KOSDAQMachinery391710

Kornic Automation

₩1,265▼ 0.08%2026-10-02 close

Market Cap

₩53.6B

Turnover

₩200M

Volume

130,000 shares

Shares out.

42.6M

PER

—

PBR

2.5×

EPS

-₩126

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

Widening Earnings Volatility as Diversification Continues

Kornic Automation is diversifying from its stable position in semiconductor and display control software into secondary battery inspection automation and logistics robotics, but recent quarterly results have shown wide swings.

1
2025 annual revenue fell sharply to KRW 30.1bn from KRW 55.5bn a year earlier, with an operating loss of KRW 2.74bn and a net loss of KRW 2.90bn, returning the company to deficit.
2
The net loss attributable to owners in Q2 2026 reached KRW 5.71bn, the largest quarterly loss in the trailing four-quarter window.
3
The core control software EasyCluster has been licensed to China's KINGSEMI for four consecutive years, building an overseas revenue base.
4
The secondary battery quality inspection system K-LAS supplies major domestic cathode material makers including Ecopro BM, POSCO Future M and LG Chem, and overseas shipments have also begun.
5
At the March 2026 annual shareholders' meeting, the company added a rental business to its stated business purpose, continuing efforts to diversify.

Business structure

Kornic Automation traces its roots to the control software business of Kornic System, founded in 1994, and listed on KOSDAQ in 2022 via a SPAC merger. The business is organized into four segments: control software, smart factory, robotic logistics, and IT infrastructure.

The core control software product, EasyCluster, controls manufacturing equipment for semiconductors, displays, LEDs, and solar cells, and is supplied to first-tier vendors of Samsung Electronics and SK Hynix such as Wonik IPS and SEMES, giving the company a strong domestic market position.

The smart factory segment consists of K-LAS, an automated quality inspection and analysis system for secondary battery cathode materials, and K-MAS, a logistics automation system.

Kornic currently supplies this quality inspection automation system to most domestic cathode material producers including Ecopro BM, Ecopro EM, POSCO Future M, LG Chem, and L&F, and it has also been applied at a cathode material plant in Hungary.

K-MAS holds references supplying automation systems to major domestic logistics operators including Coupang and CJ Logistics. The IT infrastructure segment, which had grown since 2013 by supplying 40% of domestic Radware sales, has seen its performance deteriorate amid a prolonged economic downturn.

The largest shareholder is affiliated with the APS Group, and the company has continued diversification efforts, including an equity investment in MIT, a smart factory and industrial XR solutions firm.

Earnings trend

Quarterly revenue · Operating profit

₩5.9B-₩1.7B25Q2₩7.4B-₩300M25Q3₩12.9B₩900M25Q4₩8.6B₩200M26Q1₩4.9B-₩1.6B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩30.1B₩3.4B2022₩27.3B₩1.8B2023₩55.5B₩45,433,4652024₩30.1B-₩2.7B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩5.9B	-₩1.7B	−29.8%
2025Q3	₩7.4B	-₩300M	−4.1%
2025Q4	₩12.9B	₩900M	7.2%
2026Q1	₩8.6B	₩200M	2.3%
2026Q2	₩4.9B	-₩1.6B	−31.6%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩30.1B	₩3.4B	-₩5.6B	11.1%	−24.9%	40.4%
2023	₩27.3B	₩1.8B	₩2.3B	6.7%	8.9%	62.9%
2024	₩55.5B	₩45,433,465	₩1B	0.1%	3.9%	50.2%
2025	₩30.1B	-₩2.7B	-₩2.9B	−9.1%	−11.8%	96.4%

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

Kornic Automation's earnings show wide year-to-year swings. In 2022, revenue was KRW 30.09bn with an operating profit of KRW 3.35bn (11.1% operating margin), but net income swung to a loss of KRW 5.57bn.

In 2023, revenue declined slightly to KRW 27.35bn while operating profit was KRW 1.84bn (6.7% margin) and net income improved to KRW 2.34bn. In 2024, revenue jumped to KRW 55.51bn, but operating profit was only KRW 45mn (0.1% margin), with net income holding at a modest KRW 1.02bn profit.

In 2025, however, revenue fell to roughly half of the prior year at KRW 30.10bn, and the company posted an operating loss of KRW 2.74bn and a net loss of KRW 2.90bn, returning to deficit.

