Korea Information Engineering Services한국정보공학

Korea Information Engineering Services is a low-margin IT hardware distributor whose revenue and profits have shrunk and whose shares have fallen over the past year.

The company distributes servers, PCs, notebooks and peripherals from brands such as HPE and Lenovo, and also runs venture investment, IT solutions, online commerce and IT education. Trailing revenue to H1 2026 is about ₩296.8B, with operating income of only ₩1.4B and net income of ₩4.4B, and free cash flow is negative at about -₩4.1B. The share price is ₩2,730, down 8.1% over one year, and the data includes a DCF fair value of ₩2,908 from the model shown.

What stands out

• Annual revenue fell 24.6% in 2025 to ₩146.3B after a 68% jump in 2024, showing high volatility.
• Operating margin is very thin at 0.5% trailing, so small changes in costs or sales can swing results.
• Net income is well above operating income in the data, which the filings may explain through non-operating items; the data does not break this down.
• Borrowings of ₩20.9B against cash of ₩6.1B, with liabilities at 128.6% of equity, indicate a leveraged balance sheet.
• Foreign ownership fell from 2.3% to 1.6% over 60 days, while retail investors were net buyers over the last 20 days.
• Filings in 2026 include a half-year report, quarterly report and two major sales or supply contracts, but the data contains no news headlines.

What to watch

• Next quarterly and annual filings, to see whether revenue recovers and operating margin improves from its low level.
• Trailing free cash flow is negative; watch whether debt levels or cash flow change in upcoming reports.
• The DCF fair value is far from the share price and the bear and bull values are very wide, so the model's assumptions carry significant uncertainty.