Asia Paper Manufacturing is a B2B materials company that produces linerboard (corrugated base paper), used to make corrugated boxes, and sells it to box-converting firms; parcel and logistics box demand, along with the price of recovered paper and energy costs, drives its margins. In March, a serious industrial accident at the Sejong plant halted a line accounting for roughly 37-39% of revenue for about 26 days before it normalized in April, and the company has continued shareholder returns through treasury-share cancellation, a ₩5 billion trust contract, and a 2025 dividend payout ratio of 32.5%. The key point to watch: a P/B of 0.35x is lower than peer Shin Dae Yang Paper's (0.59x) and the forward P/E is also below peers, so it reads as undervalued on both asset and earnings measures, while a debt ratio of 122% and interest coverage of 9.5x provide financial stability that cushions the downside; against that, earnings are sensitive to recovered-paper prices, power costs, and base-paper pricing, so margins thin quickly if costs spike or demand cools.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 4.0% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 2.9% higher than a year earlier.
- ROE is 3.5% (controlling-interest basis). It is below the sector average.
- Operating margin is 3.2%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Asia 52.19% (corporate)
Controlling bloc incl. related parties 55.02%
With the controlling bloc holding 55%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Asia Paper Manufacturing is a B2B materials company that produces linerboard (corrugated base paper), used to make corrugated boxes, and sells it to box-converting firms.
- Its mainstay is linerboard from the Sejong plant (annual capacity of about 620,000 tons), while the Sihwa plant makes gypsum linerboard for gypsum boards and kraft paper (packaging and industrial paper).
- As parcel and logistics box demand rises, base-paper orders rise, and the price of recovered paper (waste paper) and power and energy costs drive the margin structure.
- It is most accurately understood as a company that earns at the base-paper stage, one step ahead of finished boxes.
- The latest close is ₩7,790 and the market cap is ₩307.3 billion.
- The price sits below the 20-day line (₩7,916) and below the 60-day line (₩8,276).
- Trading below both its short- and mid-term moving averages, the trend is subdued.
- The RSI (an auxiliary gauge that weighs up-days against down-days over the past 14 days on a 0-100 scale) is 46.4, a neutral level.
- The one-month change is +5.8%, the three-month change is -15.6%, and the position versus the 52-week high is -30.7%.
- Relative strength versus the KOSPI is 28 (on a 1-99 scale that converts one-year return against the index with recent performance weighted more heavily; higher means stronger than the market).
- That places it around the top 73% of all stocks by strength.
- Over the past three months it has lagged the index by 31.0%.
- Chart readings are best considered alongside trading volume and disclosure dates.
- On last year's confirmed results (FY2025 consolidated), the P/E (price divided by one year of net profit) is 10.38x and the P/B (price divided by net assets per share) is 0.36x.
- Trading at a little over one-third of net assets, the undervaluation on asset value is clear.
- The crux is earnings.
- The forward P/E, translated onto this year's expected earnings, actually comes in below last year's 9.9x.
- Against the same base-paper and industrial-paper group, it is clearly lower than Shin Dae Yang Paper (15.7x) and Hansol Paper (38.3x), a signal that it is also cheap relative to earnings.
- In other words, the trailing P/E and P/B are not vaguely a case of "expensive"; rather, the forward P/E that reflects future earnings shows the real picture.
- Profitability is ordinary: ROE (the return earned on equity in a year) is 3.5% and the operating margin is 3.2%, below the peer average.
- The financials are solid, with a debt ratio of 122%, a current ratio of 235%, and interest coverage of 9.5x, so the debt burden is light.
- Revenue has drifted modestly lower, from ₩908.3 billion in 2023 to ₩891.1 billion in 2024 and ₩855.1 billion in 2025 (a two-year average of -3.0%).
- Earnings, by contrast, are firming off a base and turning up.
- Operating profit fell sharply from ₩87.6 billion in 2023 to ₩26.6 billion in 2024, then steadied at ₩27.2 billion in 2025, while net profit rose 23.7% in 2025 (₩23.9 billion to ₩29.6 billion).
