Kyeong Nam Steel경남스틸

Kyeong Nam Steel is a small, low-margin steel processor whose revenue and profit have shrunk since 2022, though its shares trade at a low multiple.

Kyeong Nam Steel cuts and processes steel coils for automotive, appliance and machinery customers, buying most of its coil from POSCO. Trailing twelve-month revenue to H1 2026 was about ₩362B, with operating income of about ₩5.9B and a 1.6% operating margin. The shares closed at ₩1,919 on 28 October 2026, down 34.9% over one year and well below the 52-week high of ₩3,430.

What stands out

• Revenue fell 9.7% in 2025 to about ₩357B, after peaking near ₩415B in 2022.
• Operating margin has narrowed from 2.7% in 2022 to 1.6% on a trailing basis, and ROE is 4.6%.
• Valuation looks low on paper: P/E about 10, P/B about 0.5, and a 6.3% dividend yield, but the data does not give a reason for the discount.
• The DCF-based fair value model gives a base of ₩3,650, a bear of ₩847 and a bull of ₩8,910; these are model outputs, not forecasts or targets.
• Foreign ownership fell from 3.5% to 2.5% over about 60 days, and the 20-day flows show net foreign selling.

What to watch

• The half-year report (filed 14 August 2026) and any Q3 results, to see whether margins stabilise above the 1.6% trailing level.
• The change of largest shareholder (December 2025) and the value-up plan (March 2026), for any follow-up filings on governance or capital returns.
• Whether the 6.3% dividend yield is sustained, since the data shows a cash dividend decision in February 2026 but no detail on future payouts.