PKC (formerly Baekkwang Industry) is a chemical company rooted in electrolyzing salt to make caustic soda and chlorine. On top of commodity chemicals such as caustic soda, hydrochloric acid, and liquid chlorine, it is growing specialty gases like nitrous oxide and high-purity hydrogen chloride used in semiconductor and display processes as business diversification, and the latter is the part the market is counting on. The May Q1 quarterly report confirmed both a sharp improvement in operating profit and an accounting-basis loss driven by a valuation loss on convertible bonds; a March disclosure of a profit-structure change formalized the 2025 earnings recovery to revenue of ₩272.1 billion, operating profit of ₩12.15 billion, and net profit of ₩10.1 billion; and on June 1 an adjustment of the convertible-bond conversion price (₩6,798) was disclosed. What stands out lately is that the +50.6% Q1 operating-profit recovery in the core business, the specialty-gas growth axis, and a fair valuation with a P/B of 1.25x atop five straight years of 11% top-line growth are strengths, while a debt ratio of 271.6% and a current ratio of 33.7% leave a tight financial cushion that is sensitive to rate and cycle changes, and the convertible bonds sway accounting-basis net profit and leave room for equity dilution upon conversion.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 271.6%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 33.7%).
- Revenue rose 11.0% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 8.8% higher than a year earlier.
- ROE is 4.5% (controlling-interest basis). It is above the sector average.
- Operating margin is 4.5%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Kim Seong-hun 22.64% (individual)
Controlling bloc incl. related parties 42.81%
With the controlling bloc holding 43%, the ownership structure is stable.
🔎 In-depth analysis
- PKC (formerly Baekkwang Industry, renamed in April 2025) is rooted in electrolyzing salt to make and sell caustic soda (alkali) and chlorine.
- As the quarterly report states, the chemical division's main products are caustic soda, hydrochloric acid, liquid chlorine, sorbitol, and water-treatment agents, along with nitrous oxide and high-purity hydrogen chloride.
- The former (caustic soda, hydrochloric acid, liquid chlorine) are commodity chemicals sold broadly as base and intermediate feedstocks for other industries, while the latter (nitrous oxide, high-purity hydrogen chloride) are high-purity specialty gases used in semiconductor and display processes that the company is growing as a diversification-driven growth business.
- It also has some food and environmental products such as sorbitol and water-treatment agents, plus other businesses like real-estate leasing and a golf driving range.
- In other words, it is a structure in which a 'commodity-chemical core whose prices swing with the economy' has a 'specialty-gas layer riding semiconductor front-end demand' laid on top, and the latter is the part on which the market pins its hopes for this company.
- The latest close is ₩5,400 and market capitalization is ₩243.2 billion.
- The price sits below its 20-day moving average (₩5,994) and below its 60-day average (₩6,436).
- Trading below both its short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that weighs upward versus downward force over the past 14 days on a 0-100 scale) is 40.0, a neutral level.
- The one-month change is -1.3%, the three-month change is -18.3%, and the position versus the 52-week high is -32.2%.
- Relative strength versus the KOSPI is 25 (1-99, computed 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 75% of all stocks by strength.
- Over the past three months it lagged the index by 36.4%.
- It is best to read the chart alongside trading volume and disclosure dates.
- Both are above the chemical-industry median, which is more naturally read not as the company being left cheap but as the market layering expectations onto the specialty-gas growth business.
- The P/B (price divided by net asset value per share; at 1x the price equals book value) is 1.09x, or 1.25x on an estimated basis, so on asset value it is in a not-excessive area similar to semiconductor-specialty-gas peers.
- Profitability, with ROE (how much is earned per year on equity) at 4.5%, an operating margin of 4.5%, and a net margin of 3.7%, is at the usual level for commodity chemicals, and ROE runs above the peer average.
- The place to examine is the financial structure.
- With a debt ratio (debt versus equity) of 271.6%, a current ratio of 33.7%, and an interest coverage ratio of 1.57x, debt exceeds equity and the assets readily convertible to cash against debt due within a year are tight, a structure sensitive to changes in interest rates and the borrowing environment.
- In sum, asset value is unremarkable and the margin is at an industry-typical level, and the reason the valuation looks high is that expectations for the growth business, not the core business, are priced in.
- The top line has risen steadily.
- Revenue grew from ₩233.5 billion in 2023 to ₩272.1 billion in 2025 (a CAGR of about 8%), and in 2025 it rose 11.0% from the prior year, with the pace of growth actually quickening.
- Earnings are turning around after passing through one dip.
- Operating profit fell to ₩9.7 billion in 2024 before recovering to ₩12.15 billion (+24.6%) in 2025, and net profit rose sharply from ₩3.6 billion in 2024 to ₩10.1 billion in 2025.
- The quality of the recovery is even clearer in the latest quarter.
