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
Optical cable export growth and Wi-Fi7 transition expectations are emerging as key turnaround drivers, but net income attributable to owners still swings sharply and often in the opposite direction of operating profit.
Consolidated revenue has declined for four consecutive years since 2022, but operating profit turned positive in Q4 2025 and Q2 2026.
The optical cable business centered on subsidiary Mercury Optic Communications is expanding export references in Europe and the Americas, emerging as a key earnings improvement driver.
Net income attributable to owners has frequently moved opposite to operating profit, and the trailing four quarters (Q3 2025-Q2 2026) combined show a net loss.
Share count increases from convertible bond (CB) issuance and conversion, along with changes in largest shareholder Eyes Vision's stake, remain ongoing issues.
The debt ratio fell for four straight years from 51.3% in 2022 to 24.1% in 2025, showing an improving financial structure.
Mercury Corp is an information and communications equipment specialist founded in 2000 and listed on KOSDAQ in 2018; it is the sole supplier of terminal telecom equipment to all three domestic mobile carriers, holding more than half of that market as the domestic No.1 player.
Centered on wireless access points (APs), the company manufactures home terminal devices such as wired/wireless routers and optical modems for telecom operators, while also operating in TDXAGW, military satellite communication equipment, small switches, and IoT device businesses.
Optical cables are produced by its wholly owned subsidiary Mercury Optic Communications, which was established through a 2024 spin-off of the optical cable business unit and holds its own fiber-drawing tower, giving it what is estimated to be the second-largest production capacity domestically.
Another subsidiary, EJEX, sells IoT-enabled energy management products and kitchen fire-safety products, continuing the group's business diversification.
The optical cable business has been broadening its reach by securing export references across Europe, the Americas, and Africa, expanding supply of high-value-added products such as pneumatically installed micro-cables to European markets including Norway.
The largest shareholder is KOSDAQ-listed Eyes Vision, whose stake stood at 53.63% according to an April 2026 report.
In terms of competitive landscape, Daehan Fiber Optic, Raycom, Fiberpro and Woori.net are cited as comparables in optical cable/fiber, while Daboo Link and HFR are referenced in telecom terminal equipment.
Domestic players see data-center-driven demand growth and US export expansion as opportunities, though some observers note limits to pure exports given US policy favoring local production.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩32.2B | -₩200M | −0.6% |
| 2025Q3 | ₩29.6B | -₩300M | −1.0% |
| 2025Q4 | ₩40.5B | ₩2.1B | 5.1% |
| 2026Q1 | ₩26B | -₩1.2B | −4.5% |
| 2026Q2 | ₩30.1B | ₩1.3B | 4.4% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩163.1B | ₩4.9B | ₩500M | 3.0% | 0.6% | 51.3% |
| 2023 | ₩153.6B | ₩4.9B | ₩4B | 3.2% | 4.0% | 37.2% |
| 2024 | ₩134.3B | -₩900M | -₩1.1B | −0.7% | −1.1% | 28.3% |
| 2025 | ₩123.9B | -₩700M | -₩2.5B | −0.6% | −1.8% | 24.1% |
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 fell for four straight years, from KRW 163.1 billion in 2022 to KRW 153.6 billion in 2023, KRW 134.3 billion in 2024, and KRW 123.9 billion in 2025.
Operating profit was positive at roughly KRW 4.9 billion in both 2022 and 2023, then turned negative at about -KRW 0.9 billion in 2024 and -KRW 0.7 billion in 2025, with the loss narrowing slightly.
Operating margin followed the same pattern, easing from 3.0% (2022) and 3.2% (2023) to -0.7% (2024) and -0.6% (2025), showing a modest improvement after turning negative.
Net income attributable to owners stayed positive at about KRW 0.5 billion in 2022 and KRW 4.0 billion in 2023, but posted losses of about -KRW 1.1 billion in 2024 and -KRW 2.5 billion in 2025, two consecutive loss years.
