Korea Advanced Materials (062970) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
Korea Advanced Materials is a small company that makes parts for communications and broadcasting equipment, and it is in a phase of shoring up its balance sheet and rebuilding its business base after its top line shrank. Financing has continued, including a May 2026 convertible bond issue at a conversion price of ₩2,802 and a March rights offering (15 million shares scheduled for issuance), and first-quarter revenue rose year on year, raising the possibility that the top-line decline is ending. What stands out lately is that if the cash raised feeds into a revenue recovery and a narrowing of losses, a price level down more than 70% from its high could work as a strength; on the other hand, if the revenue recovery lasts only one quarter or losses drag on, the burden of a rising share count and dilution from the string of rights offerings and convertible bonds could resurface.
This page organises public market and filing data for information purposes. It is not a recommendation to buy or sell, nor investment advice. Metrics labelled “forward” are our own unverified estimates. Please verify with the original DART filings and decide at your own responsibility.
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 “IT Hardware & Equipment” (Semiconductors & IT Components), a type typically read first through forward P/E.
IT hardware and equipment makers see orders and earnings swing with their customers' investment cycles and new-product launches, so what matters is the profit still to come, not the profit already booked. That is why forward P/E, based on expected earnings, is the first lens here.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
That said, earnings are swinging with the industry cycle right now, so this metric is best viewed alongside asset value and the demand backdrop.
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
- The most recent full-year net result was a loss.
- Revenue fell 45.0% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 4.9% higher than a year earlier.
- ROE is -97.9% (total-net basis). It is below the sector average.
- Operating margin is -95.4%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder Satoshi Holdings 12.14% (corporate)
Controlling bloc incl. related parties 12.72%
With the controlling bloc holding 13%, ownership is dispersed, leaving room for control-related or activist dynamics.
🔎 In-depth analysis Reading
Korea Advanced Materials makes parts for communications and broadcasting equipment. Because it is a small stock with modest revenue, one must watch not only the flow of the business itself but also how each individual disclosure affects earnings and the share count. It can be seen as currently in a phase of shoring up its balance sheet and rebuilding its business base after its top line shrank.
The latest close is ₩1,162 and the market capitalization is ₩66.3 billion. The price sits above its 20-day moving average (₩1,149) and below its 60-day moving average (₩1,832). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 38.0, a neutral level. The one-month change is +1.8%, the three-month change is -59.9%, and the position relative to the 52-week high is -74.9%. Relative strength versus the KOSDAQ is 6 (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 5% of all stocks. Over the past three months it lagged the index by 43.8%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Recent full-year results are revenue of ₩3.6 billion, an operating loss of ₩3.4 billion and a net loss of ₩12.8 billion. With an operating margin of -95.4% and ROE (how much a company earns in a year on its equity) of -97.9%, profitability is still pre-recovery. That said, the debt ratio (debt relative to equity) of 141.5% and the current ratio (assets convertible to cash within a year against debt due within a year) of 218.6% mean short-term liquidity itself is relatively comfortable. The P/E (how many times a year's earnings the price is) cannot be computed because earnings are in the red, and the P/B (how many times book value the price is) is 1.75x. For a company that is not making a profit, the book-value multiple tends to run high, so this figure is less a sign of being expensive in itself than a metric to be read alongside the loss-making phase.
Revenue shrank from ₩14.4 billion in 2023 to ₩6.5 billion in 2024 and ₩3.6 billion in 2025, a sharp contraction in the top line, down 45.0% year on year. By contrast, the most recent quarter, first-quarter 2026, showed revenue of ₩1.1 billion, up 4.9% year on year, giving a first sign to watch for whether the declining top line is bottoming or turning. The operating line remained in the red at -₩0.7 billion in the first quarter, so whether the revenue recovery translates into an earnings recovery is the next point to watch. For the full year, stitching together the quarterly trend suggests a top line around ₩4.6 billion, pointing to the possibility that revenue could rise again versus last year. But it should be noted that a recovery on the earnings side has not yet been confirmed.
Recent disclosures center on financing and share-count changes. On May 22, 2026 the company decided to issue convertible bonds at a conversion price of ₩2,802 (a convertible bond is a corporate bond carrying the right to convert into shares at a set price). Earlier, in March 2026, a rights offering (raising funds by issuing new shares to existing shareholders) proceeded along with its subscription and a public offering of forfeited shares. Of the 15 million shares scheduled for issuance, only part was subscribed, and the remainder was handled through the public offering and underwriter takeup. Such disclosures both add cash that gives the company the means to keep operating and increase the share count, so it is important to confirm through to the end whether the incoming funds actually feed into revenue and profit.
This is a stock where strengths and weaknesses split clearly. The weak side is clear: annual losses continue, revenue has shrunk sharply, and the string of rights offerings and convertible bonds can raise the share count and dilute existing shareholders. On the other side, there are points worth noting. First-quarter revenue rose year on year, hinting that the top-line decline may be ending; the high current ratio means short-term liquidity pressure is limited; and the cash raised supports operations. The price is also down more than 70% from its high, a level where expectations have fallen considerably. In short, if the raised funds feed into a revenue recovery and a narrowing of losses, the lowered price level can work as a strength; conversely, if the revenue recovery lasts only one quarter or losses drag on, further financing and dilution could resurface as weaknesses. Which way it goes will be decided by the next quarter's results and disclosures on how the funds are used.
