KOSPISteel & Metals002240

Kiswire

₩16,980▼ 2.30%2026-10-02 close

Market Cap

₩455.2B

Turnover

₩700M

Volume

40,000 shares

Shares out.

27M

PER

9.2×

PBR

0.2×

EPS

₩1,801

Dividend Yield

2.10%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩350 per share · Prices as of the 2026-10-02 close

Report overview

Kiswire Navigates Impairment, Expands Payout

Kiswire's 2025 operating profit rose sharply year over year, but net income fell steeply due to a tangible-asset impairment charge, while subsequent quarterly net income has shown a recovery trend.

1
In 2025, consolidated revenue reached 1.8092 trillion won and operating profit 40.7 billion won, up 4.0% and 57.8% year over year respectively, while net income fell 85.9% due to a tangible-asset impairment charge.
2
Fourth-quarter 2025 operating profit shrank to 870 million won with a 25.9 billion won net loss attributable to owners, but the first and second quarters of 2026 returned to consecutive profitability.
3
The company holds roughly 46% and 56% domestic market share in wire and rope segments respectively, with rope profitability supported by high-rope quality improvements and wire segment costs defended through efficiency gains.
4
At the March 2026 annual shareholder meeting the company resolved a year-end dividend of 350 won per share and disclosed a dividend policy targeting either a 40% payout ratio or a 25% ratio combined with a 10% year-over-year increase in dividend amount.
5
Succession from Chairman Hong Young-chul to Vice Chairman Hong Suk-pyo and the ongoing realignment of affiliate stakes involving Kiswire Holdings and Kistron make governance changes a continuing point of attention.

Business structure

Kiswire, founded in Busan in 1945, is Korea's leading producer of hard-drawn steel wire and wire rope, and has been listed on the KOSPI since 1976. The business is broadly divided into a rope segment, which manufactures wire rope, and a wire segment, which produces spring wire, PC steel strand, and bead wire.

Based on past disclosures, the wire segment historically accounted for more than half of sales, with the rope segment making up a large portion of the remainder. The company holds roughly 46% domestic market share in the wire segment and about 56% in the rope segment, giving it a leading position in both.

Its customer base spans multiple end markets including automotive springs, construction-grade PC strand, and marine and industrial wire rope, supported by an overseas production and sales network through more than twenty domestic and foreign subsidiaries.

On governance, Chairman Hong Young-chul and his son Vice Chairman Hong Suk-pyo hold overlapping stakes in both Kiswire itself and holding entity Kiswire Holdings, and a recent cross-shareholding cleanup with KOSDAQ-listed affiliate Kistron is simplifying the group structure.

Competitively, oversupply of low-priced Chinese wire products has remained a persistent source of pricing pressure. Investment in environmental facilities such as pollution-control equipment also forms part of the company's operations.

Earnings trend

Quarterly revenue · Operating profit

₩475.5B₩20.4B25Q2₩441.5B₩11.2B25Q3₩449.4B₩900M25Q4₩432.7B₩7B26Q1₩483.1B₩5.3B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩2.1T₩133.5B2022₩1.8T₩56.3B2023₩1.7T₩26.1B2024₩1.8T₩40.7B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩475.5B	₩20.4B	4.3%
2025Q3	₩441.5B	₩11.2B	2.5%
2025Q4	₩449.4B	₩900M	0.2%
2026Q1	₩432.7B	₩7B	1.6%
2026Q2	₩483.1B	₩5.3B	1.1%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩2.1T	₩133.5B	₩81B	6.4%	5.1%	46.6%
2023	₩1.8T	₩56.3B	₩71.5B	3.1%	4.3%	36.5%
2024	₩1.7T	₩26.1B	₩33.7B	1.5%	1.9%	35.4%
2025	₩1.8T	₩40.7B	₩9.6B	2.3%	0.5%	35.6%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-22

Earnings analysis

Consolidated revenue for 2025 came to 1.80918 trillion won, up from 1.73961 trillion won in 2024, while operating profit rose sharply to 40.72 billion won from 26.11 billion won a year earlier.

Net income attributable to owners, however, fell steeply to 9.61 billion won from 33.68 billion won, which the company attributed to higher operating profit driven by price increases at domestic and overseas subsidiaries being offset by a tangible-asset impairment charge that reduced net income.

Compared with 2023 revenue of 1.78888 trillion won, operating profit of 56.32 billion won, and owner net income of 71.45 billion won, the operating margin fluctuated from 3.1% in 2023 to 1.5% in 2024 and 2.3% in 2025.

Given that 2022 revenue reached 2.07255 trillion won with operating profit of 133.50 billion won and a 6.4% margin, profitability over the most recent three years has remained well below that earlier level.

