Kukil Paper is a paper manufacturer founded in 1978, and roughly 81% of its revenue comes from high-function specialty paper such as e-cigarette filter paper, food packaging paper, and industrial thin paper. In practice the business is concentrated in this single specialty-paper line, so results swing heavily with specialty-paper demand, pricing, and pulp costs. A 10-for-1 reverse stock split in April halted trading from April 28, with trading resuming on May 20; this was a formal measure rather than a change in business value. The Q1 2026 report then showed revenue falling again (-10.5%) and an operating loss, so the trend of narrowing losses paused for one quarter. What stands out lately is a two-sided picture: revenue has grown for two straight years and the current ratio of 668% gives the company the staying power to wait for a recovery, so if losses keep narrowing and a return to profit comes into view, the recovery story becomes more convincing; on the other hand, the company is not yet profitable, its P/B of 3.63x looks high versus peers, and if revenue keeps declining as it did in Q1, the threshold to profitability moves further away.
At-a-glance assessment financial health · growth · profitability · valuation
- The most recent full-year net result was a loss.
- Revenue rose 20.3% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 10.5% lower than a year earlier.
- ROE is -1.6% (total-net basis). It is below the sector average.
- Operating margin is -0.7%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder Samra Midas 89.14% (corporate)
Controlling bloc incl. related parties 89.14%
With the controlling bloc holding 89%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Kukil Paper is a paper (paper manufacturing) company founded in 1978.
- By revenue mix, specialty-paper products (high-function papers distinct from ordinary paper, such as e-cigarette filter paper, food packaging paper, and industrial thin paper) account for about 81%, merchandise bought externally and resold about 16%, and rental and other about 3% - so the business is effectively concentrated in a single specialty-paper line.
- Its core products are thin paper that must be formed thin and evenly, plus packaging and industrial papers where printability and coating matter, so the company's results depend heavily on the demand, pricing, and input cost (pulp prices) of this specialty paper.
- The latest close is 3,740 won and the market cap is 421.6 billion won.
- The price sits below the 20-day line (3,821 won) and above the 60-day line (2,345 won).
- The short-term and medium-term trends diverge, so each has to be read separately.
- The RSI (a supplementary gauge that compares upward and downward force over the past 14 days on a 0-100 scale) is 57.2, a neutral level.
- The one-month change is +4.2%, the three-month change is +1106.5%, and the position relative to the 52-week high is -6.6%.
- Relative strength versus the KOSDAQ is 99 (on a 1-99 scale, converted from returns against the index over the past year with heavier weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 1% by strength among all stocks.
- Over the past three months it outpaced the index by 1556.0%.
- It is best to read the chart alongside trading volume and disclosure dates.
- The P/B (how many times the price is versus the company's net assets) is 3.52x.
- Compared with other companies in the same paper industry, which sit around 0.2-0.6x, this is clearly on the high side.
- That said, the backdrop to this high P/B is an ROE (how much is earned in a year on shareholders' equity) of -1.6%, meaning the company is not yet profitable.
- With almost no earnings relative to net assets, the multiple naturally looks large, so rather than reading 'high P/B = expensive no matter what,' it is more accurate to read it as 'a stage where earnings have not yet recovered, so the valuation metric cannot do its job.' Because earnings have not turned positive, the P/E (how many times the price is versus one year of earnings) cannot be calculated.
- Financial stability is sound.
- The debt ratio (debt versus shareholders' equity) is 111.7%, an ordinary level, and in particular the current ratio (assets convertible to cash within a year versus debt due within a year) of 668% means short-term funding is ample.
- Revenue rose for two straight years - 53.1 billion won in 2023, 56.4 billion won in 2024, and 67.8 billion won in 2025 - and the 2025 growth rate of +20.3% shows the pace picking up.
- The more important change is how quickly the loss is shrinking.
- The operating loss narrowed from -1.6 billion won in 2023 to -1.3 billion won in 2024 and -0.5 billion won in 2025, while the net loss narrowed sharply from -21.3 billion won in 2023 to -1.9 billion won in 2025.
- In other words, though still a loss-making company, the trend of 'losses getting smaller and approaching the threshold of profitability' is clear.
- That said, the most recent Q1 2026 posted revenue of 16.7 billion won, down -10.5% from the same period a year earlier, with an operating loss of -0.5 billion won, so last year's trend of narrowing losses paused briefly in Q1.
- The broad direction of revenue recovery and shrinking losses is still intact, but since a return to profit is not yet confirmed, it is worth checking each quarter whether revenue grows again and losses narrow further.
- The biggest recent developments for this stock concerned share count and a trading halt rather than the business itself.
- For a 10-for-1 reverse stock split resolved on April 23 (reducing the share count to one-tenth to raise the per-share price, with par value moving from 100 won to 1,000 won), trading was halted from April 28 and then resumed on May 20 upon the listing of the new shares.
- This was a formal measure to tidy up the appearance of a large market cap paired with a per-share price that looked too low; the company's underlying business value did not change.
- On May 15, the Q1 2026 report came out confirming the revenue decline and operating loss, and on June 1 a large-business-group status disclosure again confirmed membership in the SM Group.
- On May 8, a large-holding report updated details of a change in stake.
- The strengths are clear.
- Revenue has grown for two straight years and the pace has picked up, and above all the operating and net losses are narrowing quickly, bringing the company closer to the threshold of profitability.
- With a current ratio of 668%, short-term funding is ample, giving it the staying power to wait for a recovery.
- The cautions are just as clear.
- As a still-unprofitable company, its P/E cannot be calculated, and its P/B of 3.63x is higher than industry peers, partly because with almost no earnings relative to net assets the multiple looks large.
