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.
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 2.1% (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
- 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 ₩806,000 and the market cap is ₩897.4 billion.
- The price sits below its 20-day line (₩862,050) and below its 60-day line (₩1,009,567).
- Trading beneath both its short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge comparing upward and downward strength over the past 14 days on a 0-100 scale) is 37.8, a neutral level.
- The one-month change is -10.9%, the three-month change is -27.8%, and the position versus the 52-week high is -48.7%.
- Relative strength against the KOSPI is 31 (on a 1-99 scale, converted from returns versus the index over the past year with heavier weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 69% of all stocks by strength.
- Over the past three months it lagged the index by 45.2%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- 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 | 0.21x | -16.19% |
| LG Chem | 0.00x | 0.55x | -5.54% |
| SK Chemicals | 15.81x | 0.31x | 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 ₩806,000 and the market capitalization is ₩897.4 billion. The price sits below its 20-day moving average (₩862,050) and below its 60-day moving average (₩1,009,567). 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 37.8, a neutral level. The one-month change is -10.9%, the three-month change is -27.8%, and the position relative to the 52-week high is -48.7%. Relative strength versus the KOSPI is 31 (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 31% of all stocks. Over the past three months it lagged the index by 45.2%. 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 -45.22% / 6M -32.59% / 12M -66.53%
Key metrics vs sector median
Valuation
The P/E of 11.10x is below the sector median (14.79x). The P/B of 0.23x 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 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 2.1%, 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 | $1.4B | $1.3B | $1.2B | -9.87% ↓ slower |
| Operating profit | -$42.9M | -$261,586 | -$23.9M | — |
| Net profit | -$12.3M | $142.2M | $53.6M | -62.33% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.7B | $1.8B | $1.4B | $1.3B | $1.2B |
| Operating profit | $234.6M | -$80.9M | -$42.9M | -$261,586 | -$23.9M |
| Net profit | $209.7M | $226.5M | -$12.3M | $142.2M | $53.6M |
| 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 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 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
- 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.
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