KOSDAQSteel & Metals024840

Kbi Metal

₩6,450▲ 1.26%2026-10-02 close

Market Cap

₩279.5B

Turnover

₩11.2B

Volume

1.8M

Shares out.

43.5M

PER

13.7×

PBR

1.3×

EPS

₩454

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

Adding Transformers to Copper, Auto-Electronics and Cable

KBI Metal expanded its power-infrastructure value chain by acquiring transformer maker Wonyoung Hitech in April 2026, adding to its existing copper rod, automotive electronics and cable businesses, while quarterly results have shown a swing from loss to profit.

1
2025 consolidated revenue reached KRW 758.6 billion with operating profit of KRW 24.3 billion, both up year over year, lifting the operating margin to 3.2%.
2
Owners' net income was slightly negative in 2025, but the sum over the most recent four quarters (2025Q3-2026Q2) came to roughly KRW 16.6 billion, indicating an improving earnings trend.
3
In April 2026, the company acquired transformer maker Wonyoung Hitech for about KRW 10.3 billion, building a materials-to-components vertical chain spanning copper rod, cable and transformers.
4
Conversion requests on a KRW 20 billion convertible bond issued in 2024 were concentrated in April-May 2026, increasing share count and raising dilution concerns.
5
The next scheduled disclosure, the Q3 2026 report, is due by the statutory deadline of November 16, 2026, and will show whether Wonyoung Hitech's first full quarter of results is consolidated.

Business structure

KBI Metal organizes its operations into an automotive electronics division, a metal (copper rod) division, a cable division and a logistics division, manufacturing and selling automotive CORE and BLDC motors, wire, and high-voltage cable.

The automotive electronics division continues to grow in line with demand from the auto, appliance and electronics industries.

The metal division, centered on copper rod (ROD) production for cable manufacturing, holds roughly 40-45% share of the domestic copper-rod-for-cable market and is described as the only domestic producer operating both SCR and JCR lines.

The cable division operates through subsidiary KBI Cosmolink, securing long-term order volumes via its Vietnam production facility, KBI Cosmolink-Vina. The logistics division is a newer segment preparing a warehouse-leasing business.

In April 2026, following approval from the Daejeon Rehabilitation Court, the company acquired 100% of transformer maker Wonyoung Hitech for about KRW 10.3 billion, aiming to build a vertically integrated chain from copper rod to cable to transformers.

Wonyoung Hitech is targeting KEPCO vendor registration and US UL certification within the year to prepare overseas market entry.

The controlling shareholder group includes KBI Tech and related parties, and the company is positioned alongside peers such as LS Cable, Daewon Electric Wire and Gaon Cable in the wire and copper-alloy industry.

Earnings trend

Quarterly revenue · Operating profit

₩201.2B-₩2B25Q2₩196.6B₩3.1B25Q3₩176.3B₩18.1B25Q4₩210.6B₩15.5B26Q1₩279.9B₩12.9B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩710.5B₩5.4B2022₩685B₩7.8B2023₩702.7B₩17.5B2024₩758.6B₩24.3B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩201.2B	-₩2B	−1.0%
2025Q3	₩196.6B	₩3.1B	1.6%
2025Q4	₩176.3B	₩18.1B	10.2%
2026Q1	₩210.6B	₩15.5B	7.4%
2026Q2	₩279.9B	₩12.9B	4.6%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩710.5B	₩5.4B	₩1.7B	0.8%	1.6%	116.8%
2023	₩685B	₩7.8B	₩62,633,457	1.1%	0.1%	92.1%
2024	₩702.7B	₩17.5B	₩800M	2.5%	0.7%	97.7%
2025	₩758.6B	₩24.3B	-₩44,220,967	3.2%	0.0%	175.6%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-21

Earnings analysis

Annual revenue moved from KRW 710.5 billion in 2022 to KRW 685.0 billion in 2023, KRW 702.7 billion in 2024, and KRW 758.6 billion in 2025, resuming growth after a dip.

Operating profit rose markedly for three straight years, from KRW 5.4 billion in 2022 to KRW 7.8 billion in 2023, KRW 17.5 billion in 2024 and KRW 24.3 billion in 2025, lifting the operating margin from 0.8% to 3.2%.

However, owners' net income, which stood at KRW 1.7 billion in 2022, KRW 0.1 billion in 2023 and KRW 0.8 billion in 2024, turned slightly negative at about -KRW 44 million in 2025, showing that operating-profit improvement did not fully carry through to the bottom line.

On a quarterly basis, operating profit was a loss of about KRW 2.0 billion in Q2 2025, and owners' net income was a loss of about KRW 4.3 billion in Q3 2025, before the company swung to an operating profit of KRW 18.1 billion and net profit of KRW 3.5 billion in Q4 2025.

