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
KPM Tech, which has layered a health-supplement subsidiary onto its core surface-treatment chemicals and plating equipment business, has sharply expanded revenue but now faces the twin challenges of a major 2026 capital restructuring and widening net losses.
2025 revenue reached KRW 76.9bn versus KRW 28.6bn a year earlier, driven mainly by the consolidation of subsidiary Newon's health-supplement business
Operating losses have been narrowing, yet owner net loss widened to KRW 11.8bn in 2026 Q2
A 90% share consolidation, 90% capital reduction, and third-party share issuances in 2026 lifted controlling shareholder Telcon RF Pharm's stake from 14.77% to 80.81%
Subsidiary Newon has posted operating losses for three consecutive years, prompting market concerns about going-concern risk
The core PCB and semiconductor plating equipment business has shown narrowing operating losses as technology-driven orders increase
Founded in 1978, KPM Tech has grown around surface-treatment chemicals and automatic plating equipment, organized into three units: a chemicals division, a machinery division, and an L&H (Life & Health) division.
Surface-treatment chemicals are a core material in PCB manufacturing that determine product durability and quality, while the automatic plating equipment business custom-builds and supplies equipment used in surface-treatment processes for PCBs, semiconductors, and auto parts.
The company develops and produces PCB plating chemicals and functional plating chemicals, pursuing technology upgrades centered on its in-house research institute.
The most notable recent shift is the rise of the L&H division, representing health supplements and household goods; according to segment revenue data compiled by an employment information outlet, health supplements and household goods account for roughly 69% of sales versus about 21% for PCB chemicals, functional plating chemicals, and general decorative plating chemicals.
This reflects the health-supplement business of subsidiary Newon, acquired in 2023, being fully consolidated into results, with KPM Tech having participated in multiple third-party share issuances at Newon to raise its ownership stake.
The controlling shareholder is Telcon RF Pharm, a finished pharmaceutical manufacturer, and the KPM Tech group spans a diversified portfolio across surface treatment, pharmaceuticals, and health supplements.
In terms of comparable listed peers, company IR materials cite ISU Petasys, Korea Circuit, Daeduck, AENP, and Lotte Energy Materials as reference names in the PCB space.
The core chemicals and equipment business continues to position domestic technical know-how and its dedicated research institute as its main competitive edge.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩20.5B | -₩4.1B | −19.8% |
| 2025Q3 | ₩22.9B | -₩5.2B | −22.9% |
| 2025Q4 | ₩19.3B | -₩1B | −5.4% |
| 2026Q1 | ₩19.8B | -₩3.7B | −18.9% |
| 2026Q2 | ₩20.1B | -₩100M | −0.7% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩41.3B | -₩400M | -₩11.6B | −1.1% | −11.7% | 32.2% |
| 2023 | ₩45.5B | -₩14.5B | ₩5.1B | −31.8% | 4.7% | 39.1% |
| 2024 | ₩28.6B | -₩4.6B | -₩39.2B | −15.9% | −51.5% | 90.7% |
| 2025 | ₩76.9B | -₩17.2B | -₩14.7B | −22.3% | −26.4% | 129.1% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-05
Annual revenue moved from KRW 41.3bn in 2022 to KRW 45.5bn in 2023, dipped to KRW 28.6bn in 2024, then jumped to KRW 76.9bn in 2025, a surge attributable to the full consolidation of Newon's health-supplement business.
Operating losses fluctuated from near breakeven at KRW -0.45bn in 2022, to KRW -14.5bn in 2023, KRW -4.6bn in 2024, and KRW -17.2bn in 2025. Owner net income swung widely: KRW -11.6bn in 2022, a positive KRW +5.1bn in 2023, a sharp KRW -39.2bn loss in 2024, and KRW -14.7bn in 2025.
On a quarterly basis, owner net income briefly turned positive at KRW +8.6bn in 2025 Q2, before reverting to losses of KRW -8.2bn in Q3, KRW -5.8bn in Q4, KRW -6.7bn in 2026 Q1, and widening further to KRW -11.8bn in 2026 Q2.
Operating losses themselves, however, clearly narrowed from KRW -5.2bn in 2025 Q3 to KRW -3.7bn in 2026 Q1 and just KRW -0.1bn in 2026 Q2.
