KCC (002380) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
KCC makes money from three businesses - silicone (its largest business at about 53% as of the first three quarters of 2025, grown through the acquisition of the U.S. firm Momentive), building materials such as insulation and gypsum board, and paints - while holding large stakes in several listed companies, including about 10% of Samsung C&T, making it a 'manufacturer plus investment-asset' company. Recent disclosures center on governance and shareholder-return flows rather than large earnings events, with reports on officer and major-shareholder holdings, the Q1 report and IR, and, in June, a bulk-holding status report and progress on a treasury-share acquisition trust contract, bringing the use of its holdings and treasury shares to the fore as key variables. What stands out recently is that its share price trades at a steep discount to the market value of its holdings - the Samsung C&T stake alone approaches its entire market cap - so if capital policies such as monetizing stakes or retiring treasury shares are executed, the NAV discount could narrow. At the same time, its net profit swings heavily with stock-market prices and its core operating profit has recently been declining, so it is strong only when a core-business recovery and asset-value realization proceed together.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Chemicals” (Chemicals, Refining, Steel & Materials), a type typically read first through P/B.
Chemicals is a cyclical business where profits swing with feedstock prices and product spreads, ballooning in upturns and often slipping into losses in downturns. That makes earnings-based multiples unreliable, so price-to-book (P/B) — the share price against the value of the company's heavy asset base — is the first lens.
Price against assets alone says little about where the cycle stands. Reading it together with price against this year's expected earnings shows how far profits have recovered.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue fell 2.6% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 1.7% higher than a year earlier.
- ROE is 21.1% (controlling-interest basis). It is above the sector average.
- Operating margin is 6.3%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Chung Mong-jin 20% (individual)
Controlling bloc incl. related parties 35%
With the controlling bloc holding 35%, the ownership structure is stable.
🔎 In-depth analysis Reading
KCC makes money mainly from three businesses. First, silicone. Grown through the acquisition of the U.S. firm Momentive, it has now become the largest business, accounting for about half of total revenue (about 53% as of the cumulative first three quarters of 2025). It makes silicone materials used in semiconductors, electronics, automobiles, and cosmetics. Second, building materials. These are interior and exterior building materials such as insulation (glasswool), gypsum board, and flooring, where it is a domestic front-runner. Third, paints, supplying coatings for construction, automobiles, and ships. On top of this, a major feature of KCC is that it holds large stakes in several listed companies, including about 10% of Samsung C&T. In other words, KCC runs a 'manufacturer plus investment assets' together, and this structure changes the way its earnings and valuation are read.
The latest close is ₩429,500 and the market capitalization is ₩3.7 trillion. The price sits above its 20-day moving average (₩410,250) and below its 60-day moving average (₩483,833). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 50.4, a neutral level. The one-month change is -9.0%, the three-month change is -31.1%, and the position relative to the 52-week high is -36.8%. Relative strength versus the KOSPI is 24 (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 23% of all stocks. Over the past three months it lagged the index by 13.6%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
On the headline numbers alone, the P/E ratio (how many times one year's net profit the share price is) of 2.40x and the P/B ratio (how many times book net assets the share price is) of 0.46x are very low. But these figures cannot be taken at face value. The 2025 net profit of ₩1,538.5 billion is more than triple the operating profit of ₩427.6 billion, and most of this gap comes from non-operating items such as valuation gains on held listed shares (Samsung C&T and others). In other words, the low P/E means not that 'the business is cheap' but that 'earnings are mixed with highly volatile asset-valuation gains.' Conversely, the profitability metric ROE (how much is earned in a year on shareholders' equity) is captured high at 19.7%, but this too is partly inflated by valuation gains. The debt ratio (debt relative to equity) of 114.8% is not heavy, but the interest coverage ratio (how many times operating profit covers interest) of 0.65x is low, meaning that the interest burden that grew during the silicone acquisition is not fully covered by operating profit alone. The dividend yield of 3.1% (₩15,000 per share) is steady.
Revenue in 2025 was ₩6,483.8 billion, -2.6% year on year, and the trend over the past three years is mixed. Operating profit also fell 9.2% to ₩427.6 billion in 2025, so core profitability is not noticeably improved. In the first quarter of 2026, revenue was roughly flat at +1.7% while operating profit retreated 14.8%. Net profit, on the other hand, jumped sharply from ₩167.6 billion in 2023 to ₩343.8 billion in 2024 to ₩1,538.5 billion in 2025, and Q1 net profit was +392% year on year, but this surge owes more to a rebound in the value of held listed shares and the disappearance of past equity-method losses following the acquisition of the remaining Momentive stake than to core-business improvement. The trajectory the company presents is one in which silicone improves in profitability toward the second half, by cutting the share of low-priced products and raising mid- to high-priced selling prices. That said, because net profit itself is heavily swayed by stock-market prices, KCC is a company for which a forward-P/E-style projection of 'so many times this year's net profit' does not fit well. Viewing it by the value of its holdings rather than its earnings is closer to the substance.
Recent disclosures center on governance and shareholder-return flows rather than large earnings events. Reports on holdings of specified securities by officers and major shareholders recurred in April and May, and in May the Q1 report and notice of an investor briefing (IR) followed. In June came a bulk-holding status report on shares and progress on a treasury-share acquisition trust contract. KCC holds a substantial portion of its issued shares as treasury shares, so the use (monetization, retirement, and so on) of these shares and of its large listed-company holdings is a key variable for the share price. Based on the disclosure texts, this is a phase in which asset and capital-policy material leads business earnings.
