RF Systems is a metalworking company that machines metal parts and structures and supplies them under contracts with its customers. With a market capitalization of ₩94.0 billion, a single large contract has a relatively big effect on its revenue and profit for the year. Over the past six months a run of supply contracts has piled up to about the size of the prior year's revenue: ₩16.7 billion on March 16, 2026 (51.0% of recent revenue), ₩6.9 billion on June 8 (18.0%) and ₩4.2 billion on December 8, 2025 (12.8%). After net profit turned positive last year, Q1 2026 earnings jumped to several times the year-earlier level. What stands out lately is that, on top of solid profitability (ROE of 10.4% and an operating margin of 10.6%) and stable finances, the rising order book is strong for earnings and valuation if it keeps being refilled; on the other side, revenue leans on chunky supply contracts, so a lull in new orders can widen the swings in any given year's results.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 16.8% year over year, and the pace is quickening (3-year trend: mixed).
- Net profit swung from a loss a year earlier back into the black (a turnaround).
- Most recent quarter (Q1 2026) revenue was 50.3% higher than a year earlier.
- ROE is 10.4% (total-net basis). It is above the sector average.
- Operating margin is 10.6%.
Ownership & governance As of 2025-12-31
Largest shareholder RF Materials 33.18% (corporate)
Controlling bloc incl. related parties 48.87%
With the controlling bloc holding 49%, the ownership structure is stable.
🔎 In-depth analysis
- RF Systems is a metalworking company.
- It machines metal parts and structures and books revenue by delivering them under supply contracts with its customers.
- With a market capitalization of ₩94.0 billion it is on the smaller side, so a single large supply contract has a relatively big effect on revenue and profit for the year.
- When looking at this company, then, which contracts it wins, at what value and over what period is the core of the business.
- The latest close is ₩6,010 and the market cap is ₩86.6 billion.
- The price sits below both the 20-day line (₩7,488) and the 60-day line (₩10,918).
- Trading under both its short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a gauge that scores upward versus downward force over the last 14 days on a 0-100 scale) is 32.3, a neutral level.
- The one-month change is -29.2%, the three-month change is -46.7%, and the price sits -62.4% from its 52-week high.
- Relative strength versus the KOSDAQ is 84 (1-99, computed from returns against the index over the past year with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 15% of all stocks by strength.
- Over the last three months it lagged the index by 24.7%.
- Chart reading is best done alongside volume and the dates of filings.
- Full-year 2025 revenue was ₩38.2 billion, with operating profit of ₩4.1 billion and net profit of ₩5.2 billion.
- The operating margin of 10.6%, net margin of 13.5% and ROE (how much is earned in a year on equity) of 10.4% point to sound profitability.
- The debt ratio (debt relative to equity) is 167.3%, but with a current ratio (assets that can be turned into cash within a year relative to debt due within a year) of 187.6% and an interest coverage ratio (how many times operating profit covers interest) of 11.0x, the company has ample capacity to service its debt.
- The current P/E of 17.98x and P/B of 1.88x are based on last year's confirmed results, but the company is at an inflection point where earnings are rising quickly, so those figures alone make it hard to call the stock expensive.
- The forward P/E based on this year's expected earnings is lower than same-sector Semyung Electric (8.33x) and Samyoung M-Tek (11.1x).
- Given the recovery in earnings, the current price is closer to the cheap side.
- Revenue was flat at around ₩32.8 billion in 2023 and ₩32.7 billion in 2024, then rose 16.8% to ₩38.2 billion in 2025, returning to growth.
- Operating profit jumped 140.6% from ₩1.7 billion in 2024 to ₩4.1 billion in 2025, and net profit swung from a ₩4.1 billion loss in 2024 to a ₩5.2 billion profit in 2025, a turnaround.
- The trend became clearer in Q1 this year: Q1 2026 revenue of ₩10.0 billion was up 50.3% from the same period a year earlier, operating profit of ₩1.1 billion was up 285.1%, and net profit of ₩1.4 billion was up 238.9%.
- Behind this jump in earnings are the supply contracts won in succession over the past six months.
- Expected results for this year are around ₩57.4 billion in revenue, ₩15.6 billion in operating profit and ₩17.5 billion in net profit, reflecting the fact that Q1's confirmed results and the secured contract volume are recognized as revenue across the year.
- With Q1 earnings running three to four times the year-earlier level and chunky contracts backing them, the picture of this year's earnings rising sharply over last year is supported by the quarterly results and the contract filings.
- Supply-contract filings came one after another over the past six months.
- A ₩16.7 billion supply contract (51.0% of recent revenue) was signed on March 16, 2026, followed by ₩6.9 billion (18.0% of revenue) on June 8, 2026, preceded by a ₩4.2 billion contract (12.8% of revenue) announced on December 8, 2025.
- Together the three come to about the size of the prior year's revenue and are the direct source of this year's higher revenue and profit.
- When each contract's delivery period runs out, and whether it leads to repeat orders afterward, is what will determine the continuity of results from next year on.
- The strengths are clear.
- Net profit swung from loss to profit last year, Q1 2026 earnings jumped to several times the year-earlier level, and the forward P/E on this year's expected earnings is lower than same-sector comparison companies.
- With ROE of 10.4% and an operating margin of 10.6%, profitability is sound, and the current ratio and interest coverage ratio point to stable finances.
