KOSDAQEnergy & Power043200

Paru

₩1,232▼ 1.36%2026-10-02 close

Market Cap

₩26B

Turnover

₩43,470,987

Volume

40,000 shares

Shares out.

20.9M

PER

—

PBR

0.9×

EPS

-₩54

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

Solar-Concentrated Paru Shows Signs of Profit Recovery

Paru, whose revenue is concentrated in solar tracking structures, posted two consecutive quarters of operating profit in the first half of 2026, but a shrinking revenue base and heavy reliance on a single business line remain unresolved challenges.

1
2025 consolidated revenue fell 28.2% year over year to KRW 28.8 billion, with an operating loss of KRW 2.7 billion.
2
Operating income turned positive in both the first and second quarters of 2026, at KRW 0.2 billion and KRW 0.1 billion, respectively.
3
As of the cumulative third quarter of 2025, 97.7% of revenue came from a single product—solar tracking structures—indicating high business concentration.
4
A 2-for-1 share consolidation was decided in June 2026, trading resumed in late August, and the stock saw a short-term surge afterward.
5
Production capacity for solar tracking structures has reportedly been on a declining trend since 2023.

Business structure

Paru was founded in 1993 and listed on KOSDAQ in 2000 as a renewable energy and environmental equipment company, headquartered in Suncheon, South Jeolla Province.

Its core business is developing and supplying tracking and fixed structures for solar power generation, with tracking systems that adjust module angles according to the sun's path to improve generation efficiency, supplied to domestic and overseas power projects.

The company holds excellent-procurement-product certifications and performance certifications for its solar power devices and tracking systems, and has secured technical capabilities through overseas projects including in the United States while continuing to pursue overseas market entry.

Beyond solar, Paru also operates a hygiene and environment business, supplying automatic reels, disinfection equipment and other quarantine devices to agricultural and livestock sites.

However, as of the cumulative third quarter of 2025, solar tracking structure sales accounted for 97.7% of total revenue while hygiene-related products made up only about 2.3%, reflecting a revenue base heavily concentrated in a single business.

This concentration is cited as a factor that can amplify earnings volatility depending on order intake for solar power plant construction projects.

The domestic solar market faces oversupply and price competition, and the company is seeking differentiation through technology-based, higher value-added products and an expanded quarantine equipment lineup.

Earnings trend

Quarterly revenue · Operating profit

₩6B-₩1.1B25Q2₩7.9B-₩200M25Q3₩8B-₩300M25Q4₩6.9B₩200M26Q1₩6.2B₩100M26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩40.5B-₩2.3B2022₩42.2B-₩1.9B2023₩40.1B₩200M2024₩28.8B-₩2.7B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩6B	-₩1.1B	−19.0%
2025Q3	₩7.9B	-₩200M	−2.1%
2025Q4	₩8B	-₩300M	−3.6%
2026Q1	₩6.9B	₩200M	2.4%
2026Q2	₩6.2B	₩100M	1.7%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩40.5B	-₩2.3B	-₩4.6B	−5.8%	−19.7%	129.0%
2023	₩42.2B	-₩1.9B	-₩1B	−4.5%	−3.5%	133.4%
2024	₩40.1B	₩200M	-₩800M	0.5%	−2.9%	112.2%
2025	₩28.8B	-₩2.7B	-₩4.1B	−9.5%	−17.1%	134.6%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23

Earnings analysis

Annual revenue was KRW 40.5 billion in 2022, KRW 42.2 billion in 2023, and KRW 40.1 billion in 2024, before falling sharply to KRW 28.8 billion in 2025.

Operating profit or loss moved from -KRW 2.3 billion in 2022 and -KRW 1.9 billion in 2023 to a positive KRW 0.2 billion in 2024, before reverting to a -KRW 2.7 billion loss in 2025.

Net income attributable to owners showed a narrowing loss trend from -KRW 4.6 billion in 2022 to -KRW 1.0 billion in 2023 and -KRW 0.8 billion in 2024, before widening again to -KRW 4.1 billion in 2025.

On a quarterly basis, after posting KRW 6.0 billion in revenue with an operating loss of KRW 1.1 billion and a net loss of KRW 1.6 billion in the second quarter of 2025, the loss narrowed in the third quarter (KRW 7.9 billion revenue, KRW 0.2 billion operating loss) and fourth quarter (KRW 8.0 billion revenue, KRW 0.3 billion operating loss).