- Even as the top line shrank, earnings did not fall further but turned toward recovery.
- Two things underpin a forward-earnings picture for this year that is better than last: first, cost pressures such as recovered-paper prices and power costs are settling down after the 2024 spike, and second, linerboard pricing, which tracks parcel and logistics box demand, has firmed off a base.
- As these two mesh, the forward P/E comes in below last year's trailing 9.9x.
- In Q1 2026, revenue of ₩217.1 billion (+2.9%) grew the top line, but operating profit of ₩10.0 billion (-24.2%) and net profit of ₩8.1 billion (-32.7%) show profitability took a step back, largely because the roughly 26-day work stoppage following the March serious accident at the Sejong plant hit Q1 directly.
- With production normalized in April, the recovery in utilization from Q2 onward is the point to watch for this year's earnings.
- The heaviest event this year was the serious industrial accident (one death) at the Sejong plant on March 24.
- The next day, a partial work-stoppage order from the labor authorities halted production, and because this line accounts for roughly 37-39% of company revenue, it directly affected Q1 results.
- Production normalized on April 20, about 26 days later, when the stoppage was lifted.
- On shareholder returns, the flow is steady.
- On March 26, a corporate value-up plan spelled out treasury-share cancellation and stable, results-linked dividends (a 2025 payout ratio of 32.5% and total dividends of ₩9.6 billion, up 10% year on year), and on May 15 the company entered a new ₩5 billion treasury-share trust contract (through August 14, with about 590,000 shares planned).
- A prior cancellation of 1.03 million held treasury shares is also on record.
- The strengths are clear.
- On asset value, a P/B of 0.35x is lower than same-group Shin Dae Yang Paper's (0.59x), the cheapest position, and on earnings the forward P/E is also below peers (Shin Dae Yang 15.7x), so both asset and earnings measures read as undervalued.
- Add treasury-share cancellation and trust purchases plus a payout ratio around 30%, and shareholder return becomes a support that narrows the discount.
- A debt ratio of 122%, a current ratio of 235%, and interest coverage of 9.5x make for stable financials that firm up the downside.
- The caution is the core business's volatility.
- With the top line shrinking, earnings are sensitive to recovered-paper prices, power costs, and linerboard pricing, so profit can thin quickly if costs rise again or base-paper demand cools.
- Safety and compensation costs after the serious accident, and the pace of the utilization recovery, are variables to watch as well.
- In sum, the undervaluation appeal stands out clearly when costs stabilize and parcel and logistics demand hold up, whereas the thin core-business margin becomes a burden when costs spike or demand cools.
🔎 Valuation vs peers Undervalued
A direct comparison was made against listed companies in the same business group that make corrugated base paper and industrial paper, among those with verifiable data (the site's own P/E and P/B are computed at the current price).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Shin Dae Yang Paper Mfg | 17.22x | 0.65x | 3.79% |
| Hansol Paper | 40.23x | 0.22x | 0.56% |
(a) Within the same base-paper and industrial-paper group, a P/B of 0.37x is lower than Shin Dae Yang Paper's 0.69x, the cheapest position on an asset basis. (b) That said, the P/E is a trailing 10.6x, and given that last year's net profit mixed in non-core gains, it is hard to declare it cheap in absolute terms. On a seasonality approximation, the forward P/E is below Shin Dae Yang Paper's (18.1x) but above last year's trailing figure, showing this is an earnings inflection point. (c) In conclusion, this is a combination of "clear asset-value undervaluation but ordinary core-business profitability," so the verdict is set to Undervalued, though whether earnings recover is the key to closing the discount.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩223.9 billion | approx. ₩13.3 billion | approx. ₩8.1 billion |
Price history Close · MA20 · MA60
