KOSDAQEnergy & Power282720

Kumyang Green Power

₩7,790▲ 3.18%2026-10-02 close

Market Cap

₩93.4B

Turnover

₩200M

Volume

20K

Shares out.

12.1M

PER

—

PBR

0.8×

EPS

-₩77

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

Escaping Losses While Expanding Into Nuclear and Wind

Kumyang Green Power swung to a full-year operating profit in 2025 but posted a large operating loss again in the first quarter of 2026, underscoring earnings volatility, while it works to broaden its business into nuclear maintenance, offshore wind, and overseas plant construction.

1
2025 consolidated revenue reached KRW 264.8 billion with operating profit of KRW 0.43 billion, turning around from a KRW 17.1 billion operating loss in 2024.
2
The company posted an operating loss of KRW 8.02 billion in Q1 2026 but recovered to an operating profit of KRW 1.80 billion in Q2 2026.
3
A brokerage analysis noted the renewable energy segment's share of revenue rose from about 9% in 2022 to 29.1% on a cumulative basis through Q3 2025.
4
The company is executing large domestic and overseas plant projects including electrical works for Saeul Nuclear Units 3 and 4 and Saudi Aramco's Amiral project.
5
A disclosure confirmed the CEO increased his stake through open-market purchases in August 2026.

Business structure

Kumyang Green Power was founded in 1993 as an electrical construction specialist and listed on KOSDAQ in 2023, operating as a comprehensive construction and electrical works company.

Its business rests on three pillars: electrical construction for plants and power stations, renewable energy project development and EPC across wind, solar, and fuel cells, and design and routine maintenance services.

At the time of listing in 2021, plant and power-station electrical construction accounted for 75.8% of revenue while renewables made up just 5.1%, but the company has since executed a strategy to pivot toward renewables.

According to one brokerage analysis, the renewable energy revenue share rose from about 9.0% in 2022 to 29.1% on a cumulative basis through the third quarter of 2025.

Major projects include electrical construction for Saeul Nuclear Units 3 and 4, the 100MW Haeoreum solar power plant, and the self-developed Gyeongbuk-1 onshore wind farm (50MW), while overseas the company has built a track record on Saudi Aramco's Amiral project (contracted through Hyundai Engineering & Construction), the Saudi Jafurah plant, and a plant project in Hungary.

The company absorbed GIPS, a specialist in nuclear and thermal power plant design and maintenance, to prepare its entry into the nuclear maintenance market, and has already secured qualification for nuclear instrumentation and control (I&C) maintenance services.

Clients include Korea Hydro & Nuclear Power and Hyundai Engineering & Construction domestically, alongside overseas clients such as Saudi Aramco, and the company competes with players such as SK Ecoplant, SK Eternix, and Daemyung Energy in the domestic renewable development and EPC market.

Ownership is concentrated among related parties, with the CEO registered as the largest shareholder holding over 10% of shares.

Earnings trend

Quarterly revenue · Operating profit

₩56.4B₩200M25Q2₩73.9B₩4.3B25Q3₩87.7B₩4.4B25Q4₩72.8B-₩8B26Q1₩84.2B₩1.8B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩230.6B₩10.7B2022₩238.9B₩6.1B2023₩243.2B-₩17.1B2024₩264.8B₩400M2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩56.4B	₩200M	0.3%
2025Q3	₩73.9B	₩4.3B	5.8%
2025Q4	₩87.7B	₩4.4B	5.0%
2026Q1	₩72.8B	-₩8B	−11.0%
2026Q2	₩84.2B	₩1.8B	2.1%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩230.6B	₩10.7B	₩7.6B	4.6%	12.4%	95.1%
2023	₩238.9B	₩6.1B	₩19.5B	2.5%	18.1%	71.4%
2024	₩243.2B	-₩17.1B	-₩11.2B	−7.0%	−11.9%	71.9%
2025	₩264.8B	₩400M	₩18,131,770	0.2%	0.0%	92.7%

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

Consolidated revenue rose for four consecutive years, from KRW 230.6 billion in 2022 to KRW 238.9 billion in 2023, KRW 243.2 billion in 2024, and KRW 264.8 billion in 2025. Profitability, however, was volatile.

Operating profit of KRW 10.7 billion in 2022 shrank to KRW 6.1 billion in 2023, then swung to an operating loss of KRW 17.1 billion in 2024. In 2025 the company returned to profitability, albeit on a small scale, with operating profit of KRW 0.43 billion and owners' net income of KRW 0.018 billion.

On a quarterly basis, revenue and operating profit improved sharply from KRW 56.4 billion and KRW 0.19 billion in Q2 2025 to KRW 73.9 billion and KRW 4.3 billion in Q3 2025, and Q4 2025 revenue of KRW 87.7 billion with operating profit of KRW 4.4 billion drove the full-year turnaround.

