Kangwon Energy (114190) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
Kangwon Energy earns money along two axes: an energy-plant business that designs, fabricates, and supplies steam-generation systems and other equipment for power plants and industrial sites, and, through a subsidiary, a secondary-battery materials business handling nickel sulfate and other cathode raw materials. A February 2026 corrected/confirmed disclosure revealed that 2025 operating and net results had turned to a loss; in April a ₩16.2 billion steam-generator supply contract (about 7.6% of 2025 revenue) came in, and the May Q1 report confirmed revenue of ₩52.2 billion (-2.6%) with continued operating and net losses. What stands out lately is that if orders are recognized as revenue and the secondary-battery materials cycle rebounds, the earnings-based valuation could improve quickly - whereas for now, weak battery materials and delayed order recognition coincide with a debt ratio of 325% and ROE of -24.5%, and a P/B of 6.28x has some recovery expectation already priced in, so the signal of a turnaround to profit should be watched through the quarterly results.
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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 “HVAC & Heating/Cooling” (Shipbuilding, Machinery, Defense & Power Equipment · Machinery & Electrical Equipment), a type typically read first through P/E.
HVAC and heating-cooling results move with construction, capex and seasonal demand, yet replacement and maintenance needs keep earnings running fairly steadily. With results this continuous, profits can be set directly against the price, so trailing P/E — based on realized earnings — is the first metric.
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
- Debt far exceeds equity (debt ratio 303.1%).
- The most recent full-year net result was a loss.
- Revenue fell 5.4% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 2.6% lower than a year earlier.
- ROE is -24.5% (total-net basis). It is below the sector average.
- Operating margin is -2.9%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2025-12-31
Largest shareholder Pyeongsan Partners 46.34% (corporate)
Controlling bloc incl. related parties 47.16%
With the controlling bloc holding 47%, the ownership structure is stable.
🔎 In-depth analysis Reading
Kangwon Energy earns money in two broad ways. The first is the energy-plant business, which designs, fabricates, and supplies steam-generation systems (equipment that produces steam for process use, heating, and power generation) and other gear for power plants and industrial sites. The ₩16.2 billion steam-generator supply contract signed in April 2026 (about 7.6% of last year's revenue) is a representative order for this business. The second, through a subsidiary, is secondary-battery materials, handling nickel sulfate and other raw materials for battery cathodes. In other words, one side takes orders to build and sell equipment, while the other is a materials business that rides electric-vehicle and battery demand, so the conditions in both axes drive the company's results together.
The latest close is ₩8,120 and the market capitalization is ₩212.1 billion. The price sits above its 20-day moving average (₩7,972) and below its 60-day moving average (₩9,552). 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 48.8, a neutral level. The one-month change is -10.0%, the three-month change is -48.6%, and the position relative to the 52-week high is -56.3%. Relative strength versus the KOSDAQ is 22 (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 21% of all stocks. Over the past three months it lagged the index by 21.6%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
This company is currently loss-making, so the P/E (how many times per-share net profit the price is) cannot be calculated, and the P/B (how many times equity the price is) is 6.32x. For 2025 as a whole it posted revenue of about ₩212.3 billion with an operating loss of ₩6.1 billion and a net loss of ₩8.5 billion, and ROE (how much was earned in a year on equity) is -24.5%. The debt ratio (debt relative to equity) is 425%, so debt is high relative to equity and the financial burden is a point to watch. Still, a somewhat high-looking P/B is hard to read straight as "expensive." The reason the P/E cannot be found now is that the company is in a loss phase, and if it turns from loss to profit the earnings-based valuation would be entirely different at the same price. In the end, at this stage the picture comes together only by looking at asset value (P/B) together with whether it escapes the loss and starts generating profit again.
Revenue grew substantially over recent years, from ₩44.2 billion (2021) to ₩224.4 billion (2024), then fell to ₩212.3 billion in 2025, a 5.4% decline that marked its first year of negative growth. Over the same period operating profit went from +₩6.8 billion in 2024 to -₩6.1 billion in 2025, and net profit from -₩0.58 billion in 2024 to -₩8.5 billion, deepening the loss. A once-profitable core turning to a loss can be seen as the combined effect of a weak battery-materials cycle and a gap in the timing of revenue recognition on plant orders. On a cumulative Q1 2026 basis, revenue was ₩52.2 billion (-2.6% year on year) with an operating loss of ₩0.87 billion and a net loss of ₩1.1 billion, so the loss continued. In other words, this is a phase where the growth trend has broken once and a loss is in progress. Because the company has not officially presented a turnaround target or quarterly profit guidance for this year, no forward figures based on this year's earnings are given. To return to growth, new orders like the ₩16.2 billion steam generator taken in April must be recognized as revenue, and the secondary-battery materials cycle must be seen reviving.
Recent disclosures show both the trend of a once-profitable core turning to a loss and the orders coming in amid it. A February 2026 corrected/confirmed 2025 results disclosure revealed that operating and net results were a loss (a turn from profit to loss), and in April a ₩16.2 billion steam-generator supply contract (about 7.6% of 2025 revenue) brought in an order on the energy-plant side. In May another supply/delivery contract correction disclosure followed, and that same month the Q1 2026 quarterly report confirmed revenue of ₩52.2 billion (-2.6%) with continued operating and net losses. In sum, this is a stage where "results keep running a loss while new orders are coming in," so it is a flow to watch quarter by quarter for whether orders connect to actual revenue and profit.
