KH Vatec makes precision metal parts for smartphones, and its 'hinge assembly module' - the hinge that lets a foldable phone fold and unfold - accounts for about 60% of revenue, so its results are directly tied to the sales volume and spec changes of Samsung Electronics' Galaxy Z Fold and Flip, with the rest coming from metal cases and brackets (about 30%) and auto parts (about 5%). In a March 31 value-up plan it set out five future growth engines such as robotics and digital cockpit, a 2024-2028 revenue CAGR target of 20%, and a policy of maintaining a total shareholder return of 35-40%; it confirmed an annual dividend of 365 won (a 39.45% payout ratio), holds 1.64 million treasury shares, and explained its second-half foldable and new-business direction at a May IR. What stands out recently is that a supply position in foldable hinges with entry barriers, a P/B of 0.9x, a dividend in the 3% range, and a diversification blueprint are strengths, while about 60% of revenue is concentrated on the single customer of Samsung foldables, so results swing heavily with new-product sales volume and pricing, and with the first half a structural low season, the recovery timing hinges on the second-half new-product cycle and whether new businesses take shape.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 36.6% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 10.5% lower than a year earlier.
- ROE is 7.4% (controlling-interest basis). It is above the sector average.
- Operating margin is 7.5%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Nam Kwang-hee 13.9% (individual)
Controlling bloc incl. related parties 22.88%
With the controlling bloc holding 23%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- KH Vatec makes and sells precision metal parts for smartphones.
- Its largest revenue source is the 'hinge assembly module,' which serves as the hinge that lets a foldable phone fold and unfold and, per the company's business report, accounts for about 60% of total revenue.
- Since Samsung Electronics released its first foldable phone in 2019, it has a history of supplying the hinge on an effectively exclusive basis, so revenue is directly tied to the sales volume and new-product spec changes of the Galaxy Z Fold and Flip series.
- The rest of revenue comes from metal cases and brackets (about 30%), made by precision-machining magnesium, aluminum and the like, and auto parts (about 5%).
- In a word, 'how much Samsung foldable phones sell, and how the per-unit hinge price is set' drives this company's results.
- The latest close is 9,470 won and the market cap is 224.2 billion won.
- The price sits below both the 20-day line (10,805 won) and the 60-day line (12,265 won).
- Trading below both its short- and mid-term moving averages, the trend is on the subdued side.
- The RSI (a supplementary gauge comparing upward and downward force over the past 14 days on a 0-100 scale) is 34.7, a neutral level.
- The one-month change is -9.5%, the three-month change is -26.4%, and the position versus the 52-week high is -50.5%.
- Relative strength against KOSDAQ is 64 (1-99, converting the past year's return versus the index with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 36% of all stocks by strength.
- Over the past three months it has lagged the index by 5.1%.
- It is best to read the chart alongside trading volume and disclosure dates.
- On last year's (2025) confirmed results, the valuation metrics are a P/E (how many times a year's earnings the share price is) of about 12.0x and a P/B (how many times net assets the share price is) of about 0.9x.
- A P/B below 1x means the share price is set even below the company's net assets, so on asset value alone it is in cheap territory.
- The dividend yield, in the 3% range, is also generous.
- On profitability, ROE (how much is earned in a year on equity) is 7.4% and the operating margin is 7.5%, a mid-level above the peer average; on financials, the debt-to-equity ratio of 146% looks somewhat high on the number alone, but viewed together with a current ratio of 185% and an interest-coverage ratio of 7.5x, short-term funding conditions and interest-servicing ability are stable.
- Meanwhile, the forward P/E converted from this year's expected earnings comes out higher than the last-year basis, because with foldable new products concentrated in the second half, the low-season first half contributes little profit.
- In other words, it is accurate to read it as cheap on assets (P/B) but, on this year's earnings (forward P/E), a price range awaiting the second half when the new-product effect is added.
- The five-year revenue flow (2021-2025) - 339.8 billion won, 363.9 billion won, 363.6 billion won, 311.0 billion won, 424.9 billion won - shows clear cyclicality that rises and falls whenever the foldable new-product spec changes.
- After a weak 2024 (revenue -14.5%), 2025 recovered as revenue rose 36.6% and operating profit jumped 45.3% on the slim-type foldable effect.
- That said, net profit was 20.4 billion won, down 4.3% year on year, because although the top line grew, FX and cost factors kept the final margin from following revenue.
- In Q1 2026 it started weak, with revenue -10.5%, operating profit -54.7% and net profit -94.4%.
- This is because, in a structure where foldable revenue is concentrated on second-half new-product launches, the first half is a typical low season, and it is early to gauge the full year from Q1 alone.
- The forward P/E on this year's expected earnings also reflects this seasonal structure, with second-half demand, pricing and share, when mass production of new products gets underway, being the key variables for annual profit.
- This year's most meaningful official document is the 'value-up plan (voluntary disclosure)' filed with DART on March 31.
- The company presented robotics, digital cockpit, thixomolding, China-brand-bound products, and high-heat-dissipation parts as its 'five future growth engines,' and directly set out a mid-term target of growing revenue at a 20% CAGR from 2024 to 2028 and a policy of maintaining a total shareholder return (dividends plus treasury-share cancellation) of 35-40%.
- In February it confirmed an annual dividend of 365 won, combining a 315-won year-end dividend with the existing 50-won quarterly dividend (a 39.45% payout ratio), and it holds 1.64 million treasury shares.
- In May, along with the quarterly report, it held an IR (investor briefing) to directly explain Q1 results and the second-half foldable and new-business direction.
- In sum, it has officially presented a business-diversification blueprint to reduce foldable dependence and a commitment to shareholder returns.
- The strengths are clear.
