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 425% 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.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 425.0%).
- 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%.
- P/E is hard to compute here, so this is read on P/B.
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
- 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 ₩8,690 and market capitalization is ₩227.0 billion.
- The price sits below the 20-day line (₩9,208) and below the 60-day line (₩11,837).
- Trading below both the short- and medium-term moving averages, the trend is on the depressed side.
- The RSI (a supplementary indicator that weighs upward against downward force over the past 14 days on a 0-100 scale) is 43.4, a neutral level.
- The one-month change is -7.4%, the three-month change is -33.8%, and the position versus the 52-week high is -53.2%.
- Relative strength against the KOSDAQ is 63 (on a 1-99 scale, converted from returns versus the index over the past year with more recent weeks weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 37% of all stocks by strength.
- Over the past three months it lagged the index by 14.1%.
- Chart reading is best done alongside trading volume and the dates when 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 6.28x.
- 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 425%, 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 | 2.51x | -0.11% |
| Enchem | 0.00x | 1.04x | -14.38% |
| Chunbo | 0.00x | 1.02x | -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 ₩8,690 and the market capitalization is ₩227.0 billion. The price sits below its 20-day moving average (₩9,208) and below its 60-day moving average (₩11,837). 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 43.4, a neutral level. The one-month change is -7.4%, the three-month change is -33.8%, and the position relative to the 52-week high is -53.2%. Relative strength versus the KOSDAQ is 63 (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 63% of all stocks. Over the past three months it lagged the index by 14.1%. 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 -14.13% / 6M -26.42% / 12M +12.03%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 6.58x is above the sector median (2.15x).
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.
Intrinsic value (DCF estimate)
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 (2.0%). The operating margin is -2.9%. The debt ratio is 425.0%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $92.3M | $148.7M | $140.7M | -5.42% ↓ slower |
| Operating profit | $4.6M | $4.5M | -$4.0M | -190.01% ↓ slower |
| Net profit | $3.5M | -$385,810 | -$5.6M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $29.3M | $47.3M | $92.3M | $148.7M | $140.7M |
| Operating profit | $1.3M | $1.7M | $4.6M | $4.5M | -$4.0M |
| Net profit | $3.6M | $1.7M | $3.5M | -$385,810 | -$5.6M |
| 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 Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- Debt far exceeds equity (debt ratio 425.0%).
- 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
- 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.