However, Q1 2026 saw a return to a large loss, with revenue of KRW 72.8 billion, an operating loss of KRW 8.02 billion, and an owners' net loss of KRW 8.90 billion, before recovering in Q2 2026 to revenue of KRW 84.2 billion, operating profit of KRW 1.80 billion, and owners' net income of KRW 1.17 billion, with the profit margin much narrower than the prior year's peak.

Market data indicate that Q1 2026 consolidated revenue rose 55.5% year over year, but as revenue grew on the execution of large projects such as electrical construction at the Saeul nuclear plant, rising construction cost burdens kept gross profit in the red.

This quarterly variability appears related to the fact that, given the nature of the construction and plant business, revenue is recognized according to project completion rates, causing results to concentrate at specific points in time.

Industry analysis

South Korea's renewable energy industry is heavily shaped by government power supply planning.

Industry sources note that the prior administration's 11th Basic Plan for Electricity Supply and Demand called for expanding the renewable energy share from 21.8% in 2023 to 39.2% by 2038, and this expansionary policy stance is expected to continue, with the prospect that the newer 12th plan could expand long-term power purchase agreements (PPAs) with private companies.

In the nuclear segment, government policy to broaden private-sector participation in maintenance markets is running alongside domestic new-build activity and expanding exports of Korean nuclear reactor technology.

On the competitive landscape, Kumyang Green Power is often compared to SK Ecoplant, SK Eternix, and Daemyung Energy; one securities analyst assessed that Kumyang Green Power's price-to-book ratio based on 2026 estimated results is lower than that of SK Eternix or Daemyung Energy, reflecting the time needed to establish a foothold in a new business area (per Eugene Investment & Securities, cited in a March 18, 2026 article).

In overseas plant markets, large-scale petrochemical and chemical plant orders continue to emerge in Saudi Arabia and Hungary, with electrical subcontracting alongside major domestic construction firms serving as a primary entry route.

Because the upstream solar and wind development business is itself affected by permitting, local acceptance, and grid connection issues, the pace of commercialization varies by project.

Outlook

The company has indicated it intends to make 2026 the year it breaks ground on directly developed renewable energy projects.

A company representative stated that financial and regulatory easing under a government-wide push tied to the 12th power supply plan is expected to have a positive effect, and the company aims to accelerate its renewable pipeline development, particularly targeting the start of construction on directly developed projects such as onshore wind, making 2026 an important year.

Specifically, it has been reported that the Gyeongbuk-1 onshore wind farm and the Jeju village wind project are planned to begin construction between late this year and early next year, with the Gyeongbuk-1 site reportedly in negotiations for a power sale agreement spanning 20 years or more.

In the nuclear segment, having secured qualification for nuclear instrumentation and control (I&C) maintenance services, the company expects to secure new revenue streams through participation in related bids.

Newly disclosed collaborations include an EPC memorandum with J-Wind Power and the village council for a wind farm in Hannam Village, Jeju, and a memorandum with Chosun Paper (Korea Paper) for a large-scale wind project exceeding 60MW in the Gyeongbuk region.

Overseas, the company continues to execute existing plant projects in Saudi Arabia and Hungary while seeking additional orders. The timing and pace at which this pipeline converts into actual construction starts and revenue recognition will likely be a key variable shaping future earnings direction.

Valuation

PER

—

PBR

0.8×

ROE

-1.0%

EPS

-₩77

BPS

₩9,194

Dividend per share

₩0

Kumyang Green Power's shares have traded at a discount to net asset value, a pattern that coincides with an earnings trajectory in which the company suffered a large loss in 2024, recovered to a small profit in 2025, and then posted another loss in the first quarter of 2026.

Historically the stock has tended to bottom during periods of weak earnings and rebound when turnaround expectations build, though the volatility in recent quarterly results suggests that relationship has not yet stabilized.

The company currently pays no dividend, so valuation discussion centers less on income yield and more on the pace at which its renewable and nuclear pipeline converts into revenue.

On the sell side, Eugene Investment & Securities set a target price of KRW 20,000 in a report dated May 18, 2026, characterizing the Q1 loss as seasonal and maintaining its view of a full-year turnaround.

That assessment, however, reflects the brokerage's own judgment, and actual outcomes will depend on whether pipeline projects are confirmed to break ground and secure orders.

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

Return to Annual Profitability and Cost Management Efforts

Consolidated operating profit turned positive at KRW 0.43 billion in 2025 from a KRW 17.1 billion operating loss in 2024, and after a large loss in Q1 2026, operating profit recovered to KRW 1.80 billion in Q2.

Market data confirm an assessment that cost-reduction efforts have been narrowing the scale of operating losses year over year. Given the business's tendency to concentrate results in the fourth quarter, there is room for margin improvement to build as the year progresses.

Business Portfolio Expansion Into Renewables and Nuclear

A brokerage analysis found the renewable energy revenue share expanded from about 9% in 2022 to 29.1% cumulatively through Q3 2025, and direct-development projects such as the Gyeongbuk-1 and Jeju Hannam wind farms have scheduled construction starts.

