Samhwa Paints Industrial (listed on the exchange as SP Samhwa) is a leading Korean paint and coatings maker founded in 1946. More than 70% of its revenue comes from architectural and industrial paints — coatings for apartments, ships, and industrial facilities — sold through a nationwide dealer network and B2B channels, and it is broadening into advanced materials by producing MMB, a raw material for semiconductor encapsulants. In a voluntary corporate-value enhancement plan filed in March 2026, the company set an official goal of maintaining a payout ratio of 25% or higher and diversifying its portfolio. After a weak 2025 in which net profit fell 50.4%, first-quarter revenue rose 8.3%, a sign of recovery. The point worth watching is that if earnings recovery takes hold as it did in Q1, the appeal of a low P/B of 0.47x and a dividend yield of roughly 5.9% comes to life, and the forward view also reads as undervalued; on the other hand, the core paint business is sensitive to the construction and industrial cycle, and with an ROE of 2.3% and an interest-coverage ratio of 1.4x, profitability and earnings resilience are still thin, so continued recovery is the key to dividend capacity.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 1.8% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 8.3% higher than a year earlier.
- ROE is 2.3% (controlling-interest basis). It is below the sector average.
- Operating margin is 1.6%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Kim Hyun-jung 25.8% (individual)
Controlling bloc incl. related parties 27.39%
With the controlling bloc holding 27%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- Samhwa Paints Industrial (listed as 'SP Samhwa') is a leading Korean paint maker founded in 1946.
- More than 70% of its revenue comes from architectural and industrial paints; it makes coatings used on apartment and building exteriors and interiors, and on ships, cars, and industrial facilities, selling them through a nationwide dealer network and B2B sales.
- It also generates overseas revenue through local subsidiaries across Asia, including China, Vietnam, Malaysia, and India.
- More recently it has begun mass-producing MMB, the raw material for semiconductor encapsulants (EMC, the material that wraps and protects chips), broadening into semiconductor and secondary-battery materials.
- In short, its core business is paint that moves with the construction and industrial cycle, while it adds a new growth axis on the advanced-materials side.
- The latest close is ₩5,880 and the market cap is ₩160 billion.
- The price sits below its 20-day line (₩6,248) and below its 60-day line (₩7,574).
- Trading below both the short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge comparing upward and downward momentum over the past 14 days on a 0–100 scale) is 33.4, a neutral level.
- The one-month change is -7.0%, the three-month change is -32.0%, and the position versus the 52-week high is -52.4%.
- Relative strength versus the KOSPI is 26 (1–99, converted from returns against the index over the past year with more weight on recent periods; higher means stronger than the market).
- That places it in roughly the top 74% of all stocks by strength.
- Over the past three months it has trailed the index by 49.7%.
- It is best to read the chart alongside trading volume and disclosure dates.
- The P/E (how many times one year's net profit the share price is) is 20.84x.
- The figure looks high on its face, but it is calculated off 2025, a year in which net profit fell nearly by half.
- When earnings are heavily depressed for a single year, the P/E naturally looks inflated, so reading this figure straight as 'expensive' is not appropriate.
- The forward P/E, which assumes earnings return to a normal track, is clearly lower than the trailing figure.
- On an asset basis, the P/B (how many times the company's net assets the share price is) is 0.47x — about half of book equity — and the P/S (how many times revenue the share price is) is also low at 0.29x, placing it in undervalued territory against assets and revenue.
- Profitability is still below the peer average, with an ROE of 2.3%, an operating margin of 1.6%, and a net margin of 1.2%.
- The balance sheet is on the stable side: the debt ratio (debt to equity) is 82.4%, not a heavy burden, and the current ratio of 150% indicates sound short-term liquidity.
- That said, the interest-coverage ratio (how many times operating profit can cover interest) of 1.4x means operating profit only just covers interest, an area where more earnings recovery is needed for breathing room.
- Over a longer horizon, revenue has held roughly flat, from ₩631.6 billion in 2021 to ₩617.1 billion in 2025 (a five-year annual average of -0.6%), while earnings swing more.
- Operating profit fell for two straight years from ₩25.8 billion in 2023 to ₩9.5 billion in 2025, and net profit from ₩16.2 billion in 2023 to ₩7.7 billion, appearing to have bottomed in 2025.
- The signal of a turn comes in the most recent quarter.
- First-quarter 2026 revenue rose 8.3% year on year, and Q1 net profit (about ₩3.0 billion) exceeds the 2025 quarterly average (about ₩1.9 billion).
- This is a phase of climbing back after a year of depressed earnings.
- The forward P/E being far below the trailing P/E is precisely a reflection of this recovery: with revenue rising and prices and utilization supporting it, earnings return to a normal level — the basis for the forward figures.
- Because this values the company against recovered earnings rather than a weak past, the fact that 'the two P/Es look at different points in time' is central to understanding this stock.
- The company's official moves in 2026 are clear.
- In a 'corporate-value enhancement plan (voluntary disclosure)' on March 26, it set official goals of maintaining a payout ratio of 25% or higher on consolidated controlling-interest net profit and diversifying its business portfolio, and it also qualifies as a high-dividend company under the Special Tax Treatment Control Act.
- The March 18 annual report confirmed a weak 2025 (net profit -50.4%), and the May 15 quarterly report confirmed a recovery signal with first-quarter revenue up 8.3%.
- On June 1 it filed a corporate-governance report, reviewing its level of compliance with key governance indicators.
- There are no large order or capacity-expansion disclosures, but this is a year in which the intent to return value to shareholders through dividends and governance is clearly laid out in official documents.
- This stock reads as a 'low-P/B, high-dividend paint maker whose earnings are recovering off a bottom.' The strengths are clear.
