Gaon Group makes telecom and broadcast equipment such as set-top boxes and OTT terminals and earns revenue by supplying it to telecom carriers and broadcasters, structured so that the holding-company parent, Gaon Group Co., handles OTT and AI devices while its subsidiary Gaon Broadband Co. handles network solutions. A February 10, 2026 disclosure confirmed a swing to profit with full-year revenue of ₩517.5 billion, operating profit of ₩12.5 billion, and net profit of ₩6.7 billion, and a May 7 preliminary Q1 result showed revenue of ₩121.8 billion, operating profit of ₩11.3 billion, and net profit of ₩3.9 billion, so the disclosures pointed in a consistent direction as profit improvement continued. What stands out now is that when profit improvement holds and the top line supports it, the value appeal of a P/B of 0.64x and a P/E of 12.33x comes alive and a price that has fallen nearly in half from its 52-week high has room to recover; against that, with a debt ratio of 310.4% the company carries heavy borrowings and can barely cover interest out of operating profit, so if the profit recovery stalls the financial burden can grow again.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 310.4%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue rose 5.8% year over year, and the pace is quickening (3-year trend: mixed).
- Net profit swung from a loss a year earlier back into the black (a turnaround).
- Most recent quarter (Q1 2026) revenue was 4.3% lower than a year earlier.
- ROE is 5.2% (controlling-interest basis).
- Operating margin is 2.4%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Lim Dong-yeon 15.17% (individual)
Controlling bloc incl. related parties 18.06%
With the controlling bloc holding 18%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- Gaon Group makes and supplies AI total solutions, OTT, network devices and integrated solutions, and integrated robotics platforms.
- Its main customers are broadcast and telecom operators at home and abroad; the holding-company parent, Gaon Group Co., mainly supplies AI devices that combine the OTT business with AI solutions, while its subsidiary Gaon Broadband Co. handles network solutions.
- Put simply, it is a business that generates revenue by making telecom and broadcast equipment such as set-top boxes and OTT terminals and supplying it to telecom carriers and broadcasters.
- With a market capitalization of ₩82.1 billion the stock is not large, so it is worth watching not only the business itself but also how each quarterly result and major disclosure affects its finances and share price.
- The latest close is ₩4,260 and market capitalization is ₩78.5 billion.
- The price sits below both the 20-day line (₩5,086) and the 60-day line (₩6,677).
- Trading beneath both its short- and medium-term moving averages, the trend is on the subdued side.
- The RSI (a supplementary gauge that weighs upward against downward force over the past 14 days on a 0-100 scale) is 31.0, a neutral level.
- The price is down 26.4% over one month and 20.8% over three months, and stands 59.0% below its 52-week high.
- Relative strength versus the KOSDAQ is 74 (1-99, converting return against the index over the past year with more weight on recent performance; higher means stronger than the market), placing it in roughly the top 26% of all stocks by strength.
- Over the past three months it outpaced the index by 1.5%.
- Chart reading is best done alongside volume and disclosure dates.
- For the most recent full year (2025), revenue was ₩517.5 billion, operating profit ₩12.5 billion, and net profit ₩6.7 billion, so the company is profitable.
- The operating margin was 2.4% and ROE (how much is earned in a year on equity) was 5.2%, so profitability is at an ordinary level, and the debt ratio (borrowings against equity) of 310.4% - meaning borrowings exceed equity - is a point to note.
- On valuation, the P/E ratio (how many times a year's profit the price represents) is 11.79x and the P/B (how many times book value the price represents) is 0.61x.
- A P/B below 1x means the price is set even cheaper than book net assets, and the P/E is also below the sector median, so the diagnosis classifies it as undervalued.
- Because the company has only just swung to profit, a P/E computed on a single year's profit is set somewhat conservatively; as profit gets onto a normal track, the effective valuation may come down further.
- Looking at the annual course, revenue rose 5.8% from ₩489.3 billion in 2024 to ₩517.5 billion in 2025, with the pace picking up, and above all the profit picture changed sharply.
- Operating profit turned from a loss of -₩41.9 billion in 2024 to a profit of ₩12.5 billion in 2025, and net profit turned from -₩54.1 billion to ₩6.7 billion, a clear turnaround.
- This continued into this year: Q1 2026 operating profit was ₩11.3 billion, about 24 times higher than the same period a year earlier, and net profit rose 20.9%.
- Quarterly revenue was down 4.3% year over year, so the top line shrank slightly, but with profitability improving sharply, it reads as the result of a cleaned-up cost structure and a higher share of higher-margin products.
- In other words, this is a phase where profit is recovering because a loss-making business has shifted to a profitable makeup, not because revenue is exploding.
- The January 7, 2026 corporate value enhancement plan (voluntary disclosure) is plan-type material the company put forward itself, serving as a first reference for gauging the direction of its shareholder-value efforts.
- The February 10, 2026 disclosure on the change in revenue and profit structure confirmed the swing-to-profit result of full-year revenue of ₩517.5 billion, operating profit of ₩12.5 billion, and net profit of ₩6.7 billion, and the May 7, 2026 preliminary Q1 disclosure of revenue of ₩121.8 billion, operating profit of ₩11.3 billion, and net profit of ₩3.9 billion continued the profit-improvement trend.
- The disclosures all point the same way - a swing to profit and a profit recovery - so the narrative is consistent.
- The strengths are clear.
- A turnaround from a loss into the black continued through Q1, confirming profit improvement, and with a P/B of 0.64x and a P/E of 12.33x the price is cheaper than peers relative to assets and profit.