In the first quarter of 2026, the company turned profitable with KRW 6.9 billion in revenue, KRW 0.2 billion in operating income, and KRW 0.1 billion in net income attributable to owners, and maintained an operating profit of KRW 0.1 billion in the second quarter on KRW 6.2 billion in revenue, though net income attributable to owners slipped to a small loss of -KRW 0.1 billion.

Combined net income attributable to owners over the most recent four quarters (Q3 2025 through Q2 2026) was -KRW 1.1 billion, a considerably smaller loss than the full-year figures.

Operating cash flow swung from an inflow of KRW 2.0 billion in 2024 to an outflow of -KRW 2.8 billion in 2025, making the persistence of the operating profit turnaround and cash flow improvement a point worth monitoring. The debt ratio fell from 133.4% in 2023 to 112.2% in 2024 before rising again to 134.6% in 2025.

Industry analysis

The solar industry is directly influenced by a range of external variables including policy, power market regulations, the financial environment, and energy prices, and since most of Paru's revenue comes from its solar structure business, the company is highly exposed to these shifts.

Indeed, a slowdown in domestic installations and a decline in overseas orders were cited as the main drivers of the 2025 revenue decline, while the hygiene and environment segment also saw weaker results amid falling demand.

During this period of declining revenue, rising fixed-cost burden and cost ratios weighed on profitability. The domestic solar structure market is characterized by competition among numerous small and mid-sized players, with oversupply and price competition persisting.

Against this backdrop, Paru has sought overseas project entry based on its excellent-procurement-product certifications and tracking structure technology, and continues efforts to build its business foundation through new system development and demonstration projects.

However, reports indicate that production capacity for solar tracking systems has been shrinking since 2023, making it worth watching whether any industry recovery translates into actual utilization and order intake.

Outlook

In June 2026, the company decided on a 2-for-1 share consolidation aimed at stabilizing its stock price and enhancing corporate value; the new shares took effect on August 6, and trading resumed with the new shares listed on August 27.

Following the resumption of trading, the stock surged for two consecutive days, a move attributed to a change in supply and demand dynamics following the reduction in shares outstanding.

On the business side, the company is pursuing technology upgrades in its solar tracking structure segment and diversification through an expanded quarantine equipment lineup, and industry reporting from June 2025 indicated the company was also exploring entry into Asian and Middle Eastern solar markets.

However, whether these overseas expansion plans have translated into concrete contracts or orders requires confirmation through further disclosures.

The company has stated it is pursuing new system development and demonstration projects amid declining revenue and operating losses, though no specific numerical guidance has been disclosed.

Given the consecutive quarters of operating profit in the first and second quarters of 2026, whether a recovery in revenue accompanies this trend in the second half is a key point to confirm in upcoming results.

Valuation

PER

—

PBR

0.9×

ROE

-4.3%

EPS

-₩54

BPS

₩1,360

Dividend per share

₩0

Since net income attributable to owners has remained in loss territory throughout 2022–2025, conventional earnings-based valuation metrics have limited interpretive value here.

On a self-calculated basis, the share price appears to trade near net asset value, with a modest difference compared with the exchange-based calculation. The company appears not to have paid cash dividends in recent years, limiting the dividend-related appeal of the stock.

The fact that operating profit was positive for two consecutive quarters in the first half of 2026, and that the combined net loss over the most recent four quarters narrowed relative to the full-year loss figures, can serve as a reference point for gauging how much of a profit recovery might be sustained going forward.

That said, given the concentration of the revenue base in a single business and relatively high quarter-to-quarter earnings volatility, these structural characteristics should be considered alongside any valuation interpretation.

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

Bull factors

Sustained Return to Operating Profit

Operating profit was positive for two consecutive quarters in the first and second quarters of 2026, marking a departure from the operating losses seen throughout 2025.

The combined net loss over the most recent four quarters also narrowed considerably compared with the full-year figures, which can be read as a signal of cost structure improvement. However, it is premature to confirm a trend based on just two quarters, and continuity needs to be verified through second-half results.

Technology Certification and Overseas Market Exploration

The company holds excellent-procurement-product certifications and performance certifications for its solar power devices and tracking systems, and has built technical capabilities through projects including those in the United States.

Industry reporting indicates the company is also exploring entry into Asian and Middle Eastern solar markets. However, whether specific contracts have been signed requires confirmation through further disclosures.