- It combines a long-held supply position for the Samsung foldable hinge - a core part with entry barriers - an asset value set even below net assets at a P/B of 0.9x, a dividend in the 3% range with a 35-40% total-shareholder-return policy, and a diversification blueprint through five new businesses.
- On the other hand, the points to watch are that about 60% of revenue is concentrated on the single customer of Samsung foldable phones, so results swing heavily with new-product sales volume and pricing, and that the first half is a structural low season, so Q1 profit comes in thin.
- In sum, this stock is already in undervalued territory on asset value and dividends, and it is structured so that 'if the second-half foldable new-product cycle returns normally and new businesses take shape,' earnings recover and that appeal is confirmed in the results.
- Conversely, 'if the new-product effect is weak or diversification is slow,' it is a stock swung by the cycle phase, with the recovery timing pushed back.
🔎 Valuation vs peers Inconclusive
Because the business substance is precision metal parts for Samsung foldable phones (hinge modules, metal cases), pure same-industry listed comparables are limited. Among precision-machining and parts names verifiable in the site data, Hansol IONES is taken as an approximate comparable, viewed with allowance for the heavy single-customer, single-product concentration and strong cyclicality.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hansol iOnes | 11.14x | 1.51x | 13.52% |
On last year's confirmed results, a P/E of 13.6x is similar to the approximate comparable (in the 14x range) and a P/B of 1.0x is lower, so on an asset basis it looks cheap. However, this trailing P/E has a large limit in being based on strong 2025 results. In the foldable business, earnings swing heavily with the new-product cycle and pricing, and since net profit nearly vanished in Q1 2026, recalculating on this year's earnings (forward) clearly makes the price more of a burden than on the last-year basis. In the end, it is structured so that undervaluation appeal becomes real only once 'the second-half foldable new-product effect and new-business realization' are confirmed, so for now it is hard to conclude undervalued/fairly valued, hence the verdict is Inconclusive. It is a stock with both strengths (entry barriers, dividends) and weaknesses (customer/product concentration, earnings volatility).
Price history Close · MA20 · MA60
The latest close is ₩9,470 and the market capitalization is ₩224.2 billion. The price sits below its 20-day moving average (₩10,805) and below its 60-day moving average (₩12,265). 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 34.7, a neutral level. The one-month change is -9.5%, the three-month change is -26.4%, and the position relative to the 52-week high is -50.5%. Relative strength versus the KOSDAQ is 64 (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 64% of all stocks. Over the past three months it lagged the index by 5.1%. 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 -5.05% / 6M +2.44% / 12M -11.65%
Key metrics vs sector median
Valuation
The P/E of 11.00x is below the sector median (18.61x). The P/B of 0.81x is below the sector median (1.63x). 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 4.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 7.4%, in line with the sector average (7.0%). The operating margin is 7.5%. The debt ratio is 146.0%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $241.0M | $206.1M | $281.6M | +36.62% ↑ faster |
| Operating profit | $22.3M | $14.5M | $21.0M | +45.27% ↑ faster |
| Net profit | $20.5M | $14.1M | $13.5M | -4.32% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $225.2M | $241.2M | $241.0M | $206.1M | $281.6M |
| Operating profit | $17.8M | $21.6M | $22.3M | $14.5M | $21.0M |
| Net profit | $22.1M | $16.4M | $20.5M | $14.1M | $13.5M |
| Revenue CAGR | 4-yr avg 5.74% | ||||
Revenue rose 36.6% year over year (2023 ₩363.6 billion → 2024 ₩311.0 billion → 2025 ₩424.9 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit rose 45.3% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 5.7%. The two-year revenue CAGR is 8.1%. In the most recent quarter (Q1 2026), revenue was 10.5% 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 3.9%, is on the high side.
- Revenue grew 36.6% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
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
- 2026-03-31FilingValue-up plan (voluntary disclosure): investment centered on five future growth engines (robotics, digital cockpit, thixomolding, China-brand-bound products, high-heat-dissipation parts), a 2024-2028 revenue CAGR target of 20%, and a policy of maintaining a total shareholder return of 35-40%, presented directly by the companyFormalizes a mid-term direction to reduce single-customer foldable dependence and a commitment to shareholder returns. A potential mid-term factor for easing earnings volatility, but at the planning stage until new businesses take shape. Source
- 2026-02-26DividendCash-dividend decision: year-end dividend of 315 won per common share, which combined with the existing 50-won quarterly dividend confirms a 2025 annual dividend of 365 won per share (total dividend of 8.04 billion won, a 39.45% payout ratio)Continued shareholder returns at a dividend yield of about 3.1%. Meeting the high-dividend-company tax-benefit criteria reinforces dividend appeal. Source
- 2026-05-15EarningsQ1 2026 quarterly report filed: revenue 55.1 billion won (-10.5% year on year), operating profit 1.68 billion won (-54.7%), net profit 0.29 billion won (-94.4%), with results sharply slowing in the pre-launch low seasonA short-term factor lowering this year's annual-profit expectations. That said, given the seasonality with foldable revenue concentrated in the second half, the annual judgment needs second-half confirmation. Source
- 2026-05-29IRInvestor briefing (IR) held: directly explains Q1 results and business status, and the foldable new-product and new-business direction, to investorsAn official communication channel on the company's business rollout and second-half direction. Neutral. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-29Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-04-30Disclosure
- 2026-03-31Disclosure
- 2026-03-31Disclosure
- 2026-03-31Shareholders' meeting notice
- 2026-03-19PeriodicAnnual business report
- 2026-03-19Audit report
- 2026-03-12Disclosure
- 2026-03-12Shareholders' meeting notice
- 2026-02-27Disclosure
- 2026-02-26DividendCash/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.