KOSDAQMachinery432470

Kns

₩10,380▲ 0.29%2026-10-02 close

Market Cap

₩90.5B

Turnover

₩1.4B

Volume

130,000 shares

Shares out.

8.8M

PER

—

PBR

1.5×

EPS

-₩289

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

Battery & Robot Automation: Signs of Profit Recovery Amid Volatility

KNS is expanding from secondary battery automation equipment into Vietnam-based robot foundry operations and data center busduct automation, and after a large one-off loss in 2025 its operating profit expanded again in the first half of 2026.

1
2025 consolidated revenue rose 53% year-over-year to KRW 41.2 billion, but operating profit and net profit swung to losses.
2
Operating profit in Q1 and Q2 2026 came in at KRW 1.34 billion and KRW 1.62 billion respectively, extending two consecutive profitable quarters.
3
Affiliate Jongrui Korea stated it passed Tesla's quality test for 46-series battery components and began mass production.
4
The Vietnam subsidiary expanded industrial robot supply to a Japanese robotics company and semiconductor-sector partners, contributing to earnings growth.
5
Q2 2026 net profit attributable to owners posted a loss, affected by a valuation loss related to an equity investment in Haesung Optics.

Business structure

KNS is an advanced industrial unmanned automation company whose core products are secondary battery CID (Cell Inner Device), BMA (battery module assembly), and CAP automation equipment.

The company has supplied cylindrical battery assembly and inspection automation equipment to major domestic and overseas battery makers, and has recently shifted its focus toward equipment for 4680-format (46-series) cylindrical batteries.

Affiliate Jongrui Korea, a joint venture established by KNS and China's Jongrui, is the sole domestic Tesla parts partner and produces both 2170 CID components and 46-series battery parts.

In addition, Vietnam-based subsidiary KNS VINA operates a "robot foundry" business that contract-manufactures industrial automation robots, and after signing a long-term supply agreement with a Japanese global company in 2024 it has broadened its customer base to include a first-tier partner of a semiconductor major.

Subsidiary Eunsung FA, whose equity stake was acquired in 2025, supplies busduct automation equipment for data centers and power-semiconductor automation equipment for an automaker customer.

The company is combining AI-based process optimization technology with robotic control research to extend into smart factory and humanoid robot fields.

In terms of competitive positioning, the secondary battery automation equipment market is heavily tied to capital expenditure cycles of battery and component makers, leaving the company relatively dependent on a small number of large customers.

Earnings trend

Quarterly revenue · Operating profit

₩13B₩600M25Q2₩8.5B-₩200M25Q3₩6.1B-₩3.1B25Q4₩13.3B₩1.3B26Q1₩17.1B₩1.6B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩34.7B₩6.1B2022₩30B₩4B2023₩27B₩800M2024₩41.2B-₩1.6B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩13B	₩600M	4.9%
2025Q3	₩8.5B	-₩200M	−1.8%
2025Q4	₩6.1B	-₩3.1B	−51.3%
2026Q1	₩13.3B	₩1.3B	10.1%
2026Q2	₩17.1B	₩1.6B	9.4%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩34.7B	₩6.1B	₩4.8B	17.5%	22.4%	83.0%
2023	₩30B	₩4B	₩3.2B	13.2%	7.2%	38.1%
2024	₩27B	₩800M	₩2B	3.0%	3.6%	16.2%
2025	₩41.2B	-₩1.6B	-₩1.1B	−3.8%	−2.0%	57.7%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04

Earnings analysis

Consolidated revenue in 2025 rose 53% year-over-year to KRW 41.23 billion from KRW 26.96 billion in 2024, but operating profit swung to a loss of KRW 1.56 billion and net profit attributable to owners turned negative at KRW 1.11 billion.

In the prior year 2024, the company posted revenue of KRW 26.96 billion with operating profit of KRW 0.81 billion and net profit of KRW 1.96 billion, while 2023 saw revenue of KRW 30.04 billion with a relatively strong operating margin of 13.2% (operating profit of KRW 3.96 billion). 2022 recorded revenue of KRW 34.73 billion and the highest margin of the four years reviewed, with an operating margin of 17.5% (operating profit of KRW 6.08 billion).

On a quarterly basis, the operating loss widened sharply to KRW 3.14 billion and the net loss to KRW 3.30 billion in Q4 2025, a period the company has characterized as reflecting a one-off "big bath" type charge.

Operating profit then returned to positive territory in Q1 2026 at KRW 1.34 billion, up 22% year-over-year, and Q2 2026 revenue of KRW 17.13 billion and operating profit of KRW 1.62 billion both marked the highest levels of the past five quarters.

