PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩40 per share · Prices as of the 2026-10-02 close
Koryo Industry's revenue has been flat to declining, but 2025 net income to controlling shareholders more than doubled year over year and the debt ratio fell sharply, while a possible renewed rise in grain import costs in the second half of 2026 is the key variable to watch for margins.
2025 revenue declined year over year, but net income attributable to controlling shareholders expanded from KRW 4.02 billion to KRW 9.66 billion, marking a clear profit recovery.
The debt ratio fell from 165.4% in 2024 to 120.2% in 2025, reflecting an improved balance sheet.
Quarterly earnings have been volatile, with net income to controlling shareholders dropping to KRW 598 million in Q1 2026 before rebounding to KRW 2.63 billion in Q2 2026.
The company's core business is compound feed manufacturing and sales, and as a small-cap KOSPI stock within the Kumkang Kind group, its trading liquidity is limited.
Movements in international grain prices and the won-dollar exchange rate in the second half of 2026 are the key variables that will determine the direction of cost pressure.
Koryo Industry was established in 1957 and listed on the KOSPI in 1991 as a manufacturer and seller of compound feed for livestock, belonging to the Kumkang Kind business group, whose largest shareholder group holds a 47.40% stake.
Its core products are compound feeds for poultry, swine, and cattle sold under the 'hafeed' brand, produced at its own plants in Busan, Daegu, and Changnyeong.
To secure stable distribution channels for its feed and accumulate livestock distribution know-how, the company also operates a meat processing business, and it earns some revenue from leasing its owned building.
Raw materials such as corn and soybean meal are largely imported from the United States and South America, which makes earnings sensitive to swings in international grain prices and exchange rates.
The company was the first in Korea's compound feed industry to adopt automated control systems for product standardization, and it continues to invest in new product development and feeding management services to reinforce its competitiveness. It has six subsidiaries, and all of its revenue is generated domestically.
In terms of competitive positioning, it competes with major domestic feed players such as CJ CheilJedang, Harim, Daeju Industrial, and Hantop.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩73.7B | ₩3.7B | 5.0% |
| 2025Q3 | ₩72.1B | ₩3.8B | 5.2% |
| 2025Q4 | ₩73.2B | ₩2.7B | 3.6% |
| 2026Q1 | ₩75.2B | ₩3.3B | 4.4% |
| 2026Q2 | ₩79.5B | ₩4B | 5.0% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩278.4B | ₩4.4B | ₩700M | 1.6% | 0.6% | 160.0% |
| 2023 | ₩319.1B | ₩8B | ₩3.4B | 2.5% | 3.2% | 159.9% |
| 2024 | ₩307.7B | ₩14.3B | ₩4B | 4.6% | 3.7% | 165.4% |
| 2025 | ₩297.3B | ₩13.7B | ₩9.7B | 4.6% | 8.0% | 120.2% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
Annual revenue rose from KRW 278.37 billion in 2022 to KRW 319.06 billion in 2023, then declined for two consecutive years to KRW 307.66 billion in 2024 and KRW 297.32 billion in 2025. In contrast, the operating margin improved steadily from 1.6% in 2022 to 2.5% in 2023 and then to 4.6% in both 2024 and 2025.
Net income attributable to controlling shareholders expanded markedly each year, from just KRW 0.69 billion in 2022 to KRW 3.39 billion in 2023, KRW 4.02 billion in 2024, and KRW 9.66 billion in 2025; the fact that net income growth outpaced operating profit growth suggests non-operating items also contributed to the improvement.
Operating cash flow also improved substantially, reaching KRW 32.42 billion in 2025, a sharp turnaround from negative flows of KRW -10.86 billion in 2024 and KRW -19.72 billion in 2022. The debt ratio fell from the 160% range in 2022-2024 to 120.2% in 2025, indicating improved balance-sheet stability.
On a quarterly basis, the operating margin softened temporarily from KRW 73.67 billion in revenue and KRW 3.72 billion in operating profit in Q2 2025 to KRW 73.17 billion in revenue and KRW 2.66 billion in operating profit in Q4 2025, and net income to controlling shareholders plunged to KRW 598 million in Q1 2026 even as revenue rose to KRW 75.20 billion.
This was followed by a recovery in Q2 2026, with revenue of KRW 79.48 billion, operating profit of KRW 4.0 billion, and net income to controlling shareholders of KRW 2.63 billion, largely offsetting the prior quarter's weakness.
These quarterly swings reflect the feed industry's characteristic sensitivity to seasonal and external factors such as raw material import costs, exchange rates, and shifts in production volumes across livestock categories.
Korea's compound feed industry relies on imports for most of its raw materials, since the country's grain self-sufficiency rate is only around 20%, making earnings directly tied to two variables: international grain prices and the won-dollar exchange rate.
Recent signals have been mixed by commodity: corn faces upward pressure on feed costs as global ending stocks decline, while soybeans face downward price pressure amid record production in Brazil and the United States.
For the third quarter of 2026, the won-denominated import price index for feed grains was projected to rise from the prior quarter as international grain prices, logistics costs, and a stronger dollar combined, even as the international grain futures price index was expected to edge lower over the same period, suggesting some room for cost relief from the fourth quarter onward.
Rising wheat prices have also been noted as a factor that could spill over into feed corn prices, adding upward pressure to food inflation more broadly in the second half.
Against this backdrop, the company is seen as maintaining quality and reliability competitiveness through automated-control-based product standardization and feeding management services.
Competitive intensity spans a layered structure of large food and livestock conglomerates such as CJ CheilJedang and Harim alongside small and mid-sized specialized feed makers such as Daeju Industrial and Hantop.