The latest close is ₩7,790 and the market capitalization is ₩307.3 billion. The price sits below its 20-day moving average (₩7,916) and below its 60-day moving average (₩8,276). 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 46.4, a neutral level. The one-month change is +5.8%, the three-month change is -15.6%, and the position relative to the 52-week high is -30.7%. Relative strength versus the KOSPI is 28 (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 27% of all stocks. Over the past three months it lagged the index by 31.0%. 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 -30.99% / 6M -37.13% / 12M -60.37%
Key metrics vs whole-market median
Valuation
The P/E of 10.38x is below the whole-market median (13.81x). The P/B of 0.36x is below the whole-market median (1.15x). 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 9.2%, 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 3.5%, below the whole-market average (5.0%). The operating margin is 3.2%. The debt ratio is 122.4%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $602.0M | $590.6M | $566.8M | -4.03% ↓ slower |
| Operating profit | $58.0M | $17.6M | $18.0M | +2.45% ↑ faster |
| Net profit | $53.7M | $15.9M | $19.6M | +23.68% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $626.8M | $678.3M | $602.0M | $590.6M | $566.8M |
| Operating profit | $62.2M | $72.5M | $58.0M | $17.6M | $18.0M |
| Net profit | $60.3M | $62.6M | $53.7M | $15.9M | $19.6M |
| Revenue CAGR | 4-yr avg -2.49% | ||||
Revenue fell 4.0% year over year (2023 ₩908.3 billion → 2024 ₩891.1 billion → 2025 ₩855.1 billion), and the three-year trend is 'falling'. The rate of decline widened from the prior year. Operating profit rose 2.5% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is -2.5%. The two-year revenue CAGR is -3.0%. In the most recent quarter (Q1 2026), revenue was 2.9% 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 balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 4.0% year over year (3-year trend: falling).
Recent news & events searched · sourced
- 2026-03-24UpdateSerious industrial accident at the Sejong plant (one death); partial work-stoppage order from labor authorities the next dayShort term: a core line (about 37-39% of revenue) halted, directly hitting quarterly production and revenue. Mid term: safety inspections, recurrence-prevention and compensation costs, and heavier regulatory burdens could weigh further on profitability. Source
- 2026-04-20FilingSejong plant production resumption (voluntary disclosure) - stoppage lifted, normalized about 26 days later (3/25-4/19)Short term: with production normalized, a utilization recovery is expected from Q2. Mid term: the pace of recovering the Q1 results damage incurred over the stoppage is the point to watch. Source
- 2026-03-26FilingCorporate value-up plan (voluntary disclosure) - treasury-share cancellation and stable results-linked dividends specified (2025 payout ratio 32.5%, total dividends ₩9.6 billion, +10%)Short term: reaffirmed shareholder-return intent, positive for supply-demand. Mid term: with no numeric revenue or earnings targets, improving capital efficiency, apart from a core-business recovery, depends on returns. Source
- 2026-05-15DividendTreasury-share acquisition trust contract signed (₩5 billion, 2026-05-15 to 08-14, about 590,000 shares planned, entrusted to NH Investment & Securities)Short term: absorbing floating shares is favorable for per-share value and supply-demand. Mid term: if it leads to cancellation of held treasury shares, it improves net assets and earnings per share. Source
- 2026-05-15EarningsQ1 2026 report - revenue ₩217.1 billion (+2.9%), operating profit ₩10.0 billion (-24.2%), net profit ₩8.1 billion (-32.7%)Short term: the top line grew but profitability retreated (partly reflecting the work-stoppage impact, estimated). Mid term: whether cost and utilization recovery flow into earnings from Q2 onward is the crux. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 dividend payout ratio | 32.5% | 32.5% | Confirmed | link |
| Treasury-share trust contract amount | ₩5.0 billion | ₩5,000,000,000 | Confirmed | link |
| Revenue share of the halted production line | — | revenue 37.48% | Confirmed | link |
| This year's operating profit (seasonality approximation) | approx. ₩41.0 billion | — | Unverified | link |
| Latest close | ₩7,790 | — | Unverified | link |
Recent filings
- 2026-06-01Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-05-15TreasuryMaterial-fact report
- 2026-04-20Disclosure
- 2026-04-06Disclosure
- 2026-04-06TreasuryMaterial-fact report
- 2026-04-06Disclosure
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-25Disclosure
- 2026-03-25Disclosure
- 2026-03-18PeriodicAnnual business 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.