PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q2–2026Q1) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close
Korea Advanced Materials has posted four straight years of revenue decline and operating losses, yet a large 2025 capital raise sharply cut its debt ratio, while the company pursues new quantum and silicon photonics technologies alongside its core optical communication parts business.
Consolidated revenue fell for four straight years from KRW 21.3bn in 2022 to KRW 3.6bn in 2025, while the operating margin worsened from 3.9% to -95.4%.
Owners' equity rose sharply in 2025 versus 2024, and the debt ratio plunged from 477.1% to 41.5%.
Net loss attributable to owners narrowed sequentially from roughly -KRW 8.9bn in 2025Q1 to about -KRW 0.6bn in 2026Q1.
The company has licensed a 200Gbps silicon interposer and a high-performance quantum computing emulation technology from ETRI, expanding into optical module and quantum technology areas.
Repeated capital-market activity—including a late-2025 rights offering, a 2026 stock consolidation, and a recent additional public offering—has kept share-count changes and dilution concerns in focus.
Korea Advanced Materials is an optical communication parts specialist founded in 1999 in Gwangju, formerly named PPI. The company was the first in the world to commercialize mass production of Planar Lightwave Circuit (PLC) optical splitters, supplying components for data centers, 5G networks, and base stations.
The business is organized into two segments: the optical communication segment, which manufactures PLC splitters and photodiodes, and the SI segment, which distributes Western Digital storage devices and premium audio equipment through CJS Co., Ltd.
Its product lineup includes optical splitters for subscriber networks, arrayed waveguide gratings (AWG) for long-haul networks, optical receiver modules for data centers, 5G fronthaul multiplexers (MUX), and portable optical measurement instruments.
Major customers include overseas telecom carriers across North America, China, Eastern Europe, and Southeast Asia, as well as Korea's three major telecom operators, with demand composition varying by each country's network investment direction.
The company has recently licensed a 200Gbps impedance-matched silicon interposer technology and a high-performance quantum computing emulation technology from the Electronics and Telecommunications Research Institute (ETRI), extending its business into next-generation optical modules and quantum technology.
Through collaborations with POSTECH, the Korea Photonics Technology Institute, and UNIST, the company is also broadening its technology portfolio into silicon photonics, optical sensors, and LiDAR-related photonic chips.
This technology expansion is aimed at entering the AI data center optical module and high-speed packaging markets, an ambition the company has explicitly stated.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q1 | ₩1B | -₩1B | −97.9% |
| 2025Q2 | ₩1.1B | -₩900M | −82.6% |
| 2025Q3 | ₩900M | -₩1B | −112.6% |
| 2025Q4 | ₩600M | -₩600M | −90.0% |
| 2026Q1 | ₩1.1B | -₩700M | −66.9% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩21.3B | ₩800M | ₩500M | 3.9% | 10.6% | 379.4% |
| 2023 | ₩14.4B | -₩3B | -₩4B | −21.0% | −55.1% | 234.0% |
| 2024 | ₩6.5B | -₩4.8B | -₩14.3B | −73.7% | −262.8% | 477.1% |
| 2025 | ₩3.6B | -₩3.4B | -₩12.8B | −95.4% | −97.9% | 41.5% |
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
Korea Advanced Materials' consolidated revenue fell for four consecutive years, from KRW 21.3 billion in 2022 to KRW 14.4 billion in 2023, KRW 6.5 billion in 2024, and KRW 3.6 billion in 2025.
Over the same period, operating profit turned from a KRW 0.83 billion gain in 2022 to losses of -KRW 3.0 billion in 2023, -KRW 4.8 billion in 2024, and -KRW 3.4 billion in 2025, marking a third straight year in the red.
Because revenue shrank faster than costs could be cut, the operating margin actually deteriorated from -21.0% in 2023 to -73.7% in 2024 and -95.4% in 2025, reflecting a relatively heavier fixed-cost burden on a shrinking revenue base.
Net loss attributable to owners swung from a KRW 0.5 billion profit in 2022 to -KRW 4.0 billion in 2023 and widened sharply to -KRW 14.3 billion in 2024, before narrowing slightly to -KRW 12.8 billion in 2025.
