PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Prices as of the 2026-10-02 close
KPF, which runs three core businesses—industrial fasteners, automotive forged parts, and marine/offshore cables through subsidiary TMC—saw quarterly revenue improve sequentially in the second quarter of 2026, but annual revenue and operating profit have yet to break a three-year streak of decline.
Q2 2026 revenue reached KRW 213.5 billion with operating profit of KRW 8.9 billion and owners' net income of KRW 4.4 billion, reflecting recovery after Vietnam plant normalization
Annual revenue declined for three straight years from KRW 819.0 billion in 2022 to KRW 743.9 billion in 2025, with operating margin slipping from 5.8% in 2023 to 4.8% in 2025
Subsidiary TMC, focused on marine cables, is benefiting from a shipbuilding upcycle, though one-off costs have constrained profitability
The company is executing a multi-year shareholder return policy involving annual treasury share buybacks and retirements of KRW 1 billion for five years starting May 2026
Changes in the US trade environment, logistics cost burdens, and rising raw material prices remain key variables affecting earnings volatility
KPF was founded in 1963 as Korea Bolt and changed its name after expanding into automotive parts in 2006, establishing itself as a specialist in industrial fasteners and automotive forged parts.
Its business structure spans three pillars: a fastener segment producing bolts and nuts for construction, plant, and wind power applications; an automotive forged parts segment covering bearing components and gears; and a marine, offshore, and optical cable segment run through subsidiary TMC.
According to previously disclosed data, first-half 2024 revenue was split roughly 26% fasteners, 25% automotive parts, and 49% marine cable, meaning the cable segment accounted for nearly half of total sales.
The automotive parts segment supplies global bearing makers including SKF, ThyssenKrupp, and NTN, earning recognition for quality and technology, while its China subsidiary was selected as a third-generation bearing parts supplier for Europe's NTN-SNR.
The fastener segment has supplied large wind turbine makers such as GE in the United States and Enercon in Germany, and is pursuing expansion in large offshore wind bolts, including a joint development agreement with POSCO on wind tower bolt demand.
Subsidiary TMC holds roughly a 45% share of the domestic marine cable market and counts HD Hyundai, Hanwha Ocean, and Samsung Heavy Industries among its major shipbuilding customers, while its optical cable supplies about 90% of the Saeul Unit 3 and 4 nuclear plants, with further supply planned for Shin-Hanul Units 3 and 4.
Even after TMC's IPO in December 2025, KPF remains its controlling shareholder with roughly a 47% stake, keeping it as a consolidated subsidiary. At the group level, holding company Songhyun Holdings is the largest shareholder with a 34.47% stake, and the group also includes robotics reducer maker SBB Tech.
KPF operates a global production network with subsidiaries in Vietnam, the United States, and China, with the Vietnam plant focused on cost-competitive standard fasteners and the headquarters plant handling higher value-added products.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩188B | ₩10.9B | 5.8% |
| 2025Q3 | ₩174.1B | ₩8.6B | 4.9% |
| 2025Q4 | ₩175.1B | ₩2.1B | 1.2% |
| 2026Q1 | ₩194.2B | ₩7.8B | 4.0% |
| 2026Q2 | ₩213.6B | ₩8.9B | 4.2% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩819B | ₩39.6B | ₩21.1B | 4.8% | 11.2% | 215.5% |
| 2023 | ₩809.7B | ₩47.3B | ₩20.2B | 5.8% | 9.6% | 179.1% |
| 2024 | ₩782B | ₩39.4B | ₩21.4B | 5.0% | 9.3% | 158.7% |
| 2025 | ₩743.9B | ₩35.4B | ₩19.4B | 4.8% | 7.2% | 103.5% |
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 results show a clear downward trend. Revenue fell for three consecutive years, from KRW 819.0 billion in 2022 to KRW 809.7 billion in 2023, KRW 782.0 billion in 2024, and KRW 743.9 billion in 2025.
Operating profit peaked at KRW 47.3 billion in 2023 (5.8% margin) before receding to KRW 39.4 billion (5.0%) in 2024 and KRW 35.4 billion (4.8%) in 2025. Owners' net income fluctuated across KRW 21.1 billion in 2022, KRW 20.2 billion in 2023, KRW 21.4 billion in 2024, and KRW 19.4 billion in 2025.