On a quarterly basis, the operating loss narrowed from KRW 1.74bn on revenue of KRW 5.86bn in Q2 2025 to KRW 0.30bn on revenue of KRW 7.41bn in Q3, before turning to an operating profit of KRW 0.93bn on revenue of KRW 12.92bn in Q4.

The company then posted an operating profit of KRW 0.20bn on revenue of KRW 8.60bn in Q1 2026, but revenue plunged to KRW 4.93bn in Q2 2026, with the operating loss widening to KRW 1.56bn and the net loss reaching KRW 5.71bn, marking a swing back to a substantial loss.

This pattern of large quarterly swings in both revenue and profit appears linked to a project-based revenue structure in which single supply-contract sales concentrate in specific quarters.

Industry analysis

Kornic Automation's business spans three end markets with different cycles: semiconductor and display equipment, secondary battery materials, and logistics automation.

The control software market is in an environment where expanding AI semiconductor demand and production facility expansion are growing the semiconductor equipment market, while growth in data center systems and software is expanding opportunities for control software and IT infrastructure businesses.

Semiconductor control software revenue tends to grow when customers succeed in localizing semiconductor equipment, suggesting growth potential remains where localization rates stay low.

The secondary battery material inspection automation segment is closely tied to the capacity expansion cycle of cathode material producers, and recent moderation in capital spending pace across the battery industry could affect the timing of related orders.

The logistics automation market is considered a structural growth area driven by ongoing automation adoption in e-commerce and distribution centers.

The IT infrastructure segment faces a situation where demand for technologies such as generative AI is increasing, but prolonged economic uncertainty is dampening corporate investment, with weakening demand in the IT service segment leading to deteriorating performance.

In terms of competitive positioning, the control software business benefits from price competitiveness versus foreign solutions and customer lock-in effects, while the smart factory and logistics robotics segments compete against numerous specialized automation firms.

Outlook

The company continues to pursue overseas revenue expansion, having won a USD 5 million export tower award in 2024, and its EasyCluster license supply agreement with China's KINGSEMI has continued for four consecutive years, indicating some continuity in that revenue stream.

The K-LAS secondary battery inspection system has expanded its track record from domestic cathode material producers to overseas production facilities, and the company has stated plans to broaden the application of its inspection automation systems beyond batteries into adjacent fields such as bio, food, and petrochemicals.

The logistics robotics segment has shown moves to strengthen customized robot development capabilities, including a strategic partnership with logistics equipment developer Ginatech.

At the March 2026 annual shareholders' meeting, the company added a rental business to its stated purpose, laying groundwork for revenue diversification.

However, the specific drivers behind the large net loss in Q2 2026 have not been fully explained in the market beyond the confirmed disclosed figures, warranting further confirmation through upcoming quarterly reports and IR materials.

The timing of a semiconductor industry recovery and the resumption of capital investment in the secondary battery sector remain key variables determining the pace of the company's earnings normalization.

Valuation

PER

—

PBR

2.5×

ROE

-24.3%

EPS

-₩126

BPS

₩449

Dividend per share

₩0

Following its SPAC-merger listing, Kornic Automation's shares traded at times at a premium to peer smart factory companies, reflecting expectations tied to the semiconductor investment cycle and the secondary battery growth story.

Brokerage research has previously interpreted the company's valuation as a premium for an anticipated upturn in semiconductor capital expenditure, projecting that the multiple burden would ease alongside an earnings rebound once investment recovery took hold.

The share price relative to net assets is affected by a structure in which recent net losses have eroded shareholder equity, and with losses persisting across the trailing four quarters, profit-based valuation metrics are difficult to apply in the current phase.

The company has not paid dividends over the past five years, so rather than dividend appeal, market assessment of earnings recovery and diversification progress remains the key variable for share price behavior.

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

Strong Customer Lock-in in Control Software

The core control software EasyCluster has been supplied to first-tier vendors of Samsung Electronics and SK Hynix, securing a high domestic market share.

Semiconductor control software has a structural characteristic of rising sales whenever customers succeed in localizing equipment, which could represent a long-term revenue expansion opportunity in segments where localization rates remain low.

The four-year consecutive license supply agreement with China's KINGSEMI supports the continuity of the overseas revenue channel.

Expanding Secondary Battery Inspection Automation Track Record

The K-LAS system supplies major domestic cathode material producers including Ecopro BM, POSCO Future M, LG Chem, and L&F, and its application has expanded to overseas production facilities including in Hungary.

