Contec (451760) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
Contec earns its revenue from the space infrastructure that links satellites to the ground. It builds complete satellite ground stations on a turn-key basis, rents out its own worldwide network of ground stations by the hour through a subscription-style service called GSaaS, and runs a satellite-imagery data business. In 2025 it became the largest shareholder of satellite maker AP Satellite (a 24.72% stake), vertically integrating the value chain from the upstream of building satellites to the downstream of ground stations and data. Revenue is growing rapidly while net losses have narrowed sharply for three straight years, bringing the company closer to breakeven. The upside case is that as demand for space infrastructure and GSaaS subscription revenue grow in weight and the swing to profit is confirmed, its below-peer P/B combines growth with a low valuation; the downside is that if losses run longer than expected or the 327.8% debt ratio and dilution from convertible bonds come into focus, the stock can wobble.
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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 “IT Services (SI & Solutions)” (Internet, Platforms & Software), a type typically read first through P/E.
IT services (systems integration and solutions) tends to earn steadily off project wins and maintenance contracts. Value here comes from people and contracts rather than physical assets, so price-to-earnings (P/E) — the price measured against actual net profit — fits best.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
That said, the company is currently in a revenue-growth rather than a profit phase, so this metric alone offers only a limited read.
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
- The most recent full-year net result was a loss.
- Revenue rose 26.0% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 3.0% lower than a year earlier.
- ROE is -8.8% (controlling-interest basis). It is below the sector average.
- Operating margin is -18.6%.
- 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 Lee Sung-hee 23.6% (individual)
Controlling bloc incl. related parties 27.98%
With the controlling bloc holding 28%, control is maintained but the free float is relatively large.
🔎 In-depth analysis Reading
Contec earns its money from the space infrastructure that connects satellites to the ground. There are two core pieces. The first is a turn-key construction business that designs and installs the entire ground station (the antenna and transmit-receive equipment) used to communicate with satellites. The second is GSaaS (Ground Station as a Service), a subscription service in which the company rents its own network of ground stations, built out across the world, to satellite operators by the hour. On top of this sit a data business (SPACE STUDIO) that processes and analyzes the optical and radar (SAR) imagery satellites send back, and a satellite operations-and-control service. In 2025 it became the largest shareholder (a 24.72% stake) of AP Satellite, which makes satellite bodies and satellite-communication terminals, bringing under one roof everything from the upstream of building satellites to the downstream of receiving data at ground stations and selling it. The company describes this as a full value-chain strategy aimed at becoming a Korean Airbus.
The latest close is ₩7,480 and the market capitalization is ₩123.5 billion. The price sits above its 20-day moving average (₩7,269) and below its 60-day moving average (₩11,738). 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 43.6, a neutral level. The one-month change is -13.6%, the three-month change is -65.8%, and the position relative to the 52-week high is -68.2%. 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 46.6%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
The profitability metrics are still in loss-making territory. ROE (how much the company earns in a year on its equity) is -8.8% and the operating margin (the share of revenue left as operating profit) is -18.6%; with both operating and net results negative, no P/E ratio can be calculated. Valuation therefore has to be read from the P/B (how many times book equity the price represents) of 1.28x and from a revenue-based multiple (market cap divided by revenue, about 1.9x). This P/B is actually on the low side compared with peers, so the price is not excessively expensive relative to asset value. The most notable item on the balance sheet is the 327.8% debt ratio (debt relative to equity), meaning debt is large against the ₩83.3 billion of equity, and that is clearly worth watching. That said, the current ratio (assets that can be turned into cash against debt due within a year) of 1.67x means short-term liquidity itself is being maintained.
Revenue is growing fast. Consolidated revenue rose from ₩15.8 billion in 2023 to ₩69.0 billion in 2024 and ₩86.9 billion in 2025, up a further 26% year over year in 2025 (the consolidation of AP Satellite also contributed to the expansion in scale). The more important shift is the shrinking of losses. Net loss narrowed rapidly from -₩64.88 billion in 2023 to -₩22.56 billion in 2024 and -₩7.35 billion in 2025, closing in on breakeven over three straight years. The reason losses shrank so sharply year after year is that revenue grew as satellite launches and demand for space infrastructure rose, and the share of GSaaS subscription revenue - repeatedly leasing a once-built ground station to multiple satellite operators - climbed, gradually lightening the cost burden relative to scale. In the first quarter of 2026, revenue was ₩18.2 billion (-3.0% year over year) with a net loss of -₩0.73 billion, so quarterly results are still negative; the trend is improving, but the company has not yet fully crossed into profit. A trailing P/E based on last year's confirmed results does not exist because of the loss, and a forward P/E on this year's expected profit is likewise not something a reliable value can be built for, since the company has not committed to a profit figure for this year and the first quarter was a loss. In short, this stock has to be judged not on multiples but on when the swing to profit is confirmed.
Recent disclosures center more on the capital structure and ownership changes than on the business itself. The most significant business event was the 2025 acquisition of satellite maker AP Satellite, which made Contec the largest shareholder (24.72%) and tied the value chain - from the upstream of building satellites to the downstream of ground stations and data - into one company. In 2026, exercises of conversion rights on convertible bonds (CBs) followed in May, along with a series of large-holding and ownership reports by major shareholders and executives. Exercising conversion rights has two sides: on one hand, bonds carried as debt convert into equity, which helps lower the debt ratio; on the other, the number of shares rises, which can dilute existing shareholders. As routine filings, the annual business report and shareholder meeting came in March and the quarterly report in May.