On a quarterly basis, the fourth quarter of 2025 was particularly weak, with revenue slipping to KRW 175.1 billion, operating profit down to KRW 2.1 billion, and owners' net income turning negative at roughly minus KRW 0.5 billion.
According to media reports, this reflected continued weakness in the shipbuilding and offshore business of subsidiary TMC along with lingering delays tied to US tariff-related project schedules.
In the first quarter of 2026, consolidated revenue fell 6% year-on-year to KRW 194.2 billion and operating profit dropped 43% to KRW 7.8 billion, a decline attributed largely to an ERP system changeover at the Vietnam subsidiary that caused inventory discrepancies and temporarily reduced factory operating days.
However, the second quarter of 2026 showed a recovery, with revenue of KRW 213.6 billion (up 11.7% year-on-year), operating profit of KRW 8.9 billion (down 11.3% year-on-year), and net income of KRW 5.3 billion (up 30.3% year-on-year).
The company attributed this revenue growth to expanded overseas exports on the back of quality competitiveness and normalized operations at the Vietnam production subsidiary.
The industrial fastener market is heavily tied to demand cycles in traditional downstream sectors such as construction, heavy equipment, and plants, and domestic bolt and nut manufacturing shipments have historically shown modest growth.
More recently, offshore wind and renewable energy have emerged as new growth vectors, drawing attention to the large, high-strength bolt segment as a fresh opportunity.
The automotive parts segment is exposed to OEM demand and the shift toward electrification, with supply relationships to global tier-1 players such as SKF, NTN, and ThyssenKrupp serving as a core competitive advantage in precision forged components including bearings and gears.
The shipbuilding and offshore cable industry stands to benefit from a recovery in global vessel orders, with subsidiary TMC holding the top domestic market share, though the long lag between order intake and delivery in shipbuilding cycles means revenue impact takes time to materialize.
Optical cable for nuclear power plants is a specialized market tied to new reactor construction schedules, where holding sole domestic supplier status functions as an entry barrier.
Changes in US trade policy and tariff issues have contributed to delays in shipbuilding and offshore projects, and remain a source of broader industry uncertainty.
The robotics reducer market is dominated by an oligopoly of Japan's Harmonic Drive and Nabtesco, which together hold roughly 75% share, against which affiliate SBB Tech competes on customization and price.
In its second-quarter 2026 earnings disclosure, the company stated that despite ongoing uncertainty in the global trade environment and logistics costs, it intends to achieve profitability improvements through production efficiency and cost management.
Subsidiary TMC built a new production facility in Texas last year to address growing optical cable demand and recently announced a roughly KRW 11 billion optical communication cable supply contract with a US AI infrastructure company.
However, established players such as LS Cable and Daehan Cable already hold market positions, making stable customer acquisition and profitability management ongoing challenges.
On the nuclear front, optical cable supply for Shin-Hanul Units 3 and 4 is planned over the 2026-2031 period, which could serve as a medium-term revenue base.
The fastener segment continues to develop high-strength bolts for offshore wind and is pursuing new customers in North America and Europe, having signed an agreement with SeAH Besteel and Kunsan National University to develop Grade 12.9 high-strength bolts for wind support structures.
Since the Vietnam subsidiary's inventory system issue was resolved and operations normalized from the second quarter, second-half production efficiency will need to be monitored.
The company stated it is executing its previously announced multi-year shareholder return policy on schedule and intends to continue shareholder returns alongside governance improvements.
KPF shares tend to trade at a discount to net asset value, with the market-assigned multiple running below book value.
On the earnings side, after posting a loss in the fourth quarter of 2025, the company returned to profit in both the first and second quarters of 2026, signaling a recovery in earnings, though annual profitability still remains below 2023 levels.
The company's ongoing annual treasury share buyback and retirement program is a notable shareholder-return element, though the specific level of dividend policy should be assessed relative to industry averages.
The separate listing of subsidiary TMC also introduces a variable that can affect how KPF's overall value is structured, since TMC's equity stake is now valued independently in the market.
Investors may wish to compare the currently displayed multiples and yield against historical trading ranges and comparable industry averages.
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
Subsidiary TMC holds roughly a 45% share of the domestic marine cable market and counts the top three shipbuilders—HD Hyundai, Hanwha Ocean, and Samsung Heavy Industries—as major customers. A continued recovery in global shipbuilding orders could translate into expanded cable revenue.
