Konan Technology makes and sells artificial-intelligence software, supplying natural-language processing that understands, searches and analyzes text, along with image and voice recognition, to public agencies and companies in the form of search engines, big-data analytics and generative-AI solutions. A February 2026 disclosure showed annual revenue of ₩34.0 billion, an operating loss of -₩9.9 billion and a net loss of -₩9.7 billion; last year's revenue rose 29% and the loss narrowed, placing the company at a crossroads where revenue is moving toward profit, while the share price sits 75.9% below its 52-week high. The key point to watch: if revenue growth carries through to a swing to profit and the business runs without further capital raising, the picture is strong, but with the loss persisting (operating margin -29%, ROE -32.8%) and repeated rights offerings behind it, a stall in revenue growth or a prolonged loss means share count and cash position must be watched together.
At-a-glance assessment financial health · growth · profitability · valuation
- The most recent full-year net result was a loss.
- Revenue rose 29.1% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 4.7% lower than a year earlier.
- ROE is -32.8% (total-net basis). It is below the sector average.
- Operating margin is -29.0%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder Kim Young-seom 22.88% (individual)
Controlling bloc incl. related parties 36.84%
With the controlling bloc holding 37%, the ownership structure is stable.
🔎 In-depth analysis
- Konan Technology makes and sells artificial-intelligence software.
- Its official and public classification is software development, and on this site it is grouped under the games/software sector.
- Its mainstays are natural-language processing that understands, searches and analyzes text, and recognition technology that identifies images and voice, which it supplies to public agencies and companies as search engines, big-data analytics and generative-AI solutions to generate revenue.
- With a market cap of ₩140.1 billion it is on the smaller side, so it is worth watching not just the progress of the business but also the effect each disclosure has on the balance sheet and share count.
- The latest close is ₩11,000 and the market cap is ₩137.7 billion.
- The price sits below the 20-day line (₩12,542) and below the 60-day line (₩16,662).
- Trading below both the short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that scores upward versus downward momentum over the past 14 days on a 0-100 scale) is 33.9, a neutral level.
- It is down 26.2% over one month, down 36.1% over three months, and sits 73.4% below its 52-week high.
- Relative strength versus the KOSDAQ is 24 (on a 1-99 scale, converting the past year's return against the index with more recent weight; higher means stronger than the market), placing it in roughly the top 77% of all stocks by strength.
- Over the past three months it lagged the index by 15.0%.
- Chart reading is best done alongside volume and disclosure dates.
- Latest annual revenue is ₩34.0 billion, with an operating loss of -₩9.9 billion and a net loss of -₩9.7 billion, still in the red.
- The operating margin is -29.0% and ROE (how much is earned in a year on shareholders' equity) is -32.8%, so profitability is in negative territory.
- The debt ratio (debt against shareholders' equity) is 154%, but the current ratio (assets that can be turned into cash within a year against debt due within a year) is 245%, so the short-term cash position has some room.
- The P/E (how many times one year's profit the price is) cannot be calculated because of the loss, and value is instead viewed through a P/B (how many times book value the price is) of 4.66x.
- That said, a P/B looking higher than some peers is not immediately a case for calling it 'expensive.' For a company still running a loss, it is hard to gauge value from a book-value multiple alone, and the market does put a price on the technology held and the prospect of a future turn to profit.
- Revenue rose from ₩24.4 billion (2023) to ₩26.3 billion (2024) to ₩34.0 billion (2025), and last year's growth of 29.1% was faster than the prior year's (7.7%).
- The three-year average growth rate is 17.9%, so the growth trend is intact.
- On profit, while still in the red, the loss narrowed from -₩14.1 billion in 2024 to -₩9.9 billion in 2025, a direction in which revenue is filling in against costs.
- The latest quarter (Q1 2026) had revenue of ₩3.9 billion, down 4.7% year on year, but with AI software the public and corporate projects are uneven from quarter to quarter, so it is too early to call a trend from a single quarter's number.
- Full-year revenue this year is estimated at about ₩38.1 billion, reflecting the quarterly revenue distribution and the confirmed Q1 result, and whether a step-up in revenue over last year continues is the core of the growth story.
- Because the structure is one in which, once revenue passes a certain scale and begins to cover fixed costs, a narrowing loss can carry through to a swing to profit, the timing at which revenue growth connects to profit is what matters.
- Recent disclosures center on capital raising and results.
- In October 2025, a shareholder-allocation rights offering (145,906 of a planned 1,000,000 shares subscribed) and the general-public subscription result for forfeited shares were disclosed back to back.
- A rights offering is a matter to view alongside both the use of the funds raised and the change in share count; if the purpose is facilities or operations, whether the actual outlay connects to revenue is the key.
- In February 2026, a profit-structure change disclosure reported annual revenue of ₩34.0 billion, an operating loss of -₩9.9 billion and a net loss of -₩9.7 billion.
- It is worth checking together whether the revenue increase and the narrowing loss point the same way, and whether any one-off factors are mixed in.
- Konan Technology's strength is clear revenue growth.
- Last year's revenue rose 29% with the pace accelerating, and the loss narrowed, placing the company at a crossroads where revenue is moving toward profit.
- It also has a clear business foundation in AI search and analytics technology.
- The share price is down 75.9% from its 52-week high, below all moving averages, and the RSI is in depressed territory, so this is not a spot where expectations are excessively baked into the price.
- On the other hand, the point to be careful about is that it is still loss-making.
- With an operating margin of -29% and ROE of -32.8%, profitability is negative, and the string of rights offerings is a signal that share count and cash position must be watched together.
- In sum, if revenue growth carries through to a swing to profit and the business runs without further capital raising, the picture is strong; if revenue growth stalls or the loss drags on, it is a weak phase.