🔎 Valuation vs peers Overvalued
A set of communications and broadcasting equipment names with market capitalizations close to Korea Advanced Materials', drawn from public data.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Gaon Group | 12.22x | 0.61x | 5.51% |
| Woori Net | 21.62x | 0.84x | 3.90% |
| Mercury | — | 0.41x | -1.76% |
Within communications and broadcasting equipment, we looked first at a public-data peer set with nearby market capitalizations. The current P/E (how many times a year's earnings the price is) cannot be confirmed, and the P/B (how many times book value the price is) is 1.75x. Because smaller-cap names are heavily swayed by earnings swings and financing disclosures, we did not draw firm conclusions from last year's confirmed-results metrics alone. The forward box is based on a DART seasonality approximation.
Earnings outlook Estimate company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩4.6 billion | — | — |
| Next quarter | Q2 2026 | ₩1.4 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩1,162 and the market capitalization is ₩66.3 billion. The price sits above its 20-day moving average (₩1,149) and below its 60-day moving average (₩1,832). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 38.0, a neutral level. The one-month change is +1.8%, the three-month change is -59.9%, and the position relative to the 52-week high is -74.9%. Relative strength versus the KOSDAQ is 6 (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 5% of all stocks. Over the past three months it lagged the index by 43.8%. 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 -43.75% / 6M -41.47% / 12M -66.28%
Key metrics Computed vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 1.75x is above the sector median (0.83x).
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.
Profitability & financials
Return on equity (ROE) is -97.9%, below the sector average (3.0%). The operating margin is -95.4%. The debt ratio is 13.4%, so the financial structure is stable.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $10.1M | $4.6M | $2.5M | -44.95% ↑ faster |
| Operating profit | -$2.1M | -$3.4M | -$2.4M | — |
| Net profit | -$2.8M | -$10.0M | -$9.0M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $9.5M | $15.0M | $10.1M | $4.6M | $2.5M |
| Operating profit | -$8.3M | $581,078 | -$2.1M | -$3.4M | -$2.4M |
| Net profit | -$10.3M | $354,609 | -$2.8M | -$10.0M | -$9.0M |
| Revenue CAGR | 4-yr avg -28.18% | ||||
Revenue fell 45.0% year over year (2023 ₩14.4 billion → 2024 ₩6.5 billion → 2025 ₩3.6 billion), and the three-year trend is 'falling'. That said, the rate of decline narrowed from the prior year. Operating results are in the red, so a swing back to profit matters more than the growth rate here. Over the 5 years on record, revenue compound annual growth (CAGR) is -28.2%. The two-year revenue CAGR is -50.2%. In the most recent quarter (Q1 2026), revenue was 4.9% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- —
Points to watch
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 45.0% year over year (3-year trend: falling).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-22UpdateReport on material matters (decision to issue convertible bonds): conversion price ₩2,802This is a disclosure where the purpose of the cash inflow should be weighed alongside the change in the share count. When a facilities or operating purpose is stated, whether the investment is actually carried out and connects to revenue is the key. Source
- 2026-03-18UpdateSubscription results for a rights offering or share-linked bonds (voluntary disclosure): 1. Type of security: registered common stock 2. Method of issuance: rights offering 3. Eligible subscribers: general public subscribers (including high-risk high-yield investment trusts and venture-enterprise investment trusts) 4. Subscription date: 2026-03-17 5. Subscription result: shares scheduled for issuance 15,000,000, corresponding subscribed shares 373,411,This is a disclosure where the purpose of the cash inflow should be weighed alongside the change in the share count. When a facilities or operating purpose is stated, whether the investment is actually carried out and connects to revenue is the key. Source
- 2026-03-12UpdateSubscription results for a rights offering or share-linked bonds (voluntary disclosure): forfeited shares arising after subscription are to be raised through a public offering from March 16, 2026 to March 17, 2026. 2. Any remaining shares after the public offering will be taken up by the lead manager and underwriters, each up to the number of shares they are obligated to underwrite under the underwriting agreement and at their own responsibilityThis is a disclosure where the purpose of the cash inflow should be weighed alongside the change in the share count. When a facilities or operating purpose is stated, whether the investment is actually carried out and connects to revenue is the key. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩1,162 | ₩1,162 | Confirmed | link |
| Latest quarterly results | revenue ₩1.1 billion, operating profit -₩0.7 billion | revenue ₩1.1 billion, operating profit -₩0.7 billion | Confirmed | link |
| Full-year results | revenue ₩3.6 billion, operating profit -₩3.4 billion | revenue ₩3.6 billion, operating profit -₩3.4 billion | Confirmed | link |
| Original text of the financing disclosure | ₩2,802 | ₩2,802 | Confirmed | link |
| Original text of the financing disclosure | 1. 2. 3. 4. 2026-03-17 5. 15,000,000 373,411 | 1. 2. 3. 4. 2026-03-17 5. 15,000,000 373,411 | Confirmed | link |
| Original text of the financing disclosure | 2026 03 16 2026 03 17 . 2. | 2026 03 16 2026 03 17 . 2. | Confirmed | link |
| Basis for the forward box | DART | DART | Confirmed | link |
Recent filings Source
- 2026-06-04Material-fact report
- 2026-06-02Disclosure
- 2026-06-01Disclosure
- 2026-06-01Shareholders' meeting notice
- 2026-05-22Material-fact report
- 2026-05-15PeriodicQuarterly report
- 2026-05-11Amended filing
- 2026-05-11Shareholders' meeting notice
- 2026-05-11Disclosure
- 2026-04-28Shareholders' meeting notice
- 2026-04-14OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-13Disclosure
📖 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.