Songwon Industrial is a materials company that makes polymer stabilizers (antioxidants) which keep plastics and rubber from degrading under sunlight and heat, a No. 2-tier player worldwide in this field (about 20% market share), with roughly two-thirds of total revenue coming from plastic stabilizers in an export-centered structure. In February it disclosed a dividend of ₩300 per share (a dividend yield of about 2.95%) and in March a corporate-value-up plan, and in late April, first-quarter preliminary results showed operating profit and net profit both rising sharply, confirming an earnings recovery out of last year's trough. What stands out lately is that an asset undervaluation of trading at a third of net assets (P/B of 0.31x) combines with a sharp first-quarter earnings rebound, a No. 2-tier global market position, and a dividend of about 3%, while the nature of chemical materials means margins rise and fall with front-end demand and raw-material prices, so it must be confirmed whether this recovery settles in over subsequent quarters, revenue is still in a plateau stretch, and the debt ratio of 151% is not light either.
At-a-glance assessment financial health · growth · profitability · valuation
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue fell 2.9% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 2.4% lower than a year earlier.
- ROE is 0.3% (controlling-interest basis). It is below the sector average.
- Operating margin is 2.1%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Songwon Mulsan 23.88% (corporate)
Controlling bloc incl. related parties 35.63%
With the controlling bloc holding 36%, the ownership structure is stable.
🔎 In-depth analysis
- Songwon Industrial is a company that makes "polymer stabilizers (antioxidants)," which keep plastics and rubber from degrading under sunlight and heat.
- It is a global No.
- 2-tier player accounting for about 20% of the world market in this field, and roughly two-thirds of total revenue comes from plastic stabilizers.
- The rest consists of PVC stabilizers, tin intermediates (organotin compounds), fuel and lubricant additives, polyurethane, and specialty chemicals for electrical and electronic use.
- Put simply, it is a materials company selling "life-extension additives" for plastics and chemical products, with an export-centered structure earning a substantial part of revenue overseas.
- The latest close is ₩12,220 and the market cap is ₩293.3 billion.
- The price sits above its 20-day line (₩10,766) and above its 60-day line (₩11,272).
- Above both its short- and mid-term moving averages, the trend is on the healthy side.
- The RSI (a supplementary gauge that weighs upward versus downward strength over the past 14 days on a 0-100 scale) is 64.9, a neutral level.
- The one-month change is +20.3%, the three-month change is +38.4%, and the price stands -22.9% from its 52-week high.
- Relative strength versus the KOSPI is 47 (on a 1-99 scale that converts return versus the index over the past year, weighting recent performance more heavily; higher means stronger than the market).
- That places it in roughly the top 53% of all stocks by strength.
- Over the past three months it outpaced the index by 7.2%.
- It is best to read the chart alongside trading volume and disclosure dates.
- On last year's (2025) confirmed results, the P/E (how many times one year's earnings the price is) looks very high at 125.46x, but this is an illusion created because last year's net profit shrank sharply to ₩2.3 billion in a "trough year." In a company passing an earnings inflection point, a P/E calculated on already-past one-year earnings inflates the appearance of value and makes it look expensive.
- It is also low compared with other chemical stocks, so this reads not as a burden but rather as an undervaluation signal.
- The P/B (how many times net assets the price is) is likewise 0.31x, trading at a third of the net assets the company holds (about ₩31,000 per share).
- On the financial side, the debt ratio (debt to equity) of 151% is somewhat high, but a current ratio of 218% leaves ample short-term payment ability.
- Last year's profitability (ROE 0.3%, operating margin 2.1%) was weak, but this was a temporary figure at the industry trough and is recovering quickly from the first quarter.
- In sum, it is in a state of "thick assets and earnings turning up after hitting bottom."
- Over the past three years, revenue has plateaued around ₩1 trillion (-2.9% in 2025), and profit fell to operating profit of ₩21.8 billion and net profit of ₩2.3 billion in 2025 amid a chemical-industry slowdown.
- But the flow changed clearly in the first quarter of 2026.
- First-quarter operating profit of ₩26.6 billion rose 143% from the same period last year, already surpassing last year's full-year operating profit in a single quarter, and net profit surged 272% to ₩18.1 billion, earning in one quarter about seven times last year's full-year net profit.
- The low P/E on this year's expected earnings is precisely the result of this recovery being reflected.
- Antioxidants are essential additives used more as plastics and rubber production rises, so in phases where front-end demand revives and the spread between product prices and raw-material costs widens, margins thicken quickly.
- A No.
- 2-tier global share and an export base underpin this recovery.
- A single first quarter cannot settle the full year, but operating profit and net profit both turning up, and by wide margins, is closer to a signal that core margins are improving than a one-off cost effect.
- A shareholder-return flow continued into 2026.