On a quarterly basis, the net loss was particularly large at -KRW 8.9 billion in 2025Q1, before stabilizing at -KRW 1.1 billion, -KRW 1.7 billion, and -KRW 1.1 billion in Q2 through Q4, and narrowing further to -KRW 0.6 billion in 2026Q1.
Operating cash flow, which was positive at +KRW 1.5 billion in 2022, turned negative at -KRW 3.1 billion in 2023 and -KRW 2.9 billion in 2024, before the outflow eased to -KRW 1.6 billion in 2025.
Owners' equity fell to KRW 5.4 billion in 2024 before rising to KRW 13.0 billion in 2025, and the debt ratio dropped sharply from 477.1% in 2024 to 41.5% in 2025, an effect attributable to a large capital injection through rights offerings.
However, this capital build-up came through new share issuance, which also increased the share count—a factor worth noting alongside the improved balance sheet ratios.
The optical communication parts industry is in a structural growth phase as data center, 5G, and AI infrastructure expansion drive demand for high-speed, high-capacity components.
However, the splitter market has faced intensified competition since the 2010s as Chinese manufacturers entered substrate and chip mass production, even as some assessments point to surging demand in regions such as Europe and India.
The data-center AWG segment has also seen intense price competition for 100-gigabit-class products due to new entrants, though the company has sought to shorten its product development cycle to expand market share.
Domestically, names such as Woori Ro, QSI, Seoul Semiconductor, Ino Instrument, Daehan Optoelectronics, and GigaLane are cited alongside Korea Advanced Materials as photonic semiconductor and silicon photonics related peers, serving as competitors and comparables.
The telecom industry is characterized by cascading new investment cycles tied to successive technology generations (400G, 800G, 1.6T, etc.), which repeatedly generate fresh demand.
Against this backdrop, Korea Advanced Materials sits at a stage where its legacy business revenue has contracted while it attempts to broaden its positioning through new technologies such as quantum and silicon photonics.
The company raised capital through a rights offering of roughly 15 million shares worth about KRW 26 billion in December 2025.
In April 2026, it resolved a 3-for-1 stock consolidation, raising the par value from KRW 500 to KRW 1,500 to stabilize the number of shares outstanding, with new shares listed on June 22 following a trading halt.
More recently, it decided on an additional public offering worth about KRW 3 billion to fund the acquisition of shares in another company, with new shares expected to list the following month. Some market commentary suggests that dilution concerns tied to these new share issuances weighed on the stock.
On the technology side, preparations for new businesses continue, including the ETRI silicon interposer and quantum computing emulation technology transfers and the launch of the company's own quantum security platform.
However, the specific timing for these new technologies to convert into actual revenue has not yet been disclosed, making future order or mass-production contract announcements an important point to watch.
Korea Advanced Materials has posted operating and net losses in every fiscal year except 2022 over the recent four-year window, maintaining an earnings structure where a conventional price-to-earnings ratio is difficult to derive.
On a self-calculated basis, the price-to-book ratio sits near the level of net asset value, suggesting the market is pricing the shares in a range that neither substantially exceeds nor falls well below the company's asset value. No dividend has been paid recently, making dividend-related metrics of limited relevance.
The fact that the number of shares outstanding has changed multiple times in recent years through repeated rights offerings and a stock consolidation is worth noting when comparing per-share metrics over time.
On the earnings side, the loss size has shown a gradual narrowing direction from the large net loss in 2024 through 2025 and into 2026Q1, making it worth watching whether upcoming quarterly results continue this trend.
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
Owners' equity rose sharply in 2025 versus 2024, and the debt ratio fell from 477.1% to 41.5%. This reflects the effect of repeated capital injections through rights offerings, which can be read as a sign of improved financial stability.
However, the accompanying increase in share count is a factor that should be weighed alongside this improvement.
Net loss attributable to owners, which stood at -KRW 8.9 billion in 2025Q1, gradually narrowed over the following four quarters to -KRW 0.6 billion in 2026Q1. Operating cash outflow also eased from -KRW 3.1 billion in 2023 to -KRW 1.6 billion in 2025. Cost control and business adjustments appear to have contributed to this improvement.