Room for Diversification via Hygiene and Environment Business

Alongside solar, the company also operates a hygiene and environment business producing automatic reels, disinfection equipment and other quarantine devices. Reports have noted efforts to upgrade this product line in response to the expanding market for infectious disease prevention and smart quarantine solutions.

While its revenue share remains small, an increase in quarantine demand could contribute to greater business portfolio diversification.

Bear factors

Extreme Concentration in a Single Business Line

As of the cumulative third quarter of 2025, solar tracking structure sales accounted for 97.7% of total revenue, meaning overall performance hinges heavily on order intake in a single business. Hygiene and environment sales made up only about 2.3%, providing little buffering effect.

In such a structure, gaps in solar power plant construction project orders can quickly translate into sharp revenue declines.

Simultaneous Revenue and Profitability Deterioration in 2025

2025 revenue fell 28.2% year over year to KRW 28.8 billion, and operating income reverted to a loss of -KRW 2.7 billion. Rising fixed-cost burden and cost ratios amid the revenue decline were cited as the background for the profitability deterioration.

Operating cash flow also swung from an inflow of KRW 2.0 billion in 2024 to an outflow of -KRW 2.8 billion in 2025, accompanied by weaker cash-generating capacity.

Declining Production Capacity and Shrinking Net Assets

Reports indicate that production capacity for solar tracking structures has been steadily declining since 2023, raising concerns about the company's ability to respond to future orders.

Equity attributable to owners also trended downward, from KRW 28.8 billion in 2023 to KRW 28.0 billion in 2024 and KRW 24.0 billion in 2025. The debt ratio also rose again, from 112.2% in 2024 to 134.6% in 2025.

Risk factors

Industry and Policy Risk

The solar industry has a structural characteristic of being heavily influenced by external variables such as policy, power market regulations, REC prices, and energy market conditions.

Since most of the company's revenue comes from its solar structure business, changes in domestic or overseas policy or a slowdown in installation demand can directly affect performance. Oversupply and price competition in the domestic market remain persistent risk factors.

Financial and Cash Flow Risk

Operating cash flow swung to an outflow of -KRW 2.8 billion in 2025, and the debt ratio also rose again to 134.6%. Equity attributable to owners has trended downward since 2023, gradually reducing the buffer capital available. A delayed revenue recovery could place additional pressure on cash flow and capital structure.

Share Structure and Supply-Demand Volatility Risk

Following the resumption of trading after the August 2026 share consolidation, the stock experienced sharp price swings within a short period. Realignment of supply and demand due to changes in shares outstanding could continue to amplify short-term volatility. As a small-cap stock, trading volume and liquidity may be limited, a factor investors should take into account.

What to watch next

By November 16, 2026
This is the legal disclosure deadline for the 2026 third-quarter report, a point to check whether the operating profit trend continued into the third quarter and whether revenue recovered.
During the fourth quarter of 2026
Checking for disclosures of new solar tracking structure orders or overseas project contracts can help gauge whether the declining production capacity trend is reversing.
By late March 2027 (expected)
This is the expected timing for the 2026 annual business report, requiring a comprehensive check of confirmed full-year revenue, operating income, net income figures, and changes in debt ratio and cash flow.
From the fourth quarter of 2026 onward
Monitoring for disclosures of public procurement or export contracts related to the hygiene and environment (quarantine equipment) business can help confirm whether diversification efforts are translating into actual revenue.

Overall view

Paru is a small-cap renewable energy company whose revenue is extremely concentrated in the solar tracking structure business; after both revenue and operating income deteriorated simultaneously in 2025, the company returned to operating profit for two consecutive quarters in the first half of 2026.

However, combined net income attributable to owners over the most recent four quarters remains in loss territory, and the declining trend in solar tracking structure production capacity along with shrinking equity attributable to owners leaves questions about business stability.

The short-term price surge following the resumption of trading after the August 2026 share consolidation is also a factor to consider from a supply-demand volatility perspective.

Diversification into the hygiene and environment business and exploration of overseas solar markets are cited as potential mid- to long-term growth drivers, but their revenue contribution remains minimal for now, requiring further confirmation of concrete results.

Upcoming third-quarter results, new order disclosures, and confirmed full-year 2026 figures will be key evidence for assessing the sustainability of the company's profit recovery. This report does not present an investment opinion or target price and is intended for informational purposes only.

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.