Source Fact: Kyobo Securities / Published on June 29, 2026
Investment Opinion & Target Price: Not Rated (Report prepared by the lead IPO manager)
Key Momentum: Strategic entry into the dip brazing supply chain powered by core client LIG Nex1’s expanding global weapon system exports, alongside an explosive surge in backlog driven by Cheongung-II and III platforms
📊 1. [Section Title: Valuation Indicators and Investment Metrics Analysis]
- Investment Rating & Valuation: RF Systems (474610) has been issued as ‘Not Rated’ by the research center of Kyobo Securities, the lead IPO manager. As the overarching defense value chain enters a powerful procurement cycle due to intensifying geopolitical risks, mid-to-long-term growth visibility is escalating significantly.
- Historical & Recent Earnings Track Record: On a December fiscal year basis, annual revenue remained flat moving from 33 billion KRW in 2023 to 33 billion KRW in 2024, but subsequently expanded by 16.8% year-over-year to reach 38 billion KRW in 2025. During the same period, operating profit doubled from the 2 billion KRW range seen in 2023 and 2024 to 4 billion KRW in 2025, yielding an Operating Profit Margin (OPM) of 10.5%.
- Financial Health & Efficiency Metrics: As of 2025, Return on Equity (ROE) improved to 11.3%. The Price-to-Earnings (P/E) ratio stabilized at 12.2x, the Price-to-Book (P/B) ratio at 1.3x, and EV/EBITDA at 7.7x, demonstrating a well-anchored financial profile.
- Financial Outlook on Growth Visibility: With a current order backlog exceeding 90 billion KRW, the company has secured a baseline revenue stream covering more than two years of operations. Consequently, annual revenue targets of approximately 45 billion KRW for this year (2026E) and over 60 billion KRW for next year (2027E) are becoming highly visible.
🚀 2. [Section Title: Total Addressable Market (TAM) & Detailed Earnings Forecasts]
- Core Technology & Business Portfolio: The company commands exclusive operational capabilities in advanced metal joining, utilizing proprietary ‘Dip Brazing’ technology to fuse precision metal components into unified structures. As of 1Q26, the revenue breakdown is balanced across Radar Systems (~38%), Antenna Systems (~26%), Environmental Control Systems (~27%), and Miscellaneous segments (~9%).
- Velocity of Order Backlog Momentum: The company’s annual order intake capability, which hovered around 30 billion KRW at the time of its listing, cleared over 60 billion KRW in new orders last year, confirming an industry turnaround. Notably, it logged approximately 30 billion KRW in new orders during the first quarter of 2026 (1Q26) alone; given upcoming large-scale contracts, a highly pronounced mid-to-long-term backlog expansion trajectory is underway.
- Value Chain Positioning: The company counts LIG D&A (LIG Nex1)—a top-tier domestic guided weapon systems integrator—as its core anchor client. Financial tailwinds from indirect exports of Cheongung-II antenna assemblies to Saudi Arabia are beginning to materialize in earnest, and the company has recently completed its registration as a new supplier for Cheongung-III transmitter path assemblies.
- Product Lineup & CAPA Expansion Pipeline: Having solidified its position across the client’s broader guided weapon portfolio and upcoming development pipelines, the company plans to deploy new capital expenditures for advanced ultra-high frequency (UHF) bonding process technology. This will scale up production capacity (CAPA) in lockstep with global defense sector growth.
📝 Editor’s Comment (by K-STOCK Editor) Applied Comment Style: Professional Insight
The central investment thesis for RF Systems lies in its status as a highly specialized powerhouse holding irreplaceable dip brazing technology within the domestic guided weapon supply chain, rather than acting as a generic component manufacturer. With its primary anchor client boasting a massive order backlog near 30 trillion KRW alongside accelerating guided weapon exports to the Middle East, the resulting trickle-down effect feeds directly into the company’s own expanding order book (currently north of 90 billion KRW). Securing new orders in 1Q26 alone that rival previous full-year figures indicates that operating leverage will intensify through the latter half of the year and into 2027. However, given that official investment ratings are unavailable due to the report originating from the lead IPO manager, market participants should closely monitor whether valuation multiples moderate and observe the long-term capital efficiency of the new ultra-high frequency facility investments.
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