KG Eco Solution is an operating holding company that runs its own bioenergy business while also owning stakes in two listed subsidiaries. Its in-house operation — generating power from biogas produced by treating food and livestock waste — is small, at roughly ₩80 billion in annual revenue, while most of the group's consolidated revenue of ₩7.6 trillion comes from KG Steel, a maker of color-coated and coated steel sheets, and from carmaker KG Mobility (formerly SsangYong Motor). On June 9 the company filed a disclosure clarifying (as yet unconfirmed) market rumors and reports, and on June 2–4 its subsidiaries made a series of decisions to dispose of treasury shares and of investment securities in other companies; earnings-related IR events and the Q1 provisional results and quarterly report were also disclosed in April and May. The point worth watching is that the combined market cap of the two listed subsidiaries is far larger than the parent's own market cap (about ₩234.7 billion), yet the parent trades cheaper — a holding-company discount — so a P/B of 0.16x and a 3.0% dividend yield point to undervaluation; the flip side is that the core of that value, the subsidiaries themselves, carries the cyclical risks of the steel market and vehicle sales, and holding-company net profit can swing from quarter to quarter with non-operating gains and losses.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 434.4%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue rose 4.0% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 12.7% higher than a year earlier.
- ROE is 5.8% (controlling-interest basis). It is above the sector average.
- Operating margin is 2.5%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder KG Chemical 42.64% (corporate)
Controlling bloc incl. related parties 60.85%
With the controlling bloc holding 61%, control is very secure but the free float is thin.
🔎 In-depth analysis
- KG Eco Solution is an operating holding company that owns both an in-house business and stakes in listed subsidiaries.
- Its own operation is a bioenergy unit that generates power from biogas produced by treating food and livestock waste, and it is relatively small (around ₩80 billion a year).
- Most of the ₩7.6 trillion in consolidated revenue comes from two listed subsidiaries: KG Steel, which makes color-coated and coated steel sheets and also handles port cargo operations (roughly ₩3 trillion a year), and KG Mobility (formerly SsangYong Motor), a carmaker that produces models such as the Torres and Rexton (roughly ₩3–4 trillion a year).
- In substance, then, this company's earnings and value are best seen as the sum of its bioenergy core plus its stakes in steel and auto subsidiaries.
- The latest close is ₩5,250 and the market cap is ₩249.9 billion.
- The price sits below its 20-day line (₩5,432) and its 60-day line (₩6,038).
- Trading below both the short- and mid-term moving averages, the trend is on the soft side.
- RSI (a supplementary gauge that scores the balance of up-days and down-days over the past 14 days on a 0–100 scale) is 43.8, a neutral reading.
- The price is down 3.0% over one month and 12.8% over three months, and sits 29.9% below its 52-week high.
- Relative strength versus KOSDAQ is 70 (on a 1–99 scale, computed from returns 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 29% of all stocks by strength.
- Over the past three months it has outpaced the index by 13.3%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- The P/E ratio (how many times one year's profit the price represents) is 3.03x and the P/B (how many times net assets the price represents) is 0.17x, so the price is set very low relative to both profit and assets.
- The forward P/E based on this year's expected profit is clearly lower than that of the two subsidiaries (KG Steel at 3.9x, KG Mobility at 12.0x) as well, which can be read as a signal of undervaluation.
- Profitability is ordinary, with an ROE (how much is earned in a year on equity) of 5.8% and an operating margin of 2.5%, above the peer average.
- The debt ratio (debt relative to equity) of 434% looks high on paper, but that is simply the result of consolidating the steel and auto subsidiaries — industries that carry large borrowings — into a single set of financials.
- A steady cash return, with a dividend yield of 3.0%, adds to the picture.
- Over five years revenue grew from ₩3.4 trillion to ₩7.6 trillion as subsidiaries were consolidated (a compound annual rate of about 22%), and more recently it has risen every year — ₩7.26 trillion, ₩7.28 trillion, ₩7.58 trillion — with the pace gradually quickening (up 4.0% year on year).
- Operating profit fell from ₩309.8 billion in 2023 to ₩226.5 billion in 2024 and ₩191.3 billion in 2025, but the size of the decline has been shrinking each year.
- Net profit rose 8.1% year on year to ₩82.4 billion in 2025, a third straight annual increase.
- In Q1 2026, revenue grew double digits to ₩1.97 trillion (up 12.7%), and net profit jumped sharply to ₩70.4 billion (up 39.5%).
- Holding-company net profit also reflects non-operating items such as valuation and disposal gains on subsidiary stakes, and the simultaneous rise in revenue and net profit in Q1 shows exactly these changes in subsidiary value.
- The forward P/E based on this year's profit reflects this recovery and is low relative to the two subsidiaries.
- Recent disclosures center on capital transactions involving the subsidiaries.
- On June 9 the company filed a clarification (unconfirmed) regarding market rumors and reports, and on June 2–4 its subsidiaries made a series of decisions to dispose of treasury shares and of investment securities in other companies.
- In April and May it held an IR event and disclosed its Q1 provisional results and quarterly report.
- This is a pattern typical of a holding company, where the events that move corporate value often arise from equity and capital transactions at the subsidiary level.
- The crux of this stock is the gap between the value of its subsidiary stakes and the parent's share price.
