PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩30 per share · Prices as of the 2026-10-02 close
Kukil Metal, a copper-alloy specialist, returned to profit in 2025 but still faces copper price volatility and industry-wide oversupply in brass rods.
2025 consolidated revenue reached KRW 36.29bn; despite a KRW 0.21bn operating loss, net income turned positive at KRW 97mn
Operating and net profit turned positive for three consecutive quarters from 2025Q4 through 2026Q2
The core brass rod market remains structurally oversupplied, dominated by Daechang and Poongsan
International copper prices surged roughly 41% in 2025 before entering a more volatile phase in 2026
Low leverage with a debt ratio near 10% and equity of about KRW 42.3bn underpin balance-sheet stability
Kukil Metal was established in 1993 and listed on KOSDAQ in December 2014 as a copper-alloy nonferrous metal specialist. Its main product is brass rod, alongside ferrous-copper alloy coils.
Its products serve as base materials across electric/electronics, semiconductor, telecom, and automotive industries, giving the company a diversified customer base.
The company is pursuing higher value-added product development, including lead-free and high-strength brass, Ni strike plating, and Sn plating, while focusing on expanding sales to hybrid and electric vehicle material suppliers.
Raw material electrolytic copper is sourced from LS-Nikko and the Public Procurement Service, while copper and brass scrap are purchased both domestically and overseas.
The brass rod segment in particular suffers from oversupply relative to domestic demand, more severe than other subsectors, with Daechang and Poongsan leading the market while Kukil Metal and other smaller players supply the remainder.
Because domestic demand is limited, major producers export surplus output overseas, sustaining ongoing competition around overseas channel development and differentiation in production, quality, and service.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩6.9B | -₩400M | −5.1% |
| 2025Q3 | ₩7.4B | -₩300M | −4.3% |
| 2025Q4 | ₩12.6B | ₩500M | 3.7% |
| 2026Q1 | ₩9.1B | ₩400M | 3.9% |
| 2026Q2 | ₩10.2B | ₩200M | 1.8% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩26.9B | ₩400M | ₩1B | 1.4% | 2.1% | 8.9% |
| 2023 | ₩19.6B | -₩2.2B | -₩1.2B | −11.2% | −2.6% | 7.9% |
| 2024 | ₩31.4B | -₩1.7B | -₩3.4B | −5.4% | −7.9% | 11.9% |
| 2025 | ₩36.3B | -₩200M | ₩97,340,749 | −0.6% | 0.2% | 10.2% |
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 for 2025 reached KRW 36.286bn, up from KRW 31.398bn in 2024, and compared to KRW 19.640bn in 2023 and KRW 26.883bn in 2022, the past two years show a clear revenue recovery trend.
Operating profit swung from a KRW 385mn gain in 2022 to losses of KRW 2.192bn in 2023 and KRW 1.696bn in 2024, before narrowing sharply to a KRW 210mn loss in 2025.
Net income attributable to owners moved from a KRW 1.006bn gain in 2022 to losses of KRW 1.221bn in 2023 and KRW 3.353bn in 2024, before turning positive again at KRW 97mn in 2025.
On a quarterly basis, 2025Q2 revenue was KRW 6.922bn with an operating loss of KRW 353mn and a net loss of KRW 330mn, and 2025Q3 revenue of KRW 7.368bn still carried an operating loss of KRW 315mn; however, 2025Q4 revenue jumped to KRW 12.572bn with operating profit of KRW 462mn and net profit of KRW 452mn, marking a clear improvement.
This positive trend continued into 2026Q1 (revenue KRW 9.127bn, operating profit KRW 352mn, net profit KRW 254mn) and 2026Q2 (revenue KRW 10.182bn, operating profit KRW 182mn, net profit KRW 407mn), extending the profitable streak to three consecutive quarters.
Still, the full-year 2025 operating margin of -0.6% remains near breakeven, suggesting quarterly profit gains have not scaled proportionally with revenue growth. On the cash flow side, 2025 operating cash flow improved sharply to KRW 4.615bn from negative KRW 3.043bn in 2024 and negative KRW 2.764bn in 2023.
International copper prices surged roughly 41% during 2025, and in early 2026 COMEX copper futures repeatedly set record highs around $5.90 per pound, extending the bullish trend.
CME Group noted that market consensus places 2026 copper prices in a range of $5.00 to $6.35 per pound, while forecasts diverge sharply: J.P. Morgan projected a 330,000-tonne refined copper supply deficit for 2026, whereas Goldman Sachs warned of a potential 160,000-tonne surplus.
As of August 2026, copper prices pulled back to around $6.44 per pound after hitting record highs earlier in the month, underscoring significant short-term volatility.
The brass rod industry itself remains structurally oversupplied relative to domestic demand, with Daechang and Poongsan leading the market while Kukil Metal and other smaller producers compete for remaining demand and export volumes.
Copper processors can see margin improvement from higher selling prices and inventory valuation gains when copper prices rise, but a rapid spike in raw material costs can also compress operating margins through higher cost ratios, making the direction of impact inconsistent.
Longer term, structural demand drivers such as AI data centers, electric vehicles, and grid modernization are frequently cited, with S&P Global projecting copper demand could rise 50% to 42 million tonnes by 2040, though how much of this benefit flows through to a smaller brass producer like Kukil Metal remains a separate question requiring further confirmation.
In its business report, the company states it has no newly confirmed business plans resolved by the board or shareholders, suggesting the near-term focus will remain on its existing brass rod and ferrous-copper alloy coil production while upgrading the product portfolio.