Profit scale then expanded further, with operating profit of KRW 15.5 billion and net profit of KRW 7.5 billion in Q1 2026, followed by operating profit of KRW 12.9 billion and net profit of KRW 9.8 billion in Q2 2026.

Q2 2026 revenue of about KRW 279.9 billion was roughly 39% higher than the year-earlier quarter's KRW 201.2 billion, showing simultaneous revenue growth and profit recovery.

Disclosure-based commentary indicates that on a nine-month cumulative basis through Q3 2025, operating profit fell year over year and net income turned negative despite revenue growth, due to cost pressure, suggesting a pattern of a weaker first half followed by improving profitability in the second half.

The sum of owners' net income over the most recent four quarters (Q3 2025 through Q2 2026) came to about KRW 16.6 billion, showing that the quarterly recovery has begun to show up in trailing annual figures.

The debt ratio rose sharply from 92.1% in 2023 and 97.7% in 2024 to 175.6% in 2025, a change that appears linked to financing needs around the Wonyoung Hitech acquisition and movements in convertible-bond-related accounts.

Industry analysis

On the demand side, Fortune Business Insights projects the global transformer market to grow at roughly a 10% compound annual rate from 2025 to 2032, driven by aging grid replacement in the US and Europe, renewable energy buildout, and AI data center expansion.

Investment tied to the US Inflation Reduction Act and infrastructure legislation aimed at grid modernization is also cited as an opportunity for related manufacturers. In Korea, transformer and cable exports surpassed KRW 1 trillion for the first time in the first quarter of 2026, confirming strong export momentum.

Against this backdrop, the domestic wire and power-equipment sector broadly attracted thematic market attention, with share-price volatility also rising for peers such as LS Cable, Daewon Electric Wire and Gaon Cable.

KBI Metal, holding roughly 40-45% share of the domestic copper-rod-for-cable market, is seeking to differentiate itself from peers by extending its materials-stage position into finished transformer manufacturing through vertical integration.

At the same time, volatility in copper and other nonferrous metal prices remains a persistent factor affecting margins across the industry.

While traditional end markets such as construction and appliances show demand volatility amid a slower macro environment, demand tied to power infrastructure and data centers is viewed as a relatively resilient growth driver.

Outlook

The company has stated that, following completion of the Wonyoung Hitech acquisition, it plans to fully consolidate the unit to raise consolidated profitability and to upgrade the group's overall earnings structure based on the transformer business's relatively high profitability.

Wonyoung Hitech is targeting KEPCO vendor registration and US UL certification within the year, which the company expects will enable a fuller push into overseas markets once completed.

The existing cable division continues to secure long-term orders through its Vietnam production facility, and there is also discussion of internal synergy in which the metal division's stable JCR sales network could supply raw material to Wonyoung Hitech.

For Q1 2026, the company disclosed a 14.2% year-over-year increase in revenue, a 202.3% increase in operating profit, and a swing to net profit, which it attributed to broad-based improvement across the automotive electronics, metal and cable divisions.

The next scheduled disclosure, the Q3 2026 report, is due by the statutory deadline of November 16, and will be a point to check both whether Wonyoung Hitech's first full quarter is consolidated and how conversion of the remaining balance of the fourth convertible bond proceeds.

LME copper price trends remain a variable affecting both selling prices and costs in the metal division simultaneously.

Valuation

PER

13.7×

PBR

1.3×

ROE

11.2%

EPS

₩454

BPS

₩4,903

Dividend per share

₩0

The current share price trades at a level carrying a premium to book value, with the price-to-book ratio sitting above 1x.

On the earnings side, while owners' net income for full-year 2025 was slightly negative, the sum over the most recent four quarters shows an expanded profit level, meaning the underlying earnings trend used for price-to-earnings calculations has shifted from loss to profit.

On the dividend side, no cash dividend has been confirmed for the most recent fiscal year, so the dividend yield appears to run below the industry average.

Shares outstanding have increased as conversion requests on the 2024 convertible bond have continued, and this change in the share count used as the denominator for per-share metrics is itself a factor affecting valuation interpretation.

Ultimately, the durability of the earnings recovery and the effect of consolidating Wonyoung Hitech remain the key variables for the future direction of per-share metrics and valuation multiples.

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 2026-08-21

Bull factors

Materials-to-Components Vertical Integration

The company is pursuing vertical integration from copper rod (metal division) to cable (cable division) to transformers (Wonyoung Hitech), aiming to secure cost competitiveness and technical synergy.

Transformers are cited as a relatively higher-margin business with potential to improve the group's overall earnings structure. Completion of Wonyoung Hitech's KEPCO vendor registration and US UL certification could open the door to expanded overseas sales channels.

Quarterly Swing to Profitability

After losses in Q2-Q3 2025, the company posted consecutive operating and net profits from Q4 2025 onward, with profit levels sustained and expanded through Q1-Q2 2026.

