KX InnovationKX

KX Innovation's earnings have shrunk sharply from 2024 levels, and the shares are down 39% over the past year, with a merger process underway.

KX Innovation runs broadcasting signal transmission and pay-TV channels, public golf courses, and semiconductor and SSD materials and broadcast equipment units. Trailing revenue is about ₩366.7B with operating income of ₩49.9B and a 13.6% operating margin as of H1 2026, but 2025 revenue fell 14.3% and 2024 net income of ₩82.6B was not repeated. The stock closed at ₩2,340 on 21 October 2026, near the lower end of its 52-week range of ₩2,250 to ₩3,950.

What stands out

• Trailing net income is ₩17.5B (4.8% net margin), well below 2024's ₩82.6B, which the data does not explain.
• Trailing free cash flow of ₩75.6B is above trailing net income, while borrowings of ₩234.1B exceed cash of ₩210.0B.
• The company's DCF fair value model gives a base of ₩22,807, but this is a model output in the data, not a forecast, and the current price sits far below it.
• Valuation metrics are low: P/E about 6, P/B 0.3, EV/EBITDA 1.3, with no dividend yield.
• Foreign ownership is 2.2% and unchanged over 60 days; 20-day flows show foreign and institutional net selling with retail net buying.

What to watch

• Merger filings: a merger decision was amended several times and a merger completion report was filed on 28 September 2026; the data does not explain the terms or resulting structure.
• Executive and major shareholder trading plan reports filed on 20 October 2026, which may signal insider share sales.
• Next annual and quarterly results, since the data gives no news headlines or explanation for the 2025 revenue decline and 2024 earnings spike.