Specifically, the company continues developing higher value-added products such as lead-free and high-strength brass, Ni strike plating, and Sn plating, and is expanding sales efforts toward hybrid and electric vehicle material suppliers in response to rising EV component material demand.
Whether the profitable streak that began in 2025Q4 and extended through three consecutive quarters can be sustained will likely depend heavily on the direction of copper prices and the company's pricing power with customers.
Given that international copper prices have swung between the high-$5 and mid-$6 per pound range through 2026, the timing gap between raw material procurement and price pass-through to customers warrants continued monitoring for its effect on quarterly earnings.
Since the industry-wide oversupply structure is unlikely to resolve quickly, the company's profit improvement may depend more on expanding the share of higher value-added products and cost efficiency than on the copper price cycle itself.
The upcoming 2026Q3 regular disclosure will offer further confirmation on whether the profitable trend continues and how the revenue mix evolves.
Viewing the current share price against historical performance, the key point of interest is what valuation the market is assigning as the company transitions from consecutive losses in 2023-2024 to a 2025 profit turnaround and now three consecutive profitable quarters.
On a price-to-book basis, the shares appear to trade at a level below net asset value, which may suggest the market has not yet fully priced in a complete earnings normalization.
On dividends, the company has a track record of paying a modest per-share cash dividend, though the level appears to trail the sector average.
Since profit growth has not scaled in proportion to revenue growth on a quarterly basis, any future valuation re-rating would likely hinge on confirming the durability of the earnings recovery.
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
From Q4 2025 to Q2 2026, both operating profit and net income remained in the black, marking an exit from the continuous losses of 2023-2024. Notably, Q4 2025 revenue increased significantly compared to the previous quarter, driving profit improvement.
If this trend continues, it could provide evidence of both financial stability and qualitative improvement in earnings.
The 2025 debt ratio stood at 10.2%, continuing the low leverage structure maintained at 8-12% levels during 2022-2024. Shareholders' equity has remained stable at around KRW 42.3 billion, providing relatively strong buffering capacity against external shocks. This can serve as an important safety net given the industry's characteristic copper price volatility.
Copper and copper alloy products are used as basic materials across various industries including electric/electronics, semiconductors, telecommunications, and automotive, resulting in low dependence on any specific downstream industry.
The company is also expanding development and sales of materials for electric vehicles and hybrid vehicles, opening up possibilities for securing new demand sources. Exposure to diverse downstream industries helps partially diversify risks associated with downturns in any specific business sector.
The brass rod segment suffers from more severe supply-demand imbalance relative to domestic demand compared to other industries, with Daechang and Poongsan leading the market. This intensity of competition can constrain pricing power and act as an obstacle to margin improvement. The structural oversupply appears unlikely to be resolved in the short term.
International copper prices have shown significant volatility in 2026, repeatedly hitting record highs and pullbacks around $6 per pound. During periods of sharp raw material price increases, rising cost ratios can pressure operating profit, while sharp price declines can result in inventory-related losses. This volatility is a factor reducing the predictability of quarterly earnings.
The 2025 annual operating profit margin was -0.6%, still close to the breakeven line, following losses of -11.2% and -5.4% in 2023 and 2024 respectively. While revenue is recovering, the fact that profit growth lags behind revenue growth suggests there remains room for improvement in the cost structure. More time may be needed before earnings stability can be confirmed.
As electrolytic copper is the main raw material used, sharp fluctuations in international copper prices directly impact cost ratios and inventory valuation. Uncertainty surrounding whether the U.S. will impose tariffs on refined copper in 2026 is also cited as a factor amplifying price volatility.
Quarterly earnings can fluctuate significantly depending on the timing gap between raw material procurement and product price pass-through.
As the brass rod market continues to experience structural domestic oversupply with intensifying competition against major competitors such as Daechang and Poongsan, developing overseas trading partners has become essential.
Due to limited domestic demand, there is high dependence on exports for surplus production, exposing the company to effects from exchange rate fluctuations and changes in overseas demand. Intensifying competition could lead to weakened pricing power.
As a small-to-mid cap copper alloy processing company with relatively small market capitalization and revenue scale, the company may face constraints in cost negotiation power and capital expenditure capacity compared to larger competitors.
As is characteristic of small-cap KOSDAQ stocks, stock price volatility driven by trading volume fluctuations can also be relatively high. These factors may present challenges in information accessibility and price discovery for new investors.
Check whether 2026Q3 revenue and operating profit extend the profitable streak to four consecutive quarters, and how the raw material cost pass-through timing affected margins.
Monitor the final decision on potential U.S. Section 232 tariffs on refined copper imports and the ongoing direction of international copper prices.
Confirm whether the full-year 2026 results maintain profitability, and whether the shift toward higher value-added products (lead-free, high-strength brass) has translated into actual margin improvement.
Kukil Metal, a copper-alloy nonferrous metal specialist, has turned from consecutive losses in 2023-2024 to profitability in 2025, extending a profitable streak through three consecutive quarters into 2026Q2.
Its financial structure remains stable with low leverage around a 10% debt ratio, though the operating margin still hovers near breakeven, warranting continued monitoring of the quality of the earnings improvement.
The industry itself carries structural characteristics of oversupply in the brass rod segment and competition from larger players such as Daechang and Poongsan, while international copper prices, after a sharp rise in 2025, have entered a more volatile phase in 2026.
The company is pursuing higher value-added product development, including lead-free and high-strength brass, alongside expanded sales of EV-related materials, and progress here will be an important variable for future earnings stability.
Investors will want to track the upcoming quarterly earnings release together with copper price and tariff-related policy developments to gauge the durability of the profit recovery.
Report written 2026-09-05 · Data as of 2026-09-04
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