KOSPIOthers019680

Daekyo

₩1,623▼ 0.73%2026-10-02 close

Market Cap

₩65.3B

Turnover

₩21,732,557

Volume

10K

Shares out.

40.2M

PER

-2.2×

PBR

0.3×

EPS

-₩744

Dividend Yield

6.00%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩60 per share · Prices as of the 2026-10-02 close

Report overview

Daekyo: Losses Persist as Par-Value Merger Looms

Amid a structural decline in learning-paper revenue driven by the shrinking school-age population, Daekyo faces a par-value share merger to address coin-stock delisting rules while posting net losses for four consecutive quarters.

1
Annual 2025 revenue was KRW 650.0bn with an operating loss of KRW 3.4bn and a net loss attributable to owners of KRW 36.4bn, marking a third straight year of losses.
2
The net loss attributable to owners spiked to KRW 33.5bn in 4Q2025, suggesting one-off items were booked.
3
The Korea Exchange flagged Daekyo for a potential administrative-issue designation over its sub-KRW1,000 closing price, and the company won shareholder approval for a 2-for-1 par-value merger raising par value from KRW500 to KRW1,000.
4
CEO Kang Ho-jun made on-market purchases of company shares over five consecutive trading days in August 2026, raising his stake.
5
The senior-care subsidiary Daekyo NewIf continues to grow revenue but remains loss-making.

Business structure

Daekyo traces its roots to the Korea Kumon Mathematics Research Institute founded in 1976, adopted its current name in 1991, and became the industry's first company to establish a one-on-one home-visit tutoring system under its flagship 'Noonnoppi' learning-paper brand.

The company listed on the KOSPI market in 2004 and is now led by second-generation CEO Kang Ho-jun. Its core brands include the elementary-level Noonnoppi, middle-school-focused Summit, early-childhood Soluny, and Chinese-language Chaihong, with domestic education services accounting for 92.5% of total revenue.

Offline learning channels include Noonnoppi Learning Center, Noonnoppi Study Rooms, and Daekyo Hi-Campus, and the company has recently rolled out digital English programs called ListeningFit and ReadingFit.

In the learning-paper market, Daekyo competes with Woongjin Thinkbig and Kyowon, both of which are also grappling with revenue declines tied to the shrinking school-age population. Around 2022 the company restructured its overseas operations, including liquidating an underperforming U.S. subsidiary.

As a new growth driver, Daekyo operates the senior-care subsidiary Daekyo NewIf, established in 2022, which provides long-term care insurance services, day care, home-visit cognitive care, and caregiver training, leveraging the home-visit expertise built in its children's education business. Governance-wise, the founding family retains control through the unlisted holding company Daekyo Holdings.

Earnings trend

Quarterly revenue · Operating profit

₩162.5B₩44,654,98925Q2₩160.6B-₩30,757,47725Q3₩161.2B-₩4.3B25Q4₩157.7B-₩3.6B26Q1₩158.6B-₩3.7B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩683.1B-₩50B2022₩659.7B-₩27.8B2023₩663.5B-₩1.6B2024₩650B-₩3.4B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩162.5B	₩44,654,989	0.0%
2025Q3	₩160.6B	-₩30,757,477	−0.0%
2025Q4	₩161.2B	-₩4.3B	−2.7%
2026Q1	₩157.7B	-₩3.6B	−2.3%
2026Q2	₩158.6B	-₩3.7B	−2.3%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩683.1B	-₩50B	-₩134.1B	−7.3%	−33.6%	64.9%
2023	₩659.7B	-₩27.8B	-₩93.8B	−4.2%	−30.7%	95.9%
2024	₩663.5B	-₩1.6B	₩600M	−0.2%	0.2%	93.2%
2025	₩650B	-₩3.4B	-₩36.4B	−0.5%	−13.0%	108.2%

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

Earnings analysis

Daekyo's annual revenue moved from KRW683.1bn in 2022 to KRW659.7bn in 2023, edged up to KRW663.5bn in 2024, then fell again to KRW650.0bn in 2025.

Operating profit swung from a large loss of KRW50.0bn in 2022 and KRW27.8bn in 2023 to a much narrower loss of KRW1.6bn in 2024, before widening again to a KRW3.4bn loss in 2025.

Net income attributable to owners recorded steep losses of KRW134.1bn in 2022 and KRW93.8bn in 2023, turned marginally positive at KRW0.6bn in 2024, then reverted to a KRW36.4bn loss in 2025.

On a quarterly basis, operating profit nearly broke even at KRW44.7mn in 2Q2025 but slipped back into losses of KRW30.8mn in 3Q2025 and KRW4.33bn in 4Q2025, with losses continuing through 1Q2026 (KRW3.57bn) and 2Q2026 (KRW3.72bn), marking five straight quarters of operating losses.

