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JONBUR Research · Initiation

KH Vatec · 060720 · Electronic components

KH Vatec: Revenue Rebound in 2025, Softer Margins in the First Half of 2026, Shares Below 52-Week High

Why this report

Start of coverage: written when a reader opened this company and there was no report yet.

KH Vatec is a KOSDAQ electronic components company with a market cap of ₩265.2B and a share price of ₩11,200, up 23.3% over three months but down 14.2% over one year. Filings show revenue of ₩385.8B over the trailing twelve months to H1 2026, with an operating margin of 6.0%, below the 7.5% reported for 2025.

Written Oct 20, 2026 · Data as of Oct 19, 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 picture of a business that has recovered in scale but not in profitability. Revenue rose 36.6% in 2025 to ₩424.9B, after a 14.5% fall in 2024. Operating margin has drifted from 9.2% in 2023 to 7.5% in 2025 and 6.0% on a trailing basis. ROE fell from 12.9% in 2023 to 6.1%.

On the other side, the balance sheet looks manageable, with liabilities at 78.8% of equity and free cash flow of ₩13.8B. The company has also returned cash through a share buyback and dividends. Price to book is 0.9, but the P/E of 16.1 is higher than in most recent year-ends. The data has no news headlines and no model estimate, so the drivers of the margin trend are not explained.

Business overview

KH Vatec is listed on KOSDAQ in the electronic components sector. It was founded on 1992-11-23 and listed on 2002-05-21, and it has 23,677,442 listed shares. The CEO is 남광희. Revenue has ranged between ₩311.0B (2024) and ₩424.9B (2025) over the last five years, so the business is mid-sized, with sales that move noticeably from year to year. The data does not describe its products or customers.

Financial analysis

These figures come from filed financial statements. Revenue was ₩339.8B in 2021, ₩363.9B in 2022, ₩363.6B in 2023, ₩311.0B in 2024 and ₩424.9B in 2025. Operating income was ₩31.8B in 2025 (7.5% margin), versus ₩21.9B in 2024 (7.0%) and ₩33.6B in 2023 (9.2%). Net income was ₩20.4B in 2025, down from ₩30.9B in 2023.

On a trailing basis to H1 2026, revenue was ₩385.8B, operating income ₩23.1B (6.0% margin), net income ₩16.5B (4.3% margin) and ROE 6.1%. Cash was ₩32.9B against borrowings of ₩67.5B. Free cash flow was ₩13.8B. Liabilities to equity were 78.8%.

Valuation

The share price implies a P/E of 16.1, a P/B of 0.9, a P/S of 0.7, an EV/EBITDA of 6.8 and a dividend yield of 3.3%. Year-end P/E was 13.0 in 2025, 9.0 in 2024 and 11.2 in 2023, so the current P/E is above those levels while P/B of 0.9 is close to the 2025 year-end figure of 1.0.

The listed peers trade at very different levels: LG Innotek has a P/E of 15.1 and P/B of 1.6, while Samsung Electro-Mechanics, Doosan, Hanwha Systems and Isupetasys have P/Es of 36.0 to 88.2 and P/Bs of 3.4 to 8.5. These companies are much larger, so the comparison is loose. A model estimate of value per share is not available in the data (null), so there is no comparison with the share price.

Catalysts

  • The cash dividend decision on 2026-10-07 and the interim dividend ex-date on 2026-09-28 show continued shareholder payouts.
  • The share buyback decision on 2026-06-24 and the treasury stock acquisition results report on 2026-07-28 are recent capital return actions.
  • An investor relations event was held on 2026-10-12, following one on 2026-05-29.
  • The amended half-year report filed on 2026-09-30 may be of interest to investors checking the H1 2026 figures.
  • Foreign investors were net buyers of about ₩1.8B over 20 days, and foreign ownership rose from 7.4% to 7.8% over 60 days.

Risks

  • Operating margin has fallen from 9.2% in 2023 to 6.0% on a trailing basis, and net margin is 4.3%.
  • Revenue has been volatile, with a 14.5% fall in 2024 followed by a 36.6% rise in 2025.
  • Borrowings of ₩67.5B are about twice the cash of ₩32.9B.
  • A debt guarantee for another party was decided on 2026-06-12, and the data gives no detail on its size or exposure.
  • The share price is 43.9% below its 52-week high of ₩19,960, and retail investors were net sellers of about ₩2.0B over 20 days.

Closing view

The data shows a company with recovering revenue, positive free cash flow, a 3.3% dividend yield and a price near book value. It also shows falling margins and returns, rising P/E and a debt guarantee with no detail. No model estimate and no news are available, so the evidence is mixed, and the next filings will show whether margins stabilize.

Model estimate of fair value

The valuation model has no estimate for this company yet (not enough data, or no positive value with the base case).

Filings and data used

Report history

  1. Oct 20, 2026InitiationStart of coverage (reader request)KH Vatec: Revenue Rebound in 2025, Softer Margins in the First Half of 2026, Shares Below 52-Week High

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