KOSPIAutomotive003620

KG Mobility

₩2,540▲ 0.79%2026-10-02 close

Market Cap

₩513B

Turnover

₩600M

Volume

250,000 shares

Shares out.

200M

PER

5.7×

PBR

0.4×

EPS

₩464

Dividend Yield

0.00%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close

Report overview

Profit Recovery Amid Export Tailwinds

KG Mobility has moved past its 2022 large-scale loss to post four consecutive years of revenue growth alongside sustained operating and net profit, with export expansion into Europe and the Middle East driving its normalization process.

1
Consolidated revenue rose for four straight years from KRW 3.42 trillion in 2022 to KRW 4.30 trillion in 2025, while operating profit and net income attributable to owners turned from losses into gains over the same period.
2
Exports in the first half of 2026 reached their highest level in twelve years since 2014, driving overall performance.
3
New-model momentum continues with the revival of the Musso (Q300) pickup and the expansion of the eco-friendly lineup including the Actyon hybrid.
4
In the domestic market, sales have shown relatively weak momentum amid intense competition centered on Hyundai and Kia.
5
The current share price trades below net asset value per share, and no dividend is currently being paid.

Business structure

KG Mobility is a South Korean automaker under KG Group that primarily manufactures and sells sport utility vehicles (SUVs) and pickup trucks. Its main models comprise the Torres, Actyon, Korando, and Rexton SUV lineup along with the Musso (new Q300), the company's flagship pickup in the domestic market.

On electrification, the company has progressively rolled out the Torres EVX electric SUV, Musso EV, and Actyon hybrid, expanding its eco-friendly lineup to the point where eco-friendly models accounted for 37.7% of domestic sales in 2025.

Sales channels are split between the domestic market and exports, with exports increasingly centered on Western Europe and the Middle East/Africa region.

Over the medium term, the company is co-developing a mid-to-large SUV codenamed 'SE10' to succeed the Rexton in partnership with China's Chery Automobile under a platform licensing agreement, while also pursuing emerging-market expansion through knock-down (KD) export arrangements.

Its commercial vehicle arm, KGM Commercial, produces buses.

In the domestic passenger vehicle market, competition is intense under the overwhelming market share of Hyundai and Kia, whereas overseas the company has been expanding its footprint in markets such as Europe and Turkey where demand for compact-to-midsize recreational vehicles is strong.

Earnings trend

Quarterly revenue · Operating profit

₩986.4B₩8B25Q2₩1.2T₩1.4B25Q3₩1.2T₩21B25Q4₩1.1T₩9.6B26Q1₩1.2T₩5.2B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩3.4T-₩112B2022₩3.7T₩12.5B2023₩3.9T₩1.4B2024₩4.3T₩36.2B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩986.4B	₩8B	0.8%
2025Q3	₩1.2T	₩1.4B	0.1%
2025Q4	₩1.2T	₩21B	1.8%
2026Q1	₩1.1T	₩9.6B	0.8%
2026Q2	₩1.2T	₩5.2B	0.4%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩3.4T	-₩112B	-₩60.1B	−3.3%	−5.5%	83.2%
2023	₩3.7T	₩12.5B	₩8.9B	0.3%	0.8%	143.4%
2024	₩3.9T	₩1.4B	₩33.8B	0.0%	2.4%	118.5%
2025	₩4.3T	₩36.2B	₩46.6B	0.8%	3.1%	127.0%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04

Earnings analysis

Consolidated revenue grew for four consecutive years, from KRW 3.4233 trillion in 2022 to KRW 3.7364 trillion in 2023, KRW 3.9051 trillion in 2024, and KRW 4.3036 trillion in 2025.

Operating profit swung from a large loss of KRW -112.0 billion in 2022 to a gain of KRW 12.5 billion in 2023, then narrowed to just KRW 1.4 billion in 2024 before rebounding sharply to KRW 36.2 billion in 2025.

Operating margin followed a similarly gradual improvement, moving from -3.3% in 2022 to 0.3% in 2023, 0.0% in 2024, and 0.8% in 2025.

Net income attributable to owners improved every year, from KRW -60.1 billion in 2022 to KRW 8.9 billion in 2023, KRW 33.8 billion in 2024, and KRW 46.6 billion in 2025, expanding more sharply than operating profit and suggesting that non-operating items played a meaningful role in the net income trajectory.

On a quarterly basis, operating profit of KRW 8.0 billion in the second quarter of 2025 was accompanied by a net loss attributable to owners of KRW -7.7 billion, but the pattern reversed in the third quarter (operating profit KRW 1.4 billion, net income KRW 8.2 billion) and fourth quarter of 2025 (operating profit KRW 21.0 billion, net income KRW 43.0 billion), when net income expanded far more than operating profit.