However, net profit attributable to owners in Q2 2026 fell back into negative territory at KRW -0.13 billion, reflecting a book valuation loss tied to an equity investment in Haesung Optics; the company noted that excluding this item, cumulative first-half net profit would show improvement.

Summed over the trailing four quarters (Q3 2025 through Q2 2026), net profit attributable to owners came to KRW -2.51 billion, indicating the operating profit recovery has not yet fully translated into net profit.

Industry analysis

The secondary battery automation equipment industry is directly tied to the capital expenditure cycles of global battery makers and automakers.

In particular, the 4680-format (46-series) cylindrical battery is regarded as offering advantages in energy density and charging speed over the 2170 format, with application areas expanding into electric vehicles, ESS, and humanoid robots.

As Jongrui Korea has noted, standardization of the 46-series battery is progressing along with accumulation of related rivet-process patents, generating equipment replacement and expansion demand tied to the new form factor transition.

In the robot automation segment, rising labor costs in emerging production hubs such as Vietnam and the push toward unmanned operation in semiconductor and electronics manufacturing are cited as factors supporting industrial robot demand.

According to industry forecasts the company has cited, the global busduct market tied to data centers is expected to grow at roughly 10.5% annually, with automation equipment demand expanding alongside continued hyperscale data center buildouts and the expansion of North American production facilities by domestic firms.

In terms of competitive positioning, the company is smaller in revenue scale than major equipment makers, and its relatively high dependence on specific customers and product lines leaves it comparatively sensitive to industry swings.

Outlook

The company stated that new orders in the first half of 2026 exceeded KRW 46 billion, already surpassing full-year 2025 revenue.

Jongrui Korea has entered a KRW 60 billion investment agreement with Gyeonggi Province to build a new plant for high value-added parts including 46-series components, which the company expects, once completed, to secure roughly KRW 100 billion in annual revenue capacity.

A new battery module pack product based on BMA technology is being developed with a focus on the 46-series format, combined with an immersion-cooling ESS thermal management system, with a dedicated task force targeting prototype release in the second half of 2026 and commercialization in 2027.

The Vietnam subsidiary has continued robot deliveries to its Japanese customer through a third batch and has secured an additional order for 280 industrial robots from a first-tier semiconductor partner.

Subsidiary Eunsung FA has launched a busduct automation equipment upgrade project in response to growing data center demand, while power-semiconductor automation equipment for an automaker customer is reportedly undergoing final inspection before delivery.

The company expects related parts supply volumes to increase further into the second half as its lead customer expands application of 46-series batteries across vehicle models, alongside robotaxi commercialization and humanoid robot mass production plans.

Valuation

PER

—

PBR

1.5×

ROE

-4.4%

EPS

-₩289

BPS

₩6,566

Dividend per share

₩0

KNS has posted net losses over the trailing four quarters, placing it in a range where a conventional price-to-earnings ratio is difficult to calculate. Its price-to-book ratio sits above 1x, meaning the shares trade at a premium to net asset value.

The company currently pays no dividend, limiting the appeal from a dividend-yield perspective. On the earnings side, the trend shifted from a 2025 loss to an operating-profit recovery in the first half of 2026, though net profit has not yet reached a stable profitable trajectory due to one-off valuation losses.

Compared with the double-digit operating margins seen in 2022-2023, the current period can be viewed as an early phase in which revenue growth and profitability recovery are proceeding simultaneously.

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 2026-09-04

Bull factors

Start of 46-series Battery Parts Mass Production

The company announced that its affiliate Zhongrui Korea has passed Tesla's quality testing for core components of 46-pi batteries and has begun mass production.

As new plant expansion progresses through a KRW 60 billion investment agreement with Gyeonggi Province, annual sales capacity of approximately KRW 100 billion is expected to be secured.

The trend of the 46-pi form factor's application expanding beyond electric vehicles to ESS, humanoid robots, and other areas could serve as a mid-to-long-term demand base.

Business Diversification into Robotics and Data Centers

The Vietnam subsidiary's robot foundry business is showing growth through expanded supply to Japanese companies and primary semiconductor partners. The subsidiary Eunsung FA has moved to upgrade its facilities in anticipation of increased demand for busduct automation driven by AI data center expansion.

The diversification of revenue sources into robots, data center infrastructure, and other areas away from concentration on secondary batteries could be a factor in reducing dependence on a specific industry cycle.

