Michang Oil Industrial is not an integrated refiner that distills crude directly but an industrial-lubricant and functional-oil company that blends additives into base oil and processes and sells purpose-specific specialty oils; by product, lubricants for machine tools, ships and automobiles are the largest at about ₩295.1 billion, with rubber process oil of about ₩77.3 billion and electrical insulating oil of about ₩16.6 billion added, and through a technology tie-up with Japan's ENEOS it focuses on upgrading specialty oils in a mature business of around ₩400 billion a year. In March it raised the 2025 year-end cash dividend to ₩3,500 per share from ₩2,800 a year earlier and, at the same time, flagged a large rise in net profit via a disclosure of a change of 30% or more in profit structure; the May first-quarter report confirmed a double-digit recovery in operating profit, and a June large-holding filing by a 5%-plus shareholder confirmed a change in stake. The point worth watching is that the strengths -- a rock-solid balance sheet with almost no debt and current assets exceeding the market cap, ROE of 14.4%, P/B of 0.45, a raised dividend (₩3,500 per share, about 2.8%), and a P/E in the low single digits on both last year's and this year's expected profit -- come with a mature business where revenue does not grow much, so steadiness rather than explosive growth is the strength, and as a small-cap with thin volume, fills may not be smooth.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 6.1% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 0.1% higher than a year earlier.
- ROE is 14.4% (controlling-interest basis). It is above the sector average.
- Operating margin is 8.5%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Yoo Jae-soon 14.35% (individual)
Controlling bloc incl. related parties 40.24%
With the controlling bloc holding 40%, the ownership structure is stable.
🔎 In-depth analysis
- Michang Oil Industrial is not an integrated refiner that distills crude directly but an industrial-lubricant and functional-oil company that blends additives into base oil and processes and sells purpose-specific specialty oils.
- In the business report the segment is a single one, 'petroleum products manufacturing and sales,' and by product mix, lubricants used in machine tools, ships and automobiles are the largest at about ₩295.1 billion, rubber process oil used in rubber products such as tires and shoes is about ₩77.3 billion, and electrical insulating oil for transformers is about ₩16.6 billion.
- In other words, the main body of revenue is general and specialty lubricants, to which rubber process oil and electrical insulating oil -- areas with barriers to entry -- are added.
- Building on a technology tie-up with Japan's ENEOS, it focuses on upgrading specialty oils, and for automotive use it has a high share of factory filling, in which oil is filled directly at the automaker's plant.
- Revenue runs around ₩400 billion a year and is a mature business held without much variation.
- The latest closing price is ₩136,800 and the market cap is ₩238.0 billion.
- The price sits above the 20-day line (₩130,345) and above the 60-day line (₩124,408).
- Being above both its short- and medium-term moving averages, the trend is on the favorable side.
- The RSI (a supplementary gauge that measures upward versus downward force over the past 14 days on a 0-100 scale) is 60.5, a neutral level.
- The one-month change is +14.4%, the three-month change is +17.3%, and the position versus the 52-week high is -8.3%.
- Relative strength versus the KOSPI is 44 (1-99, computed from returns against the index over the past year with more recent performance weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 56% of all stocks by strength.
- Over the past three months it lagged the index by 7.1%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- The valuation is low across the board.
- The P/E ratio (how many times one year's profit the price represents) is 3.46x and the P/B (how many times the company's net assets the price represents) is 0.50x, so it trades at less than half its net assets.
- Profitability is sound, with ROE (how much is earned in a year on equity) of 14.4%, a net margin of 17.0% and an operating margin of 8.5%.
- The net margin being higher than the operating margin is because non-operating income from the cash and investment assets it holds is added on top of the core margin; with current assets alone at ₩410.3 billion -- exceeding the market cap (₩215.4 billion) -- assets are so abundant that this non-operating income source is structural rather than one-off support.
- The debt ratio (debt against equity) is 11.4% and the current ratio (cash-like assets against debt due within a year) is 10.5x, a balance sheet with almost no debt, and with interest coverage of 28x the interest burden is effectively nil.
- The P/E on last year's confirmed profit is low, and the forward P/E on this year's expected profit is also still in the low single digits at 3.84x.
- That both the trailing and forward figures are low means the trailing multiple is not simply a cheap-looking illusion created by one-off gains; by either earnings or assets, this is a stock with a low price.
