Kyung Nong is classified under the chemicals sector, but its actual business is making and selling crop protection products (agrochemicals) used in farming. Herbicides that control weeds, insecticides that kill pests, and fungicides that prevent disease are its core lines, and it bundles these with fertilizers and seeds to supply farms and dealers, with sales concentrated in the spring planting-preparation season. In March 2026 the company voluntarily disclosed a corporate value enhancement plan, and in February it signed a single supply contract worth ₩132.7 billion (a sizable amount against annual revenue of ₩339.2 billion), following an earlier supply contract of ₩104.1 billion in December 2025. Recent points worth noting: a P/E of 9.6x and P/B of 0.68x are low versus peers, and with the P/B below 1.0x and a dividend yield of 7.6%, the appeal on an asset and dividend basis is clear, backed by a stable balance sheet. On the other hand, just as Q1 operating and net profit did not grow as much as revenue, if cost and promotional burdens persist, profit may be slower to catch up to the top line.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 4.3% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 12.3% higher than a year earlier.
- ROE is 7.1% (controlling-interest basis). It is above the sector average.
- Operating margin is 8.5%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Dongoh Holdings 30.64% (corporate)
Controlling bloc incl. related parties 67.61%
With the controlling bloc holding 68%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Kyung Nong is classified in the chemicals sector, but in practice it makes and sells crop protection products (agrochemicals) used in farming.
- Its core products are herbicides that control weeds, insecticides that kill pests, and fungicides that prevent disease, and it bundles these together with fertilizers and seeds to supply farms and dealers.
- As one of Korea's long-established agrochemical companies, its brand and distribution network are relatively solid.
- Revenue has a seasonal pattern that concentrates in the spring planting-preparation period, so the first quarter carries a large weight.
- The latest close is ₩9,090 and the market cap is ₩177.5 billion.
- The price sits below the 20-day line (₩9,186) and below the 60-day line (₩9,514).
- Being under both the short- and mid-term moving averages, the trend is on the subdued side.
- The RSI (an indicator that gauges the strength of up-moves versus down-moves over the past 14 days on a 0-100 scale) is 44.2, a neutral level.
- The one-month change is +1.0%, the three-month change is -7.1%, and the position versus the 52-week high is -14.2%.
- Relative strength against the KOSPI is 26 (on a 1-99 scale, calculated from the past year's return versus the index with more weight on recent performance; 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 lagged the index by 23.9%.
- Chart reading is best done alongside volume and the dates of disclosures.
- Recent annual revenue is ₩339.2 billion, with operating profit of ₩28.7 billion and net profit of ₩18.6 billion.
- The operating margin is 8.5% and ROE (how much is earned in a year on shareholders' equity) is 7.1%, above the sector average.
- The debt ratio (debt against equity) is 75.2% and the current ratio is 153%, so both leverage and short-term liquidity are comfortable, leaving the balance sheet on the stable side.
- On valuation, the P/E (how many times one year's profit the price represents) is 9.6x and the P/B (how many times book value the price represents) is 0.68x.
- A P/B below 1.0x means the market cap is valued below book net asset value (₩13,498 per share), so on an asset basis the price is clearly in a cheap zone.
- Add a dividend yield of 7.6% (₩700 per share) and a payout ratio of 67%, and the picture is one of returning a large share of profit to shareholders while the valuation stays low.
- Figures at this level look more like a sign of being undervalued than a burden.
- Revenue grew steadily from ₩270.3 billion in 2021 to ₩339.2 billion in 2025, and operating profit rose from ₩16.8 billion to ₩28.7 billion.
- Looking at 2025 alone, revenue was +4.3%, operating profit +7.4%, and net profit +8.4%, with all three lines growing faster than the prior year.
- In the most recent quarter, cumulative Q1 2026 revenue was ₩153.5 billion, up +12.3% from the same period a year earlier, a step up.
- Given a business where sales concentrate in the spring farming season, the first quarter carries a large weight, and this double-digit Q1 revenue growth makes for a solid start to the year's top line.
- That said, in the same quarter operating profit was -3.8% and net profit -6.6%, failing to keep pace with revenue, which suggests some cost and promotional burden was at work.
- Revenue for 2026 is shaping up toward roughly ₩359.2 billion, more than the prior year, underpinned by the double-digit Q1 revenue growth and the ₩132.7 billion supply contract signed in February.
- The top line points upward, and whether that growth carries through to the margin is the key point to confirm this year.
- The recent disclosure flow points to both top-line and shareholder-return themes.
- On March 26, 2026, the company voluntarily disclosed a corporate value enhancement plan, laying out its own direction for lifting shareholder value; where figures are included, read it as primary evidence for the outlook, and where only direction is given, read it as trend material.
- On February 6, 2026, it signed a single supply contract worth ₩132.7 billion, which against annual revenue of ₩339.2 billion is a sizable amount and thus central to future revenue recognition.
- Earlier, on December 11, 2025, there was also a ₩104.1 billion supply contract (amended filing).
- Whether both contracts are one-off or recurring, and how long the recognition period runs, will shape the mid-term earnings interpretation.
- Kyung Nong reads as a stock that is cheap and pays a generous dividend while its top line grows slowly.
