Despite its name, Miwon Commercial is not a food company but a manufacturer of specialty fine-chemical materials for industrial use. Its largest revenue pillar is surfactants, which are used across detergents, cosmetics, and paints, and it also supplies higher-value products such as electronic and functional materials for displays and secondary batteries, polymer additives, and monomers for lenses — a specialty-chemicals structure. In early June it decided on a treasury-share buyback and filed a results report; its May 15 quarterly report confirmed Q1 revenue of ₩117.3 billion and operating profit of ₩9.8 billion, and a corporate governance report was disclosed on June 1. On the positive side, it pairs a stable cash cow with a growth axis in electronic and functional materials, delivering a 10.4% ROE and a 9.9% operating margin, is returning capital to shareholders through the buyback, and the share price has come down about 37% from its 52-week high. On the cautionary side, if softening demand from displays and secondary batteries combines with drawn-out raw-material cost pressure, the recovery in margins could be delayed.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 1.2% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 8.4% higher than a year earlier.
- ROE is 10.4% (controlling-interest basis). It is above the sector average.
- Operating margin is 9.9%.
- P/B is high versus peers, a stretch on an asset basis.
Ownership & governance As of 2016-12-31
Largest shareholder Kim Jung-don 18.2% (individual)
Controlling bloc incl. related parties 57%
With the controlling bloc holding 57%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Miwon Commercial is not a food company by the name 'Miwon' but a manufacturer of fine-chemical materials used in industrial settings.
- Its largest revenue pillar is surfactants (additives that let substances which normally do not mix, like oil and water, blend together, and which go into detergents, cosmetics, textiles, paints, and more), followed by electronic and functional materials used in displays and secondary batteries.
- On top of this it supplies higher-value products such as polymer additives — UV stabilizers and antioxidants that keep plastics from degrading under sunlight and heat — as well as photosensitizers and monomers for lenses.
- In other words, rather than selling cheap basic chemical feedstock in bulk, it runs a specialty (fine) chemicals business that makes small-volume, high-function materials and earns a margin on them.
- The latest close is ₩134,900 and market capitalization is ₩640.8 billion.
- The price sits above the 20-day line (₩120,515) and above the 60-day line (₩129,177).
- Trading above both the short- and mid-term moving averages, the trend is on the healthy side.
- The RSI (a gauge that measures the strength of gains versus losses over the past 14 days on a 0-100 scale) is 61.4, a neutral level.
- The one-month change is +13.2%, the three-month change is +2.2%, and the position versus the 52-week high is -20.1%.
- Relative strength against the KOSPI is 23 (on a 1-99 scale, computed from returns versus 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 78% of all stocks by strength.
- Over the past three months it lagged the index by 17.7%.
- Chart reading is best done alongside volume and the dates on which disclosures occurred.
- On last year's confirmed results (FY2025), the P/E (how many times a year's earnings the shares trade at) is 14.72x and the P/B (how many times net asset value) is 1.54x.
- The P/E on this year's expected earnings is 12.2x, similar to last year, suggesting earnings are holding at a comparable level rather than falling sharply further.
- ROE (how much it earns in a year on its equity) is 10.4%, well above the chemicals-industry average (around 4%) and near the top of the fine-chemicals peer set for profitability.
- With an operating margin of 9.9%, a debt ratio (debt relative to equity) of 118%, a current ratio of 493%, and interest coverage of 7.3x, its short-term funding position and ability to service interest are ample.
- A P/E in the 12x range is not excessive for a fine-chemicals company with this level of profitability and financial stability, and a P/B of 1.29x is reasonable given the steady ROE.
- In other words, the metrics point less to 'expensive and burdensome' than to a price set calmly relative to solid fundamentals.
- Over five years, revenue rose gently from ₩359.8 billion in 2021 to ₩441.1 billion in 2025 (a +5.2% annual average), keeping the top line steady.
- Earnings peaked with operating profit of ₩77.0 billion in 2022 and then eased to ₩43.6 billion in 2025, a stretch in which softening downstream demand for electronic materials overlapped with raw-material cost pressure.
- That said, Q1 2026 revenue of ₩117.3 billion (+8.4% year on year) showed a return to near double-digit top-line growth, and it secured ₩9.8 billion in operating profit.
- The fact that the P/E on this year's expected earnings is 12.2x, almost identical to last year, means annual earnings are stabilizing at a level close to last year's.
- In short, this is a phase in which revenue is reviving and earnings are building a floor: on top of the stable cash cow of surfactants, if demand for display and secondary-battery electronic materials recovers, there is room for margins to open up again.
- Earnings sit below the prior peak, but this year's trend looks more like consolidation than a further sharp drop.
- The recent flow of disclosures can be summed up as 'shareholder returns' and 'confirmed results.' In early June the company decided on a treasury-share buyback (a June 2, 2026 material-fact report) and also filed a results report on its prior purchase (June 1, 2026).
- A treasury-share buyback is when a company uses its own cash to repurchase its shares, increasing each remaining shareholder's stake and supporting the price floor.
- On May 15 the Q1 2026 report was filed, confirming quarterly results of ₩117.3 billion in revenue and ₩9.8 billion in operating profit, and on June 1 a corporate governance report was disclosed, publishing the workings of the board, shareholder rights, and audit functions.
- Executive and largest-shareholder holdings filings were frequent in May and June, but these stemmed from the buyback process and routine holdings reporting, and there is no basis to read them as a separate control issue.
- Overall the moves are consistent, toward executing shareholder returns and disclosure transparency.
- Miwon Commercial's strengths are clear.
- With a specialty-chemicals portfolio pairing the stable cash cow of surfactants with a growth axis in electronic and functional materials, it delivers a 10.4% ROE and a 9.9% operating margin, its balance sheet and liquidity are solid, and it is returning capital via a treasury-share buyback.