The company has licensed a 200Gbps impedance-matched silicon interposer and a high-performance quantum computing emulation technology from ETRI, broadening its portfolio into next-generation optical modules and quantum technology.
Ongoing research collaborations with POSTECH, the Korea Photonics Technology Institute, and UNIST can be viewed as an attempt to secure new growth pillars beyond the legacy PLC parts business. That said, converting these technologies into revenue may take time.
Consolidated revenue fell for four consecutive years, from KRW 21.3 billion in 2022 to KRW 3.6 billion in 2025. Because revenue declined faster than fixed costs could be reduced, the operating margin actually worsened from -21.0% in 2023 to -95.4% in 2025. The scale of the core PLC and AWG business has contracted significantly.
The company has repeatedly tapped the capital markets—a rights offering in December 2025, a stock consolidation in April 2026, and most recently an additional public offering to fund an equity stake acquisition in another company.
When the public offering was announced, the stock reacted negatively amid dilution concerns. If further fundraising continues, existing shareholders could face repeated dilution of their ownership stakes.
The specific timing for the multiple ETRI-licensed technologies and the self-developed quantum security platform to contribute to revenue has not yet been disclosed.
Technology transfer agreements can take considerable time to translate into mass production and actual sales, leaving the financial contribution timeline for these new businesses uncertain.
How much these new ventures can offset the ongoing revenue decline in the legacy optical communication parts business remains to be seen.
In just the past year, the company has carried out a rights offering, a stock consolidation, and a public offering in succession. Any further need for fundraising could lead to additional dilution of existing shareholders' stakes.
It is also worth noting that when new shares are priced below the prevailing market price, this can weigh on the stock in the near term.
The company has recorded operating losses and negative operating cash flow in every year of the recent four-year window except 2022. If losses continue amid a shrinking revenue base, the need for further external financing could grow. That said, the scale of both losses and cash outflow has shown signs of easing since 2025.
The quantum technology and silicon photonics licenses and in-house platforms the company is pursuing are based on collaborations with multiple research institutes, but no concrete cases of these translating into revenue have yet been disclosed.
Depending on technology maturity and customer adoption, commercialization timelines could be delayed. In that scenario, the period during which new businesses fail to offset the revenue decline in the legacy optical communication parts business could extend further.
New shares from the recently decided public offering are expected to list, making it worth checking the finalized issue price, final share count, and actual use of proceeds.
The 2026 Q3 report is due for disclosure, making it important to check whether revenue, operating loss, and net loss continue the narrowing trend seen in recent quarters.
It is worth continuing to monitor whether concrete revenue contracts or customer wins are disclosed for the ETRI-licensed silicon interposer, quantum computing emulation technology, and the QuantumSafe platform.
If further capital-raising disclosures such as additional rights offerings or convertible bond issuances emerge, the purpose, issue price, and scale of resulting dilution should be examined.
Korea Advanced Materials is a KOSDAQ-listed company centered on PLC components for optical communications, having recorded operating and net losses in every fiscal year except 2022 over the recent four-year window.
Revenue fell for four straight years from KRW 21.3 billion in 2022 to KRW 3.6 billion in 2025, while the operating margin deteriorated from 3.9% to -95.4% over the same period. However, the size of net losses and operating cash outflow peaked in 2024 and gradually eased through 2025 and into 2026Q1.
The company sharply reduced its debt ratio through capital raises—a December 2025 rights offering, a 2026 first-half stock consolidation, and a recent additional public offering—but the accompanying increase in share count also raised dilution concerns.
Operationally, while revenue from the legacy PLC and AWG parts business continues to shrink, the company is attempting to broaden its new business areas through silicon interposer and quantum computing emulation technologies licensed from ETRI and other research institutes, along with its own quantum security platform.
The timing for these new technologies to convert into actual revenue remains unconfirmed, making future quarterly results and commercialization-related disclosures important variables for assessing the company's direction.
Report written 2026-09-05 · Data as of 2026-09-04
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