KM케이엠

KM is back to a small profit on a trailing basis after loss-making 2023 and 2024, but margins are thin and free cash flow is negative.

KM makes cleanroom consumables, optical film for display backlights, and medical and safety products, with plants in Korea and subsidiaries in China, Vietnam and the United States. On trailing figures to H1 2026 it reports revenue of about ₩144B, an operating margin of 0.7% and net income of about ₩4.6B, after an operating loss in 2025. The shares closed at ₩3,240, roughly 18% below the 52-week high of ₩3,950 and about 45% above the low of ₩2,240.

What stands out

• Revenue has grown modestly each year since 2023, rising from ₩127.8B to ₩135.4B in 2025, while operating income turned from a ₩0.4B loss in 2025 to a ₩1.1B profit on a trailing basis.
• Net income on a trailing basis (₩4.6B) is well above operating income, and the filings in the data do not explain the gap.
• Trailing free cash flow is negative at about -₩10.7B, and borrowings (₩27.6B) exceed cash (₩11.2B).
• Valuation metrics are low: P/E of 9.5, P/B of 0.3 and a 1.5% dividend yield. The data's DCF estimate of ₩515 is far below the share price, while the bull case is ₩3,729; the model's inputs are not explained.
• Shareholder activity was heavy in mid-2026, including a change of largest shareholder, several insider shareholding reports and a 5%+ holding report. Foreign ownership fell from 2.7% to 2.3% over 60 days.

What to watch

• The amended half-year report (Jun 2026) filed on 29 September 2026, and the next quarterly report, for changes to reported profit and cash flow.
• Whether free cash flow turns positive, given the trailing negative figure and debt above cash.
• Further filings on the change of largest shareholder and insider trading plans, which the data does not explain in detail. No recent news headlines were available.