KH Vatec: Weak Q1 2026 Earnings but Continued Shareholder Returns and Growth Investments

Consolidated Q1 2026 revenue: KRW 55.1 billion (down 10.5% YoY from KRW 61.5 billion), operating profit KRW 1.7 billion, net profit KRW 0.3 billion, indicating weakened profitability.
Value-up plan announced: TSR target of 35-40%, combining dividends and share buyback/cancellation. 2025 dividend per share: KRW 365 (quarterly KRW 50 + year-end KRW 315).
Exchangeable bonds (balance KRW 22.9 billion, conversion price KRW 15,258) being converted into treasury shares (139,146 shares converted this quarter, remaining 1,500,854 shares).
Consolidated debt ratio: 48.49%; cash and cash equivalents: KRW 45.3 billion, indicating stable financial structure.
Construction in progress increased to KRW 34.4 billion (from KRW 16.2 billion at year-end 2025), expanding facilities for new businesses like foldable hinges, auto parts, and robotics.
Some overseas subsidiaries (KHV Thai Nguyen, KHV India) and KH Eltec continued losses; KHV Thai Nguyen has negative equity.
R&D expenses: KRW 5.6 billion (5.72% of revenue); 12 patents registered related to foldable hinges.