On a quarterly basis, operating profit fell sequentially from 20.39 billion won in the second quarter of 2025 to 11.19 billion won in the third quarter and 0.87 billion won in the fourth quarter, when the company swung to a net loss attributable to owners of 25.92 billion won.

Subsequently, the first quarter of 2026 posted operating profit of 7.04 billion won with owner net income of 23.46 billion won, and the second quarter recorded operating profit of 5.34 billion won with owner net income of 29.12 billion won, confirming two consecutive quarters of net profitability.

Combined owner net income over the most recent four quarters (third quarter of 2025 through second quarter of 2026) totaled 48.59 billion won, suggesting the drag from the one-off fourth-quarter 2025 impairment has gradually eased in subsequent periods.

On cash flow, operating cash flow for 2025 was 117.02 billion won, broadly similar to the 123.29 billion won recorded in 2024, indicating relatively stable cash generation despite the swing in reported net income.

Industry analysis

The hard-drawn wire and wire rope industry in which Kiswire operates remains persistently exposed to global steel oversupply and expanding low-cost Chinese exports.

Over the past several years, spring wire and wire rope products reportedly faced pressure from a wave of low-priced Chinese volume that pushed down both sales volumes and average selling prices simultaneously.

Downstream demand spans a broad range of sectors including automotive, construction, shipbuilding and marine, and industrial equipment, which somewhat diversifies dependence on any single industry cycle.

More recently, changes in United States steel-related tariff policy have added to share-price volatility across Korea's steel and wire sector, with tariff-revision expectations at times driving broad, synchronized swings in steel-related stocks.

Domestically, Kiswire's commanding share of both the wire and rope segments gives it a strong competitive position at home, though it continues to face competition from cost-competitive rivals in overseas markets.

On the cost side, fluctuations in raw steel input prices and currency movements directly affect profitability. Across the industry, development of higher value-added products and strengthening cost competitiveness are commonly cited as strategic responses.

Outlook

The company disclosed that, on a nine-month cumulative basis through the third quarter of 2025, its rope segment saw operating profit improve on higher quality high-rope products while the wire segment's operating loss narrowed on strengthened cost competitiveness.

Across several quarters, management has reiterated a policy of pursuing market expansion and profitability through development of higher value-added products and cost competitiveness amid continued global economic uncertainty and steel oversupply.

At the March 2026 annual shareholder meeting, the company disclosed a dividend policy targeting either a 40% payout ratio or a 25% ratio combined with a 10% year-over-year increase in the total dividend amount under the Special Tax Treatment Control Act's high-dividend company criteria, along with plans to modernize dividend procedures such as shifting the dividend record date to after the dividend amount is determined.

With consecutive net profits recorded in the first and second quarters of 2026, the company appears to be moving past the effect of the one-off impairment charge booked in the fourth quarter of 2025.

On governance, cross-shareholding cleanup with Kistron is ongoing, and succession from Chairman Hong Young-chul to Vice Chairman Hong Suk-pyo is understood to be progressing gradually, including through the latter's board appointment at subsidiary KAT.

The next regular quarterly report, covering the third quarter of 2026, is due for disclosure by November 16, 2026 under statutory filing deadlines, and whether one-off items such as impairment charges recur will be a key factor for future net income trends.

Valuation

PER

9.2×

PBR

0.2×

ROE

2.6%

EPS

₩1,801

BPS

₩71,250

Dividend per share

₩350

The price-to-book ratio trades at a substantial discount to net asset value, positioning the shares at a lower multiple of book value relative to many other steel-related peers.

The price-to-earnings ratio may appear elevated relative to historical levels due to the sharp annual net income decline tied to the fourth-quarter 2025 impairment charge, though this relationship could shift as the net income recovery seen in the first half of 2026 is reflected.

On the dividend side, a notable feature is the company's disclosed policy goal of meeting high-dividend company criteria and increasing dividend amounts, with the payout ratio running at a notably high level in the most recent fiscal year.

However, the absolute dividend yield itself sits at a level open to differing comparisons against sector averages, with the dividend-to-price ratio having been reported in the high-1% range in a past disclosure.

Overall, the relationship between share price and net assets points in a different direction than the relationship between share price and earnings, a divergence in which short-term net income volatility plays a significant role in valuation interpretation.

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 2026-08-22

Bull factors

Operating Profit Recovery and Continued Net Profitability

Operating profit rose 57.8% year over year in 2025, and both the first and second quarters of 2026 posted net income attributable to owners, suggesting the company is moving past the shock of the fourth-quarter 2025 impairment charge.

Quality improvements in high-rope products and cost competitiveness gains in the wire segment have served as pillars supporting profitability. Two consecutive quarters of net profit can be read as a sign of earnings stabilization, provided one-off items do not recur.