Notably, the net loss attributable to owners jumped to KRW33.5bn in 4Q2025, a magnitude far larger than other quarters, suggesting one-off charges were likely booked.

Equity attributable to owners fell nearly 30% over three years, from KRW398.5bn in 2022 to KRW280.7bn in 2025, pushing the debt ratio up sharply from 64.9% in 2022 to 108.2% in 2025.

Operating cash flow, however, remained solid at KRW38.4bn in 2025, in contrast to the net loss, pointing to a gap between accounting losses and underlying cash generation.

Industry analysis

Korea's learning-paper industry faces a direct structural headwind from the declining school-age population tied to low birth rates.

In 2026, the number of first-grade elementary school entrants fell below 300,000 for the first time ever, with reports indicating that elementary, middle, and high school enrollment are contracting simultaneously.

Industry observers generally believe that because declining birth rates feed through to learning-paper demand only after a lag, market contraction is likely to continue for several more years.

Indeed, not only Daekyo but also Woongjin Thinkbig saw 1Q2026 revenue fall 8.8% year-on-year, marking a fifth consecutive quarter of decline, with both companies posting operating losses.

In response, the three major learning-paper operators—Daekyo, Woongjin Thinkbig, and Kyowon—are simultaneously pursuing edutech upgrades combining AI-based diagnostics and recommendations along with business diversification: Daekyo through its senior-care subsidiary Daekyo NewIf, Woongjin through its acquisition of funeral-service provider Preed Life, and Kyowon through rentals and healthcare.

However, some observers note that the cost burden of content development and platform operation tied to digital transformation is substantial, making it difficult for increased investment to translate quickly into earnings improvement.

As a reference point, Japan's Benesse Group, which also started in the learning-paper business and built senior-care services into a new growth driver, now generates more than 30% of group revenue from its senior business, serving as a benchmark for the business model Daekyo is pursuing.

Outlook

The most visible near-term event is the par-value merger. Daekyo's board resolved on August 1, 2026 to implement a 2-for-1 par-value merger raising par value from KRW500 to KRW1,000 along with treasury share cancellation, and the plan was approved unchanged at an extraordinary general meeting on September 3.

The merger is set to take effect on September 19, with the relisting expected around October 10, during which a trading halt is anticipated.

After the merger, the nominal per-share price will double, but as the company itself acknowledges, the par-value merger alone does not raise underlying corporate value; industry observers broadly agree that a market re-rating requires improved earnings and growth to follow.

On the business side, the company stated it would strengthen middle-school market competitiveness from 2Q2026 by expanding premium growth classes and exam-focused programs for top-tier students centered on Noonnoppi Hi-Campus, but the actual 2Q operating loss widened slightly versus 1Q, indicating results have not yet clearly materialized.

In its senior business, Daekyo NewIf has previously stated goals to expand regional hub centers and pursue entry into the Japanese market, developments worth tracking going forward.

Marking its 50th anniversary, the company has positioned itself as transitioning into an 'education and culture company,' expanding into AI/digital-based future education, senior life-care, and cultural content.

Valuation

PER

-2.2×

PBR

0.3×

ROE

-13.3%

EPS

-₩744

BPS

₩5,270

Dividend per share

₩60

Daekyo's shares trade at a level below net asset value, placing the price-to-book ratio in a sub-1x range. This can be interpreted as reflecting both the financial situation of shrinking equity after three consecutive years of losses and the structural industry backdrop of a declining school-age population.

In years with a net loss, the price-to-earnings ratio itself carries limited meaning, and the company's valuation tends to be discussed more in terms of asset value and cash flow than earnings multiples.

Dividends have been maintained despite deteriorating results, but the sustainability of the dividend policy amid continuing net losses will depend on whether earnings recover going forward.

Once the par-value merger is completed, the nominal per-share price will be adjusted, but market capitalization and net asset value themselves do not change, so comparing valuation metrics before and after the merger requires care.

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

Bull factors

Operating Cash Flow Remains Solid Despite Net Losses

Operating cash flow stood at a solid KRW38.4bn in 2025, in stark contrast to the size of the net loss. Even though net income was negative or negligible for four straight years from 2022 to 2025, cash flow remained positive every year.

This suggests that non-cash items such as depreciation and impairment likely contributed significantly to the reported net loss. The fact that accounting losses do not necessarily equate to actual cash outflows is worth noting from a financial flexibility standpoint.

Top-Line Growth in the New Senior-Care Business

The senior-care subsidiary Daekyo NewIf posted revenue of KRW6.8bn in 1Q2026, continuing its top-line expansion.

In contrast to the core learning-paper business, which is contracting due to the declining school-age population, this segment is built on the separate demographic trend of population aging, offering potential portfolio diversification benefits. However, it has yet to turn profitable, making the pace of margin improvement a key point to watch.