Kangwon Energy is a company with clearly defined strong and weak conditions. The condition under which it works strongly is when energy-plant orders - like the ₩16.2 billion order in April - are recognized as revenue and the secondary-battery materials cycle rebounds. In that case the once-loss-making core would again generate profit, and even at the same price the earnings-based valuation could improve quickly. Conversely, the condition under which it works weakly is when the battery-materials downturn drags on and order revenue recognition is delayed. Right now it is closer to the latter, so the 2025 operating and net losses, the cumulative Q1 loss, a debt ratio of 325%, and ROE of -24.5% all appear together, and a P/B of 6.28x has some future recovery expectation priced in. The conclusion is not a verdict to buy or sell, but that this stock's value hinges on two forks: "whether it turns from loss to profit" and "whether orders lead to actual profit." If that transition is confirmed, the strengths come alive; if not, the financial burden comes more to the fore - a structure in which it is reasonable to watch for the turnaround signal in the quarterly results.
🔎 Valuation vs peers Inconclusive
The peer set comprises secondary-battery materials and related companies directly affected by the EV/battery downcycle (cathode maker Cosmo AM&T, electrolyte maker Enchem, electrolyte-additive maker Chunbo, among others). Business details differ, but they share the same industry cycle.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Cosmo AM&T | 0.00x | 2.21x | -0.11% |
| Enchem | 0.00x | 0.95x | -14.38% |
| Chunbo | 0.00x | 0.97x | -13.64% |
Being loss-making, comparison on P/E is impossible; on P/B (price relative to equity) it is 8.29x. Compared with peer secondary-battery materials companies going through the same downcycle, which mostly sit at a P/B of 1.2-2.9x, Kangwon Energy's P/B is distinctly higher, so it looks like a premium zone in which a cycle-turn expectation is priced in ahead against asset value. That said, on last year's loss-making results (trailing) a valuation judgment is weak, and the extent of a turnaround this year (forward) needs confirmation to settle whether the level is appropriate - but there is no officially presented earnings outlook for this year, so a firm conclusion is hard. Accordingly, rather than pinning down "cheap or expensive," the judgment is withheld pending the turnaround signal.
Price history Close · MA20 · MA60
The latest close is ₩8,120 and the market capitalization is ₩212.1 billion. The price sits above its 20-day moving average (₩7,972) and below its 60-day moving average (₩9,552). 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 48.8, a neutral level. The one-month change is -10.0%, the three-month change is -48.6%, and the position relative to the 52-week high is -56.3%. Relative strength versus the KOSDAQ is 22 (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 21% of all stocks. Over the past three months it lagged the index by 21.6%. 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 -21.59% / 6M -31.33% / 12M -34.98%
Key metrics Computed vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 6.32x is above the sector median (1.21x).
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) Estimate
Model output — not a price target. This is what the formula returns under the assumptions below, not a view on where the share price should go.
DCF (discounted cash flow) estimate — discount rate 10.1%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is -24.5%, below the sector average (1.0%). The operating margin is -2.9%. The debt ratio is 303.1%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $97.8M | $157.7M | $149.1M | -5.42% ↓ slower |
| Operating profit | $4.9M | $4.8M | -$4.3M | -190.01% ↓ slower |
| Net profit | $3.7M | -$408,937 | -$5.9M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $31.0M | $50.1M | $97.8M | $157.7M | $149.1M |
| Operating profit | $1.3M | $1.8M | $4.9M | $4.8M | -$4.3M |
| Net profit | $3.8M | $1.8M | $3.7M | -$408,937 | -$5.9M |
| Revenue CAGR | 4-yr avg 48.06% | ||||
Revenue fell 5.4% year over year (2023 ₩139.2 billion → 2024 ₩224.4 billion → 2025 ₩212.3 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 190.0% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 48.1%. The two-year revenue CAGR is 23.5%. In the most recent quarter (Q1 2026), revenue was 2.6% lower 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
- Debt far exceeds equity (debt ratio 303.1%).
- The most recent full-year net result was a loss.
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 5.4% year over year (3-year trend: mixed).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-02-27Earnings2025 consolidated revenue ₩212.3 billion (-5.4%), operating loss ₩6.1 billion and net loss ₩8.5 billion, a turn to loss. The company cited weak new orders in plant and secondary-battery equipment and rising costs/expenses.A near-term negative. With negative top-line growth and the turn to loss now formalized, the timing of a profitability recovery becomes the key point to watch. Source
- 2026-04-16UpdateSingle supply contract for an industrial steam-generation system signed, contract value ₩16.22 billion (about 7.6% of 2025 revenue).A medium-term positive. An order in the energy-plant segment, a support for the top line amid weakness in the battery segment. Source
- 2026-05-29UpdateSingle supply contract signed (revised filing) disclosure. Correction of contract details related to the supply contract.Near-term neutral. The order pipeline continues, but as a correction, changes in contract terms need to be checked. Source
- 2026-05-15FilingQ1 2026 quarterly report filed. Cumulative revenue ₩52.2 billion (-2.6%), operating loss ₩0.87 billion and net loss ₩1.1 billion, loss continuing.Near-term neutral to negative. The loss narrowed versus the annual basis, but a turnaround signal is not yet confirmed. Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-05-29Single supply/sales contract (amended)
- 2026-05-29Single supply/sales contract (amended)
- 2026-05-21OwnershipOwnership-change filing
- 2026-05-15PeriodicQuarterly report
- 2026-04-30Disclosure
- 2026-04-16Single supply/sales contract
- 2026-03-31Shareholders' meeting notice
- 2026-03-20PeriodicAnnual business report
- 2026-03-20Audit report
- 2026-03-16Disclosure
- 2026-03-16Shareholders' meeting notice
- 2026-02-27EarningsEarnings filing
📖 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.