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JONBUR Research · Initiation

kt alpha · 036030 · Retail & Trade

kt alpha: Profits Recovered Since 2024 While Shares Trade Below Book Value

Why this report

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kt alpha, a KOSDAQ-listed retail and trade company, earned ₩43.7B in net income over the twelve months to H1 2026 on ₩391.8B of revenue, and its shares closed at ₩4,770 on 2026-10-23. The shares trade at 5.4x earnings and 0.8x book value, below a model estimate of ₩8,183 per share based on the assumptions shown.

Written Oct 26, 2026 · Data as of Oct 23, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

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Thesis

The data supports a clear earnings recovery. Operating margin rose from 0.9% in 2021 to 11.2% in 2025 and 11.3% over the latest twelve months, and return on equity reached 15.3%. Valuation multiples are low against the company's own history: year-end P/E was 18.0 in 2023 and 21.9 in 2022, versus 5.4 now.

What the data does not show is revenue growth. Revenue fell from ₩471.5B in 2021 to ₩388.2B in 2024, and only grew 2.0% in 2025, so the margin gains came from profitability rather than sales. The share price is down 10.8% over one year, which suggests the market may be doubting how lasting the earnings are. No news headlines are available, so the reasons for the recovery cannot be confirmed from the data.

Business overview

kt alpha is listed on KOSDAQ in the Retail & Trade sector. It was founded on 1991-12-12 and listed on 1999-12-24, and it has 49,019,141 listed shares. Market capitalization is about ₩233.8B. Revenue was ₩469.6B in 2022, ₩430.4B in 2023, ₩388.2B in 2024 and ₩395.9B in 2025. The data does not break revenue down by product or segment. Foreign ownership is 1.6%, up from 1.4% sixty days earlier.

Financial analysis

These figures come from filed financial statements. Net income was a ₩8.9B loss in 2021, then ₩12.2B in 2022, ₩16.3B in 2023, ₩19.7B in 2024 and ₩43.6B in 2025. Operating income rose from ₩24.6B in 2024 to ₩44.2B in 2025.

Over the twelve months to H1 2026, revenue was ₩391.8B, operating income ₩44.3B (11.3% margin) and net income ₩43.7B (11.2% margin). Net income is close to operating income, so non-operating items add little. Liabilities to equity is 54.6%. Cash is ₩149.3B and free cash flow is ₩40.2B. Borrowings data is not available. Enterprise value is ₩84.6B, well below market cap, which fits with the large cash balance.

Valuation

At ₩4,770, the shares trade at 5.4x earnings, 0.8x book value and 0.6x sales, with a dividend yield of 5.9%. Year-end P/E was 6.1 in 2025 and 8.8 in 2024, and year-end P/B was 0.9 and 0.7. EV/EBITDA is not available.

Peers show a wide range: Youngone is at 5.2x earnings and 0.7x book, POSCO International at 10.9x and 1.3x, Samsung C&T at 16.7x and 0.4x, Dong SUH Companies at 19.1x and 1.6x, and ISC at 40.5x and 5.4x.

The valuation model uses a 5-year discounted cash flow at a 7.4% rate. It gives a model estimate based on the assumptions shown of ₩8,183 per share in the base case, ₩5,576 in the bear case and ₩12,760 in the bull case. The current price is below even the bear case. This is not a target or a reason to act, and the result depends heavily on whether current margins last.

Catalysts

  • The half-year report and preliminary earnings filed in August 2026 confirmed the latest twelve-month profit level.
  • A share cancellation decision was filed on 2026-05-28, which could affect the share count, though the data gives no details.
  • Foreign investors were net buyers of about ₩0.9B over 20 days while institutions and retail were net sellers.
  • The next quarterly earnings will show whether the 11% operating margin holds.
  • The 5.9% dividend yield may draw attention if payouts continue, but the data does not give dividend plans.

Risks

  • Revenue has fallen from ₩471.5B in 2021 to ₩395.9B in 2025, so profit growth has not been backed by sales growth.
  • Margins jumped sharply in 2025, and the data does not show whether that level can be kept.
  • The share price is down 10.8% over one year and 3.1% over one month, despite higher profits.
  • With a market cap near ₩233.8B and low foreign ownership of 1.6%, trading may be thin and flows can move the price.
  • The model estimate is sensitive to its assumptions, and the bull to bear range of ₩5,576 to ₩12,760 is wide.

Closing view

The data shows a company whose profits and returns have improved a lot, with low multiples, a solid cash position and a modest balance sheet. It also shows shrinking sales over several years and a share price that has not followed earnings higher. The model estimate sits above the current price, but it rests on assumptions about lasting margins. Weighing this evidence comes down to whether the 2025 and 2026 profit level proves durable, which later filings will show.

Model estimate of fair value

Bear
₩5,576
+19%
Base
₩8,183
+75%
Bull
₩12,760
+173%

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 7.4%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 26, 2026InitiationStart of coverage (reader request)kt alpha: Profits Recovered Since 2024 While Shares Trade Below Book Value

Built only from jonbur's own data: prices and investor flows, filed financial statements and filings, and news headlines. Disclosed (filed) data is labelled as such. Written by AI and may contain mistakes.

This is not financial advice. The report does not recommend buying or selling anything.

Source: KRX statistical information