This divergence between narrowing operating losses and widening net losses is consistent with H1 2026 figures found in research, which show consolidated H1 2026 revenue up 14.8% year over year and operating loss down 64.4%, even as net loss surged 2639.9%.
This suggests the core operating business is genuinely improving, while frequent capital transactions, convertible-bond-related costs, and financial expenses have weighed heavily on the bottom line.
The trailing four-quarter window (2025 Q3 to 2026 Q2) shows owner net losses totaling roughly KRW 32.5bn, indicating the loss-making trend has persisted on an annualized basis as well.
The market for PCB surface-treatment chemicals and plating equipment that underpins KPM Tech's core business is heavily influenced by capital expenditure cycles in the PCB, semiconductor, and electronics industries.
Research findings indicate the global PCB market is expected to continue growing through 2030, with the company assessed as maintaining competitiveness through accumulated know-how and skilled technical staff at its research institute.
Recently, orders have concentrated toward technologically advantaged suppliers, and operating losses reportedly narrowed sharply year over year, suggesting the company's relative competitiveness—rather than a broad industry recovery—has driven the improvement.
Peer companies cited for comparison include ISU Petasys, Korea Circuit, Daeduck, AENP, and Lotte Energy Materials in the PCB and materials space, though KPM Tech's smaller revenue base and its substantial pivot toward health supplements make direct comparison with pure PCB value-chain companies difficult.
The domestic health-supplement and household-goods market is generally categorized as a growth sector amid consumption trends, but subsidiary Newon has posted operating losses for three consecutive years since entry and has yet to stabilize a profitable model.
Taken together, KPM Tech straddles two growth-oriented industries—PCB surface treatment and health supplements—but both segments currently sit in an early or transitional phase that has not yet translated into clear profitability.
Over the first half of 2026, the company sequentially completed a 90% share consolidation, a 90% capital reduction, and third-party share issuances, and after trading resumed following the capital reduction, management stated its focus would be on strengthening the competitiveness of existing businesses and enhancing corporate value on the back of an improved financial structure.
During this process, controlling shareholder Telcon RF Pharm participated in two rounds of third-party share issuances (at KRW 1,540 and later KRW 3,629 per share), substantially expanding its control.
The 13th unsecured private convertible bond issued in December 2025 (face value KRW 12bn) had its conversion price adjusted following the capital reduction, with analysis suggesting the post-adjustment potential dilution ratio could reach 21.5%, leaving future conversion requests as an additional variable for the share structure.
Regarding subsidiary Newon, KPM Tech expanded its stake through multiple third-party share issuances between 2024 and 2025, reaching a 64% ownership ratio as of December 2025.
However, market commentary also notes that Newon has posted operating losses for three consecutive years, raising questions about its going-concern ability.
The core surface-treatment chemicals and equipment business remains tied to capital expenditure cycles in the PCB, semiconductor, and automotive industries, meaning future results will likely hinge on these industries' investment cycles and the company's order competitiveness.
No specific official guidance, capacity expansion, or new product timeline from the company was identified in research, warranting confirmation through upcoming regular disclosures and quarterly reports.
Because the company has continued to post net losses, standard earnings-based valuation metrics remain difficult to compute for the recent period.
The share price, measured against book value per share recalculated after the recent large-scale capital restructuring (share consolidation, capital reduction, and share issuances), trades at a level below net asset value.
However, because the restructuring altered the share count and equity composition substantially within a short period, direct comparison with valuation bands from before the restructuring has clear limitations.
The company does not currently pay a cash dividend, so shareholder returns through dividends are not a relevant consideration at this time. With owner net losses persisting through the most recent quarters, whether and when earnings recover will likely be the key variable shaping future valuation assessments.
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 2026-09-05
Revenue grew sharply in 2025 as subsidiary Newon's health-supplement business was consolidated into results. KPM Tech expanded its Newon stake through multiple third-party share issuances between 2024 and 2025.
A broader revenue base theoretically creates room for profitability improvement through fixed-cost leverage over time.
The company completed a 90% share consolidation and 90% capital reduction in 2026, stating it had cleared accumulated deficits and improved its financial structure.