The profit recovery and improved balance sheet confirmed in the 2025 results are positive signals, but the renewed increase in quarter-to-quarter net income volatility in 2026 reduces the predictability of near-term results.
On the cost side, the projected quarter-over-quarter rise in the won-denominated feed grain import price index for the third quarter of 2026 is a headwind, though a slight decline in the international grain futures price index and potential supply improvements are cited as factors that could ease cost pressure from the fourth quarter onward.
No large-scale capacity expansion or new business entry plans have been identified in recently available disclosures, suggesting the company's core strategy remains the stable operation of its existing feed, meat, and leasing businesses.
On shareholder returns, the per-share dividend for fiscal year 2025 was set higher than the prior year, indicating that the profit recovery has been partly reflected in dividend policy.
Key points to watch going forward include the won-dollar exchange rate trend, changes in global grain supply and demand, and the actual direction of margins in coming quarters as these factors play out. Upstream industry issues such as livestock disease outbreaks or shifts in livestock policy also remain variables.
The stock currently trades at a price-to-earnings multiple that sits well below its five-year average band of roughly 22 times. Its price-to-book ratio is likewise below the five-year average of roughly 0.8 times, meaning the shares continue to trade at a discount to net asset value.
This can be read either as a sign that the profit recovery and balance-sheet improvement seen since 2022 have not yet been fully reflected in valuation multiples, or as a reflection of the market's cautious view on flat-to-declining revenue and quarter-to-quarter earnings volatility.
On the dividend side, the fiscal 2025 per-share cash dividend was set higher than the prior year, though the dividend yield itself is understood to run somewhat below the food and beverage sector average.
Given the stock's small-cap KOSPI characteristics and limited trading volume, valuation metrics can also swing more widely than for larger, more liquid names.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-23
Net income to controlling shareholders expanded every year from KRW 0.69 billion in 2022 to KRW 9.66 billion in 2025, and the debt ratio fell sharply from 165.4% in 2024 to 120.2% in 2025. Operating cash flow also improved substantially to KRW 32.42 billion in 2025.
If this trend continues, market perceptions of financial soundness and earnings stability could gradually shift.
Global grain stocks for the 2025/2026 marketing year are seen as generally ample, with increased corn and wheat production supporting a supply-favorable environment.
The international grain futures price index was also projected to edge lower in the third quarter of 2026, suggesting potential room for cost relief from the fourth quarter onward. Given the company's heavy reliance on imported raw materials, such shifts in supply conditions could favor margins.
The fiscal 2025 per-share cash dividend was set higher than the prior year, showing that the profit recovery is being partly reflected in dividend policy. If earnings remain stable, this creates an environment in which further dividend expansion could also be considered going forward.
Annual revenue peaked at KRW 319.06 billion in 2023 and then declined for two straight years to KRW 297.32 billion in 2025. Since profit growth has come mainly from margin improvement and non-operating factors rather than revenue expansion, a clear top-line growth driver has yet to emerge.
Net income to controlling shareholders swung sharply, falling to KRW 598 million in Q1 2026 before recovering to KRW 2.63 billion in Q2 2026, illustrating large quarter-to-quarter variance. This volatility shows how much results can be shaken by raw material import costs, exchange rates, and seasonal factors.
The won-denominated import price index for feed grains in the third quarter of 2026 was projected to rise from the prior quarter as a stronger dollar and logistics costs combined.
Rising wheat prices could also spill over to corn, a substitute feed grain, so a renewed increase in cost pressure in the second half cannot be ruled out.
Since core raw materials such as corn and soybean meal are largely imported from the United States and South America, cost and margin are directly exposed to swings in international grain prices and the won-dollar exchange rate.
Given Korea's structurally low grain self-sufficiency rate, this risk is persistent rather than confined to a particular period.
Outbreaks of livestock diseases such as foot-and-mouth disease or avian influenza can sharply reduce feed demand through livestock culling. Changes in livestock-related policy or shifts in meat consumption patterns are also variables that can affect upstream demand.
With a relatively small market capitalization and the largest shareholder and related parties holding a 47.40% stake, the free float is limited, which can contribute to thin trading volume and elevated share price volatility.
As a member of the Kumkang Kind business group, group-level decisions or governance changes could also affect minority shareholders.
Around the time of the (preliminary) Q3 2026 earnings disclosure, it will be important to check whether the margin trend continues following the Q1 2026 net income plunge and the Q2 2026 recovery.
Tracking the international grain futures price index and the won-dollar exchange rate will help verify whether the feed grain import cost pressure, which was projected to rise in Q3, actually eases as anticipated.
Around the time of the fiscal 2026 annual results and dividend decision disclosure, it will be possible to check the direction of change in net income and per-share dividends relative to 2025.
Ongoing monitoring is warranted for livestock disease outbreaks such as foot-and-mouth disease or avian influenza and for changes in livestock-related policy.
Koryo Industry is a company whose revenue has been flat to declining for three straight years, yet whose net income surged in 2025 on the back of margin improvement and non-operating factors, alongside an improved balance sheet.
However, quarterly net income volatility has widened again in 2026, and given the business's direct exposure to international grain prices and the won-dollar exchange rate, the projected rise in feed grain import costs for the third quarter of 2026 stands out as a near-term cost headwind.
Conversely, generally ample global grain stocks and a projected decline in futures prices from the fourth quarter onward could provide a potential trigger for cost relief. Dividends were set higher than the prior year, showing that the profit recovery has been partly passed through to shareholder returns.
The stock's limited liquidity as a small-cap KOSPI name is also a factor to bear in mind. The actual direction of next quarter's results and of grain and currency indicators will be the key points to watch going forward.
Report written 2026-09-05 · Data as of 2026-09-04
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