- The combined market cap of the two listed subsidiaries (KG Steel and KG Mobility) is far larger than the parent KG Eco Solution's own market cap (about ₩234.7 billion), yet the parent trades cheaper — a holding-company discount — and a P/B of 0.16x and a 3.0% dividend yield both point to undervaluation.
- The strength is that the parent's price is deeply discounted against the value of its subsidiary stakes while revenue and net profit are both recovering.
- The other side to watch is that the core of that value, the subsidiaries themselves, carries the cyclical risks of the steel market and vehicle sales, and that holding-company net profit can swing from quarter to quarter with non-operating gains and losses.
- In short, this is an asset-type stock with clear appeal on price: it strengthens when the subsidiaries' industry conditions and the core business recover together, narrowing the discount, and weakens when those conditions turn down.
🔎 Valuation vs peers Undervalued
Because the core of this company's value is its stakes in the two listed subsidiaries, KG Steel and KG Mobility were used as the peer set to examine the price relationship between parent and subsidiaries (on-site computed figures).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| KG Steel | 3.75x | 0.25x | 6.57% |
| KG Mobility | 11.99x | 0.38x | 3.14% |
(a) The parent, KG Eco Solution, carries lower P/E and P/B than either subsidiary, a textbook holding-company discount in which the parent's price is marked down against the combined value of its subsidiary stakes. (b) This discount is commonly applied to holding companies, but it is on the wide side, so relative to assets the discount stands out. (c) That said, last year's trailing P/E of 3.2x is hard to take at face value, given that operating profit has fallen three years running and net profit is buffeted by one-off items. The forward view strips out those one-off effects and looks at normalized subsidiary earnings. The low price is observable, but a firm conclusion is best withheld until the subsidiaries' industry conditions and a recovery in the core business are confirmed.
Price history Close · MA20 · MA60
The latest close is ₩5,250 and the market capitalization is ₩249.9 billion. The price sits below its 20-day moving average (₩5,432) and below its 60-day moving average (₩6,038). 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 43.8, a neutral level. The one-month change is -3.0%, the three-month change is -12.8%, and the position relative to the 52-week high is -29.9%. Relative strength versus the KOSDAQ is 70 (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 71% of all stocks. Over the past three months it outpaced the index by 13.3%. 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 +13.30% / 6M +12.87% / 12M -21.36%
Key metrics vs whole-market median
Valuation
The P/E of 3.03x is below the whole-market median (13.81x). The P/B of 0.17x is below the whole-market median (1.15x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets.
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 5.8%, in line with the whole-market average (5.0%). The operating margin is 2.5%. The debt ratio is 434.4%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $4.8B | $4.8B | $5.0B | +4.01% ↑ faster |
| Operating profit | $205.3M | $150.1M | $126.8M | -15.57% ↑ faster |
| Net profit | $44.0M | $50.5M | $54.6M | +8.06% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $2.3B | $3.3B | $4.8B | $4.8B | $5.0B |
| Operating profit | $203.2M | $236.1M | $205.3M | $150.1M | $126.8M |
| Net profit | $31.8M | $323.8M | $44.0M | $50.5M | $54.6M |
| Revenue CAGR | 4-yr avg 22.07% | ||||
Revenue rose 4.0% year over year (2023 ₩7.3 trillion → 2024 ₩7.3 trillion → 2025 ₩7.6 trillion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit fell 15.6% year over year. That said, the decline narrowed. Over the 5 years on record, revenue compound annual growth (CAGR) is 22.1%. The two-year revenue CAGR is 2.2%. In the most recent quarter (Q1 2026), revenue was 12.7% higher 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 434.4%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
Recent news & events searched · sourced
- 2026-06-09UpdateClarification of market rumors or reports (unconfirmed). The company stated that a matter raised externally has not been confirmed.An uncertainty factor that could increase share-price volatility in the short term depending on whether the matter is confirmed. Source
- 2026-06-02FilingFiling of a material-fact report on a subsidiary's decision to dispose of treasury shares as a key management matter.A capital transaction at the subsidiary level that could affect the holding company's consolidated value and ownership structure over the medium term. Source
- 2026-06-02IRDisclosure of an IR event. The company announced the schedule of an investor presentation.An official channel for the company to communicate business conditions and outlook, affecting short-term investor sentiment. Source
- 2026-05-07EarningsQ1 2026 consolidated provisional results: revenue ₩1.97 trillion (up 12.7% year on year), operating profit ₩32.8 billion (down 56.5%), net profit ₩70.4 billion (up 39.5%).A mixed result — revenue rose but core operating profit fell while net profit surged on non-operating items — making this a quarter where the quality of earnings needs to be examined. Source
- 2026-06-04FilingSubsidiary's decision to dispose of shares and investment securities in another company, filed as a key management matter.A capital transaction that reshuffles subsidiary stakes and assets and could affect consolidated earnings and the value of holdings. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-09Disclosure
- 2026-06-04Disclosure
- 2026-06-02Disclosure
- 2026-06-02TreasuryMaterial-fact report
- 2026-05-29Large-business-group status disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-14OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-13Disclosure
- 2026-05-07EarningsFair-disclosure notice
- 2026-05-07EarningsFair-disclosure notice
- 2026-04-27Disclosure
- 2026-04-21Material-fact report (amended)
📖 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.