PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩165 per share · Prices as of the 2026-10-02 close
KC Feed has been expanding from a feed-centered livestock company into a food company built around pasteurized liquid egg processing, extending four straight years of revenue and operating profit growth.
2025 consolidated revenue reached KRW 121.77bn and operating profit KRW 12.18bn, up 18.3% and 50.5% year over year respectively, pushing the operating margin above 10% for the first time.
The liquid-egg business has emerged as a second growth pillar offsetting slower feed-segment growth, with capacity expansion underway at the Geochang plant aiming to lift output capacity to roughly 1.5 times current levels.
Operating profit fell year over year in the first quarter of 2026 due to higher feed input costs, but recovered again in the second quarter.
Roughly 14% of Korea's laying hen population was culled during the 2025-2026 winter highly pathogenic avian influenza outbreak, keeping egg prices on an upward trend.
The debt-to-equity ratio has steadily declined from 59.4% in 2022 to 23.8% in 2025, reflecting an improving financial structure.
KC Feed was established in 1970 as Gyeongbuk Livestock Co., Ltd. to manufacture and sell compound feed, and it now operates three business divisions: feed, food, and fertilizer.
The feed division, the company's core business, produces compound feed for poultry, swine, and cattle and supplies it mainly in the Yeongnam region. In 2017 the company absorbed KC Fresh, building out a food division and entering the liquid egg processing and sales business.
The food division centers on the pasteurized liquid egg brand 'I'm Egg,' produced using an Extended Shelf Life (ESL) clean aseptic process, supplying whole egg, yolk, and egg white liquid products to bakeries, food-service suppliers, school meal programs, and food franchises.
In Korea's liquid egg market, pasteurized and non-pasteurized products historically split roughly 50-50, but demand for pasteurized products has been gradually expanding amid food-safety concerns.
The company's 2025 liquid egg sales volume is estimated at about 3,573 tons, representing roughly a 4.4% share of domestic liquid egg production. The fertilizer division produces and sells livestock manure compost under the 'Bongseonhwa' brand, pursuing growth through quality innovation and vertical integration.
The company is reported to have become the first domestic liquid egg producer to obtain a supply qualification for U.S. Forces Korea back in 2015, and continues to supply under that qualification.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩32.1B | ₩2.9B | 9.1% |
| 2025Q3 | ₩31.9B | ₩4.3B | 13.5% |
| 2025Q4 | ₩32.4B | ₩2.8B | 8.6% |
| 2026Q1 | ₩27.7B | ₩1.6B | 5.9% |
| 2026Q2 | ₩28.9B | ₩2.8B | 9.7% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩88.5B | ₩4.9B | ₩4.2B | 5.5% | 6.9% | 59.4% |
| 2023 | ₩92.6B | ₩6B | ₩6.6B | 6.5% | 10.1% | 49.0% |
| 2024 | ₩103B | ₩8.1B | ₩6.8B | 7.9% | 9.6% | 43.5% |
| 2025 | ₩121.8B | ₩12.2B | ₩10.3B | 10.0% | 12.9% | 23.8% |
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
Consolidated revenue rose steadily from KRW 88.48bn in 2022 to KRW 92.58bn in 2023, KRW 102.96bn in 2024, and KRW 121.77bn in 2025.
Operating profit over the same period increased from KRW 4.87bn to KRW 6.05bn, KRW 8.10bn, and KRW 12.18bn, with the operating margin improving each year from 5.5% to 6.5%, 7.9%, and 10.0%.
Owners' net income jumped from KRW 4.20bn in 2022 to KRW 6.63bn in 2023, growth that slowed somewhat to KRW 6.84bn in 2024 before rebounding to KRW 10.34bn in 2025, a roughly 50% increase.