On a quarterly basis, operating profit turned positive in Q4 2025 (revenue KRW 40.5 billion, operating profit KRW 2.1 billion) and Q2 2026 (revenue KRW 30.1 billion, operating profit KRW 1.3 billion), yet owners' net income swung to a loss of about -KRW 6.0 billion in Q2 2026, the largest recent quarterly loss.
Conversely, Q1 2026 posted an operating loss of about -KRW 1.2 billion alongside a net profit of about KRW 1.4 billion, underscoring a recurring pattern where operating and net results move in opposite directions quarter to quarter.
This divergence is likely driven in large part by non-operating factors such as valuation gains/losses tied to convertible bonds or other financial instruments, and the trailing four quarters (Q3 2025-Q2 2026) combined show an owners' net loss of roughly KRW 5.7 billion.
Operating cash flow, by contrast, improved from about -KRW 15.7 billion in 2022 to KRW 17.2 billion in 2023, KRW 5.8 billion in 2024, and KRW 11.0 billion in 2025, remaining stable and diverging from the income-statement losses.
The debt ratio declined for four consecutive years, from 51.3% in 2022 to 37.2% (2023), 28.3% (2024), and 24.1% (2025), pointing toward a clearly improving financial structure.
Globally, attention is turning to the rapid expansion of demand for high-fiber-count optical cables that can reliably handle heavy traffic loads as data centers scale up.
According to market researcher Fundamental Business Insights and Consulting, the global optical fiber cable market is projected to grow from about USD 13.8 billion in 2026 to about USD 37.8 billion in 2035, with data center and cloud infrastructure expansion cited as the key growth driver.
At Nvidia's GTC 2026, the CEO's reference to optical communications as a core future technology also drew renewed market attention to the optical communications, cable, and fiber industry.
On the competitive front, domestic peer Daehan Fiber Optic completed the acquisition of US fiber cable maker Incab America, securing local manufacturing and supply capability in the United States, reflecting a broader industry push toward localization.
This aligns with industry observations that a US policy stance favoring local production limits the effectiveness of pure export strategies.
In terminal telecom equipment, SK Securities forecast in an April 2026 report that a gradual shift toward Wi-Fi 7 among Korea's three mobile carriers would represent an opportunity for Mercury.
The report also noted that the company's stable share in public Wi-Fi and military security AP segments could support demand expansion should the new standard transition advance.
The company is expanding its overseas business footprint in the US and Europe.
Subsidiary Mercury Optic Communications participated in ANGA COM 2026, Europe's largest broadcasting and broadband cable trade show held in Cologne, Germany in May, to introduce its technology to European customers, while in North America it joined a project supplying optical cable for a broadband infrastructure initiative in the US Northeast, securing an initial-contract reference for a government-linked project running through 2029.
The company stated it plans to strengthen its export base centered on the Americas and Europe while expanding coverage to emerging markets such as Africa going forward. In the terminal telecom equipment segment, a supply contract with LG Uplus for home Wi-Fi6 devices covering Q2 2026 through Q2 2027 was disclosed.
On the financing side, the company recently raised about KRW 12.0 billion through convertible bond issuance, and in April 2026, exercise of conversion rights resulted in the new issuance of 1,309,522 shares, increasing total shares outstanding.
On the governance side, the CEO structure changed in March 2026 to a co-CEO system led by two executives.
With export expansion, new contracts, and management change overlapping, a key point to watch going forward will be whether the optical cable segment's revenue contribution and net income volatility moderate in coming quarters.
According to past brokerage reports, Mercury's price-to-book ratio stood at about 1.1x in 2022 and 1.0x in 2023, below the KOSDAQ market average at the time. Since then, equity capital has expanded due in part to convertible bond conversions, and the current price-to-book level appears to trade below that earlier band.
Because net income has repeatedly posted losses in recent years, the company has not paid cash dividends, leaving its dividend-related metrics comparatively low versus peers that do distribute dividends.
SK Securities stated in an April 2026 report, relative to peer companies, that the stock was passing through what it called a "significant undervaluation zone,
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
As global data center upgrades drive demand for high-fiber-count optical cables, Mercury is broadening export references to Europe, the Americas, and Africa. Its participation in ANGA COM 2026 and involvement in a US Northeast infrastructure project are seen as early references that could lead to further orders.
