PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩430 per share · Prices as of the 2026-10-02 close
KC Corp, a maker of gas and chemical supply systems and clean-room construction services for semiconductor and display fabs, posted record annual revenue in 2025 and showed a clear rebound in operating margin through the first half of 2026.
The business mix consists of construction (44.5%), equipment (29.3%), and materials/parts (24.8%), with domestic sales accounting for 88.2% of revenue.
2025 annual revenue reached roughly KRW 797.3 billion, the highest of the past four years, though the 5.8% operating margin still trailed the 11.8% and 9.1% posted in 2022 and 2023.
Operating margin bottomed in the high-1%-to-2% range in 2025Q3–Q4 before recovering to 6.6% in 2026Q1 and 8.9% in 2026Q2.
The debt ratio declined from 27.0% in 2022 to 19.0% in 2025, the lowest of the four-year window, while operating cash flow remained positive every year.
Controlling shareholders' combined stake rose to 43.57% as of April 2026, with continued open-market purchases by a family member of the founder.
KC Corp was founded in 1987 for the semiconductor equipment business and listed on the KOSPI in 1997, specializing in utility equipment for semiconductor and display manufacturing processes.
Its core products are gas supply systems that deliver process gases at controlled pressure and chemical supply systems that centrally and automatically distribute chemicals, forming the ultra-high-purity infrastructure backbone of fabs.
The business is split into construction (44.5%), equipment (29.3%), and materials/parts (24.8%), with construction being the largest segment—a distinguishing feature versus peer equipment makers.
Subsidiaries divide the group's operations: KC E&C handles facility construction, KC Innovation manufactures and sells gas scrubbers, and KC Industrial handles gas supply and trading.
Domestic sales make up a very high 88.2% of revenue, making results heavily dependent on the capital-spending cycles of large Korean chipmakers such as Samsung Electronics and SK hynix.
A long operating history and product reliability underpin long-term partnerships with domestic customers, providing a foundation for business stability.
R&D spending runs at roughly 1.9% of revenue, concentrated on automating gas supply systems and differentiating central chemical supply systems (CCSS), while the company is also preparing to enter the Chinese market to expand its business.
Because the business is closely tied to capital expenditure in the semiconductor and display industries, results are highly sensitive to swings in those end markets.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩209.5B | ₩14.6B | 7.0% |
| 2025Q3 | ₩175B | ₩2.7B | 1.6% |
| 2025Q4 | ₩176.1B | ₩3.6B | 2.0% |
| 2026Q1 | ₩212.5B | ₩14B | 6.6% |
| 2026Q2 | ₩250.4B | ₩22.2B | 8.9% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩858B | ₩101.2B | ₩99.5B | 11.8% | 14.1% | 27.0% |
| 2023 | ₩727B | ₩66.4B | ₩47.5B | 9.1% | 6.2% | 22.8% |
| 2024 | ₩738.5B | ₩28B | ₩46.5B | 3.8% | 6.1% | 22.1% |
| 2025 | ₩797.3B | ₩46.5B | ₩43.9B | 5.8% | 5.2% | 19.0% |
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 reached roughly KRW 797.3 billion in 2025, above KRW 738.5 billion in 2024 and KRW 727.0 billion in 2023, marking the highest level of the four-year window.
Operating profit, however, was only about KRW 46.5 billion (5.8% margin), well below KRW 101.2 billion (11.8%) in 2022 and KRW 66.4 billion (9.1%) in 2023, showing that profitability has not kept pace with the larger revenue base.
Notably, in 2024 revenue rose year-on-year yet operating margin fell to 3.8%, illustrating how sensitive margins are to shifts in cost and order mix.
On a quarterly basis, operating margin fell from 7.0% in 2025Q2 (revenue about KRW 209.5 billion, operating profit about KRW 14.6 billion) to lows of 1.6% in Q3 and 2.0% in Q4, before recovering sharply to 6.6% in 2026Q1 (revenue about KRW 212.5 billion, operating profit about KRW 14.0 billion) and 8.9% in 2026Q2 (revenue about KRW 250.4 billion, operating profit about KRW 22.2 billion).