By quarter, operating profit peaked at KRW 4.31bn on revenue of KRW 31.91bn in the third quarter of 2025, the highest margin of the last five quarters, before falling to KRW 2.79bn in the fourth quarter and KRW 1.63bn in the first quarter of 2026, then rebounding to KRW 2.81bn in the second quarter of 2026.
The operating profit decline in the first quarter of 2026 was primarily attributed to rising feed raw material costs. Notably, owners' net income for that same quarter rose to KRW 2.37bn versus roughly KRW 2.1bn a year earlier, suggesting non-operating items partly offset the operating weakness.
Operating cash flow surged from KRW 0.85bn in 2022 to KRW 10.01bn in 2023, fell back to KRW 5.32bn in 2024, then rose again to KRW 14.01bn in 2025, indicating improving cash conversion of earnings.
The debt ratio also declined from 59.4% in 2022 to 23.8% in 2025, reinforcing financial stability alongside the earnings growth.
Korea's compound feed industry is structurally exposed to international grain prices and exchange rate swings because most raw grain is imported. During the 2025-2026 winter, a large-scale highly pathogenic avian influenza outbreak led to the culling of about 12 million laying hens, roughly 14% of the total flock.
As a result, egg supply fell even as consumption kept rising on the back of expanding convenience food and food-service demand, putting upward pressure on egg prices.
Over the past five years, the farm-gate price for a standard tray of 30 eggs rose gradually from KRW 4,908 in 2022 to KRW 5,379 in 2025 and KRW 5,492 in June 2026.
In this environment, pasteurized liquid egg is seen as a beneficiary of tightening food-safety regulation, with some analysis suggesting that stricter limits on non-pasteurized liquid egg use by the Ministry of Food and Drug Safety could expand share for ESL-based pasteurized producers.
The global liquid egg market is forecast to grow from about USD 3.22bn in 2026 to about USD 4.16bn by 2031, a compound annual growth rate of roughly 5.45%, indicating an ongoing growth phase.
In the competitive landscape, listed feed and poultry names such as Harim, Farmstory, and Maniker F&G often move together on avian-influenza or egg-related news, but KC Feed is noted for its specialization in pasteurized liquid egg processing.
The company is expanding production facilities in Geochang, South Gyeongsang, to build the liquid egg business into a future growth pillar.
A company representative said the new plant's scale is about 50% of existing capacity, and once expansion is complete, total production capacity will rise to roughly 1.5 times current levels.
The company noted that although the liquid egg plant is not yet running at full capacity, it is proactively investing given the market's growth potential. The feed segment is expected to continue serving as a cash-generating base while the center of gravity for growth gradually shifts toward the liquid egg business.
Because avian-influenza-driven culling has left raw egg supply and pricing volatile, cost management is flagged as a key variable for future earnings.
The Korea Fair Trade Commission is expected to notify a final resolution soon regarding the Korea Egg Producers' Association's price notice practices, and any resulting change to egg price formation could affect the company's raw material procurement environment.
The company views the domestic liquid egg market as still in an early stage, leaving room for further share gains.
The stock tends to trade at a discount to the company's per-share net asset value, showing a discount rather than a premium to book value. The price-to-earnings multiple calculated on the trailing four quarters of net income appears to sit below the average for KOSDAQ-listed food and beverage companies.
On the dividend side, the yield based on the most recently disclosed per-share cash dividend runs above the sector average, with dividend capacity gradually expanding alongside earnings improvement.
However, given the company's small market capitalization and limited liquidity, valuation-related metrics can swing sharply in the short term on theme-driven news—such as avian influenza or new-airport-site speculation—that has little direct connection to fundamentals.
Views on valuation direction can differ among investors, and the pace of earnings improvement and the degree to which the liquid egg business becomes profitable remain the key variables for how these metrics evolve.
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
Revenue increased for four consecutive years from 2022 to 2025, and the operating margin improved every year from 5.5% to 10.0%. The debt ratio fell from 59.4% to 23.8% over the same period, reinforcing financial stability. Operating cash flow also strengthened to KRW 14.01bn in 2025, indicating improving cash conversion of earnings.
