Korea Circuit Co Ltd

Korea Circuit Co Ltd's capital structure shows a debt-to-equity ratio of 0.69, indicating a moderate reliance on debt financing. The company's liquidity position is characterized by a current ratio of 2.03, suggesting it has sufficient short-term assets to cover its liabilities. However, the company's net cash position is negative after subtracting total debt, which raises concerns about its liquidity risk.

Profitability metrics reveal a challenging financial situation. The company reported a net loss of KRW 9,363,154,810 and an operating loss of KRW 9,085,533,660, with a return on equity of -2.24% and a return on assets of -0.76%. These figures are significantly below the industry median for profitability, indicating underperformance relative to its peers.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to sector-specific risks and limits the company's ability to offset losses in one area with gains in another.

Looking ahead, Korea Circuit Co Ltd is projected to experience a decline in revenue, with a negative outlook for the current fiscal year. The company's operating cash flow of KRW 32,034,948,120 and free cash flow of KRW 10,570,903,760 suggest some capacity to fund operations, but capital expenditures of KRW -12,028,621,520 indicate ongoing investment in infrastructure.

The company faces several risk factors, including liquidity concerns and the potential for dilution. The risk assessment indicates a medium liquidity risk and a low dilution risk, with no immediate pressure for equity issuance. The negative net cash position after subtracting total debt further underscores the liquidity risk.

Recent events, including analyst estimates, show a mixed outlook. The mean price target of KRW 94,000 is below the current market price of KRW 110,200, with two buy recommendations and no strong buy or hold ratings. This suggests a cautious investor sentiment towards the company's future performance.

Korea Circuit Co Ltd (007810.KS) has been formally classified within the Technology economic sector, with its primary activity identified as Semiconductors. This taxonomic update provides a clearer structural definition of the company’s operational focus, aligning its profile with the broader semiconductor industry landscape. In terms of risk assessment, the company now carries a "low" dilution risk rating, indicating a stable capital structure with minimal threat of share value erosion from new issuances. Concurrently, a "medium" liquidity risk has been assigned, suggesting that while trading volume or market depth may present moderate challenges, the risk level remains manageable within current parameters. These assessments are supported by a single analyst covering the stock, as indicated by the company’s current coverage metrics. The absence of index membership and top holder data in the current snapshot further contextualizes the stock’s niche positioning within the market. The combination of low dilution risk and a defined semiconductor activity profile offers investors a more transparent view of Korea Circuit Co Ltd’s fundamental standing. This clarity is essential for evaluating the company’s stability and sector-specific exposure amidst broader technology market dynamics.

Analysts maintain a buy recommendation with a mean price target of 94,000 KRW for the stock.

Free cash flow is projected to surge 162.7% year-over-year to 41.9 billion KRW in FY2026.

Operating income is forecast to rebound 130.7% to 50.3 billion KRW, signaling a return to profitability.

Revenue growth of 7.3% to 151.0 billion KRW indicates stabilizing top-line performance in FY2026.

Capital expenditure intensity is above the semiconductor cohort median, suggesting efficient investment relative to peers.

The company carries a high credit risk flag, indicating significant concerns regarding its debt servicing ability.

Debt-to-equity ratio of 0.69 places the company in the bottom quartile of its semiconductor cohort.

Net margin of -2.6% and operating margin of -2.6% remain significantly below the semiconductor cohort medians.

Return on equity of -2.24% lags the semiconductor cohort median of 2.11%, indicating poor capital efficiency.

Revenue KRW 448.14B, +33,6% YoY; Operating income +123,2% YoY.

• ▍Revenue KRW 448.14B, +33,6% YoY
• ▍Operating income +123,2% YoY
• ▍Net income +126,3% YoY
• ▍Free cash flow +122,2% YoY
• ▍Net margin 6.1%

Revenue KRW 375.65B, +10,1% YoY; Operating income +237,6% YoY.

• ▍Revenue KRW 375.65B, +10,1% YoY
• ▍Operating income +237,6% YoY
• ▍Net income +272,7% YoY
• ▍Free cash flow −2,0% YoY
• ▍Net margin 3.1%

Revenue KRW 331.35B, −11,8% YoY; Operating income +232,5% YoY.

• ▍Revenue KRW 331.35B, −11,8% YoY
• ▍Operating income +232,5% YoY
• ▍Net income +229,8% YoY
• ▍Free cash flow −32,4% YoY
• ▍Net margin 2.1%

Revenue KRW 354.59B, −0,1% YoY; Operating income +82,1% YoY.

• ▍Revenue KRW 354.59B, −0,1% YoY
• ▍Operating income +82,1% YoY
• ▍Net income +111,9% YoY
• ▍Free cash flow −45,3% YoY
• ▍Net margin 0.3%

Revenue KRW 335.29B; Operating income -KRW 140.63B.

• ▍Revenue KRW 335.29B
• ▍Operating income -KRW 140.63B
• ▍Net margin -31.1%

Revenue KRW 341.35B; Operating income -KRW 9.62B.

• ▍Revenue KRW 341.35B
• ▍Operating income -KRW 9.62B
• ▍Net margin -2.0%

Revenue KRW 375.45B; Operating income -KRW 4.60B.

• ▍Revenue KRW 375.45B
• ▍Operating income -KRW 4.60B
• ▍Net margin -1.4%

Revenue KRW 354.86B; Operating income -KRW 9.09B.

• ▍Revenue KRW 354.86B
• ▍Operating income -KRW 9.09B
• ▍Net margin -2.6%

Revenue KRW 1.51T, +7,3% YoY; Operating income +130,7% YoY.

• ▍Revenue KRW 1.51T, +7,3% YoY
• ▍Operating income +130,7% YoY
• ▍Net income +137,5% YoY
• ▍Free cash flow +162,7% YoY
• ▍Net margin 3.1%

Revenue KRW 1.41T, +5,6% YoY; Operating income −417,8% YoY.

• ▍Revenue KRW 1.41T, +5,6% YoY
• ▍Operating income −417,8% YoY
• ▍Net income −244,0% YoY
• ▍Free cash flow −367,6% YoY
• ▍Net margin -8.9%

Revenue KRW 1.33T, −16,6% YoY; Operating income −131,9% YoY.

• ▍Revenue KRW 1.33T, −16,6% YoY
• ▍Operating income −131,9% YoY
• ▍Net income −153,3% YoY
• ▍Free cash flow +87,6% YoY
• ▍Net margin -2.7%

Revenue KRW 1.60T, +12,1% YoY; Operating income +16,0% YoY.

• ▍Revenue KRW 1.60T, +12,1% YoY
• ▍Operating income +16,0% YoY
• ▍Net income +22,1% YoY
• ▍Free cash flow −295,2% YoY
• ▍Net margin 4.3%