Owning in-house fiber production capability via a drawing tower is cited as a competitive factor on cost and quality.
As the sole domestic supplier of terminal equipment to all three mobile carriers with over half the market, Mercury holds a stable revenue base that could benefit during standard transition periods.
The Wi-Fi6 supply contract with LG Uplus shows continuity of existing customer relationships, and a fuller shift to Wi-Fi7 could generate new equipment demand.
Operating cash flow has stayed positive for three consecutive years since 2023, diverging from the income-statement losses.
The debt ratio also fell for four straight years, from 51.3% in 2022 to 24.1% in 2025, improving financial stability, which could support future investment capacity and resilience to external shocks.
Consolidated revenue has declined every year, from KRW 163.1 billion in 2022 to KRW 123.9 billion in 2025, and operating profit posted losses in both 2024 and 2025. Until a clear recovery in segment-level revenue is confirmed, it is difficult to determine whether the trend has reversed.
In Q2 2026, despite an operating profit of about KRW 1.3 billion, owners' net income posted a loss of about -KRW 6.0 billion, and the trailing four-quarter total for owners' net income also shows a loss of roughly -KRW 5.7 billion. The large swings driven by non-operating factors add uncertainty to forecasting future results.
The exercise of convertible bond conversion rights resulted in the new issuance of 1,309,522 shares in April 2026, increasing total shares outstanding. If additional conversion volume remains, further dilution could continue, and changes in largest shareholder Eyes Vision's stake also warrant continued observation.
Operating profit and owners' net income have repeatedly moved in opposite directions on a quarterly basis.
Since valuation gains/losses tied to financial instruments such as convertible bonds are believed to significantly affect net income, similar volatility could recur depending on future stock price or interest rate movements, which is why both operating and net results should be reviewed together when interpreting quarterly performance.
There are observations that a US policy stance favoring local production could limit market expansion through pure exports alone. Competitor Daehan Fiber Optic has reportedly already completed a US local manufacturer acquisition to strengthen its localization response.
If Mercury continues an export-centered strategy without a local production base, it could face risks from tariff and policy changes.
Management changed in March 2026 to a co-CEO structure. If remaining convertible bond conversion volume exists, further share issuance and dilution could occur. Trends in largest shareholder Eyes Vision's stake also warrant ongoing monitoring.
Q3 2026 earnings are expected to be disclosed around this time; it will be worth checking whether the optical cable segment's revenue contribution shifts and whether owners' net income volatility moderates.
It is worth checking whether follow-on orders materialize from the US Northeast broadband infrastructure project after the initial contract, and whether new export contracts are signed in Europe or Africa.
It is worth watching for official confirmation of a Wi-Fi7 commercialization timeline, which could indicate when new terminal equipment demand may emerge.
It is worth tracking any further exercise of remaining conversion rights and their scale to assess the potential for additional share dilution.
If disclosures on changes in Eyes Vision's stake or related-party transactions emerge, it is worth checking for shifts in the governance structure.
Mercury is seeking an earnings turnaround built on two pillars: its dominant position in Korea's domestic telecom terminal equipment market and expanding optical cable exports through subsidiary Mercury Optic Communications.
Annual revenue has declined for four consecutive years, yet recent quarterly operating profit has turned positive, and both operating cash flow and the debt ratio show improving trends.
However, owners' net income has frequently diverged from operating profit and posted a loss on a trailing four-quarter basis, likely reflecting the substantial influence of non-operating factors such as convertible bonds.
Share count increases from CB conversion and shifts in the largest shareholder's stake are factors to watch on the ownership structure side.
On the industry front, favorable conditions are forming around AI data-center-driven optical cable demand and the Wi-Fi7 transition, though the US policy emphasis on local production and competitors' localization strategies are variables to weigh as well.
Overall, this is a phase where business momentum and earnings volatility coexist, and upcoming quarterly results along with export contract expansion will likely serve as key reference points going forward.
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.