- The top line is stable, as befits a mature business.
- Revenue has held in the ₩400 billion range over five years (2021-2025); last year it was down 6.1% year over year and operating profit down 24.3%, so the core business was somewhat held down, but given how lubricant demand rises and falls with the economy, this is closer to a normal-range fluctuation than serious structural damage.
- Net profit rose 30.9% to ₩68.9 billion last year, a third straight year of increase, supported by non-operating income from abundant assets.
- On a quarterly basis, first-quarter 2026 operating profit rose 25.5% from the same period a year earlier, a clear recovery signal for the core business, and net profit jumped 443%.
- The forward P/E on this year's expected profit (on this year's expected profit basis) coming out low at 3.84x is precisely the result of this core-business recovery, the steady non-operating income the assets generate, and the raised dividend reflected together.
- It is a figure that sums the core margin recovery and the non-operating income normalized to a normal-year level, rather than simply multiplying one quarter's result by four, and with this level of earnings power it is natural for the forward P/E to stay in the low single digits.
- It is not a growth stock whose revenue jumps sharply, but a type where a stable profit flow and thick assets form the foundation of profit.
- Recent disclosures center on the dividend, periodic reports and stake changes.
- In March, it set the 2025 year-end cash dividend at ₩3,500 per share, up from ₩2,800 a year earlier, and at the same time flagged a large rise in net profit via a 'change of 30% or more in revenue or profit structure' disclosure.
- The March shareholders' meeting and the filing of the business report and audit report followed, and in May the first-quarter report confirmed a double-digit recovery in operating profit.
- In June, a 'large-holding report' by a 5%-plus shareholder was filed, showing there had been a change in stake.
- No separate large order or new investment disclosure is seen, so it is closer to the disclosure pattern of a mature company that carries on with a stable dividend and a solid balance sheet rather than top-line expansion.
- This is a stock with distinct strengths.
- A rock-solid balance sheet with almost no debt and current assets exceeding the market cap, a sound ROE of 14.4%, a share price at about half of net assets (P/B 0.45), a raised dividend (₩3,500 per share, dividend yield of about 2.8%) and a first-quarter recovery in operating profit are all in place -- and above all, whether by last year's profit or this year's expected profit, the P/E stays in the low single digits, an undervalued zone.
- By any yardstick -- assets, profitability or price -- it belongs on the cheap and safe side.
- Points to consider together are that, as a mature business where revenue does not grow much, steadiness rather than explosive growth is the strength, and that as a small-cap with thin volume, fills may not be smooth when trading.
- In short, this is a stock in which the force of undervaluation clearly shows in a phase supported by a core-business profit recovery and abundant assets and dividends, and a type whose appeal may stand out relatively less in a phase where rapid top-line growth is expected.
🔎 Valuation vs peers Undervalued
Rather than the large refiners that distill crude, it is appropriate to use as peers functional-oil companies of similar scale and structure that blend and process lubricants and specialty oils. Large refining and chemical firms sit at a different point in their cycle, so direct comparison is distorted.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| S-Oil | 84.94x | 1.69x | 1.99% |
| Kumho Petrochemical | 9.68x | 0.45x | 4.66% |
| SK Innovation | — | 0.77x | -15.36% |
Large refiners (S-Oil, SK Innovation) have P/Es in the 60x range or are loss-making, taking the full brunt of the refining down-cycle, so they are not suitable as a comparison benchmark. Even against Kumho Petrochemical on the chemical side (P/E 11x, P/B 0.52), Michang Oil trades at a lower level relative to earnings and assets, with a P/E of 3.18x, P/B of 0.46x and ROE of 14.4%, so on the numbers alone it sits in a discount zone versus peers. That said, this low P/E is based on last year's confirmed (trailing) profit, and a limit is that this profit carries a large mix of non-operating income that varies year to year. Normalizing the non-operating income and looking at this year's expected (forward) profit raises the multiple somewhat, but even so the absolute level is still on the low side. If abundant assets and a stable dividend are factors that narrow the discount, then slowing core-business growth and reliance on non-operating income are factors that justify the discount, so rather than declaring it cheap outright, it is appropriate to look at why it is cheap as well.
