[Edaily Reporter Kwon Oh Seok ] Shinhan Investment Securities stated on the 22nd regarding #KISTRON Co., Ltd., “With an expected 2026 P/E (price-to-earnings) ratio of 8.9x, we believe the stock is undervalued relative to its solid fundamentals,” adding, “We forecast steady growth as the company continues to increase supply and pursue cost-cutting efforts.” However, the firm did not provide an investment recommendation or a target price.

Kim Ye-seong, an analyst at Shinhan Investment Securities, said, “Although the price of copper, a key raw material, has risen significantly, we understand that it is partially linked to the supply prices charged to customers.” He added, “However, there are concerns regarding R&D for new cable wire products and the pace of expansion into non-ferrous metals. We expect a revaluation once these uncertainties are resolved.”
KISTRON Co., Ltd. is a manufacturer of lead wires and cable wires, with a high proportion of overseas sales at around 80%. He noted, “We estimate the company’s lead wire market share among its three major Japanese capacitor customers to be approximately 60%,” adding, “If the semiconductor boom continues and capacitor demand remains strong, the wire product line is expected to benefit. “In addition to growth in its core business, the company’s entry into the non-ferrous metals (aluminum) sector in 2027 is also worth watching,” he analyzed.
Previously, the company achieved its best-ever quarterly performance in the first quarter, with revenue of 19.8 billion won (up 16% year-over-year) and operating profit of 2.1 billion won (up 14%). Analyst Kim noted, “By product category, lead wire sales totaled 9.6 billion won, and cable wire sales totaled 8.9 billion won. Capacitor wire production expansion led to a significant increase in capacity utilization rates,” and projected 2026 revenue and operating profit at 81.2 billion won (+17%) and 9.1 billion won (+23%), respectively.
He added, “We are focusing on the increase in volume and the upward trend in capacity utilization driven by growing demand for capacitors in Chonbang markets. Exchange rates are also favorable.” He continued, “We estimate that the size of the Chonbang industry will quadruple when the company enters the non-ferrous metals market in 2027. After entering the market in the second half of 2027, revenue is expected to increase gradually starting in 2028. The growth momentum of new businesses in the medium to long term remains strong.”