Fino: Revenue Surge and Thin Profits as Shares Trade Above a Model Estimate

Thesis

The data supports a sharp change in scale: annual revenue went from ₩7.0B in 2023 to ₩264.8B in 2025, and trailing twelve-month revenue to H1 2026 is ₩376.1B. Operating income has turned positive at ₩20.0B (5.3% margin) and free cash flow is ₩15.4B. What the data does not support is strong profitability: net margin is 0.7%, ROE is 2.4%, and the trailing P/E is 224.3. The share price is up 58.3% over one year and 28.0% over three months, but down 5.5% over one month and well below the 52-week high of ₩19,150. Filings in June to September 2026 show a merger completion report, equity acquisitions and a rights offering, which suggests the business is changing, though the filings' titles give no financial detail. No news headlines are available.

Business overview

Fino is listed on KOSDAQ in the Batteries sector. It was founded on 1990-02-09 and listed on 2001-06-26, with 86,012,953 listed shares. The CEO is listed as 주종완. Revenue was ₩11.3B in 2021 and ₩11.4B in 2022, fell to ₩7.0B in 2023, then grew to ₩30.7B in 2024 and ₩264.8B in 2025. The data does not say what drove this growth.

Financial analysis

From filed financial statements: trailing revenue to H1 2026 is ₩376.1B, operating income ₩20.0B, net income ₩2.8B. Operating margin is 5.3% and net margin 0.7%. In 2025 revenue was ₩264.8B (up 763.1%), operating income ₩8.8B (3.3% margin) and net loss ₩5.9B, with ROE of -7.6%. Net losses were also recorded in 2023 (₩1.9B) and 2024 (₩2.5B), while 2021 and 2022 were profitable at small scale. On the balance sheet, cash is ₩114.2B, borrowings are zero, and liabilities to equity is 18.3%. Trailing free cash flow is ₩15.4B.

Valuation

Current multiples are P/E 224.3, P/B 3.5, P/S 1.6 and EV/EBITDA 24.8, with no dividend. Year-end P/B was 4.8 in 2025, 7.8 in 2024 and 5.9 in 2023, so P/B is lower than in recent years. Peers show P/B of 1.6 to 4.9 (LG Energy Solution 3.9, Samsung SDI 1.6, POSCO Future M 3.3, Ecopro BM 4.9, L&F 4.4), putting Fino's 3.5 within that range. Peer P/E figures are mixed: 200.4 to 1035 where available, and unavailable for two. The valuation model (5-year DCF, 7.9% rate) gives a model estimate based on the assumptions shown of ₩4,134 per share in the base case, ₩1,936 bear and ₩7,931 bull. The share price of ₩7,180 is above the base case and near the bull case. This is not a target or a reason to buy or sell.

Catalysts

• The September 2026 securities issuance results for a third-party allotment rights offering show new capital has been raised, following an August 2026 decision.
• The June 2026 merger completion report and equity acquisition decisions could change the company's size and business mix.
• The H1 2026 half-year report filed on 2026-08-14 gives the latest earnings base, with trailing operating income of ₩20.0B.
• Foreign ownership fell from 44.5% to 36.0% over 60 days while retail investors were net buyers of ₩18.0B over 20 days, so shifts in flows may matter.
• A July 2026 shareholders' meeting and a filing on subsidiary material matters point to ongoing corporate restructuring.

Risks

• Net margin of 0.7% and ROE of 2.4% leave little earnings to support a P/E of 224.3.
• The share price is above the model's base estimate of ₩4,134, and the bear case is ₩1,936.
• The rights offering and new shares may dilute existing shareholders, and the terms are not in the data.
• Net losses in 2023, 2024 and 2025 mean the profit record is short and recent.
• Foreign investors were net sellers of ₩14.7B over 20 days and the price is far below its 52-week high of ₩19,150, showing volatility.

Closing view

The data shows a company whose revenue has grown very quickly and which now has positive operating income, ₩114.2B of cash and no borrowings. Net profit and returns remain thin, the valuation multiples are high relative to earnings, and the share price sits above the model's base estimate. Recent merger, acquisition and capital-raising filings indicate big changes, but their effects on future results are not available in the data. The evidence is mixed and depends on whether the recent scale can turn into steadier profit.

Model estimate of fair value

Bear

₩1,936

-75%

Base

₩4,134

-46%

Bull

₩7,931

+3%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Base case of the 5-year discounted cash flow model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 7.9%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

• Securities Issuance Results (Voluntary Disclosure) (Third-Party Allotment Rights Offering)Sep 7, 2026
• Rights offering (paid-in capital increase) decisionAug 28, 2026
• Half-year report (Jun 2026)Aug 14, 2026
• Results of Extraordinary Shareholders' MeetingJul 27, 2026
• Notice of shareholders' meetingJul 10, 2026
• Other Material Management Matters (Material Management Matters of Subsidiary Companies)Jul 9, 2026
• Merger Completion Report (Asset Acquisition and Transfer)Jun 16, 2026
• [Attached Correction] Material Matters Report (Decision on Acquisition of Equity Securities of Other Corporations)Jun 12, 2026
• [Amended] Material Matters Report (Decision on Acquisition of Equity Securities of Other Corporations)Jun 12, 2026
• Shareholders' meeting calledJun 10, 2026
• Determination of Shareholder Register Closure Period or Record DateJun 10, 2026
• Major Matters Report (Decision on Acquisition of Shares and Equity Securities of Other Corporation)Jun 10, 2026
• Daily prices up to 2026-10-26
• Financial statements, trailing 12 months as of H1 2026
• Our fair value model, statements as of TTM to H1 2026

Report history

1. Oct 27, 2026InitiationStart of coverage (reader request)Fino: Revenue Surge and Thin Profits as Shares Trade Above a Model Estimate