnings falls to about 9x, greatly narrowing the gap with the top of the industry range. Together with the recent correction to roughly half the price, it is hard to call it 'overvalued,' and it is viewed as within a fair range given the growth.
Price history Close · MA20 · MA60
The latest close is ₩12,250 and the market capitalization is ₩492.0 billion. The price sits below its 20-day moving average (₩13,521) and below its 60-day moving average (₩16,828). 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 35.4, a neutral level. The one-month change is -16.7%, the three-month change is -19.8%, and the position relative to the 52-week high is -48.5%. Relative strength versus the KOSDAQ is 67 (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 67% of all stocks. Over the past three months it outpaced the index by 1.1%. 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 +1.11% / 6M -8.79% / 12M +13.44%
Key metrics vs sector median
Valuation
The P/E of 10.86x is in line with the sector median (10.40x). The P/B is 1.67x. 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.
Profitability & financials
Return on equity (ROE) is 15.4%, in line with the sector average (15.0%). The operating margin is 4.4%. The debt ratio is 224.0%, but for financial firms deposits and insurance liabilities count as debt, so it cannot be read on the same yardstick as an ordinary company.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $644.2M | $732.6M | $818.4M | +11.72% ↓ slower |
| Operating profit | $27.8M | $29.0M | $36.2M | +24.91% ↑ faster |
| Net profit | $23.4M | $30.0M | $30.0M | +0.24% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $494.0M | $545.3M | $644.2M | $732.6M | $818.4M |
| Operating profit | $28.6M | $29.3M | $27.8M | $29.0M | $36.2M |
| Net profit | $20.2M | $23.1M | $23.4M | $30.0M | $30.0M |
| Revenue CAGR | 4-yr avg 13.45% | ||||
Revenue rose 11.7% year over year (2023 ₩972.0 billion → 2024 ₩1.1 trillion → 2025 ₩1.2 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 24.9% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 13.5%. The two-year revenue CAGR is 12.7%. In the most recent quarter (Q1 2026), revenue was 22.7% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- ROE of 15.4% points to solid profitability.
- Revenue grew 11.7% year over year, a sign of growth.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-05-12EarningsFirst-quarter 2026 consolidated preliminary results fair-disclosure filing — revenue ₩344.9 billion (+22.7% YoY), operating profit ₩13.8 billion (+26.4%)Near term: growth of over 20% in both revenue and operating profit confirms accelerating growth. Medium term: a reference point for gauging the direction of full-year earnings improvement. Source
- 2026-05-19IRInvestor briefing (IR) held — explained payment growth including overseas transaction volume of ₩2.6 trillion (+68.3%)Near term: the company directly presented the expansion of overseas and large-merchant payments. Medium term: reinforces the credibility of the growth narrative. Source
- 2026-03-26DividendAnnual shareholder meeting confirmed a cash dividend of ₩250 per common share (₩9.4 billion total)Near term: a dividend yield of about 2% confirmed. Medium term: continued shareholder returns at a payout ratio of about 21% reinforce stability. Source
- 2026-03-18Filing2025 business report filed — annual revenue ₩1.2349 trillion, operating profit ₩54.7 billion, net profit ₩45.3 billion confirmedNear term: full-year results confirmed. Medium term: provides a baseline for growth and profitability, including a five-year average revenue growth of 13.4% and ROE of 15.4%. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| First-quarter 2026 revenue / operating profit | revenue ₩344.9 billion(+22.7%), operating profit ₩13.8 billion(+26.4%) | revenue ₩344.9 billion, operating profit ₩13.8 billion | Confirmed | link |
| 2025 annual revenue | 1₩234.9 billion | approx. 1₩234.9 billion | Confirmed | link |
| Cash dividend per share (DPS) | ₩250 | 1 ₩250 | Confirmed | link |
| Estimated full-year 2026 net profit (in-house estimate) | approx. ₩55.0 billion | — | Unverified | — |
Recent filings
- 2026-05-19Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-12EarningsFair-disclosure notice
- 2026-05-12EarningsFair-disclosure notice
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-18PeriodicAnnual business report
- 2026-03-17Audit report
- 2026-02-25Disclosure
- 2026-02-25Shareholders' meeting notice
- 2026-02-11Shareholders' meeting notice
- 2026-02-11EarningsFair-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.