- The share price has fallen sharply in the short term, so this reads as a spot where improved results meet a lower price.
- The point to watch is the structure in which revenue leans on chunky supply contracts.
- If contracts keep coming, this year's level of earnings can settle in, but a lull in new orders can widen the swings in any given year's results.
- In sum, this is a stock that is strong on both earnings and valuation as long as the rising orders keep being refilled, and one where earnings volatility becomes a weakness if the order flow dries up.
🔎 Valuation vs peers Undervalued
A peer set of metalworking names adjacent in market capitalization.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Shinhwa Pretech | — | 1.20x | -6.40% |
| Semyung Electric | 8.12x | 1.15x | 14.16% |
| Samyoung M-Tek | 10.25x | 1.04x | 10.15% |
Within metalworking, the peer set of publicly available data closest in market capitalization was looked at first. The current P/E (how many times one year's earnings the price represents) is 16.68x and the P/B (how many times book value the price represents) is 1.74x. Because smaller-cap names are heavily affected by earnings swings and fundraising filings, no firm conclusion was drawn from last year's confirmed-results metrics alone. The basis for the forecast box is a DART seasonality approximation.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩57.4 billion | ₩15.6 billion | ₩17.5 billion |
| Next quarter | Q2 2026 | ₩15.6 billion | ₩6.1 billion | ₩6.6 billion |
Price history Close · MA20 · MA60
The latest close is ₩6,010 and the market capitalization is ₩86.6 billion. The price sits below its 20-day moving average (₩7,488) and below its 60-day moving average (₩10,918). 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 32.3, a neutral level. The one-month change is -29.2%, the three-month change is -46.7%, and the position relative to the 52-week high is -62.4%. Relative strength versus the KOSDAQ is 84 (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 85% of all stocks. Over the past three months it lagged the index by 24.7%. 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 -24.66% / 6M +36.53% / 12M +29.84%
Key metrics vs sector median
Valuation
The P/E is 16.68x. The P/B of 1.74x is above the sector median (1.43x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
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 10.4%, in line with the sector average (10.0%). The operating margin is 10.6%. The debt ratio is 167.3%, so the financial structure is moderate.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $21.7M | $21.7M | $25.3M | +16.84% ↑ faster |
| Operating profit | $1.2M | $1.1M | $2.7M | +140.62% ↑ faster |
| Net profit | $2.6M | -$2.7M | $3.4M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $21.7M | $21.7M | $25.3M |
| Operating profit | — | — | $1.2M | $1.1M | $2.7M |
| Net profit | — | — | $2.6M | -$2.7M | $3.4M |
| Revenue CAGR | 2-yr avg 7.90% | ||||
Revenue rose 16.8% year over year (2023 ₩32.8 billion → 2024 ₩32.7 billion → 2025 ₩38.2 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit rose 140.6% year over year. Profit is growing at an accelerating pace. Over the 3 years on record, revenue compound annual growth (CAGR) is 7.9%. The two-year revenue CAGR is 7.9%. In the most recent quarter (Q1 2026), revenue was 50.3% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- ROE of 10.4% points to solid profitability.
- Revenue grew 16.8% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-06-08ContractSupply contract signed: contract value ₩6.9 billion · 18.0% of recent revenueThe contract value and period are central to future revenue recognition. Whether the deal is one-off or repeatable shapes the medium-term read. Source
- 2026-03-16ContractSupply contract signed: contract value ₩16.7 billion · 51.0% of recent revenueThe contract value and period are central to future revenue recognition. Whether the deal is one-off or repeatable shapes the medium-term read. Source
- 2025-12-08ContractSupply contract signed: contract value ₩4.2 billion · 12.8% of recent revenueThe contract value and period are central to future revenue recognition. Whether the deal is one-off or repeatable shapes the medium-term read. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩6,010 | ₩6,010 | Confirmed | link |
| Latest quarterly results | revenue ₩10.0 billion, operating profit ₩1.1 billion | revenue ₩10.0 billion, operating profit ₩1.1 billion | Confirmed | link |
| Annual results | revenue ₩38.2 billion, operating profit ₩4.1 billion | revenue ₩38.2 billion, operating profit ₩4.1 billion | Confirmed | link |
| Contract filing (original text) | ㆍapprox. : approx. ₩6.9 billion · revenue 18.0% | ㆍapprox. : approx. ₩6.9 billion · revenue 18.0% | Confirmed | link |
| Contract filing (original text) | ㆍapprox. : approx. ₩16.7 billion · revenue 51.0% | ㆍapprox. : approx. ₩16.7 billion · revenue 51.0% | Confirmed | link |
| Contract filing (original text) | ㆍapprox. : approx. ₩4.2 billion · revenue 12.8% | ㆍapprox. : approx. ₩4.2 billion · revenue 12.8% | Confirmed | link |
| Basis for the forecast box | DART | DART | Confirmed | link |
Recent filings
- 2026-06-08Single supply/sales contract
- 2026-06-01Disclosure
- 2026-05-28OwnershipOwnership-change filing
- 2026-05-28OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-28OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-22Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-04-27EarningsFair-disclosure notice
- 2026-03-25Disclosure
- 2026-03-25Disclosure
- 2026-03-25Shareholders' meeting notice
- 2026-03-17PeriodicAnnual 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.