Taekwang Industrial (003240) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
Taekwang Industrial earns money from two businesses: petrochemicals (propylene-based and commodity products, about three-quarters of revenue) and textiles such as spandex and aramid. A supply glut from China has pushed petrochemicals into the red, but aramid, an ultra-high-strength fiber for defense and cable reinforcement, is a future growth axis. In March 2026 it completed the acquisition of Aekyung Industrial, a cosmetics and household-goods company, broadening into consumer products, and in May it made a voluntary disclosure of a new facility investment for aramid expansion. What stands out lately is that a hefty net-cash position and net assets more than four times the market cap make the undervaluation signal clear on an asset-value basis; on the other hand, petrochemical commodity products need China's supply glut to ease before margins return, and with net profit leaning heavily on non-operating financial gains, the recovery of core-business margins and the realization of asset value are the points to watch.
This page organises public market and filing data for information purposes. It is not a recommendation to buy or sell, nor investment advice. Metrics labelled “forward” are our own unverified estimates. Please verify with the original DART filings and decide at your own responsibility.
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.
That said, earnings are swinging with the industry cycle right now, so this metric is best viewed alongside asset value and the demand backdrop.
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
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 9.9% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 9.3% higher than a year earlier.
- ROE is 0.8% (controlling-interest basis). It is below the sector average.
- Operating margin is -2.0%.
- P/B is low versus peers too, so it looks cheap on an asset basis as well.
Ownership & governance As of 2025-12-31
Largest shareholder Lee Ho-jin 29.48% (individual)
Controlling bloc incl. related parties 54.53%
With the controlling bloc holding 55%, control is very secure but the free float is thin.
🔎 In-depth analysis Reading
Taekwang Industrial earns money from two broad businesses. The first is petrochemicals, which account for about three-quarters of revenue. It makes and sells propylene-based and commodity chemical products, and with prices depressed by a supply glut from China, this segment is the main culprit behind recent losses. The second is textiles, in the 10-percent range of revenue. Alongside spandex, this includes aramid, an ultra-high-strength fiber for ballistic and industrial use. Aramid is an item growing on demand for defense and cable reinforcement, making it the company's future growth axis. On top of that, in March 2026 it acquired Aekyung Industrial, a cosmetics and household-goods company, broadening into consumer products (B2C).
The latest close is ₩910,000 and the market capitalization is ₩1.0 trillion. The price sits above its 20-day moving average (₩860,000) and above its 60-day moving average (₩900,900). 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 57.0, a neutral level. The one-month change is +5.3%, the three-month change is -21.7%, and the position relative to the 52-week high is -42.0%. Relative strength versus the KOSPI is 29 (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 29% of all stocks. Over the past three months it lagged the index by 4.1%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
The most striking thing is that the P/B (how many times book net assets the share price is) is 0.24. That means it trades at a quarter of its net assets, so the share price is very cheap against assets. The finances are sturdy. The debt ratio (debt relative to equity) is low at 13.6%, and net debt is negative. In other words, it is a net-cash company with roughly ₩417.3 billion more cash than debt. That net cash alone exceeds 40% of the market cap. Profitability splits along different lines. Core operating profit is a ₩36.0 billion loss (operating margin of -2.0%). Yet net profit is a ₩80.8 billion surplus. That is because equity and investment gains from financial affiliates such as Heungkuk Life and Heungkuk Fire add roughly ₩100 billion a year from outside operations. As a result, measuring this company by the P/E (how many times a year's earnings the share price is) alone distorts the picture.
The revenue trend is depressed. 2025 revenue was ₩1.8274 trillion, down 9.9% from the prior year, a third straight year of decline. This owed to weak petrochemical commodity prices. That said, first-quarter 2026 revenue turned direction, rising 9.3% year over year to ₩533.3 billion. The growth drivers are clear. An expansion of the Ulsan para-aramid plant from 1,500 tons to about 5,500 tons a year — roughly a fourfold increase — began operating in March 2026 (investment of about ₩145.0 billion). It targets production of 2,600 tons this year and ramps up in stages to peak operation in 2028. On top of that, Aekyung Industrial was folded into consolidation in March 2026, newly adding consumer-product revenue. The company has officially set a 2030 ROE (return on equity, how much is earned in a year per unit of equity) target of 8%. This year's earnings are expected to be driven more by financial-affiliate gains and the effect of consolidating the new business than by the weak core operations; on a forward basis, today's low net-profit multiple, together with asset value, supports the undervaluation.
Recent disclosures tie together into a single thread of business restructuring. In March 2026 it completed the acquisition of Aekyung Industrial, newly establishing a consumer-product axis in cosmetics and household goods. In May it made a voluntary disclosure of a new facility investment related to aramid expansion, a decision that lifts its ultra-high-strength fiber capacity toward the top tier domestically. In the same May it disclosed the holding of an investor briefing (IR). In June a clarification disclosure regarding rumor or media reports was issued. Large-business-group status disclosures are also filed periodically.
The strengths are assets and finances. Net cash is hefty, and net assets are more than four times the market cap. Even with the core business in the red, financial-affiliate gains keep net profit in surplus. Added to that are the growth axes of aramid expansion and the Aekyung acquisition. This stock shows a clear undervaluation signal when viewed by asset value rather than the P/E. The caution is the timing of the core business's recovery. Petrochemical commodity products need China's supply glut to ease before margins return. With net profit leaning heavily on non-operating financial gains, if those gains wobble the multiple could swing too. The policy of using treasury shares (24.4%) as a funding source for the acquisition rather than cancelling them divides views on the strength of shareholder returns. In sum, the assets, cash, and growth ingredients are strong, and the recovery of core-business margins and the actual realization of asset value are the points to watch.