Analysis suggests tighter regulation of non-pasteurized liquid egg by the Ministry of Food and Drug Safety could expand market share for ESL-based pasteurized producers. The company is expanding its Geochang plant to raise capacity to 1.5 times current levels, positioning itself ahead of market growth.
The global liquid egg market is also forecast to grow at a mid-single-digit annual rate, creating a favorable industry backdrop.
The company is reported to have become the first domestic liquid egg producer to obtain a U.S. Forces Korea supply qualification back in 2015 and to have maintained it since. Its ESL-based pasteurization line is cited as a quality differentiator versus competitors. This certification and technology base can support customer acquisition in B2B channels.
Operating profit in the first quarter of 2026 declined year over year due to rising feed input costs. Quarterly operating profit has swung sharply, from KRW 4.31bn in the third quarter of 2025 down to KRW 1.63bn in the first quarter of 2026. Raw material price swings can amplify the range of quarterly results.
The 2025-2026 winter avian influenza outbreak culled about 14% of laying hens, reducing egg supply and destabilizing raw egg procurement costs. Higher egg prices can support revenue but also carry cost pressure that squeezes margins. Raw material supply could be disrupted again depending on future disease-control conditions.
The stock has repeatedly reacted sharply to news with limited direct fundamental relevance, such as speculation over a new Daegu-Gyeongbuk airport site or the U.S. egg supply shortage.
Given the company's small market capitalization and limited liquidity, such flow-driven swings can have an outsized effect on the share price. These theme-driven moves can occur independently of the underlying earnings trend, warranting caution.
Compound feed raw grain is mostly imported, exposing costs directly to international grain prices and exchange rate movements. The liquid egg business is similarly exposed to fluctuations in raw egg prices affecting margins. Cost-driven pressure on operating profit, as seen in the first quarter of 2026, could recur.
A resurgence of highly pathogenic avian influenza could again disrupt raw material supply through culling of laying hens.
Regulatory changes, such as Ministry of Food and Drug Safety hygiene rules on liquid egg or the outcome of the Fair Trade Commission's review of egg price notices, are also variables that could affect the business environment.
As a small-cap stock with limited market capitalization and trading liquidity, price swings from shifts in supply and demand can be relatively large. Repeated short-term inflows and outflows driven by theme-related news could create gaps between the share price and underlying fundamentals.
Third-quarter 2026 results are due to be disclosed, offering a chance to check whether liquid-egg capacity expansion is contributing and whether feed input costs have stabilized.
Watch for any resurgence of highly pathogenic avian influenza and additional culling volumes. A renewed outbreak could again affect raw egg supply and costs.
Confirm whether the Geochang liquid-egg capacity expansion has been completed and begun operation. The timing of ramp-up will determine when the added capacity starts to show up in results.
Check the outcome of the Fair Trade Commission's final resolution regarding the Korea Egg Producers' Association's price notice practices. Any change to egg price formation could affect the company's raw material procurement environment.
KC Feed is in a classic business-expansion phase, keeping compound feed as a stable cash generator while building pasteurized liquid egg processing into a new growth pillar.
From 2022 through 2025, revenue and operating margin improved every year and the debt ratio declined, showing a clearly strengthened financial position.
That said, episodes like the first quarter of 2026, when rising feed costs eroded operating profit, could recur, and raw egg supply instability from highly pathogenic avian influenza remains a persistent variable.
Whether the liquid-egg capacity expansion proceeds as planned and translates into market share gains, and whether cost management stays stable, are the key factors to watch for future earnings.
Given its small-cap characteristics, the share price can also move sharply in the short term on theme-driven news unrelated to fundamentals, such as new-airport-site speculation. Any investment decision should be made independently after weighing these bullish and bearish factors in full.
Report written 2026-09-05 · Data as of 2026-09-04
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