- This is a name to track by confirming the timing of growth and the swing to profit through quarterly results and disclosures.
🔎 Valuation vs peers Overvalued
Comparables with adjacent market cap within the games/software sector.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| S2W | — | 4.46x | -22.88% |
| Infinitt Healthcare | 7.31x | 1.01x | 13.77% |
| GC MediEye | 4.18x | 1.09x | 26.12% |
Within games/software, public-data comparables closest in market cap were considered first. The current P/E (how many times one year's profit the price is) cannot be confirmed, and the P/B (how many times book value the price is) is 4.66x. That said, for lower-market-cap names, profit swings and capital-raising disclosures carry a large effect, so this was not judged on last year's confirmed-results metrics alone. The outlook box is based on a DART seasonality approximation.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩38.1 billion | — | — |
| Next quarter | Q2 2026 | ₩5.6 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩11,000 and the market capitalization is ₩137.7 billion. The price sits below its 20-day moving average (₩12,542) and below its 60-day moving average (₩16,662). 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 33.9, a neutral level. The one-month change is -26.2%, the three-month change is -36.1%, and the position relative to the 52-week high is -73.4%. Relative strength versus the KOSDAQ is 24 (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 24% of all stocks. Over the past three months it lagged the index by 15.0%. 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 -15.03% / 6M -36.78% / 12M -72.25%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 4.66x is above the sector median (1.58x).
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 -32.8%, below the sector average (5.0%). The operating margin is -29.0%. The debt ratio is 154.0%, so the financial structure is moderate.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $16.2M | $17.4M | $22.5M | +29.11% ↑ faster |
| Operating profit | -$7.3M | -$9.3M | -$6.5M | — |
| Net profit | -$6.5M | -$9.0M | -$6.4M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $11.8M | $10.2M | $16.2M | $17.4M | $22.5M |
| Operating profit | $1.5M | -$2.7M | -$7.3M | -$9.3M | -$6.5M |
| Net profit | $1.3M | -$2.2M | -$6.5M | -$9.0M | -$6.4M |
| Revenue CAGR | 4-yr avg 17.46% | ||||
Revenue rose 29.1% year over year (2023 ₩24.4 billion → 2024 ₩26.3 billion → 2025 ₩34.0 billion), and the three-year trend is 'rising'. The pace of growth also quickened 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 5 years on record, revenue compound annual growth (CAGR) is 17.5%. The two-year revenue CAGR is 17.9%. In the most recent quarter (Q1 2026), revenue was 4.7% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- Revenue grew 29.1% year over year, a sign of growth.
Points to watch
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2025-10-23UpdateSubscription result for a rights offering or equity-linked securities (voluntary disclosure): 1. Type of security: registered common stock; 2. Method: shareholder-allocation rights offering; 3. Subscribers: general-public subscribers (including high-risk high-yield investment trusts and venture-enterprise investment trusts); 4. Subscription date: 2025-10-22; 5. Result: planned shares 1,000,000, subscribed shares 145,906A disclosure to view alongside both the purpose of the funds and the change in share count. Where facilities or operating purposes are stated, the key is whether the actual investment outlay connects to revenue. Source
- 2025-10-20UpdateSubscription result for a rights offering or equity-linked securities (voluntary disclosure) (general-public offering of forfeited shares after shareholder allocation): 1. Type of security: registered common stock; 2. Method: shareholder-allocation rights offering; 3. Subscribers: employee stock ownership association and existing shareholdersA disclosure to view alongside both the purpose of the funds and the change in share count. Where facilities or operating purposes are stated, the key is whether the actual investment outlay connects to revenue. Source
- 2026-02-13EarningsChange of 30% or more in revenue or profit structure (15% for large corporations): annual revenue ₩34.0 billion, operating loss -₩9.9 billion, net loss -₩9.7 billionRecent confirmed or preliminary results. Check whether they point the same way as the annual trend and whether any one-off factors are present. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩11,000 | ₩11,000 | Confirmed | link |
| Latest quarterly results | revenue ₩3.9 billion, operating profit -₩4.0 billion | revenue ₩3.9 billion, operating profit -₩4.0 billion | Confirmed | link |
| Annual results | revenue ₩34.0 billion, operating profit -₩9.9 billion | revenue ₩34.0 billion, operating profit -₩9.9 billion | Confirmed | link |
| Capital-raising disclosure (original text) | approx. : 1. 2. 3. approx. approx. 4. approx. 2025-10-22 5. approx. 1,000,000 approx. 145,906 | approx. : 1. 2. 3. approx. approx. 4. approx. 2025-10-22 5. approx. 1,000,000 approx. 145,906 | Confirmed | link |
| Capital-raising disclosure (original text) | approx. : 10.20) approx. approx. 1. 2. 3. approx. | approx. : 10.20) approx. approx. 1. 2. 3. approx. | Confirmed | link |
| Results disclosure (original text) | revenue30%: revenue ₩34.0 billion · operating profit -₩9.9 billion · net profit -₩9.7 billion | revenue30%: revenue ₩34.0 billion · operating profit -₩9.9 billion · net profit -₩9.7 billion | Confirmed | link |
| Outlook box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-05-15PeriodicQuarterly report
- 2026-05-12OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-30OwnershipLargest-shareholder ownership change report (amended)
- 2026-04-30OwnershipOwnership-change filing
- 2026-04-03OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-31Shareholders' meeting notice
- 2026-03-23PeriodicAnnual business report
- 2026-03-23Audit report
- 2026-03-13Shareholders' meeting notice
- 2026-03-04Amended filing
- 2026-02-13EarningsEarnings filing
- 2026-02-13Shareholders' meeting notice
📖 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.