In the nuclear segment, the GIPS merger and I&C maintenance qualification have laid the groundwork for entry into the nuclear maintenance market. If this diversification converts into actual revenue, it could reduce dependence on any single segment.

Overseas Track Record and CEO Share Purchases

The company has an established track record with major overseas clients including Saudi Aramco's Amiral project, the Jafurah plant, and a Hungarian plant project, which could serve as a foundation for expanding overseas plant orders.

According to a disclosure, the CEO increased his common share holdings by 40,200 shares through open-market purchases between August 4 and 10, 2026, raising his stake from 17.28% to 17.62%.

This represents an insider transaction in the buying direction rather than selling, though further confirmation through subsequent ownership disclosures would be needed.

Bear factors

Significant Quarterly Earnings Volatility

In Q1 2026, despite revenue rising 55.5% year over year, the company posted a large loss with an operating loss of KRW 8.02 billion and an owners' net loss of KRW 8.90 billion.

Market data explain that as revenue grew from large project execution, rising construction cost burdens kept gross profit in negative territory. Because the full-year operating profit itself was only KRW 0.43 billion, cost pressure in just a quarter or two could be enough to flip the annual result back into a loss.

Cash Flow Concerns Related to Receivables and Contract Assets

According to industry reporting, changes in billing structure reduced contract assets and increased contract liabilities, but receivables also rose, prompting observations that whether future cash inflows will proceed smoothly bears watching.

The company has stated that receivable collection rates are high and most orders are from large corporations, so it sees no major issue, but as the share of large overseas projects grows, timing uncertainty around payment collection persists.

Revenue recognition based on construction completion percentages can create a lag between actual cash inflow and accounting profit.

Policy and Market Expectations Versus Execution Risk

Some brokerages have set target prices citing government policy tailwinds and new entry into nuclear maintenance, but these rest on the premise that pipeline projects such as the Gyeongbuk-1 onshore wind farm actually break ground and secure PPAs as planned.

Results from bidding in the new nuclear maintenance market have not yet been confirmed. If policy direction or pipeline execution timing is delayed, a gap could emerge between market expectations and actual results.

Risk factors

Policy Change Risk

The company's renewable energy pipeline depends heavily on government power supply planning and renewable support policy. If the details or implementation timing of the 12th Basic Plan for Electricity Supply and Demand differ from expectations, PPA execution or construction schedules could be delayed. Political factors such as changes in administration or budget allocation could also act as policy risk.

Construction Cost and Profitability Risk

As shown in Q1 2026 results, even when revenue from large projects rises, growing construction cost burdens can keep gross profit in negative territory.

Rising raw material costs, labor costs, and subcontracting rates are risks common across the construction and plant industry, and profitability can be impaired when contract terms make it difficult to pass cost increases on to clients.

Overseas Project and Foreign Exchange Risk

Overseas plant projects in countries such as Saudi Arabia and Hungary are exposed to exchange rate fluctuations, local political conditions, and client payment conditions.

As the share of overseas projects grows, the impact of foreign exchange hedging status and local permitting or labor risks on results could also increase.

What to watch next

Mid-November 2026
Around the expected release of Q3 2026 results, this is a point to check whether revenue and profit recover as the company enters its seasonally stronger period.
Late 2026 to early 2027
Investors should check whether direct-development projects such as the Gyeongbuk-1 onshore wind farm and the Jeju Hannam village wind farm actually break ground, and the progress of long-term power purchase agreement (PPA) negotiations.
Second half of 2026
It is worth monitoring the results of bids for nuclear instrumentation and control (I&C) maintenance services and whether new orders are secured.
Second half of 2026 through 2027
Follow-up disclosures should be checked to see whether the EPC memorandum for the Jeju Hannam village wind farm and the memorandum with the paper company for the Gyeongbuk-region wind project convert into actual signed contracts.

Overall view

Kumyang Green Power is pursuing a transition from a specialized electrical construction firm into a comprehensive renewable energy and nuclear EPC company, and achieved a visible milestone with its full-year return to profitability in 2025.

However, the return to a large operating loss in Q1 2026 shows that the company's earnings have not yet settled onto a stable trajectory.

Multiple growth vectors are progressing simultaneously—expanding the renewable revenue share, entering the nuclear maintenance market, and securing overseas plant orders—so diversification itself is clear, but how quickly and reliably each pipeline converts into actual revenue and profit remains the key variable for future results.

Government policy direction on renewables and nuclear is generally viewed as favorable, though outcomes can vary depending on implementation timing and specific conditions.

Management of receivables and contract assets, along with foreign exchange and local risks tied to overseas projects, are also factors worth monitoring.

Before forming an investment judgment, it is important to continue tracking the company's execution through upcoming quarterly results and disclosures on pipeline construction starts and new orders.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

Show 18 more articles and sources

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.