Net income attributable to owners fell to about KRW 6.5 billion in 2025Q3 and KRW 3.4 billion in Q4 before jumping to about KRW 22.5 billion in 2026Q1 and KRW 22.1 billion in 2026Q2; in 2026Q1, net income (about KRW 22.5 billion) actually exceeded operating profit (about KRW 14.0 billion), suggesting non-operating items contributed meaningfully to the rebound.
Annual net income attributable to owners declined from about KRW 99.5 billion in 2022 to KRW 47.5 billion in 2023 and KRW 46.5 billion in 2024, then edged down slightly to KRW 43.9 billion in 2025, yet the first half of 2026 alone already approached that annual scale.
Operating cash flow fell from about KRW 108.0 billion in 2022 to KRW 58.9 billion in 2023 and KRW 36.8 billion in 2024, before recovering to KRW 51.0 billion in 2025. The debt ratio steadily declined from 27.0% in 2022 to 19.0% in 2025, leaving the balance sheet in its most stable position across the four-year period.
KC Corp's results are directly tied to the capital-spending cycle of Korean semiconductor and display manufacturers.
According to company disclosures, the construction segment is seeing rising demand for ultra-high-purity facility work driven by continued fab investment and large-scale projects such as semiconductor clusters, while the equipment segment is also benefiting from active domestic and overseas investment lifting gas and chemical supply system sales.
Growing server and IT device demand from the spread of the non-contact economy, along with expanding foundry investment, are cited as additional tailwinds for the equipment segment.
Indeed, cumulative nine-month 2025 consolidated revenue rose 19.4% year-on-year, operating profit turned positive, and net income increased 235.9%, indicating the annual trajectory has moved past a trough into recovery.
Still, because 88.2% of revenue is generated domestically, results remain structurally dependent on the investment timing and scale of a handful of large customers.
Within the semiconductor equipment and parts industry, KC Corp's combined equipment-manufacturing and clean-room construction model differentiates it from peers, with revenue contribution shifting among construction, equipment, and materials depending on the cycle.
The company is increasing R&D spending focused on automation and differentiating central chemical supply systems while preparing to enter the Chinese market to expand its business, making a reduction in domestic concentration a key medium-term watch point.
The company has made automation technology and the differentiation of its central chemical supply system (CCSS) core R&D priorities, and is preparing to enter the Chinese market as part of a broader business expansion effort, which could gradually reduce its heavy reliance on domestic revenue.
Management indicates that the construction segment should continue to see rising demand for ultra-high-purity facility work driven by ongoing fab investment and large-scale projects such as semiconductor clusters.
The equipment segment is expected to keep growing gas and chemical supply system sales, supported by expanding domestic and overseas investment as well as foundry market capital spending.
Whether the operating margin recovery seen in 2026Q1 and Q2 (6.6% to 8.9%) extends into the second half is a near-term watch point that ultimately hinges on the pace at which domestic customers execute their capital spending plans.
The rise in controlling shareholders' combined stake to 43.57% as of April 2026, alongside continued open-market buying by a family member, can be viewed as a factor supporting governance stability.
No evidence was found, however, that the company has publicly issued specific numerical revenue or profit guidance, so the future earnings path warrants ongoing verification through quarterly disclosures and customer investment trends.
The current share price appears to trade at a discount to net asset value, with a price-to-book ratio that stands on the lower side within the semiconductor equipment industry.
Relative to earnings, the price level appears to sit below the valuation band that prevailed during the strong-margin period of 2022, reflecting the subsequent stretch of lower profitability.
The dividend yield is understood to run somewhat below the industry average, though the stability of the dividend policy itself appears to have been maintained given that net income has remained positive throughout the period without a loss year.
The improvement in operating margin during the first half of 2026 is a business-level indicator that could support a future valuation re-rating, but how the market ultimately reflects this in the share price remains for investors to judge.
On the financial-health side, the sub-20% debt ratio suggests relatively ample balance-sheet flexibility, which can be referenced as a stability indicator separate from valuation.