- Q1 2026 revenue was ₩70.2 billion (+8.8%) and operating profit ₩5.0 billion (+50.6%), so core-business profitability clearly improved.
- Net profit in the same quarter was -₩2.47 billion, a loss, but this was not because operations were poor; it was due to a non-cash valuation loss arising in the process of re-marking, each quarter, the value of the convertible bonds issued in 2025, an accounting item different in character from actual business cash flow.
- What this year's forward P/E on earnings points to is precisely this core-business recovery.
- The double-digit revenue growth, the operating profit jumping more than half in Q1, and the fact that it has been growing high-purity specialty gases riding semiconductor and display demand are the grounds supporting this year's earnings expectations.
- There is no basis in the data to say the company is at a cycle top, and the direction of the top line and core operating profit points upward.
- That said, accounting-basis net profit can swing quarter to quarter with convertible-bond valuation gains and losses, so it takes a posture of viewing core operating flow and reported net profit separately.
- Recent disclosures center on earnings and capital and governance matters rather than momentum-style orders.
- The May Q1 quarterly report confirmed both a sharp improvement in operating profit and an accounting-basis loss driven by a valuation loss on convertible bonds.
- On June 1, an adjustment of the conversion price of the convertible bonds issued in 2025 was disclosed (₩6,798 after adjustment); this is a procedure that re-marks the conversion terms in line with the share price and the passage of time, showing that unredeemed convertible bonds remain.
- The same adjustment also occurred last October, indicating that these bonds have been re-priced several times.
- In March, an annual profit-structure change disclosure formalized the 2025 earnings recovery to revenue of ₩272.1 billion, operating profit of ₩12.15 billion, and net profit of ₩10.1 billion, followed by a corporate-governance report, the regular shareholders' meeting, and a filing on the largest shareholder's stake change.
- Taken together, it is a phase in which the positive signal of core-business recovery and the capital-and-dilution checkpoints represented by the convertible bonds sit together in the same bundle of disclosures.
- The strengths are clear.
- First, the core business is recovering.
- Q1 2026 operating profit grew +50.6% year over year, signaling that both commodity chemicals and specialty gases are improving together.
- Second, there is a growth axis.
- High-purity specialty gases for semiconductors and displays differ in character from commodity chemicals, whose prices swing with the economy, providing the grounds for the market to pay a premium for this company.
- Third, the top line has grown for five straight years, continuing an 11% pace of growth.
- This year's forward P/E on earnings is a value that captures this recovery and growth expectation, and the asset-based valuation (a P/B of 1.25x) sits in a fair area similar to specialty-gas peers.
- There are also points to examine together.
- With a debt ratio of 271.6%, a current ratio of 33.7%, and an interest coverage ratio of 1.57x, the financial cushion is tight and sensitive to rate and cycle changes, and the convertible bonds not only sway accounting-basis net profit each quarter but also leave room for equity dilution upon conversion into shares.
- In sum, this is a stock where the picture fills in from expectation to reality if specialty-gas growth and the core-business earnings recovery continue all year and the borrowing burden is managed, and where the pace of recovery slows if the commodity-chemical cycle turns down again or financing costs mount.
- The key conditions are the sustainability of the recovery and financial stability.
🔎 Valuation vs peers Inconclusive
The comparison is split into two by business substance: the core chlor-alkali business is commodity chemicals, while the growth axis, the materials division, is specialty gases for semiconductors and displays, a different grain of business; Wonik Materials and Foosung are used as specialty-gas peers and TKG Huchems as a commodity and fine-chemical peer, though all three differ from PKC in business mix and scale, so a simple P/E comparison has limits.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Wonik Materials | 8.84x | 0.82x | 9.27% |
| TKG Huchems | 10.95x | 0.73x | 6.64% |
| Foosung | 239.19x | 3.80x | 1.59% |
On the asset side, a P/B of 1.18x is nearly identical to semiconductor-specialty-gas peer Wonik Materials (1.19x), a fair area on asset value, neither excessive nor cheap. On the earnings side, a P/E of 26.0x is clearly above the commodity and fine-chemical peer set (11-13x) and looks expensive on the surface. However, this trailing P/E captures early-recovery results just as net profit, which had fallen to ₩3.6 billion in 2024, was turning around, so the multiple is somewhat inflated, and more importantly, company profit swings greatly with the non-cash item of convertible-bond valuation gains and losses, making it hard to conclude expensive or cheap from the confirmed P/E alone. Meanwhile, the semiconductor-specialty-gas theme sometimes carries very high multiples, as with Foosung (P/E 380x), so PKC's premium is read as reflecting growth expectations for the materials division rather than the commodity core business. In the end, assets are fair, and the earnings-based multiple hinges on the continuity of the core-business recovery and whether specialty-gas growth is realized, so rather than conclude in one direction, it is reasonable to withhold judgment.