Domestic Market Leadership and Expanding Dividend Policy

Roughly 46% domestic market share in wire and 56% in rope underpin a firm competitive position relative to rivals. The dividend policy disclosed in March 2026 set a target of either a 40% payout ratio or a 25% ratio combined with a 10% year-over-year increase, signaling intent to expand shareholder returns.

Modernization of dividend procedures was also disclosed as an attempt to improve predictability around dividends.

Low Share Price Multiple Relative to Net Assets

The price-to-book ratio trading at a substantial discount to net asset value serves as a reference point on the asset-value side. Steady expansion of total equity, including retained earnings, over time provides a backdrop of financial stability.

However, whether and how this discount narrows or persists going forward remains a matter for market participants to judge.

Bear factors

Risk of Recurring One-Off Impairment Charges

The tangible-asset impairment charge that drove the sharp 2025 net income decline cannot be ruled out as a recurring risk in future asset revaluations. Even with improving operating profit, increased net income volatility can complicate valuation interpretation. Such non-recurring items reduce the predictability of quarterly results.

Pressure from Chinese Oversupply and Price Competition

The wire and wire-rope market remains continuously exposed to oversupply of low-priced Chinese products, and there have been past instances of export volumes and average selling prices declining together. If global economic uncertainty persists, weaker downstream demand could translate into reduced sales volumes. This poses a factor that could constrain the sustainability of operating margin improvement.

Uncertainty from Governance Restructuring and Succession

As succession from Chairman Hong Young-chul to Vice Chairman Hong Suk-pyo progresses, share transfers among affiliates such as Kiswire Holdings and Kistron continue.

Cross-shareholding cleanup and whether requirements for recognized family-independent management are met remain variables that could bring further governance changes. These governance issues are matters that warrant ongoing monitoring from the perspective of minority shareholders.

Risk factors

Earnings Volatility

As shown by fourth-quarter 2025 operating profit shrinking to 870 million won alongside a net loss, quarterly earnings volatility is considerable. If non-recurring items such as impairment charges recur, the reliability of annual earnings forecasts could be undermined. Investors need to distinguish and interpret the gap between operating profit and net income separately.

Raw Material and Currency Fluctuation

Costs for wire products are closely tied to steel raw material prices, so sharp increases in input costs could pressure margins. Given the presence of overseas sales, currency fluctuations are also a factor that could affect profitability.

If the ability to pass through costs via price increases is limited, the pace of operating margin improvement could slow.

Trade Policy Changes

Changes in steel-related tariff and trade policy in major markets including the United States can directly affect export volumes and prices.

Given past instances where steel stocks broadly surged and fell on tariff-revision expectations, potential for future policy-driven swings in share price and earnings should be kept in mind. Whether tariff coverage and rates change remains a matter requiring ongoing verification.

What to watch next

By mid-November 2026
The third-quarter 2026 report is due for disclosure by the statutory deadline of November 16, 2026, and it will be important to check whether the net income recovery trend seen after the fourth-quarter 2025 impairment continues into the third quarter.
Upon future dividend-related disclosures
It will be worth checking how the company's disclosed target of a 40% payout ratio or a 25% ratio plus a 10% increase is actually implemented in the next fiscal year, and whether procedural improvements such as changing the dividend record date are formalized.
Upon further disclosures on affiliate share realignment
Further progress on governance restructuring, including the sale of remaining cross-held shares between Kistron and Kiswire and whether family-independent management status is recognized, should be monitored.
Upon steel tariff policy announcements from the United States and other major markets
The impact of tariff revisions on wire and wire-rope export volumes and prices warrants review, and continued monitoring is warranted given past instances where steel stocks broadly moved together on tariff issues.

Overall view

Kiswire saw operating profit improve significantly in 2025 compared with the prior year, yet net income fell sharply due to a one-off tangible-asset impairment charge, and the company has shown a recovery trend with two consecutive quarters of net profit in the first half of 2026.

Its business foundation remains stable, underpinned by leading domestic market share in both the wire and rope segments, though it stays continuously exposed to external variables such as Chinese oversupply and shifting trade policy.

On dividends, the company has articulated a policy goal of meeting high-dividend company criteria and increasing dividend amounts, with its March 2026 year-end dividend resolved in line with that goal.

The price-to-book ratio trades at a substantial discount to net asset value, while the price-to-earnings ratio is shaped by the 2025 net income decline, leaving the two metrics pointing in different directions.

Succession from Chairman Hong Young-chul to Vice Chairman Hong Suk-pyo and ongoing affiliate share realignment also make governance changes worth watching. The next quarterly report, whether impairment charges recur, and shifts in trade policy are likely to be key variables shaping future earnings trends.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-09-30 · Data as of 2026-09-29

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.