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
Operating margin, which had fallen to the high-1%-to-2% range in 2025Q3–Q4, improved markedly to 6.6% in 2026Q1 and 8.9% in 2026Q2. Revenue also hit a five-quarter high of about KRW 250.4 billion in 2026Q2, showing simultaneous improvement in volume and margin. Whether this continues into the second half depends on the pace of customer capex execution.
The debt ratio steadily fell from 27.0% in 2022 to 19.0% in 2025, marking the most stable balance sheet of the four-year period. Operating cash flow also recovered from about KRW 36.8 billion in 2024 to about KRW 51.0 billion in 2025. This supports financial flexibility for dividends or further investment.
Controlling shareholders' combined stake expanded to 43.57% as of April 2026, with a filing disclosing that a family relative made three separate open-market purchases that month. An owner-centered governance structure not reliant on a narrow set of outside stakes can be viewed as reducing control-related uncertainty.
As shown in 2024, when revenue rose year-on-year yet operating margin fell to 3.8%, profitability can swing sharply depending on cost and order mix. Even in 2025, when revenue hit a record, operating margin still fell short of 2022–2023 levels. Revenue growth does not automatically translate into a proportional profit improvement.
With 88.2% of revenue generated domestically, results are heavily dependent on the investment cycles of a handful of large domestic chipmakers. Delays or cuts to those customers' capex plans could directly affect construction and equipment segment revenue.
It remains unconfirmed how much the company's planned entry into the Chinese market would mitigate this concentration.
In 2026Q1, net income attributable to owners (about KRW 22.5 billion) exceeded operating profit (about KRW 14.0 billion), suggesting non-operating items contributed substantially to the earnings rebound.
Under this structure, operating profit alone cannot reliably predict net income, and volatility in non-operating items can reduce earnings visibility. Future disclosures need to be checked to understand the nature and persistence of these non-operating items.
A slowdown in the semiconductor or display industries could lead customers to cut or delay capital spending, directly hitting order intake in the construction and equipment segments. With domestic sales at 88.2% of revenue, this risk is not geographically diversified.
Fluctuations in raw material prices, labor costs, and exchange rates can affect the cost structure of the construction and equipment segments, and margin pressure similar to the drop to 3.8% operating margin in 2024 could recur. Timing gaps between order intake and cost recognition can also add to short-term margin volatility.
In periods such as 2026Q1, where net income exceeded operating profit, non-operating factors such as valuation or disposal gains on held equity or investment assets may have influenced results.
Such items can be highly volatile depending on market conditions, so future quarters could just as easily see net income fall below operating profit.
Check the 2026Q3 quarterly report to see whether the operating margin recovery seen through Q2 (6.6% to 8.9%) continued into the third quarter.
Monitor whether major domestic customers such as Samsung Electronics and SK hynix announce 2027 capex guidance and at what scale, to gauge the order environment for KC Corp's construction and equipment segments.
Review the 2026 annual business report and any dividend-related board resolution disclosures to confirm the full-year revenue and profit trajectory and the continuity of shareholder return policy.
Continue monitoring major-shareholder ownership change filings to track whether the founding family makes further share purchases or sales.
KC Corp operates a combined business model spanning gas and chemical supply systems for semiconductor and display fabs and clean-room construction services, posting record revenue in 2025 while operating margin recovered markedly from its trough through the first half of 2026.
Still, as seen in 2024, when revenue rose yet margin fell sharply, margin volatility remains a key variable in interpreting the company's results. The structural feature of heavy dependence on a small number of large domestic customers persists, with domestic sales at 88.2% of revenue.
On the financial side, the debt ratio fell to its lowest level of the four-year window and cash generation recovered, pointing to improved stability. The expansion of the controlling shareholders' stake and continued open-market buying by a family relative are facts worth noting from a governance-stability standpoint.
Going forward, sequentially checking 2026Q3 results, 2027 capex guidance from domestic customers, and the nature and persistence of non-operating items should help in assessing the company's earnings trajectory.
Report written 2026-09-05 · Data as of 2026-09-04
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