TMC also supplies about 90% of optical cable to the Saeul Unit 3 and 4 nuclear plants and has planned supply to Shin-Hanul Units 3 and 4, giving it a specialized demand base.
Starting in May 2026, the company began executing a five-year shareholder return policy involving annual new treasury share purchases and retirements worth KRW 1 billion. The company stated it is implementing this policy on schedule alongside its earnings improvement efforts.
The structure gradually reduces outstanding shares and is presented together with governance improvement measures.
After an ERP system changeover at the Vietnam subsidiary caused inventory discrepancies in the first quarter of 2026, operations normalized from the second quarter.
The company cited increased overseas exports driven by quality competitiveness and normalized operations at its Vietnam plant as the main factors behind second-quarter revenue growth.
The global production network spanning the United States, China, and Vietnam can contribute to customer diversification and cost competitiveness.
Annual revenue declined for three straight years, from KRW 819.0 billion in 2022 to KRW 743.9 billion in 2025, while operating margin slipped from 5.8% in 2023 to 4.8% in 2025. Slowing downstream industry demand has been cited as a factor behind the decline in fastener segment revenue. While earnings have shown signs of recovery, they have not yet fully returned to prior levels.
TMC's operating profit fell from KRW 14.3 billion in 2024 to KRW 6.4 billion in 2025, and net income turned to a loss from KRW 9.2 billion in profit the prior year.
Its business is heavily exposed to shipbuilding and offshore market conditions, and reports attribute the decline to delays in global offshore projects following last year's US tariff shock. Since KPF holds roughly a 47% stake in TMC as a consolidated subsidiary, this weakness can weigh on consolidated results.
Changes in US tariff policy have reportedly caused delays in shipbuilding and offshore projects, and the company itself has noted ongoing uncertainty related to logistics costs. Rising raw material prices are cited as a long-term burden.
These external variables could constrain the results of the company's planned cost management and production efficiency efforts.
Rising prices for key raw materials such as steel can pressure costs in the fastener and automotive parts segments. A company representative has cited raw material price increases as a long-term burden. The effectiveness of ongoing cost management efforts warrants continued monitoring.
Subsidiary TMC is sensitive to shipbuilding and offshore cycles, and its revenue and profit have shown significant volatility. As seen when its net income turned to a loss in 2025, the impact on consolidated results can be substantial. Even after TMC's separate listing, KPF's roughly 47% ownership means this risk persists at the group level.
In the first quarter of 2026, an ERP system changeover at the Vietnam subsidiary caused inventory discrepancies that temporarily reduced factory operating days. The possibility of similar system or operational issues recurring cannot be ruled out.
Managing the complexity of a production network spanning multiple countries also remains an ongoing consideration.
The third-quarter 2026 report will show whether the second-quarter recovery trend continued and whether the normalization effect at the Vietnam subsidiary persisted.
Disclosures should be checked to confirm the annual execution status and scale of the treasury share buyback and retirement policy.
The progress of subsidiary TMC's optical cable supply contract with the US AI infrastructure company and the expansion of operations at its Texas production facility should be monitored.
The full-year 2026 earnings disclosure will indicate whether the three-year streak of declining revenue and profit has reversed and whether margin recovery has continued.
KPF is a KOSDAQ-listed machinery and equipment company built around three core businesses: fasteners, automotive forged parts, and marine/offshore cables through subsidiary TMC.
Annual revenue and operating margin declined for three straight years starting in 2022, but the company posted consecutive quarterly profits in the first and second quarters of 2026, signaling early signs of earnings recovery.
The resolution of a temporary production disruption at the Vietnam subsidiary and expanded overseas exports were cited as the main drivers behind the second-quarter recovery.
Subsidiary TMC is positioned to benefit from a shipbuilding recovery, but it also carries downside factors including recent profitability deterioration and delays in offshore project schedules.
The company stated it is executing its multi-year shareholder return policy, centered on annual treasury share buybacks and retirements, on schedule.
Going forward, third-quarter results, progress on TMC's US-facing cable contract, and shifts in raw material costs and the trade environment are likely to be key variables shaping the earnings trajectory.
Report written 2026-09-05 · Data as of 2026-09-04
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