- In addition, Q1 2026 revenue fell again (-10.5%), pausing the trend of narrowing losses for a quarter.
- In short, if quarterly results show revenue growing again and losses narrowing further so that a return to profit comes into view, this company's recovery story gains credibility; conversely, if revenue declines repeat as in Q1, the threshold to profitability recedes.
- Ultimately, whether it proves strong or weak depends on whether the loss narrows again in coming quarters, so the key is to track the direction of results each quarter rather than business value alone.
🔎 Valuation vs peers Overvalued
The comparison uses domestic pulp and paper makers with the same business substance for which market cap and valuation data are available, though Shindaeyang, Asia Paper, and Sambo Corrugated make corrugated base paper and Hansol Paper makes printing and industrial paper, so their specific product lines differ from Kukil Paper's thin paper.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Shin Dae Yang Paper Mfg | 17.22x | 0.65x | 3.79% |
| Asia Paper Manufacturing | 10.38x | 0.36x | 3.50% |
| Hansol Paper | 40.23x | 0.22x | 0.56% |
| Sambo Panji | 4.90x | 0.22x | 4.49% |
(a) Position versus the true peer set: domestic paper makers generally sit at 0.2-0.6x net assets on P/B, whereas Kukil Paper is at 3.35x, roughly 5-15 times higher. The peers are all profitable while only Kukil Paper is loss-making, so this premium is explained by expectations rather than results. (b) Premium/discount: on a net-asset basis this is clearly a premium zone, and stripping out the price illusion from the reverse split leaves the gap unchanged. (c) Limits of trailing figures and the forward basis: because last year's confirmed result was a loss, the P/E cannot be computed at all, and with no official company outlook the future can only be gauged from a DART quarterly-seasonality approximation (about 57.7 billion won of 2026 revenue). This approximation does not extend to operating or net profit, so the timing of a return to profit cannot be pinned to a number. In conclusion, rather than declaring it 'cheap' or 'expensive,' it is reasonable to view a loss-making company carrying a higher net-asset multiple than peers as a zone where expectations are priced in ahead of a confirmed return to profit.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩15.2 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩3,740 and the market capitalization is ₩421.6 billion. The price sits below its 20-day moving average (₩3,821) and above its 60-day moving average (₩2,345). 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 57.2, a neutral level. The one-month change is +4.2%, the three-month change is +1106.5%, and the position relative to the 52-week high is -6.6%. Relative strength versus the KOSDAQ is 99 (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 99% of all stocks. Over the past three months it outpaced the index by 1556.0%. 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 +1555.98% / 6M +1216.65% / 12M +367.11%
Key metrics vs whole-market median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 3.52x is above the whole-market median (1.15x).
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 -1.6%, below the whole-market average (5.0%). The operating margin is -0.7%. The debt ratio is 111.7%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $35.2M | $37.4M | $44.9M | +20.26% ↑ faster |
| Operating profit | -$1.1M | -$854,264 | -$328,129 | — |
| Net profit | -$14.1M | -$8.6M | -$1.2M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $63.3M | $74.6M | $35.2M | $37.4M | $44.9M |
| Operating profit | -$4.2M | -$7.3M | -$1.1M | -$854,264 | -$328,129 |
| Net profit | -$5.5M | -$12.3M | -$14.1M | -$8.6M | -$1.2M |
| Revenue CAGR | 4-yr avg -8.20% | ||||
Revenue rose 20.3% year over year (2023 ₩53.1 billion → 2024 ₩56.4 billion → 2025 ₩67.8 billion), and the three-year trend is 'rising'. The pace of growth also quickened 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 -8.2%. The two-year revenue CAGR is 13.0%. 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
- Revenue grew 20.3% year over year, a sign of growth.
Points to watch
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-04-23FilingResolution to halt trading for a 10-for-1 reverse stock split (par value 100 won to 1,000 won). Trading halted from April 28.Short term: trading stops and, with the share count cut to one-tenth, the per-share price shows ten times higher. As a structural change rather than a value change, it creates distortions in moving-average and return metrics. Source
- 2026-05-19FilingLifting of the trading halt following the changed listing of the new post-split shares. Trading resumed on May 20 in the merged shares.Medium term: tidying up the penny-stock structure eases the burden tied to maintaining the listing. Prices before and after the split must be compared as separate periods. Source
- 2026-05-15EarningsFiling of the Q1 2026 report. Revenue of 16.7 billion won (-10.5% YoY) and an operating loss of -0.5 billion won confirmed.Short term: last year's revenue recovery reversed to negative growth in Q1 this year. The possibility that the return to profit is pushed back needs to be checked. Source
- 2026-06-01FilingLarge-business-group status disclosure (individual company). Membership in the SM Group and its standing within the group disclosed.Medium term: the potential for funding and business support at the parent-group level should be weighed together with the share of intra-group transactions. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Reverse split ratio (shares outstanding) | 112,740,587 | approx. 1,127,405,870 → 10:1 | Confirmed | link |
| FY2025 consolidated revenue | ₩67.8 billion | (2025.12) | Confirmed | link |
| Q1 2026 revenue | ₩16.7 billion(-10.5% YoY) | (2026.03) | Confirmed | link |
| 2026 annual revenue (seasonality approximation) | ₩57.7 billion | — | Unverified | link |
Recent filings
- 2026-06-01Large-business-group status disclosure
- 2026-05-19Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-08OwnershipOwnership-change filing
- 2026-05-08OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-23Spin-off/split decision
- 2026-04-21Disclosure
- 2026-03-27Disclosure
- 2026-03-27Shareholders' meeting notice
- 2026-03-20PeriodicAnnual business report (amended)
- 2026-03-19PeriodicAnnual business report (amended)
- 2026-03-19PeriodicAnnual business report
📖 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.