Price history Close · MA20 · MA60
The latest close is ₩5,400 and the market capitalization is ₩243.2 billion. The price sits below its 20-day moving average (₩5,994) and below its 60-day moving average (₩6,436). 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 40.0, a neutral level. The one-month change is -1.3%, the three-month change is -18.3%, and the position relative to the 52-week high is -32.2%. Relative strength versus the KOSPI is 25 (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 25% of all stocks. Over the past three months it lagged the index by 36.4%. 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 -36.42% / 6M -39.40% / 12M -61.98%
Key metrics vs sector median
Valuation
The P/E of 24.04x is above the sector median (14.79x). The P/B of 1.09x is in line with the sector median (0.97x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
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, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 4.5%, in line with the sector average (4.0%). The operating margin is 4.5%. The debt ratio is 271.6%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $154.8M | $162.5M | $180.4M | +10.97% ↑ faster |
| Operating profit | $11.8M | $6.5M | $8.1M | +24.64% ↑ faster |
| Net profit | $5.1M | $2.4M | $6.7M | +180.50% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $126.7M | $154.2M | $154.8M | $162.5M | $180.4M |
| Operating profit | $12.0M | $18.7M | $11.8M | $6.5M | $8.1M |
| Net profit | $9.9M | $15.0M | $5.1M | $2.4M | $6.7M |
| Revenue CAGR | 4-yr avg 9.24% | ||||
Revenue rose 11.0% year over year (2023 ₩233.5 billion → 2024 ₩245.2 billion → 2025 ₩272.1 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 24.6% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 9.2%. The two-year revenue CAGR is 8.0%. In the most recent quarter (Q1 2026), revenue was 8.8% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- Revenue grew 11.0% year over year, a sign of growth.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-15EarningsSubmission of the Q1 2026 quarterly report. Revenue ₩70.2 billion (+8.8% year over year) and operating profit ₩5.0 billion (+50.6%) showed the core business improved, but non-operating non-cash losses such as a convertible-bond valuation loss turned net profit to a loss of -₩2.47 billion.Core-business profitability recovery and an accounting-basis loss coexist in one quarter. Operating flow and convertible-bond valuation gains and losses must be read separately, and whether the recovery is sustained is the medium-term point to watch. Source
- 2026-06-01FilingNotice disclosure of an adjustment to the conversion price of convertible bonds issued in 2025 (₩6,798 after adjustment). A procedure that re-marks the conversion terms with the share price and the passage of time, confirming that unredeemed convertible bonds remain.It flags changes in accounting-basis valuation gains and losses and the possibility of future equity dilution upon conversion into shares. Material for a financial and capital-structure review. Source
- 2026-03-11EarningsDisclosure of a change of more than 30% in 2025 revenue or profit structure (correction filing). Annual revenue ₩272.1 billion, operating profit ₩12.15 billion, and net profit ₩10.1 billion formalized the year-over-year earnings recovery.Top-line growth and earnings recovery are confirmed as finalized results. However, a base effect versus the prior-year trough is mixed in, so it is a comparison reference point where the continuity of the recovery needs checking. Source
- 2025-10-31FilingNotice disclosure of an adjustment to the convertible-bond conversion price. Ahead of the June 2026 adjustment, the conversion terms were also re-marked last autumn, showing that these bonds have been refixed several times.As the conversion terms of the unredeemed convertible bonds are repeatedly adjusted, the potential scale of equity dilution shifts. A capital-structure monitoring item. Source
- 2026-06-01FilingDisclosure of the corporate-governance report. Discloses the governance status, including board operations and shareholder rights.Not a momentum-style issue, but material for reviewing mid-to-long-term credibility and governance transparency. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 operating profit and net profit | operating profit 50.0(+50.6%), net profit -24.7 | 1 (2026.03) | Confirmed | link |
| Whether convertible bonds remain outstanding | — | — | Confirmed | link |
| Full-year 2025 revenue and operating profit | revenue 2,721(+11.0%), operating profit 121.5(+24.6%) | 2025 | Confirmed | link |
| Forward P/E on 2026 estimated net profit | approx. 29.2x(self-estimate) | — | Unverified | — |
Recent filings
- 2026-06-01Disclosure
- 2026-06-01Corporate governance report
- 2026-05-28Amended filing
- 2026-05-20PeriodicQuarterly report (amended)
- 2026-05-15PeriodicQuarterly report
- 2026-05-06OwnershipLargest-shareholder ownership change report
- 2026-05-06OwnershipOwnership-change filing
- 2026-05-06OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-26Shareholders' meeting notice
- 2026-03-26Disclosure
- 2026-03-20PeriodicAnnual business report (amended)
- 2026-03-20Audit report (amended)
📖 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.
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