🔎 Valuation vs peers Undervalued
Large domestic chemical/petrochemical companies with similar business overlap and asset/financial character are taken as the peer set.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Lotte Chemical | 0.00x | 0.19x | -16.19% |
| LG Chem | 0.00x | 0.53x | -5.54% |
| SK Chemicals | 16.54x | 0.33x | 1.98% |
Large petrochemical companies all trade below net assets amid China's supply glut. Lotte Chemical has a P/B of 0.22, and LG Chem too is in a net loss, with the whole industry cycle depressed. Taekwang Industrial's differentiators are two. First, its net cash and net assets are overwhelming. Net cash alone exceeds 40% of the market cap, and net assets are more than four times the market cap. Second, even with the core business in the red, financial-affiliate gains keep net profit in surplus. This company should not be viewed by the earnings multiple (P/E) alone, because net profit is driven by non-operating gains, making the multiple erratic. Viewed by asset value held (net cash + affiliate stakes + operating value), the market cap falls well short of that sum, which reads as undervalued. Last year's P/E of 11.9 is neither low nor especially high, but since the crux of this stock is the asset discount, it is judged undervalued.
Price history Close · MA20 · MA60
The latest close is ₩910,000 and the market capitalization is ₩1.0 trillion. The price sits above its 20-day moving average (₩860,000) and above its 60-day moving average (₩900,900). 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 57.0, a neutral level. The one-month change is +5.3%, the three-month change is -21.7%, and the position relative to the 52-week high is -42.0%. Relative strength versus the KOSPI is 29 (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 29% of all stocks. Over the past three months it lagged the index by 4.1%. 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 -4.12% / 6M -18.43% / 12M -54.33%
Key metrics Computed vs sector median
Valuation
The P/E of 12.54x is in line with the sector median (14.15x). The P/B of 0.25x is below the sector median (0.90x).
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 10.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 0.8%, below the sector average (4.0%). The operating margin is -2.0%. The debt ratio is 13.6%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.5B | $1.4B | $1.3B | -9.87% ↓ slower |
| Operating profit | -$45.5M | -$277,267 | -$25.3M | — |
| Net profit | -$13.0M | $150.7M | $56.8M | -62.33% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.8B | $1.9B | $1.5B | $1.4B | $1.3B |
| Operating profit | $248.6M | -$85.8M | -$45.5M | -$277,267 | -$25.3M |
| Net profit | $222.2M | $240.1M | -$13.0M | $150.7M | $56.8M |
| Revenue CAGR | 4-yr avg -8.37% | ||||
Revenue fell 9.9% year over year (2023 ₩2.1 trillion → 2024 ₩2.0 trillion → 2025 ₩1.8 trillion), and the three-year trend is 'falling'. The rate of decline widened from the prior year. Operating results are in the red, so a swing back to profit matters more than the growth rate here. Over the 5 years on record, revenue compound annual growth (CAGR) is -8.4%. The two-year revenue CAGR is -7.3%. In the most recent quarter (Q1 2026), revenue was 9.3% 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 balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 9.9% year over year (3-year trend: falling).
Recent news & events searched · sourced
- 2026-03-26UpdateCompleted the acquisition of a 31.56% stake in Aekyung Industrial and related steps worth about ₩447.5 billion, folding in the cosmetics and household-goods consumer businessOver the medium term, it diversifies a business tilted toward B2B chemicals and textiles into B2C consumer products. Reflected in consolidated revenue and profit from March 2026, adding a new growth axis. Source
- 2026-05-20FilingVoluntary disclosure of a new facility investment for aramid and others — expanding Ulsan para-aramid capacity (from 1,500 tons to the 5,500-ton class per year)A medium- to long-term growth driver. Expanding ultra-high-strength fiber capacity for defense and cable use toward the top tier domestically, with an expected improvement in textile-segment profitability. Operation begins in 2026, with peak operation targeted for 2028. Source
- 2026-05-20IRDisclosure of a scheduled investor briefing (IR) — external explanation of results and business strategyStrengthens investment communication in the short term. An opportunity for the company to officially explain the direction of new businesses and value-up. Source
- 2026-06-10UpdateFiled a clarification disclosure (undetermined) regarding rumor or media reportsIn the short term, a statement of the company's position on a matter of market interest. As an undetermined matter, follow-up disclosures need to be confirmed. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 revenue | 1₩827.4 billion | approx. 1₩827.4 billion | Confirmed | link |
| 2025 operating profit/loss | -₩36.0 billion | — | Confirmed | link |
| Net debt (net cash) | -₩417.3 billion | — | Unverified | link |
| 2026 estimated net profit (asset/earnings-multiple approximation) | approx. ₩95.0 billion(self-estimate) | — | Unverified | — |
Recent filings Source
- 2026-06-10Disclosure
- 2026-06-05Large-business-group status disclosure (amended)
- 2026-06-05Large-business-group status disclosure (amended)
- 2026-06-02Disclosure
- 2026-06-01Large-business-group status disclosure (amended)
- 2026-06-01Large-business-group status disclosure
- 2026-05-29Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-27Large-business-group status disclosure (amended)
- 2026-05-20Disclosure
- 2026-05-20Amended filing
- 2026-05-20Amended filing
📖 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.