Operating Profit Recovery in H1 2026

Operating profit for Q1 and Q2 2026 expanded for two consecutive quarters, reaching KRW 1.34 billion and KRW 1.62 billion respectively. New orders in the first half exceeded KRW 46 billion, already surpassing the annual sales level of 2025.

Following the large one-time loss in Q4 of last year, both sales and operating profit have continued to improve simultaneously.

Bear factors

Net Profit Instability and Recurring One-off Losses

In Q4 2025, operating loss and net loss expanded significantly due to large one-time expenses. In Q2 2026, net income attributable to controlling shareholders again turned negative due to valuation losses related to equity investment in Haesung Optics.

Even as operating profit is in a recovery phase, net income volatility continues to recur, indicating that further confirmation of the qualitative stability of earnings is still needed.

Dependence on Specific Customers and Affiliates

A significant portion of the 46-pi component business is concentrated on supply to a specific end customer through the affiliate Zhongrui Korea.

As the structure is such that changes in equity method gains/losses directly affect net income, Zhongrui Korea's equity method loss also acted as a factor reducing net income in Q1 2026.

Given the high dependence on a small number of major customers, changes in demand from that customer could have a significant impact on performance.

Exposure to Capex Cycle Fluctuations

Demand for secondary battery automation equipment has the characteristic of being highly susceptible to fluctuation depending on changes in capital expenditure plans by battery and automaker companies.

The history of large fluctuations in sales and operating margin between 2022 and 2024 demonstrates this cycle sensitivity. If the timing of new plant expansion or new product commercialization is delayed, the expected timing of securing sales capacity could also be pushed back accordingly.

Risk factors

Earnings Volatility

Over the past four quarters, there have been repeated instances where the directions of operating profit and net income diverged from each other. Both the large one-time loss in Q4 2025 and the equity investment valuation loss in Q2 2026 were factors that increased net income volatility. If similar non-recurring items occur again in the future, the predictability of earnings could be reduced.

Customer and Affiliate Concentration

The expansion of the 46-pi component business relies heavily on supply to a specific end customer through the affiliate Zhongrui Korea. The structure is such that changes in gains/losses of the equity-method affiliate are directly reflected in KNS's consolidated net income.

Changes in a specific customer's production or purchasing plans could have a cascading effect on KNS's performance.

New Business Execution Risk

Multiple new businesses, including battery module packs, immersion cooling ESS, and humanoid robot control technology, are being pursued simultaneously. Most of these businesses are at the prototype development or early research stage, and the timing and scale of actual sales contribution remain uncertain.

As multiple new businesses are being pursued in parallel, there is also a possibility that the burden of R&D investment could weigh on profitability.

What to watch next

Mid-November 2026
Q3 2026 earnings are due to be disclosed, and it will be important to check whether the operating profit improvement seen in Q2 continues and whether net profit volatility eases.
Second half of 2026
This is the targeted timing for the battery module pack (BMA-based) prototype launch; actual prototype unveiling and potential customer response should be monitored.
When groundbreaking/completion schedule for Jongrui Korea's Gyeonggi plant is announced
The groundbreaking and completion timeline for the new plant under the KRW 60 billion investment agreement, and whether the plan to secure annual revenue capacity becomes concrete, should be checked.
When Eunsung FA announces busduct upgrade project results and automaker equipment delivery outcomes
It is worth confirming the outcome of the busduct automation equipment upgrade for data centers and whether the power-semiconductor automation equipment is actually delivered to the automaker customer.
When Vietnam subsidiary discloses follow-on robot orders
Continuity of the robot foundry business's growth can be assessed by tracking whether additional robot orders from the Japanese company and semiconductor partners continue.

Overall view

KNS is a company expanding from a core of secondary battery automation equipment into Vietnam robot foundry operations, data center busduct automation, and new material and product development.

In 2025, despite substantial revenue growth, both operating profit and net profit swung to losses due to a large one-off charge, but two consecutive quarters of operating profit expansion were confirmed in the first half of 2026.

However, Q2 2026 net profit fell back into loss due to an equity investment valuation loss, indicating a gap still exists between the operational recovery and net profit stability.

The start of mass production of 46-series battery parts for Tesla, new plant expansion plans, and growth in the robotics and data center businesses stand out as positive factors, while dependence on specific customers and affiliates, new business execution risk, and recurring one-off items should be weighed as counterbalancing factors.

Whether the company's earnings recovery proves sustainable will likely become clearer as upcoming quarterly results and the new plant and new product timelines are further concretized. This report contains no buy or sell recommendation and is intended for informational purposes only.

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.