KNR Systems is a testing and measurement-equipment company that makes test rigs verifying the durability and seismic performance of structures and parts, vibration testers, and their core component, hydraulic actuators, so the timing at which a single large order is recognized heavily sways quarterly results. In January 2026 it signed a ₩2.5 billion supply contract (13.5% of recent revenue), and in February it decided on a convertible-bond issue worth ₩15.8 billion in operating funds. What stands out lately is that if the new supply contract settles into recurring revenue and the loss narrows quarter by quarter, the price, down as much as -73% from its 52-week high, could become a strength, but with revenue falling for three straight years, losses continuing, and the share count potentially rising through conversion of the convertible bond, a P/B of 5.26x may appear a burden.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 205.1%).
- The most recent full-year net result was a loss.
- Revenue fell 14.1% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 21.7% lower than a year earlier.
- ROE is -37.0% (total-net basis). It is below the sector average.
- Operating margin is -47.4%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder Kim Myung-han 18.05% (individual)
Controlling bloc incl. related parties 44.52%
With the controlling bloc holding 45%, the ownership structure is stable.
🔎 In-depth analysis
- KNR Systems is a testing and measurement-equipment company classified in the medical, precision, and optical-instruments sector.
- Its main revenue sources are known to be test rigs that verify the durability and seismic performance of structures and parts, vibration testers, and their core component, hydraulic actuators (drive units that push and pull using hydraulic force).
- Such equipment is used for testing and research in fields like construction and civil engineering, automobiles, and aerospace and defense, and the structure is one where the timing at which a single large order is recognized heavily shakes quarterly results.
- As this is a stock without a large market cap, it is best to watch how a single disclosure affects revenue and the share count, along with the flow of the business itself.
- The latest close is ₩10,280 and the market cap is ₩114.6 billion.
- The price sits below the 20-day line (₩12,734) and the 60-day line (₩18,549).
- Trading under both the short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that measures upward versus downward momentum over the last 14 days on a 0-100 scale) is 31.3, a neutral level.
- The one-month change is -30.2%, the three-month change is -51.2%, and the position versus the 52-week high is -74.6%.
- Relative strength versus the KOSDAQ is 52 (on a 1-99 scale, computed 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 48% of all stocks by strength.
- Over the past three months it lagged the index by 38.6%.
- Chart reading is best done alongside trading volume and the dates of disclosures.
- The most recent annual revenue (2025) was ₩15.9 billion, with an operating loss of ₩7.5 billion and a net loss of ₩8.5 billion, so it is in a loss position.
- The operating margin is -47.4%, ROE (how much is earned in a year on equity) is -37.0%, and the debt ratio (debt against equity) is 205.1%.
- The P/E ratio (how many times a year's earnings the price is worth) cannot be calculated because earnings are in the red, and the P/B (how many times book value the price is worth) is 5.01x.
- While no profit is being made, the P/B can appear higher than the true value, so rather than the figure itself, watching when the size of the loss narrows is what gives it meaning.
- The current ratio is around 1.0x, so short-term payment ability is not overly tight, but the point to note is that continued losses erode equity.
- Revenue fell for three straight years, from ₩21.4 billion in 2023 to ₩18.5 billion in 2024 and ₩15.9 billion in 2025, a -14.1% decline from the prior year.
- Operating and net losses have also continued since 2023.
- The most recent quarter (Q1 2026) had revenue of ₩1.8 billion, down -21.7% from the same period a year earlier, with an operating loss of ₩2.5 billion and a net loss of ₩2.5 billion, so the losses continued.
- This year's outlook revenue is about ₩14.8 billion, a picture of a slightly further decline from last year.
- Because this is a business with large quarterly swings depending on the timing at which large orders are recognized, for it to turn upward, new contracts must feed through to actual revenue and the size of the loss must be seen narrowing in quarterly results.
- For now, falling revenue and continued losses are closer to fact.
- On January 12, 2026, a single-sale supply contract was signed: the contract amount was ₩2.5 billion, or 13.5% of recent revenue.
- Whether this contract is a one-off or a repeatable transaction, and when it is recognized as revenue, shapes the medium-term flow.
- On February 13, 2026, a material-event report (convertible-bond issue decision) put the conversion price at ₩32,161 and operating funds at ₩15.8 billion.
- On February 19, 2026, a corrective refiling of this matter followed.
- Because a convertible bond brings in funds but can raise the share count if it later converts into stock, the key is to watch both the purpose of the funds (operating funds) and whether the actual deployment links through to revenue.
- The strength is that it holds a distinct technical field in vibration and seismic test equipment and hydraulic actuators, and the price has been pushed down as much as -73% from its 52-week high with the RSI in oversold territory.
- In other words, this is not a spot where high expectations are stacked on.
- On the facts, however, revenue has fallen for three straight years, operating and net profit are in the red, and this year's outlook revenue is slightly below last year's.
- A P/B of 5.26x is a figure that can look high until profit recovers.