- With a P/B of 0.47x and a P/S of 0.29x, the share price is low against assets and revenue; the dividend yield is high at about 5.9%, and by formalizing a payout ratio of 25% or higher, the direction of shareholder returns is clear.
- The debt and current ratios are also sound, so the balance sheet provides support.
- On top of that, the earnings depressed in 2025 have started climbing again from Q1, pulling the forward P/E down, so the price burden is light not only against assets but also against recovered earnings.
- In other words, this is not a stock to judge as expensive from trailing figures alone; on a forward basis the signal reads as undervalued.
- Points to watch together: the core paint business is sensitive to the construction and industrial cycle, and with an ROE of 2.3% and an interest-coverage ratio of 1.4x, both profitability and the interest resilience of earnings are still thin.
- The 2025 payout ratio rising to 124% was also the result of maintaining the dividend in a year of falling earnings, so whether the earnings recovery continues is the key to dividend capacity.
- In sum, the appeal of a low P/B and high dividend clearly comes to life if earnings recovery takes hold as in Q1, while profitability and dividend capacity are tested if the core cycle turns down again and recovery slows.
🔎 Valuation vs peers Inconclusive
Domestic paint makers whose business substance is closest, with Noroo Paint and KCC Glass (Kangnam Jevisco) as direct competitors focused on architectural and industrial paints.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Noroo Paint | 8.93x | 0.35x | 3.96% |
| Kangnam Jevisco | 0.00x | 0.27x | -0.43% |
On a P/B basis, 0.52x looks cheap against assets, but it is actually higher than direct competitors Noroo Paint (0.38x) and Kangnam Jevisco (0.27x). The trailing P/E of 23.25x is based on 2025, when earnings were cut in half, so a simple comparison with peers is distorted. If earnings normalize as they did in Q1, the forward multiple drops sharply toward a level comparable to peers. In other words, whether it is 'cheap or expensive' hinges on the pace of this year's earnings recovery, so it is hard to conclude fairly valued or undervalued before recovery is confirmed. With dividend appeal (yield 5.3%) and weak profitability (ROE 2.3%) offsetting each other, we view it as inconclusive.
Price history Close · MA20 · MA60
The latest close is ₩5,880 and the market capitalization is ₩160.0 billion. The price sits below its 20-day moving average (₩6,248) and below its 60-day moving average (₩7,574). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 33.4, a neutral level. The one-month change is -7.0%, the three-month change is -32.0%, and the position relative to the 52-week high is -52.4%. Relative strength versus the KOSPI is 26 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 26% of all stocks. Over the past three months it lagged the index by 49.7%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -49.73% / 6M -48.38% / 12M -59.60%
Key metrics vs sector median
Valuation
The P/E of 20.84x is above the sector median (14.79x). The P/B of 0.47x is below the sector median (0.97x).
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 9.8%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 2.3%, below the sector average (4.0%). The operating margin is 1.6%. The debt ratio is 82.3%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $418.5M | $416.5M | $409.0M | -1.80% ↓ slower |
| Operating profit | $17.1M | $12.6M | $6.3M | -49.69% ↓ slower |
| Net profit | $10.7M | $10.2M | $5.1M | -50.37% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $418.6M | $428.2M | $418.5M | $416.5M | $409.0M |
| Operating profit | $545,900 | $13.2M | $17.1M | $12.6M | $6.3M |
| Net profit | -$1.6M | $3.7M | $10.7M | $10.2M | $5.1M |
| Revenue CAGR | 4-yr avg -0.58% | ||||
Revenue fell 1.8% year over year (2023 ₩631.4 billion → 2024 ₩628.3 billion → 2025 ₩617.1 billion), and the three-year trend is 'falling'. The rate of decline widened from the prior year. Operating profit fell 49.7% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is -0.6%. The two-year revenue CAGR is -1.1%. In the most recent quarter (Q1 2026), revenue was 8.3% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The dividend yield, at 5.9%, is on the high side.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 1.8% year over year (3-year trend: falling).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-03-26FilingCorporate-value enhancement plan (voluntary disclosure): sets official goals of maintaining a payout ratio of 25% or higher on consolidated controlling-interest net profit and diversifying the business portfolio. Qualifies as a high-dividend company under the Special Tax Treatment Control Act.Over the medium term, it raises the predictability of the shareholder-return policy and supports dividend appeal. However, no specific revenue or profit target figures were presented. Source
- 2026-05-15EarningsQ1 2026 quarterly report: revenue ₩144.3 billion (+8.3% YoY), operating profit about ₩1.8 billion, and net profit about ₩3.0 billion — a recovery signal.Over the short term, it shows the possibility of a rebound off the 2025 earnings bottom. That said, quarterly net profit includes some non-operating gains. Source
- 2026-03-18Earnings2025 annual report: revenue ₩617.1 billion (-1.8%), operating profit ₩9.5 billion (-49.7%), and net profit ₩7.7 billion (-50.4%), confirmed as a weak year with sharply lower earnings.Over the medium term, this is why the trailing P/E looks high. Whether recovery follows is the key to a re-valuation. Source
- 2026-06-01FilingCorporate-governance report disclosed: reviews compliance with key governance indicators and the level of implementation of detailed principles.The direct impact on earnings is limited, but it reinforces the intent to improve shareholder returns and governance. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-01Corporate governance report
- 2026-05-29OwnershipOwnership-change filing
- 2026-05-15PeriodicQuarterly report
- 2026-03-31OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-31OwnershipLargest-shareholder ownership change report
- 2026-03-31OwnershipOwnership-change filing
- 2026-03-26Disclosure
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-18PeriodicAnnual business report
- 2026-03-17Audit report
- 2026-03-11OwnershipOfficers'/major-shareholders' holdings report
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.