Profitability remained positive in the first quarter of 2026 (operating profit KRW 9.6 billion, net income KRW 27.3 billion) and second quarter of 2026 (operating profit KRW 5.2 billion, net income KRW 14.9 billion), though operating profit narrowed sequentially.

Summing the most recent four quarters (third quarter 2025 through second quarter 2026), net income attributable to owners totaled roughly KRW 93.5 billion, well above the full-year 2025 net income figure of KRW 46.6 billion.

The debt ratio jumped from 83.2% in 2022 to 143.4% in 2023 before settling at 118.5% in 2024 and 127.0% in 2025, remaining at an elevated level.

Industry analysis

The domestic automaker industry is structured with Hyundai and Kia holding an overwhelming market share, while mid-tier players KG Mobility, GM Korea, and Renault Korea compete in the comparatively narrow remaining space.

During the 2026 wage and collective bargaining season, KG Mobility maintained its 17-year strike-free record, minimizing labor-relations risk, a strategy shared among the three mid-tier automakers seeking to secure new model allocations and production stability.

Globally, the auto industry faces a complex mix of US tariff pressure, low-cost competition from Chinese manufacturers, and stagnant demand, making improvement in hybrid-centric product mix a key variable.

Against this backdrop, some analysis has characterized KG Mobility as an automaker with a distinct positioning that is insulated from direct tariff impact because it has no export volume to the United States.

Instead, the company's exports are concentrated in Western Europe, Turkey, and the Middle East/Africa, regions with strong demand for compact-to-midsize recreational vehicles that are expected to remain core pillars of its export strategy going forward.

In the domestic market, sluggish demand and intensifying competition have weighed on sales, while overseas new-model launches and market expansion have provided a relative buffer through export growth.

Outlook

According to Hana Securities, KG Mobility's 2026 business plan targets global sales of 137,000 units (up 24% year on year), revenue exceeding KRW 5.0 trillion (up 18%), and an operating margin of 2.2% or higher.

The same report assessed that 2025 global sales rose modestly to about 110,000 units, with domestic sales declining while exports centered on Western Europe and the Middle East/Africa grew by double digits, cushioning overall performance.

On the new-model roadmap, the Musso Q300 pickup launched in the first quarter of 2026, the mid-to-large hybrid SUV codenamed 'SE10' succeeding the Rexton is slated for the second half of the year, and the company is proceeding with the production-version unveiling of the large electric SUV 'F100' and final checks on 'KR10,' the successor to the Korando.

Hana Securities noted the formalization of the KD business and expansion of the eco-friendly lineup as medium-term strategies, reporting that the company aims for global sales of 200,000 units, revenue of KRW 7.3 trillion, and an operating margin above 5% by 2030.

On shareholder returns, the report stated that the company plans to consider dividends once operating profit exceeds KRW 100 billion, and that a payout ratio of around 10% could be feasible if the 2026 business plan proceeds smoothly.

These targets represent the company's own stated business plan, and actual achievement should be tracked through subsequent quarterly results and new-model sales trends.

Valuation

PER

5.7×

PBR

0.4×

ROE

6.3%

EPS

₩464

BPS

₩7,524

Dividend per share

₩0

The current share price trades below net asset value per share, indicating the market is applying a discount rather than a premium to the company's net asset base.

In terms of the earnings-based price multiple, some assessments place the stock in a relatively low multiple range within the automaker sector, reflecting the shift from losses to profit through 2025 and the expansion of net income accumulated over the most recent four quarters.

No dividend is currently being paid, placing the stock at a disadvantage relative to dividend-paying peers in the sector.

That said, since the company has indicated it will consider initiating dividends once operating profit exceeds KRW 100 billion, there is a possibility that further earnings improvement could lead to a change in dividend policy.

These valuation indicators should be understood as variables that can shift depending on future quarterly results, new-model sales performance, and export volume trends.

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 2026-09-04

Bull factors

Four Straight Years of Revenue Growth and a Turn to Profit

Consolidated revenue has grown for four consecutive years since 2022, and both operating profit and net income attributable to owners have moved away from large losses to sustain a profitable trend through 2025.

The net income accumulated over the most recent four quarters already exceeds the full-year 2025 figure, suggesting the profit recovery trend is continuing. Management normalization efforts since KG Group's acquisition of the company in 2022 are showing up as improved financial structure.

Strongest Export Performance in Twelve Years

Exports in the first half of 2026 set a twelve-year high dating back to 2014, and June marked an all-time record monthly revenue. New model launches and new market entries centered on Western Europe and the Middle East/Africa continue, offsetting domestic weakness.

Some assessments also note the company's relatively tariff-insulated positioning given the absence of US export volume.