- So this stock grows stronger 'when new supply contracts settle into recurring revenue and the loss narrows quarter by quarter', and weaker 'when the orders stay one-off and losses continue, or conversion of the convertible bond raises the share count'.
- Rather than concluding either favorably or unfavorably, it is reasonable to use whether improvement in revenue and the loss is confirmed in the next set of results and disclosures as the reference point.
🔎 Valuation vs peers Overvalued
A comparison set of similarly-sized companies within the medical, precision, and optical-instruments sector.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| NanoEntek | 86.51x | 1.50x | 1.74% |
| Komelon | 7.83x | 0.70x | 8.94% |
| Synergy Innovation | 48.74x | 0.69x | 1.42% |
We looked first at a public-data comparison set of similarly-sized companies within medical, precision, and optical instruments. The current P/E (how many times a year's earnings the price is worth) is not available, and the P/B (how many times book value the price is worth) is 5.01x. That said, because smaller-cap names are heavily swayed by earnings swings and financing disclosures, we did not draw firm conclusions from metrics based solely on last year's confirmed results. The basis for the forward box is a DART seasonality approximation.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩14.8 billion | — | — |
| Next quarter | Q2 2026 | ₩2.6 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩10,280 and the market capitalization is ₩114.6 billion. The price sits below its 20-day moving average (₩12,734) and below its 60-day moving average (₩18,549). 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 31.3, a neutral level. The one-month change is -30.2%, the three-month change is -51.2%, and the position relative to the 52-week high is -74.6%. Relative strength versus the KOSDAQ is 52 (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 52% of all stocks. Over the past three months it lagged the index by 38.6%. 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 -38.65% / 6M -46.30% / 12M -13.03%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 5.01x is above the sector median (1.61x).
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 -37.0%, below the sector average (5.0%). The operating margin is -47.4%. The debt ratio is 205.1%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $14.2M | $12.3M | $10.5M | -14.14% ↓ slower |
| Operating profit | -$2.9M | -$5.1M | -$5.0M | — |
| Net profit | -$2.5M | -$5.2M | -$5.6M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $14.2M | $12.3M | $10.5M |
| Operating profit | — | — | -$2.9M | -$5.1M | -$5.0M |
| Net profit | — | — | -$2.5M | -$5.2M | -$5.6M |
| Revenue CAGR | 2-yr avg -13.77% | ||||
Revenue fell 14.1% year over year (2023 ₩21.4 billion → 2024 ₩18.5 billion → 2025 ₩15.9 billion), and the three-year trend is 'falling'. The rate of decline widened 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 3 years on record, revenue compound annual growth (CAGR) is -13.8%. The two-year revenue CAGR is -13.8%. In the most recent quarter (Q1 2026), revenue was 21.7% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 14.1% year over year (3-year trend: falling).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-01-12ContractSingle-sale supply contract signed: ₩2.5 billion · 13.5% of recent revenueThe contract amount and term are central to how future revenue is recognized. Whether it is a one-off or a repeatable transaction shapes the medium-term read. Source
- 2026-02-19Update[Corrective refiling] Material-event report (convertible-bond issue decision): conversion price ₩32,161 · operating funds ₩5,000This disclosure requires weighing the purpose of the incoming funds together with the change in share count. When facilities and operating purposes are stated, the key is whether the investment is actually deployed and links through to revenue. Source
- 2026-02-13UpdateMaterial-event report (convertible-bond issue decision): conversion price ₩32,161 · operating funds ₩15.8 billionThis disclosure requires weighing the purpose of the incoming funds together with the change in share count. When facilities and operating purposes are stated, the key is whether the investment is actually deployed and links through to revenue. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩10,280 | ₩10,280 | Confirmed | link |
| Latest quarterly results | revenue ₩1.8 billion, operating profit -₩2.5 billion | revenue ₩1.8 billion, operating profit -₩2.5 billion | Confirmed | link |
| Annual results | revenue ₩15.9 billion, operating profit -₩7.5 billion | revenue ₩15.9 billion, operating profit -₩7.5 billion | Confirmed | link |
| Contract disclosure (original filing) | ㆍapprox. : approx. ₩2.5 billion · revenue 13.5% | ㆍapprox. : approx. ₩2.5 billion · revenue 13.5% | Confirmed | link |
| Financing disclosure (original filing) | []: ₩32,161 · ₩5,000 | []: ₩32,161 · ₩5,000 | Confirmed | link |
| Financing disclosure (original filing) | : ₩32,161 · ₩15.8 billion | : ₩32,161 · ₩15.8 billion | Confirmed | link |
| Basis for the forward box | DART | DART | Confirmed | link |
Recent filings
- 2026-05-15PeriodicQuarterly report
- 2026-03-31Shareholders' meeting notice
- 2026-03-31Disclosure
- 2026-03-20PeriodicAnnual business report
- 2026-03-20Audit report (amended)
- 2026-03-20Audit report
- 2026-03-13OwnershipOwnership-change filing
- 2026-03-13OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-13OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-13OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-13OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-13OwnershipOfficers'/major-shareholders' holdings 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.