The sum of owners' net income over the most recent four quarters has also turned positive, laying the groundwork for improved annual metrics, while revenue has shown a quarterly growth trend alongside profitability.

Growing Power Infrastructure and Data Center Demand

The global transformer market is projected to grow at roughly a 10% annual rate, supported by aging grid replacement in the US and Europe and AI data center buildout. Korea's transformer and cable exports also hit a record high in the first quarter of 2026.

Rising investor interest in the wire and power-equipment sector overall has also drawn attention to KBI Metal's position within the related supply chain.

Bear factors

Convertible Bond Dilution Overhang

The fourth convertible bond issued in 2024, worth KRW 20 billion, saw its conversion price adjusted downward, leading to a wave of large-scale conversion requests in April-May 2026 that quickly increased total shares outstanding.

A substantial unconverted balance and convertible share count remain as of the relevant filing dates, so further dilution potential persists. While the controlling shareholder exercised a buy-back right on part of the volume, the direction of the remaining balance's conversion remains a variable to watch.

Raw Material Price Volatility

Volatility in copper and other nonferrous metal prices can simultaneously affect the metal division's selling prices and costs, reducing margin stability.

The possibility of operating profit declining despite revenue growth when cost pressure rises was already evident in the nine-month cumulative results through Q3 2025. Exchange rate movements are an additional variable given the company's exposure to imports and exports.

Integration Risk from the Newly Acquired Subsidiary

Wonyoung Hitech was acquired out of a court-supervised corporate rehabilitation process, and uncertainty exists around its early contribution to consolidated results and integration costs.

If procedures for overseas expansion, such as KEPCO vendor registration and US UL certification, are not completed as planned, the anticipated synergies could be delayed. The sharp rise in the debt ratio to 175.6% in 2025 from the prior year is also worth monitoring from a financial-burden perspective.

Risk factors

Financial Structure

The debt ratio rose sharply from 92.1% in 2023 and 97.7% in 2024 to 175.6% in 2025. Operating cash flow was also negative at about -KRW 21.1 billion in 2025, marking a second consecutive year of net outflow, warranting a check on cash-generation capacity.

With investment spending such as the Wonyoung Hitech acquisition ongoing, financial soundness indicators warrant continued monitoring.

Share Supply and Demand

Repeated new-share issuance from convertible bond conversions has rapidly increased total shares outstanding in a short period. In May 2026, the Korea Exchange designated the stock as an investment-alert issue and halted trading for a day amid sharp price swings. Further supply-demand volatility remains possible as the remaining convertible bond balance is worked through.

Business Integration and End-Market Exposure

Wonyoung Hitech, acquired out of rehabilitation proceedings, carries integration uncertainty, and the timeline for obtaining overseas certifications could slip. A slowdown in traditional end markets such as construction and appliances could negatively affect demand for copper alloy and copper rod products.

Copper price and exchange rate fluctuations remain ongoing variables for profitability across the metal and cable businesses.

What to watch next

By November 16, 2026
Statutory deadline for the Q3 2026 report, a point to confirm whether Wonyoung Hitech's first full quarter of results is fully consolidated.
Within 2026
Check whether Wonyoung Hitech completes KEPCO vendor registration and US UL certification, a prerequisite for a fuller push into overseas markets.
Ongoing (as disclosed)
Monitor further conversion requests on the remaining balance of the fourth convertible bond (about KRW 14.57 billion unconverted and roughly 6.38 million convertible shares as of late April) and resulting changes in total shares outstanding.
Ongoing
LME copper price trends affect both selling prices and costs in the metal division simultaneously, and are useful for interpreting quarterly margin changes.

Overall view

KBI Metal is broadening its position in the power infrastructure value chain by adding a transformer business through the April 2026 acquisition of Wonyoung Hitech, on top of its existing copper rod (metal division), automotive electronics, and cable (KBI Cosmolink) operations.

On the earnings side, quarterly operating and net profit remained positive from the second half of 2025 through the first half of 2026, showing an improving profit trend, and the sum of owners' net income over the most recent four quarters also turned positive.

However, conversion requests on a convertible bond issued in 2024 became concentrated in 2026, rapidly increasing shares outstanding, and this process was accompanied by supply-demand events such as an investment-alert designation and a temporary trading halt.

The rise in the debt ratio to 175.6% in 2025 from the prior year, along with two consecutive years of negative operating cash flow, are points to watch from a financial-structure perspective.

Going forward, whether Wonyoung Hitech completes KEPCO vendor registration and US UL certification, the pace at which the remaining convertible bond balance is converted, and copper price trends are likely to be the key variables shaping earnings and financial structure.

Confirming how the Wonyoung Hitech consolidation effect shows up in the Q3 2026 report, due by the statutory deadline of November 16, is the next point to observe.

Sources

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

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Report written 2026-10-01 · Data as of 2026-09-30

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.