Eco-Friendly and New-Model Roadmap Gaining Momentum

Following the revival of the Musso (Q300), the company plans further new-model rollouts including the SE10 hybrid SUV and the unveiling of the large electric SUV F100 in the second half.

The eco-friendly share of domestic sales expanded to 37.7% in 2025, showing that the powertrain diversification strategy is translating into actual sales. Platform cooperation with Chery Automobile provides a structure to secure new-model competitiveness while reducing development risk.

Bear factors

Persistent Domestic Sales Weakness

In the domestic passenger vehicle market, sales have been relatively weak amid a combination of demand slowdown and intensifying competition centered on Hyundai and Kia.

Exports reportedly grew by double digits in 2025 while domestic sales declined, meaning growth could remain skewed toward exports without a domestic recovery. Whether the new Musso and other new models can translate into a domestic sales rebound needs to be confirmed through future sales data.

Gradual Pace of Operating Margin Improvement

Operating margin improved to 0.8% in 2025, but remains below 1%, and quarterly operating profit narrowed from KRW 9.6 billion in the first quarter of 2026 to KRW 5.2 billion in the second quarter.

Net income expansion has outpaced the improvement in operating profit, raising the need to monitor earnings quality should non-operating contributions diminish going forward. Whether the targeted operating margin of 2.2% or higher can be achieved remains an unconfirmed plan at this stage.

Elevated Debt Ratio and No Dividend

The debt ratio surged to 143.4% in 2023 and remains elevated at 127.0% in 2025. No dividend is currently being paid, and dividend initiation would only be considered once operating profit reaches KRW 100 billion, suggesting shareholder returns could take time to materialize.

Simultaneous improvement in financial structure and expansion of shareholder returns would require a further increase in the scale of earnings.

Risk factors

Competitive Intensity

Competition persists in the domestic market under the overwhelming market share of Hyundai and Kia, while low-cost competition from Chinese manufacturers is expanding overseas. Price competition could intensify as competing models continue to launch in the pickup truck and SUV segments.

If market reception of new models such as the new Musso and SE10 falls short of expectations, achievement of sales targets could be disrupted.

Foreign Exchange and Trade Policy Shifts

As the export share of the business grows, currency fluctuations can directly affect performance. Changes in European Union environmental and trade regulations, as well as shifts in tariff or certification policy in emerging markets, are variables that could affect export volumes.

While some assessments note limited tariff risk given the absence of US export volume, the possibility of trade environment changes in other regions remains.

New-Model Execution Risk

With multiple new models including the Q300, SE10, F100, and KR10 set to launch sequentially, delays in development or mass production schedules, or early quality issues, could negatively affect achievement of sales targets.

Reliance on external partnerships such as the platform cooperation with Chery Automobile introduces uncertainty tied to the partner's own circumstances. If the strategy to expand the eco-friendly vehicle mix is delayed beyond expectations, it could also affect the pace of cost ratio improvement.

What to watch next

November 2026
The third-quarter consolidated earnings release should be checked to see whether operating profit rebounds from its second-quarter narrowing and whether export momentum continues.
Fourth quarter of 2026
The actual launch and early market reception of the mid-to-large hybrid SUV 'SE10' succeeding the Rexton, as well as whether the production version of the large electric SUV 'F100' is unveiled, should be monitored.
Fourth quarter 2026 through early 2027
Whether the annual sales target of 137,000 units and the operating margin target of 2.2% are achieved should be verified through the full-year earnings release.
Around the annual business report filing in early 2027
If 2026 operating profit exceeds KRW 100 billion, it should be checked whether the company follows through on the dividend initiation it has indicated it would consider.
Ongoing through the second half of 2026
Export volume trends in Western Europe and the Middle East/Africa, along with the progress of CKD contract execution, should be monitored.

Overall view

KG Mobility has moved past its large-scale loss in 2022 to sustain four consecutive years of revenue growth and profitability as it proceeds with management normalization, recording its strongest export performance in twelve years in the first half of 2026.

The company is pursuing a strategy of expanding its eco-friendly lineup through the revival of the Musso (Q300) and a new-model roadmap including SE10, F100, and KR10, with some assessments also noting a structure relatively insulated from tariff risk given the absence of US export volume.

However, domestic sales have been relatively weak amid intensifying competition centered on Hyundai and Kia, and while operating margin has improved, it remains low, with the debt ratio also elevated.

The fact that net income expansion has outpaced the improvement in operating profit is a factor warranting continued scrutiny of earnings quality. No dividend is currently being paid, and initiation would only be considered once the condition of KRW 100 billion in operating profit is met.

Going forward, new-model sales performance, export volume trends, and changes in the quality of quarterly earnings warrant continued monitoring.

Sources

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

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Report written 2026-09-05 · Data as of 2026-09-04

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.