KNW: Loss-making auto parts maker sees share price rebound as largest shareholder changes

Thesis

The data supports a picture of weakening earnings alongside a recovering share price. Revenue has stayed near ₩76B to ₩81B for the last three periods, but operating income has been negative since 2024 and net income turned negative in 2025. The share price closed at ₩7,660, up 22.0% over three months and 38.3% over one year, though 2.7% lower over one month and below the 52-week high of ₩11,400. The data does not show what is driving the price move: no news headlines are available. Filings show repeated changes of largest shareholder (Oct 7 and Oct 12), which may matter for control, but the data gives no detail on the reasons or the terms. Free cash flow over the trailing period was deeply negative at -₩108.3B, which is a concern the data does not explain.

Business overview

KNW is an auto parts company listed on KOSDAQ since September 29, 2009, founded on January 12, 2001, with 16,019,520 listed shares. The data gives the CEO as 양재석. Revenue was ₩71.8B in 2021, rose to ₩99.6B in 2022 (up 38.6%), then fell to ₩95.4B in 2023 (down 4.2%), ₩78.5B in 2024 (down 17.7%) and recovered slightly to ₩81.1B in 2025 (up 3.3%). Foreign ownership is low at 1.4%, up from 1.3% sixty days ago. The data does not provide product or customer detail.

Financial analysis

These figures come from filed financial statements. In the trailing twelve months to H1 2026, revenue was ₩76.3B, operating income was -₩4.3B (margin -5.6%) and net income was -₩11.3B (margin -14.8%), with return on equity of -9.4%. Annually, operating margin fell from 15.4% in 2022 to 5.5% in 2023, then -2.9% in 2024 and -3.6% in 2025. Net income was ₩18.1B in 2022, ₩2.1B in 2023, ₩3.4B in 2024 and -₩5.8B in 2025. On the balance sheet, cash was ₩17.4B against borrowings of ₩170.8M, and liabilities were 169% of equity. Free cash flow was -₩108.3B over the trailing period, far larger than the operating loss; the data does not say why.

Valuation

The price-to-earnings ratio is not available because earnings are negative. Price-to-book is 1.1, compared with year-end readings of 0.8 in 2025, 0.4 in 2024, 1.1 in 2023, 1.7 in 2022 and 4.3 in 2021. Price-to-sales is 1.6 and EV/EBITDA is 70.9 on thin earnings, with enterprise value of ₩105.4B and no dividend. Listed peers show price-to-book of 0.4 to 0.8 for Hyundai Mobis, SL, HL Mando and Hyundai WIA, and 10.5 for Samhyun; peer price-to-earnings ranges from 5.9 to 18.7. KNW's price-to-book is therefore above most of those peers. No valuation model estimate is available for this company (fair value model is null), so there is no comparison with the share price.

Catalysts

• The change of largest shareholder, filed on October 7 and again on October 12, could alter control and strategy, though the data gives no details.
• An adjustment of conversion price was filed on September 17, which relates to convertible securities and may affect share count.
• Repeated insider shareholding and 5%+ holding reports in October and September show ownership positions are shifting.
• The next financial statements will show whether operating losses, which reached -₩4.3B in the trailing period, are narrowing.
• Institutional investors were net buyers of ₩72.5M over 20 days while foreigners and retail investors were net sellers, a small and mixed flow signal.

Risks

• Operating income has been negative for three consecutive periods, with the trailing margin at -5.6%.
• Trailing free cash flow of -₩108.3B is large compared with the ₩17.4B cash balance, which points to potential funding pressure.
• Net income swung to a loss of ₩11.3B in the trailing period, with return on equity at -9.4%.
• Frequent changes in the largest shareholder and a conversion price adjustment add uncertainty over control and possible dilution.
• The share price is 32.8% below its 52-week high of ₩11,400 and has moved sharply, and no news is available to explain the moves.

Closing view

The data shows a company whose profitability has deteriorated from a 2022 peak, with losses widening in the latest trailing period and large negative free cash flow, while the share price has risen over three months and one year. Low borrowings and ₩17.4B of cash are supports, but they sit alongside a price-to-book ratio above most listed peers and no model estimate to compare with the price. Ownership changes are the most visible recent event, yet the data does not explain them. Investors would need further information on the cash outflows and the new shareholder before drawing conclusions.

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

• Insider shareholding reportOct 13, 2026
• 5%+ holding reportOct 13, 2026
• Insider shareholding reportOct 13, 2026
• 5%+ holding reportOct 13, 2026
• Change of largest shareholderOct 12, 2026
• Change of largest shareholderOct 7, 2026
• Insider shareholding reportSep 22, 2026
• 5%+ holding reportSep 22, 2026
• Adjustment of Conversion PriceSep 17, 2026
• Disclosure on Large Business Group Status [Quarterly Disclosure (For Individual Company)]Aug 27, 2026
• Insider shareholding reportAug 20, 2026
• 5%+ holding reportAug 20, 2026
• Daily prices up to 2026-10-16
• Financial statements, trailing 12 months as of H1 2026

Report history

1. Oct 18, 2026InitiationStart of coverage (reader request)KNW: Loss-making auto parts maker sees share price rebound as largest shareholder changes