- The price has also fallen nearly in half from its 52-week high into a subdued zone, a position where the value appeal can come to the fore if recovery signals continue.
- On the cautious side, the debt ratio of 310.4% means heavy borrowings and interest that is barely covered by operating profit, so if the profit recovery stalls the financial burden can grow again.
- In sum, this is a phase where the value appeal comes alive when profit improvement persists and the top line supports it, and a stock where the financial structure acts as a weakness if quarterly results wobble again or financing-related variables pile up.
🔎 Valuation vs peers Undervalued
A peer group of neighboring market caps within the telecom and broadcast equipment sector.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Woori Net | 20.38x | 0.79x | 3.90% |
| Korea Advanced Materials | — | 4.65x | -97.89% |
| Oneul E&M | — | 24.74x | -2452.29% |
Within telecom and broadcast equipment, a public-data peer group of nearby market capitalizations was looked at first. The current P/E ratio (how many times a year's profit the price represents) is 11.79x and the P/B (how many times book value the price represents) is 0.61x. That said, because smaller-cap stocks are heavily affected by earnings swings and financing disclosures, no firm conclusion was drawn from metrics based on last year's confirmed results alone. The basis for the outlook box is a DART seasonality approximation.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩548.3 billion | ₩319.2 billion | — |
| Next quarter | Q2 2026 | ₩153.9 billion | ₩37.7 billion | — |
Price history Close · MA20 · MA60
The latest close is ₩4,260 and the market capitalization is ₩78.5 billion. The price sits below its 20-day moving average (₩5,086) and below its 60-day moving average (₩6,677). 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 31.0, a neutral level. The one-month change is -26.4%, the three-month change is -20.8%, and the position relative to the 52-week high is -59.0%. Relative strength versus the KOSDAQ is 74 (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 74% of all stocks. Over the past three months it outpaced the index by 1.5%. 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 +1.52% / 6M -5.89% / 12M +26.68%
Key metrics vs sector median
Valuation
The P/E of 11.79x is below the sector median (16.19x). The P/B of 0.61x is below the sector median (1.32x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets. 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.
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 10.1%, 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 5.2%. The operating margin is 2.4%. The debt ratio is 310.4%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $355.5M | $324.3M | $343.0M | +5.76% ↑ faster |
| Operating profit | -$12.5M | -$27.8M | $8.3M | — |
| Net profit | -$11.6M | -$35.9M | $4.4M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $353.3M | $405.1M | $355.5M | $324.3M | $343.0M |
| Operating profit | $18.8M | $9.5M | -$12.5M | -$27.8M | $8.3M |
| Net profit | $14.2M | $7.2M | -$11.6M | -$35.9M | $4.4M |
| Revenue CAGR | 4-yr avg -0.74% | ||||
Revenue rose 5.8% year over year (2023 ₩536.4 billion → 2024 ₩489.3 billion → 2025 ₩517.5 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Over the 5 years on record, revenue compound annual growth (CAGR) is -0.7%. The two-year revenue CAGR is -1.8%. In the most recent quarter (Q1 2026), revenue was 4.3% 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.
Points to watch
- Debt far exceeds equity (debt ratio 310.4%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
Recent news & events searched · sourced
- 2026-01-07UpdateCorporate value enhancement plan (voluntary disclosure): company plan source text confirmedThis is plan-type material the company put forward itself. If it contains figures, treat it as a first basis for the outlook box; if not, treat it only as directional material. Source
- 2026-05-07EarningsOperating (preliminary) results on a consolidated basis (fair disclosure): Q1 2026 revenue ₩121.8 billion, operating profit ₩11.3 billion, net profit ₩3.9 billionThis is recent confirmed or preliminary earnings data. Look at whether it points the same way as the annual trend and whether any one-off factors are involved. Source
- 2026-02-10EarningsChange of 30% or more (15% for large corporations) in revenue or profit structure: annual revenue ₩517.5 billion, operating profit ₩12.5 billion, net profit ₩6.7 billionThis is recent confirmed or preliminary earnings data. Look at whether it points the same way as the annual trend and whether any one-off factors are involved. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩4,260 | ₩4,260 | Confirmed | link |
| Latest quarterly results | revenue ₩121.8 billion, operating profit ₩11.3 billion | revenue ₩121.8 billion, operating profit ₩11.3 billion | Confirmed | link |
| Annual results | revenue ₩517.5 billion, operating profit ₩12.5 billion | revenue ₩517.5 billion, operating profit ₩12.5 billion | Confirmed | link |
| Outlook / plan disclosure source text | : | : | Confirmed | link |
| Earnings disclosure source text | : 2026 1 revenue ₩121.8 billion · operating profit ₩11.3 billion · net profit ₩3.9 billion | : 2026 1 revenue ₩121.8 billion · operating profit ₩11.3 billion · net profit ₩3.9 billion | Confirmed | link |
| Earnings disclosure source text | revenue30%: revenue ₩517.5 billion · operating profit ₩12.5 billion · net profit ₩6.7 billion | revenue30%: revenue ₩517.5 billion · operating profit ₩12.5 billion · net profit ₩6.7 billion | Confirmed | link |
| Outlook box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-05-15PeriodicQuarterly report
- 2026-05-12Disclosure
- 2026-05-07EarningsFair-disclosure notice
- 2026-04-30Disclosure
- 2026-04-22Disclosure
- 2026-04-21Disclosure
- 2026-03-25Shareholders' meeting notice
- 2026-03-17PeriodicAnnual business report
- 2026-03-17Audit report
- 2026-03-11Amended filing
- 2026-03-11Amended filing
- 2026-02-27Disclosure
📖 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.