After trading resumed following the capital reduction, the company said it would focus on strengthening the competitiveness of existing businesses and enhancing corporate value. This is seen as an effort to move past prolonged low-price trading and capital-impairment concerns.
In the core surface-treatment chemicals and automatic plating equipment business, orders have reportedly concentrated toward technologically advantaged suppliers, sharply narrowing operating losses year over year.
The global PCB market is expected to continue growing through 2030, keeping the downstream demand base intact. The company continues to pursue technology development and product upgrades through its dedicated research institute.
During the 2026 capital restructuring, controlling shareholder Telcon RF Pharm invested a total of KRW 30.5bn to raise its control from 14.77% to 80.81%. The share consolidation and capital reduction reduced existing shareholders' holdings dramatically, from 100 shares down to 1 share in effect.
Notably, a recent KRW 22.5bn share issuance was priced at KRW 3,629 per share at a point when the stock had fallen sharply, drawing criticism that minority shareholder value was heavily diluted.
Subsidiary Newon, acquired in 2023, has posted operating losses for three consecutive years, prompting market questions about its going-concern ability. Observers have also noted that operating losses have persisted even as health-supplement segment revenue now exceeds that of the legacy business. Business diversification has yet to translate into clear profitability improvement.
The 2025 operating loss of KRW 17.2bn actually widened from KRW 4.6bn in 2024, and in 2026 Q2 the operating loss narrowed to near breakeven at KRW 0.1bn, yet owner net loss still reached KRW 11.8bn.
Research on H1 2026 similarly showed operating loss down 64.4% even as net loss surged 2639.9%, suggesting non-operating factors are weighing heavily on the bottom line. Owner net losses over the trailing four quarters totaled roughly KRW 32.5bn.
The 13th convertible bond (face value KRW 12bn) had its conversion price adjusted following the capital reduction, with analysis pointing to a potential dilution ratio of up to 21.5%.
With the controlling shareholder's stake now above 80%, any further capital transactions could reduce minority shareholders' proportional ownership even more. This may remain an ongoing variable for voting structure and share supply-demand.
Subsidiary Newon has recorded operating losses for three consecutive years, prompting market concerns about its going-concern ability. On a consolidated basis, operating losses and net losses have occurred simultaneously across most of the 2022 through H1 2026 period. Prolonged losses could necessitate further capital raising or asset restructuring.
The company's capital structure had weakened to the point of requiring back-to-back 90% share consolidation and 90% capital reduction after long-accumulated deficits. An industry source noted that such capital restructuring could negatively affect investor sentiment and market perception.
Market commentary has also suggested that book-value cleanup through capital transactions alone does not guarantee a genuine recovery in underlying operating strength.
Around the statutory filing deadline for the Q3 2026 quarterly report, it will be important to check whether the trend of narrowing operating losses alongside widening net losses continues.
Disclosures related to conversion requests on the 13th convertible bond should be monitored to assess whether further share dilution is occurring.
It will be worth checking whether subsidiary Newon's health-supplement segment profitability improves and whether going-concern concerns ease.
DART filings should be checked for any further stake changes, fund flows, or new third-party share allotments involving controlling shareholder Telcon RF Pharm.
KPM Tech straddles a traditional core business in surface-treatment chemicals and equipment alongside a newer health-supplement business, with 2025 revenue rising sharply due to the consolidation of Newon, even as annual and quarterly net losses have persisted.
The core plating chemicals and equipment segment shows encouraging signs of narrowing operating losses on the back of technical competitiveness, while subsidiary Newon has recorded operating losses for three straight years, raising going-concern concerns.
In 2026, a sequential 90% share consolidation, 90% capital reduction, and large third-party share issuances cleared accumulated deficits from the balance sheet, but in the process the controlling shareholder's stake rose above 80% while existing minority shareholders' equity value was heavily diluted.
With narrowing operating losses and widening net losses occurring simultaneously, whether the drag from non-operating factors eases in future results will be a key point to watch.
The outstanding convertible bond's potential dilution volume and whether the subsidiary's profitability stabilizes remain additional variables to monitor going forward. This report contains no investment opinion or buy/sell recommendation and is prepared for informational purposes only.
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.