Price history Close · MA20 · MA60
The latest close is ₩136,800 and the market capitalization is ₩238.0 billion. The price sits above its 20-day moving average (₩130,345) and above its 60-day moving average (₩124,408). 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 60.5, a neutral level. The one-month change is +14.4%, the three-month change is +17.3%, and the position relative to the 52-week high is -8.3%. Relative strength versus the KOSPI is 44 (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 44% of all stocks. Over the past three months it lagged the index by 7.1%. 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 -7.11% / 6M -31.81% / 12M -47.00%
Key metrics vs whole-market median
Valuation
The P/E of 3.46x is below the whole-market median (13.81x). The P/B of 0.50x 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. 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.
Profitability & financials
Return on equity (ROE) is 14.4%, above the whole-market average (5.0%). The operating margin is 8.5%. The debt ratio is 11.4%, so the financial structure is stable.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $271.2M | $286.3M | $268.7M | -6.12% ↓ slower |
| Operating profit | $31.8M | $30.2M | $22.9M | -24.29% ↓ slower |
| Net profit | $31.6M | $34.9M | $45.6M | +30.86% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $269.3M | $277.6M | $271.2M | $286.3M | $268.7M |
| Operating profit | $23.5M | $29.2M | $31.8M | $30.2M | $22.9M |
| Net profit | $22.0M | $15.5M | $31.6M | $34.9M | $45.6M |
| Revenue CAGR | 4-yr avg -0.05% | ||||
Revenue fell 6.1% year over year (2023 ₩409.2 billion → 2024 ₩431.9 billion → 2025 ₩405.5 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 24.3% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is -0.1%. The two-year revenue CAGR is -0.5%. In the most recent quarter (Q1 2026), revenue was 0.1% 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.
- ROE of 14.4% points to solid profitability.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 6.1% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-03-11DividendDecided a 2025 year-end cash dividend of ₩3,500 per common share (raised from ₩2,800 a year earlier).It forms a dividend yield of about 2.8% and shows a will to expand shareholder returns. That said, with a payout ratio in the 7-8% range, there is still large room relative to profit. Source
- 2026-03-20Earnings[Corrected] Disclosure of a change of 30% or more (15% for large corporations) in revenue or profit structure -- flagging a large change in 2025 net profit.The official basis for the +30.9% rise in net profit. A clue to confirm the structure in which operating profit fell but net profit rose as non-operating income was added. Source
- 2026-03-20FilingFiling of the 2025 business report (on a separate basis, revenue ₩405.5 billion, operating profit ₩34.6 billion, net profit ₩68.9 billion).The primary source for confirmed annual results and the place to confirm revenue mix by segment and product (lubricants ₩295.1 billion, rubber process oil ₩77.3 billion, electrical insulating oil ₩16.6 billion). It confirms a year in which core-business softness and a net-profit improvement appeared together. Source
- 2026-05-15EarningsFiling of the first-quarter 2026 report -- revenue ₩101.1 billion (+0.1% YoY), operating profit ₩13.7 billion (+25.5%), net profit ₩16.9 billion (+443%).Confirms a double-digit recovery in core operating profit. The surge in net profit owes much to the low base a year earlier, so simple annualization warrants caution. Source
- 2026-06-09UpdateFiling of a large-holding report (general) by a 5%-plus shareholder -- a change in stake occurred.Given small-cap characteristics, a change in a major shareholder's stake can affect supply and demand, so monitoring is needed. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Cash dividend per share (2025 year-end) | DPS ₩3,500 / 2.78% | 1 ₩3,500 | Confirmed | link |
| Change in 2025 net profit | net profit 689 / YoY +30.9% | 30% | Confirmed | link |
| Annual results (2025) | revenue 4,055 / operating profit 346 / net profit 689 | revenue 4,055 / operating profit 346 / net profit 689 | Confirmed | link |
| This year's estimated net profit (annual) | approx. 560 | — | Unverified | link |
Recent filings
- 2026-06-09OwnershipOwnership-change filing
- 2026-05-28Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-05-11OwnershipOwnership-change filing
- 2026-03-30Shareholders' meeting notice
- 2026-03-30Disclosure
- 2026-03-20EarningsAmended filing
- 2026-03-20Audit report
- 2026-03-20PeriodicAnnual business report
- 2026-03-13Disclosure
- 2026-03-13Shareholders' meeting notice
- 2026-03-11DividendCash/stock dividend decision
📖 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.