The point to watch: KCC's real value lies not in business earnings (P/E) but in net asset value (NAV) including the market value of its holdings. The Samsung C&T stake alone carries a value approaching KCC's entire market cap, and on top of that sit other listed stakes such as HD Korea Shipbuilding & Offshore Engineering, HDC, and the HL group, plus the operating value of silicone, building materials, and paints. The market applies a steep discount to this bundle of assets, so the share price is at a considerable discount to the market value of its holdings. Strong conditions: if capital policies such as monetizing holdings (especially Samsung C&T) or retiring treasury shares are executed, the NAV discount could narrow, and improvements in silicone selling prices and mix would support core earnings. Cautions: net profit swings heavily with stock-market prices, so looking at a single quarter's profit creates a large illusion; core operating profit has recently been declining; and the interest burden shows up in the low interest coverage ratio. In the end, this stock is strong when a core-business recovery and asset-value realization proceed together, and weak when its assets stay locked on the books and unreflected in the market.
🔎 Valuation vs peers Undervalued
A comparison group that considers both its materials and chemicals businesses (silicone, building materials, paints) and its strong net-asset-value character from holding large listed stakes.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hansol Chemical | 17.25x | 2.19x | 13.99% |
| Lotte Fine Chemical | 11.54x | 0.50x | 5.01% |
| OCI Holdings | — | 1.13x | -2.29% |
KCC is hard to compare with its materials and chemicals peers on simple P/E and P/B. The headline P/E of 2.66x looks low not because the business is cheap but because net profit is mixed with highly volatile asset gains such as valuation gains on held listed shares, and the P/B of 0.52x actually understates the real discount because book net assets reflect its holdings at acquisition cost and thus capture them below their true asset value. In other words, this is a stock with both an earnings inflection and asset undervaluation at once, so the meaning of a P/E based on last year's earnings is limited. The key is the market value of its held listed stakes: the value of the Samsung C&T stake alone approaches KCC's entire market cap, and to that are added other listed stakes and the operating value of silicone, building materials, and paints. Viewed through this net-asset-value (NAV) lens, the current share price is at a steep discount to the market value of its holdings, so we judge it Undervalued. That said, this discount is of a kind that narrows only when the assets are actually reflected and realized in the market, so it strengthens the more that capital policy (stake monetization, treasury-share retirement, and so on) and a core-business recovery are confirmed together.
Price history Close · MA20 · MA60
The latest close is ₩429,500 and the market capitalization is ₩3.7 trillion. The price sits above its 20-day moving average (₩410,250) and below its 60-day moving average (₩483,833). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 50.4, a neutral level. The one-month change is -9.0%, the three-month change is -31.1%, and the position relative to the 52-week high is -36.8%. Relative strength versus the KOSPI is 24 (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 23% of all stocks. Over the past three months it lagged the index by 13.6%. 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 -13.55% / 6M -28.77% / 12M -41.27%
Key metrics Computed vs sector median
Valuation
The P/E of 2.40x is below the sector median (14.15x). The P/B of 0.46x is below the sector median (0.90x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets. 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) Estimate
Model output — not a price target. This is what the formula returns under the assumptions below, not a view on where the share price should go.
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 21.1%, above the sector average (4.0%). The operating margin is 6.3%. The debt ratio is 117.6%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $4.4B | $4.7B | $4.6B | -2.63% ↓ slower |
| Operating profit | $219.6M | $331.0M | $300.4M | -9.23% ↓ slower |
| Net profit | $117.7M | $241.5M | $1.1B | +347.47% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $4.1B | $4.8B | $4.4B | $4.7B | $4.6B |
| Operating profit | $273.1M | $328.5M | $219.6M | $331.0M | $300.4M |
| Net profit | -$32.2M | $23.8M | $117.7M | $241.5M | $1.1B |
| Revenue CAGR | 4-yr avg 2.50% | ||||
Revenue fell 2.6% year over year (2023 ₩6.3 trillion → 2024 ₩6.7 trillion → 2025 ₩6.5 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 9.2% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 2.5%. The two-year revenue CAGR is 1.5%. In the most recent quarter (Q1 2026), revenue was 1.7% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
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 3.5%, is on the high side.
- ROE of 21.1% points to solid profitability.
Points to watch
- Revenue fell 2.6% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-06-08FilingFiled a bulk-holding status report on shares (general) - updated the status of and changes in holdingsShort term: material for checking the structure of and any changes in the large listed stakes. Medium term: a governance signal tied to the possibility of monetizing or using the holdings Source
- 2026-05-29FilingReport on the progress of a treasury-share acquisition trust contract (first) - disclosure of progress on the treasury-share policyShort term: a support factor on the shareholder-return and supply-demand side. Medium term: the future use (retirement and so on) of the large treasury-share block is the key variable for narrowing the NAV discount Source
- 2026-05-15IRNotice of an investor briefing (IR) and filing of the Q1 2026 reportShort term: shares the Q1 results (revenue ₩1.63 trillion, operating profit ₩88.1 billion, net profit ₩217.0 billion) and the direction of each division. Medium term: a channel for confirming the trajectory of silicone selling-price and mix improvements Source
- 2026-05-06EarningsDisclosure of provisional operating results on a consolidated basis - announcement of provisional Q1 resultsShort term: confirms that the surge in net profit (+392% year on year) reflects a rebound in asset value. Medium term: requires observing the separation of the core operating-profit decline (-14.8%) from asset gains and losses Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-06-08OwnershipOwnership-change filing
- 2026-06-04Disclosure
- 2026-05-29Large-business-group status disclosure
- 2026-05-29Large-business-group status disclosure
- 2026-05-29Corporate governance report
- 2026-05-22OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-15PeriodicQuarterly report
- 2026-05-15Disclosure
- 2026-05-08OwnershipOwnership-change filing
- 2026-05-06EarningsFair-disclosure notice
- 2026-04-30OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-28OwnershipOfficers'/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.