Kwang Myung Electric Co Ltd (017040) AI Stock Analysis

Kwang Myung Electric Co Ltd

(Korea Exchange:017040)

Select Model

Rating:41Neutral

Price Target:KRW 890.00▼(-4.51% Downside)

Action:initiatedcoverage

Date:10/28/26

The score is driven primarily by very weak financial performance—sharp revenue decline, severe losses, negative cash generation, and a major increase in leverage from equity erosion. Technicals add further pressure with the price below the 200-day average and weak momentum indicators, while valuation is not supportive because the negative P/E reflects loss-making operations and no dividend yield data is available.

Positive Factors

Established electrical equipment focusThe company operates in an essential electrical equipment segment, providing products that manage, protect, and distribute power. Its exposure to industrial, commercial, and infrastructure applications gives the business a defined role in recurring electricity-related demand over the medium term.

Negative Factors

Severe revenue and profit deteriorationThe sharp revenue contraction and collapse from profitability to deeply negative net margins indicate substantial deterioration in operating performance. Persistent losses can weaken the company’s ability to reinvest, absorb costs, and restore sustainable earnings over the next several quarters.

Kwang Myung Electric Co Ltd (017040) vs. SPDR S&P 500 ETF (SPY)

Market Cap: KRW 40.39B
Dividend Yield: ―
Average Volume (3M): ―
Price to Earnings (P/E): -0.6
Beta (1Y): 0.66
Revenue Growth: -31.11%
EPS Growth: -1.56%
Country: KR
Employees: 193
Sector: General
Sector Strength: 55
Industry: Electrical Equipment & Parts

Kwang Myung Electric Co Ltd Business Overview & Revenue Model

Company Description

Kwang Myung Electric Co.,Ltd is a South Korean enterprise specializing in the development and manufacturing of essential power distribution equipment. Its extensive product portfolio encompasses various electrical switchgears, including high and low...

Kwang Myung Electric Co Ltd Financial Statement Overview

Summary

Financial performance is very weak: revenue declined sharply in 2025 (-20.3% YoY) and profitability collapsed from a positive 2023 net margin (~6.3%) to very large losses in 2024–2025 (net margin ~-30.3% and ~-71.1%). Leverage spiked in 2025 (debt-to-equity ~5.86) as equity eroded, and operating/free cash flow remain negative across 2021–2025, indicating limited internal funding capacity.

Income Statement

18Very Negative

Balance Sheet

22Negative

Cash Flow

24Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	95.87B	95.87B	142.41B	161.22B	138.24B	137.09B
Gross Profit	9.72B	11.73B	13.77B	11.29B	11.46B	9.48B
EBITDA	-65.55B	-65.55B	-36.07B	-992.78M	6.26B	7.60B
Net Income	-68.15B	-68.15B	-43.22B	10.19B	5.38B	5.82B
Balance Sheet
Total Assets	134.09B	134.09B	142.68B	187.31B	172.18B	169.93B
Cash, Cash Equivalents and Short-Term Investments	30.09B	30.09B	22.67B	50.45B	53.64B	68.40B
Total Debt	36.56B	36.56B	21.55B	7.69B	7.56B	10.61B
Total Liabilities	127.85B	127.85B	70.39B	56.52B	53.31B	54.79B
Stockholders Equity	6.23B	6.23B	72.29B	123.01B	111.33B	107.74B
Cash Flow
Free Cash Flow	-4.24B	-4.24B	-57.48B	-29.34B	-7.54B	-3.77B
Operating Cash Flow	-3.77B	-3.77B	-20.74B	-16.45B	-921.74M	-2.54B
Investing Cash Flow	-6.01B	-6.01B	-27.07B	42.27B	-11.15B	9.40B
Financing Cash Flow	17.15B	17.15B	20.21B	1.46B	-5.58B	-6.88B

Kwang Myung Electric Co Ltd Technical Analysis

Technical Analysis SentimentNegative

Last Price932.00

Price Trends

50DMA932.00Neutral

100DMA932.00Neutral

200DMA1049.69Negative

Market Momentum

MACD-0.00Negative

RSI33.37Neutral

STOCH40.00Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KR:017040, the sentiment is Negative. The current price of 932.00 is equal to the 20-day moving average (MA) of 932.00, equal to the 50-day MA of 932.00, and below the 200-day MA of 1049.69, indicating a neutral trend. The MACD of -0.00 indicates Negative momentum. The RSI at 33.37 is Neutral, neither overbought nor oversold. The STOCH value of 40.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KR:017040.

Kwang Myung Electric Co Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

KR:017040 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KR:025540	76Outperform	KRW 502.75B	4.17	―	8.37%	-4.44%	16.87%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
KR:000500	48Neutral	KRW 6.79T	105.59	―	0.01%	31.79%	25.41%
KR:006340	48Neutral	KRW 763.34B	60.43	―	―	37.69%	-11.23%
KR:001440	46Neutral	KRW 3.68T	-277.44	―	―	21.58%	-145.65%
KR:001210	42Neutral	KRW 86.46B	-1791.15	―	―	-10.43%	99.69%
KR:017040	41Neutral	KRW 40.39B	-0.55	―	―	-31.11%	-1.56%

* General Sector Average

Performance Comparison

KR:017040 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
KR:017040	Kwang Myung Electric Co Ltd	932.00	-657.00	-41.35%
KR:000500	Gaon Cable Co., Ltd.	228000.00	177485.84	351.36%
KR:001210	Kumho Electric, Inc.	7290.00	3940.00	117.61%
KR:001440	Taihan Cable & Solution Co., Ltd.	19790.00	-5360.00	-21.31%
KR:006340	Daewon Cable Co., Ltd.	9470.00	5250.00	124.41%
KR:025540	Korea Electric Terminal Co., Ltd.	50200.00	-7408.35	-12.86%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 28, 2026

Kwang Myung Electric Co Ltd AI Stock Analysis