Management Share Purchases and Brand Strength

CEO Kang Ho-jun made on-market purchases of 298,796 Daekyo common shares over five consecutive trading days from August 5 to 11, 2026, spending approximately KRW316 million and raising his ownership stake.

The Noonnoppi brand was ranked No. 1 in the elementary education services category of the 2026 Korea Brand Power Index (K-BPI), indicating sustained brand recognition. This brand strength could serve as a foundation for expanding premium product lines.

Bear factors

Structural Headwind from a Shrinking School-Age Population

The decline in the school-age population has become a present-day structural variable, with the number of first-grade elementary entrants falling below 300,000 for the first time in 2026.

Industry views generally hold that because low-birth-rate effects feed through to learning-paper demand with a lag, market contraction is likely to persist for several more years. Daekyo's domestic education service revenue accounts for 92.5% of the total, leaving it directly exposed to this risk.

Five Straight Quarters of Operating Losses and a Cost Spike

Daekyo posted operating losses for five consecutive quarters from 3Q2025 through 2Q2026. In 1Q2026, even though cost of sales fell slightly, other expenses surged from KRW8.3bn a year earlier to KRW21.4bn, contributing to a wider net loss.

In 4Q2025, the net loss attributable to owners expanded to KRW33.5bn, an unusually large amount compared with other quarters.

Listing-Maintenance Pressure from Coin-Stock Delisting Rules

Under the strengthened delisting rules that took effect on July 1, 2026, a stock is designated an administrative issue if its closing price stays below KRW1,000 for 30 consecutive trading days.

Daekyo met the 25-consecutive-day trigger on August 5 and was included among 55 companies flagged with an administrative-issue designation warning.

Even though the par-value merger has been finalized, the assessment is based on the pre-merger share price until the merger takes effect on September 19, so the company could not avoid this warning; if designated an administrative issue, failure to close above KRW1,000 for 45 of the following 90 trading days could lead to delisting proceedings.

Risk factors

Listing Maintenance Risk

Following the strengthening of coin-stock delisting rules, Daekyo was included among companies flagged with an administrative-issue designation warning.

The company is responding via a par-value merger and treasury share cancellation, but because the assessment is based on the pre-merger price until the merger takes effect, the regulatory risk has not been fully resolved in the near term.

Observers note that without accompanying earnings improvement, a market re-rating is unlikely even after the merger.

Industry Demand Risk

The decline in the school-age population due to low birth rates is a structural variable that feeds through to learning-paper demand with a lag, raising the possibility of continued market contraction over the coming years. With domestic education services accounting for 92.5% of revenue, exposure to this risk is high.

Competitor Woongjin Thinkbig is also experiencing revenue declines and operating losses under the same industry pressure.

Financial Soundness Risk

Equity attributable to owners fell about 30% over three years, from KRW398.5bn in 2022 to KRW280.7bn in 2025, while the debt ratio rose from 64.9% to 108.2% over the same period. If accumulated net losses continue to erode equity, financial flexibility could weaken further.

However, operating cash flow has remained positive every year, suggesting the likelihood of an extreme liquidity crisis is comparatively limited.

What to watch next

September 19, 2026
The par-value merger takes effect around this date, with a trading halt expected. Whether the closing price stays below KRW1,000 for 30 consecutive trading days before this point is the key determinant of an administrative-issue designation.
Around October 10, 2026
The expected date for relisting and resumption of trading following the par-value merger; the new nominal share price and whether the administrative-issue concern has been resolved should be checked.
Mid-November 2026
3Q2026 results are due around this time; investors should check whether the decline in learning-paper revenue continues, whether Daekyo NewIf's losses narrow, and whether the operating loss streak—now five consecutive quarters—persists.
4Q2026 to early 2027
A point to check progress on Daekyo NewIf's plans to expand regional hub centers and pursue entry into the Japanese market, as well as whether the premium strategy centered on Noonnoppi Hi-Campus begins to show up in results.

Overall view

Daekyo has posted three consecutive years of losses through 2025 amid the structural headwind of a shrinking school-age population, and operating losses have continued for five straight quarters from 3Q2025 through 2Q2026.

At the same time, under strengthened coin-stock delisting rules, the company was flagged with an administrative-issue designation warning, prompting it to pursue a par-value merger and treasury share cancellation, with effectiveness set for September 19 and relisting expected around October 10.

The continued top-line growth of senior-care subsidiary Daekyo NewIf and the solid operating cash flow are positive factors, though this new business has also yet to turn profitable.

Management has announced share purchases and a premium learning-service expansion strategy, but these had not translated into clear earnings improvement through 2Q2026.

Key variables to watch going forward include whether the listing is maintained after the par-value merger is completed, whether 3Q results show any improvement in profitability, and when the senior-care business might reach breakeven.

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.