The strengths are clear. It is a rare domestic company that has vertically integrated the space value chain - from ground-station construction to GSaaS subscriptions, satellite imagery, and satellite manufacturing through AP Satellite; revenue is growing fast while net losses have narrowed sharply for three straight years, bringing it closer to a swing to profit; and even so its P/B is low versus peers, so the price is not excessively expensive against asset value. Points to watch are that operating and net results are still in loss, making it hard to gauge value with traditional earnings multiples; that financial leverage is high at a 327.8% debt ratio; and that dilution from the conversion of convertible bonds remains a possibility. In short, in phases where demand for space infrastructure and GSaaS subscription revenue grow in weight and the swing to profit is confirmed, growth and a low valuation shine together, while in phases where losses run longer than expected or high debt and dilution come to the fore, the stock can wobble.
🔎 Valuation vs peers Inconclusive
The same KSIC (IT services) classification makes it hard to compare on business substance; Contec's real comparators are the space-infrastructure and satellite-downstream space and its newly consolidated satellite maker AP Satellite, but these are not in the site's comparison database, so a quantitative comparison is withheld.
With both operating and net results in the red, no P/E can be formed, so value cannot be set from earnings multiples. The remaining metrics - a P/B of 2.36x and a P/S of 2.3x - carry the expectation premium common to pre-profit growth companies, and on their own they are hard to call cheap or expensive. A trailing P/E on last year's confirmed results does not exist because of the loss, and a forward basis for this year cannot produce a reliable multiple either, since the company has committed to no official profit figure and the first quarter was a loss. Ultimately this stock's value has to be judged by an earnings inflection - when the low-cost GSaaS subscription revenue grows in weight enough to turn the company profitable - rather than by multiples, so an inconclusive read is appropriate at this stage.
Price history Close · MA20 · MA60
The latest close is ₩7,480 and the market capitalization is ₩123.5 billion. The price sits above its 20-day moving average (₩7,269) and below its 60-day moving average (₩11,738). 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 43.6, a neutral level. The one-month change is -13.6%, the three-month change is -65.8%, and the position relative to the 52-week high is -68.2%. 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 46.6%. 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 -46.59% / 6M -51.08% / 12M -13.91%
Key metrics Computed vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 1.28x is above the sector median (0.81x).
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 -8.8%, below the sector average (6.0%). The operating margin is -18.6%. The debt ratio is 77.4%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $11.1M | $48.5M | $61.0M | +25.97% ↓ slower |
| Operating profit | -$7.0M | -$8.6M | -$11.4M | — |
| Net profit | -$45.6M | -$15.8M | -$5.2M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $11.1M | $48.5M | $61.0M |
| Operating profit | — | — | -$7.0M | -$8.6M | -$11.4M |
| Net profit | — | — | -$45.6M | -$15.8M | -$5.2M |
| Revenue CAGR | 2-yr avg 134.42% | ||||
Revenue rose 26.0% year over year (2023 ₩15.8 billion → 2024 ₩69.0 billion → 2025 ₩86.9 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed 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 134.4%. The two-year revenue CAGR is 134.4%. In the most recent quarter (Q1 2026), revenue was 3.0% lower than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- Revenue grew 26.0% 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
- 2025-01-01FilingAcquired 3,729,400 common shares (a 24.72% stake) of satellite-body and satellite-communication-terminal maker AP Satellite to secure the largest-shareholder position - vertically integrating the value chain from satellite manufacturing (upstream) to ground stations and data (downstream)Over the medium to long term, this internalizes a full space value chain and expands scale, but if AP Satellite runs into weak results after the acquisition, it could weigh on consolidated earnings. Source
- 2026-05-26FilingExercise of conversion rights on the first tranche of convertible bonds - bonds convert into shares and new stock is issued, a source of dilution for existing shareholdersIn the short term this brings potential overhang and dilution, but converting bonds carried as debt into equity is positive for easing the debt ratio. Source
- 2026-05-14EarningsFiled the Q1 2026 quarterly report - revenue of ₩18.2 billion (-3.0% year over year), operating loss of -₩2.44 billion, and net loss of -₩0.73 billion; results stay in the red but the net loss has narrowedShort-term scale is roughly flat, but whether the narrowing net-loss trend holds is the key variable behind hopes for a swing to profit. Source
- 2026-03-23FilingFiled the 2025 business report - consolidated revenue of ₩86.9 billion (+26% year over year) and a net loss of -₩7.35 billion, confirming a three-year run of shrinking lossesThis officially confirms a structure of high growth alongside narrowing losses, with the timing of the swing to profit as the inflection point for valuation. Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-05-26Disclosure
- 2026-05-14PeriodicQuarterly report
- 2026-05-12Disclosure
- 2026-04-28OwnershipAmended filing
- 2026-04-24OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-24OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-24OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-24OwnershipOwnership-change filing
- 2026-04-17OwnershipOwnership-change filing
- 2026-03-31Disclosure
- 2026-03-31Shareholders' meeting notice
- 2026-03-23PeriodicAnnual business 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.