- On valuation, a P/E of 12.2x on this year's expected earnings is slightly higher than Miwon Specialty Chemical (13.7% ROE), but weighed together with profitability it is a reasonable level compared with other chemical firms whose earnings are weaker.
- The price, too, has come down about 37% from the 52-week high, easing the burden.
- This company strengthens when demand for display and secondary-battery electronic materials recovers and margins reopen toward their peak, and weakens when soft downstream demand and raw-material cost pressure drag on and delay the earnings recovery.
- In sum, it is a fine-chemicals company where a stable core business and solid finances underpin a calm valuation, with the pace of any profitability recovery determining the upside.
🔎 Valuation vs peers Fairly valued
Rather than the broad KSIC 'chemicals' bucket, the peer set was narrowed to fine (specialty) chemical firms whose actual businesses are similar — Miwon Specialty Chemical (a fine-chemicals company in the same Miwon group), Kukdo Chemical (which makes functional chemicals such as epoxies), and KG Chemical (which combines fertilizers with fine chemicals).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Miwon Specialty Chemical | 8.96x | 1.22x | 13.67% |
| Kukdo Chemical | 15.15x | 0.38x | 2.53% |
| KG Chemical | 3.96x | 0.28x | 6.97% |
(a) Position within the peer set: relative to Miwon Specialty Chemical (P/E 8.56, ROE 13.7%), also a fine-chemicals company, the P/E is higher and the ROE lower, making it look comparatively more expensive; but Kukdo Chemical and KG Chemical have low single-digit ROEs, which makes a simple P/E comparison difficult. Taking profitability (ROE) into account as well, Miwon Commercial sits in the upper-middle of the peer set. (b) Premium/discount: a P/B of 1.45x is higher than peers (mostly 0.3-1.2x), which reads as a kind of premium for stable finances, steady ROE, and shareholder returns. (c) Limits of trailing figures: last year's P/E of 13.9x is computed on reduced earnings, so with earnings inflecting now it is hard to declare the shares outright 'cheap' or 'expensive.' If the forward path implied by a seasonality approximation (further easing of earnings) holds, the appeal of the current P/E diminishes; conversely, if margins recover there is room for re-valuation. All in all, given profitability and finances, we view the shares as being in the 'fairly valued' range.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩118.9 billion | approx. ₩10.2 billion | approx. ₩12.2 billion |
Price history Close · MA20 · MA60
The latest close is ₩134,900 and the market capitalization is ₩640.8 billion. The price sits above its 20-day moving average (₩120,515) and above its 60-day moving average (₩129,177). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 61.4, a neutral level. The one-month change is +13.2%, the three-month change is +2.2%, and the position relative to the 52-week high is -20.1%. Relative strength versus the KOSPI is 23 (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 22% of all stocks. Over the past three months it lagged the index by 17.7%. 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 -17.70% / 6M -42.58% / 12M -65.77%
Key metrics vs sector median
Valuation
The P/E is 14.72x. The P/B of 1.54x is above 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 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.109x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 10.4%, above the sector average (4.0%). The operating margin is 9.9%. The debt ratio is 118.4%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $279.3M | $288.8M | $292.4M | +1.23% ↓ slower |
| Operating profit | $44.6M | $39.7M | $28.9M | -27.26% ↓ slower |
| Net profit | $40.4M | $33.5M | $28.8M | -13.90% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $238.5M | $290.4M | $279.3M | $288.8M | $292.4M |
| Operating profit | $37.9M | $51.0M | $44.6M | $39.7M | $28.9M |
| Net profit | $38.3M | $47.9M | $40.4M | $33.5M | $28.8M |
| Revenue CAGR | 4-yr avg 5.23% | ||||
Revenue rose 1.2% year over year (2023 ₩421.4 billion → 2024 ₩435.8 billion → 2025 ₩441.1 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit fell 27.3% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 5.2%. The two-year revenue CAGR is 2.3%. In the most recent quarter (Q1 2026), revenue was 8.4% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- ROE of 10.4% points to solid profitability.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue rose 1.2% year over year, and the pace is slowing (3-year trend: rising).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-06-02UpdateMaterial-fact report filed on a decision to buy back treasury shares. Share buybacks are typically read as aimed at shareholder returns and defending the price floor.Near term: net buying demand from the buyback is supportive of supply-demand. Medium term: worth checking against financial capacity, given the cash outflow. Source
- 2026-06-01UpdateResults report filed on the prior treasury-share buyback. A disclosure confirming whether the previously decided buyback was actually carried out.Near term: confirms shareholder returns were executed. Medium term: whether purchases repeat determines the durability of the return policy. Source
- 2026-05-15UpdateQ1 2026 report filed. Revenue of ₩117.3 billion (+8.4% year on year) and operating profit of ₩9.8 billion (-27.1% year on year) confirmed top-line growth alongside a softening in profitability.Near term: reconfirmed earnings softness prompts a check on valuation. Medium term: whether margins recover from Q2 is the key. Source
- 2026-06-01FilingCorporate governance report disclosed. A periodic disclosure publishing how the board, shareholder rights, and audit functions operate.Near term: limited impact. Medium term: a resource for checking governance transparency and the institutional foundation of the return policy. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-05OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-05OwnershipLargest-shareholder ownership change report
- 2026-06-02TreasuryMaterial-fact report
- 2026-06-01TreasuryTreasury-stock acquisition decision
- 2026-06-01Corporate governance report
- 2026-05-28OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-28OwnershipLargest-shareholder ownership change report
- 2026-05-21OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-15PeriodicQuarterly report
- 2026-05-13OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-28OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-16OwnershipOfficers'/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.