KnJ케이엔제이

KnJ's trailing profits are strong on revenue of ₩114B, but the shares have fallen 11.5% over the past month and free cash flow is negative.

KnJ makes silicon carbide components for semiconductor equipment, selling mainly to chipmakers, with memory makers a key target. Trailing twelve-month figures to H1 2026 show revenue of ₩114.3B, operating income of ₩25.5B and net income of ₩24.1B, though debt is high relative to equity. The stock closed at ₩26,450 on 2026-10-21, well below its 52-week high of ₩44,600 but above its low of ₩19,320.

What stands out

• Trailing operating margin is 22.3% and net margin is 21.1%, after revenue rose 35.7% in 2025 to ₩84.4B.
• Net income in 2025 (₩25.6B) was higher than operating income (₩22.2B), so non-operating items or tax effects helped that year; the filings data does not explain why.
• Borrowings are ₩84.0B against cash of ₩6.6B, and liabilities are 153.7% of equity.
• Trailing free cash flow is negative at -₩16.6B, so reported profits are not yet turning into cash.
• Foreign ownership fell from 9.5% to 7% over the last 60 days, and the 20-day institutional flow was negative while retail flow was positive.
• Valuation metrics are P/E 8.8 and P/B 2.0, and the company pays no dividend; the DCF model gives a base value of ₩42,416 (bear ₩24,415, bull ₩74,140).

What to watch

• The next half-year or annual results, and whether margins and cash flow hold up against the trailing figures.
• Follow-up to the 2026-09-02 buyback trust contract and any further 5%+ holding or largest-shareholder filings.
• Debt levels and negative free cash flow, given the high liabilities-to-equity ratio.