KH VatecKH바텍

KH Vatec's trailing profits are thinner than in 2025, though the shares have risen over the past three months.

KH Vatec makes metal components for smartphones, laptops and tablets, plus automotive parts, with plants in South Korea, China, Vietnam and India. On trailing twelve-month figures to H1 2026 it reports revenue of ₩385.8B, operating income of ₩23.1B and net income of ₩16.5B, below its 2025 full-year levels. The shares closed at ₩11,130 on 2026-10-23, about 44% below the 52-week high of ₩19,960 but well above the low of ₩8,250.

What stands out

• Full-year 2025 revenue was ₩424.9B, up 36.6%, but net income of ₩20.4B was lower than in 2024 relative to sales, and trailing figures to H1 2026 are lower again.
• Trailing operating margin is about 6% and net margin about 4.3%, versus 7.5% and roughly 4.8% in 2025.
• Balance sheet: borrowings of ₩88.2B against cash of ₩32.9B, with liabilities at 78.8% of equity; trailing free cash flow was ₩13.8B.
• Valuation metrics look modest against the peer group: P/E of 16, P/B of 0.9 and EV/EBITDA of 7.1, with a 3.3% dividend yield. A DCF-based fair value model gives a base of ₩8,799, below the current price.
• Recent filings include a cash dividend decision, a share buyback decision, a debt guarantee for another party and an investor relations event; the news feed contained no headlines for the period.

What to watch

• The next quarterly or annual results, to see whether margins recover from the trailing level of about 6% operating margin.
• Dividend payment timing following the interim dividend record date and ex-date in late September, and the effect of the buyback programme.
• Debt levels and the guarantee for another party, given borrowings of ₩88.2B and the company's reliance on the automotive and portable device markets named in the profile.