- A P/E of 9.6x and P/B of 0.68x are low within the peer set, and the combination of a P/B below 1.0x with a dividend yield reaching 7.6% is an attractive zone on an asset and dividend basis, so there is no reason to overlook its strengths.
- The balance sheet, too, is stable in leverage and liquidity, which supports the sustainability of the dividend.
- It gains momentum when the double-digit revenue growth seen in Q1 and the large supply contracts carry through smoothly into annual revenue, and when revenue growth translates into a recovery in the operating margin.
- On the cautionary side, Q1 operating and net profit did not grow as much as revenue, so if cost and promotional burdens persist, profit may be slow to catch up to the top line.
- The business itself carries a seasonal pattern that concentrates sales in spring, so the choppiness of quarterly figures should be taken into account.
- In short, the asset and dividend value is already clear, and how fast the margin catches up to the top line is the point to watch this year.
🔎 Valuation vs peers Undervalued
A comparison set of publicly available names within the chemicals sector that are adjacent in market capitalization.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hankook Cosmetics Manufacturing | 6.31x | 1.65x | 26.15% |
| LK Chem | 27.46x | 2.01x | 7.31% |
| Samhwa Paints Industrial | 20.84x | 0.47x | 2.26% |
We first looked at a comparison set of publicly available names within chemicals that are close in market cap. The current P/E (how many times one year's profit the price represents) is 9.52x and the P/B (how many times book value the price represents) is 0.67x. That said, for smaller-cap names the impact of earnings swings and financing disclosures is large, so we did not draw firm conclusions from last year's confirmed-results metrics alone. The basis for the outlook box is a DART seasonality approximation.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩359.2 billion | — | — |
| Next quarter | Q2 2026 | ₩115.8 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩9,090 and the market capitalization is ₩177.5 billion. The price sits below its 20-day moving average (₩9,186) and below its 60-day moving average (₩9,514). 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 44.2, a neutral level. The one-month change is +1.0%, the three-month change is -7.1%, and the position relative to the 52-week high is -14.2%. 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 23.9%. 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 -23.90% / 6M -38.48% / 12M -61.80%
Key metrics vs sector median
Valuation
The P/E of 9.52x is below the sector median (14.79x). The P/B of 0.67x is below the sector median (0.97x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets.
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 7.1%, above the sector average (4.0%). The operating margin is 8.5%. The debt ratio is 75.2%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $230.3M | $215.5M | $224.8M | +4.32% ↑ faster |
| Operating profit | $16.7M | $17.7M | $19.0M | +7.40% ↑ faster |
| Net profit | $12.5M | $11.4M | $12.4M | +8.43% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $179.1M | $239.7M | $230.3M | $215.5M | $224.8M |
| Operating profit | $11.1M | $27.2M | $16.7M | $17.7M | $19.0M |
| Net profit | $10.7M | $20.5M | $12.5M | $11.4M | $12.4M |
| Revenue CAGR | 4-yr avg 5.85% | ||||
Revenue rose 4.3% year over year (2023 ₩347.4 billion → 2024 ₩325.2 billion → 2025 ₩339.2 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit rose 7.4% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 5.9%. The two-year revenue CAGR is -1.2%. In the most recent quarter (Q1 2026), revenue was 12.3% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- The dividend yield, at 7.7%, is on the high side.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-03-26UpdateCorporate value enhancement plan (voluntary disclosure): original company plan confirmedThis is planning material the company presented directly. Where figures are included, treat it as primary evidence for the outlook box; where they are not, treat it only as directional material. Source
- 2026-02-06ContractSingle supply contract signed: contract amount ₩132.7 billionThe contract amount and term are central to future revenue recognition. Whether it is a one-off or a repeatable transaction shapes the mid-term interpretation. Source
- 2025-12-11Contract[Amended] Single supply contract signed: contract amount ₩104.1 billionThe contract amount and term are central to future revenue recognition. Whether it is a one-off or a repeatable transaction shapes the mid-term interpretation. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩9,090 | ₩9,090 | Confirmed | link |
| Latest quarterly results | revenue ₩153.5 billion, operating profit ₩32.3 billion | revenue ₩153.5 billion, operating profit ₩32.3 billion | Confirmed | link |
| Annual results | revenue ₩339.2 billion, operating profit ₩28.7 billion | revenue ₩339.2 billion, operating profit ₩28.7 billion | Confirmed | link |
| Outlook/plan disclosure source text | : | : | Confirmed | link |
| Contract disclosure source text | ㆍapprox. : approx. ₩132.7 billion | ㆍapprox. : approx. ₩132.7 billion | Confirmed | link |
| Contract disclosure source text | []ㆍapprox. : approx. ₩104.1 billion | []ㆍapprox. : approx. ₩104.1 billion | Confirmed | link |
| Outlook box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-06-08Material-fact report
- 2026-05-28Corporate governance report
- 2026-05-18OwnershipOwnership-change filing
- 2026-05-18OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-15PeriodicQuarterly report
- 2026-04-06OwnershipOwnership-change filing
- 2026-03-26Disclosure
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-18PeriodicAnnual business report
- 2026-03-18Audit report
- 2026-03-11Disclosure
📖 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.