Its technological position as the first-developed cathode material quality analysis automation system could serve as an entry barrier relative to competitors. The company has stated plans to expand applications beyond batteries into bio, food, and petrochemicals, opening potential access to new end markets.

Business Diversification Efforts

The company has continued to broaden its business scope through a strategic partnership with logistics robotics specialist Ginatech and an equity investment in smart factory/XR firm MIT.

At the March 2026 annual shareholders' meeting, it added a rental business to its stated purpose, laying groundwork for revenue diversification.

Its exposure spanning control software, secondary batteries, and logistics—markets with different cycles—provides some scope for weakness in one segment to be offset by strength in another.

Bear factors

Significant Quarterly Earnings Volatility

Over the trailing four quarters, operating profit alternated between gains and losses, and in Q2 2026 the net loss widened to KRW 5.71bn, the largest quarterly loss in the recent window. A structure in which project-based supply contract revenue concentrates in specific quarters reduces earnings predictability. Annual revenue in 2025 also nearly halved from the prior year, revealing instability in the revenue base.

Structural Weakness in the IT Infrastructure Segment

The IT infrastructure segment appears to face continued deterioration amid a prolonged economic downturn and declining IT service demand. This segment historically accounted for a meaningful share of Kornic's revenue, and delayed recovery could weigh on overall performance.

It remains uncertain how much rising demand related to generative AI will translate into a rebound for this segment.

Dependence on End-Market Investment Cycles

The company's revenue structure is directly affected by the capital investment timing of semiconductor equipment makers and secondary battery cathode material producers.

A decline in equipment shipments by first-tier semiconductor vendors or a moderation in the pace of capacity expansion in the battery industry could negatively affect the timing of Kornic's order intake and revenue recognition. This remains an external variable largely outside the company's direct control.

Risk factors

Earnings Volatility Risk

Because of a project-based revenue structure with large quarter-to-quarter swings, a given quarter's results cannot easily be extrapolated into a trend for the following quarter. The possibility of a recurrence of a large net loss similar to Q2 2026 cannot be ruled out. Investors need to continuously monitor quarterly earnings disclosures and their underlying drivers.

Financial Structure Risk

The 2025 annual debt ratio rose sharply to 96.4% from 40.4% in 2022, and continued net losses have been eroding shareholder equity. Operating cash flow also turned negative at KRW -4.94bn in 2025, indicating weakened cash generation. If further losses continue, concerns over financial stability could intensify.

Customer Concentration and Cyclicality Risk

Both the control software and secondary battery inspection equipment businesses depend heavily on a small number of large customers, meaning reduced investment or contract changes by a specific customer could directly affect performance.

Semiconductors, secondary batteries, and logistics are all cycle-sensitive industries, raising the risk that multiple segments could be affected simultaneously during a global economic slowdown.

What to watch next

Mid-November 2026 (expected Q3 report filing period)
Check whether the Q3 2026 earnings disclosure clarifies if the large Q2 net loss was a one-off factor or reflects a trending deterioration.
During Q4 2026
Monitor for disclosures on capacity expansion plans by cathode material producers and any new K-LAS supply contract announcements.
On an ongoing basis (upon single sales/supply contract disclosures)
Continuously track the number and scale of single sales/supply contract disclosures on DART to gauge order flow in the control software and smart factory segments.
H1 2027 annual shareholders' meeting
Review the confirmed full-year 2026 results and assess whether newly added business purposes such as the rental business have made a tangible revenue contribution.

Overall view

Kornic Automation holds a structural growth story anchored in its strong domestic position in semiconductor control software and diversification into secondary battery inspection automation and logistics robotics, but its financial performance has shown widening volatility—2025 revenue nearly halved from the prior year and swung back to a loss, followed by a large net loss of KRW 5.71bn in Q2 2026.

Factors warranting attention include large quarterly swings stemming from a project-based revenue structure and a debt ratio that has risen notably in recent years.

On the other hand, the continued license supply agreement with China's KINGSEMI, K-LAS references with major domestic cathode material producers, and new business attempts in logistics robotics and rental services point to room for longer-term expansion.

Investors should continue to monitor upcoming quarterly results to see whether the drivers behind the large Q2 2026 loss are resolved and whether new business initiatives translate into tangible revenue.

The timing of an investment cycle recovery in the semiconductor and secondary battery industries also remains a key variable determining the pace of the company's earnings normalization.

Sources

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

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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.