- In February it decided on a cash and in-kind dividend, setting ₩300 per share (a dividend yield of about 2.95%), and in March it voluntarily disclosed a "corporate-value-up plan" in line with the exchange's program, presenting a medium- to long-term direction for enhancing shareholder value.
- In the first-quarter preliminary results announced via fair disclosure in late April, operating profit and net profit both rose sharply, officially confirming the earnings recovery, and in May it filed the first-quarter report and the corporate-governance report.
- The overall flow of disclosures points in one direction: "passing the earnings trough plus strengthening shareholder returns."
- This is a stock with clear strengths.
- On top of an asset undervaluation of trading at a third of net assets (P/B of 0.31x), first-quarter 2026 operating profit and net profit both rebounded sharply, breaking out of last year's trough.
- Add to this a stable No.
- 2-tier global market position in antioxidants, a dividend of about 3%, and a corporate-value-up plan.
- The point to examine comes from the nature of the business.
- Chemical materials are an industry where margins rise and fall with front-end demand and raw-material prices, so it is natural to keep confirming whether this recovery settles in over subsequent quarters.
- Revenue itself is still in a plateau stretch, and the debt ratio of 151% is not on the light side.
- In sum, it is a structure where its appeal versus asset value stands out sharply when the industry recovery and margin improvement continue, and a stock where the first-quarter signal of that recovery has already come out strongly.
🔎 Valuation vs peers Undervalued
Compared against domestic chemical stocks handling polymer and fine-chemical materials (Lotte Chemical, Kolon Industries), though Songwon Industrial is a specialized-materials company as a No. 2-tier global antioxidant player, differing in business grain from commodity petrochemicals.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Lotte Chemical | 0.00x | 0.21x | -16.19% |
| Kolon Industries | 42.63x | 0.42x | 0.97% |
Like the comparison group Lotte Chemical (P/B 0.27x, ROE -16.2%) and Kolon Industries (P/B 0.51x), the chemical sector as a whole is in a downcycle stretch heavily discounted versus net assets. Songwon Industrial is likewise in undervalued territory on assets with a P/B of 0.32x, a position similar to its peers. The key is that last year's P/E of 104x is a figure inflated by the thin earnings of a "trough year" (the limits of the trailing P/E in an earnings inflection phase). Reviewing the sharp first-quarter earnings rebound on this year's earnings basis lowers the valuation burden greatly. That said, given the swings of the chemical industry, rather than declaring it "cheap outright," the condition for resolving the undervaluation is whether the earnings recovery continues over subsequent quarters.
Price history Close · MA20 · MA60
The latest close is ₩12,220 and the market capitalization is ₩293.3 billion. The price sits above its 20-day moving average (₩10,766) and above its 60-day moving average (₩11,272). 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 64.9, a neutral level. The one-month change is +20.3%, the three-month change is +38.4%, and the position relative to the 52-week high is -22.9%. Relative strength versus the KOSPI is 47 (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 47% of all stocks. Over the past three months it outpaced the index by 7.2%. 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 +7.20% / 6M -15.45% / 12M -58.88%
Key metrics vs sector median
Valuation
The P/E of 125.46x is above the sector median (14.79x). The P/B of 0.39x is below the sector median (0.97x). 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)
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 0.3%, below the sector average (4.0%). The operating margin is 2.1%. The debt ratio is 150.9%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $682.6M | $709.3M | $688.7M | -2.90% ↓ slower |
| Operating profit | $38.8M | $41.6M | $14.5M | -65.22% ↓ slower |
| Net profit | $23.1M | $29.9M | $1.5M | -94.82% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $661.6M | $881.2M | $682.6M | $709.3M | $688.7M |
| Operating profit | $70.1M | $122.7M | $38.8M | $41.6M | $14.5M |
| Net profit | $47.9M | $87.4M | $23.1M | $29.9M | $1.5M |
| Revenue CAGR | 4-yr avg 1.01% | ||||
Revenue fell 2.9% year over year (2023 ₩1.0 trillion → 2024 ₩1.1 trillion → 2025 ₩1.0 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 65.2% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 1.0%. The two-year revenue CAGR is 0.4%. In the most recent quarter (Q1 2026), revenue was 2.4% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- Revenue fell 2.9% year over year (3-year trend: mixed).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-04-28EarningsConsolidated first-quarter 2026 preliminary-results fair disclosure - operating profit of ₩26.6 billion (+143% year on year) and net profit of ₩18.1 billion (+272%), a sharp rebound from last year's weaknessPositive both near- and mid-term. A single quarter's operating profit surpassed last year's full-year figure, officially confirming a passing of the earnings trough. Source
- 2026-03-20FilingVoluntary disclosure of a corporate-value-up plan - presenting a medium- to long-term direction for enhancing shareholder value under the exchange's value-up programMid-term, it supports expectations of shareholder returns and improved capital efficiency. Source
- 2026-02-23DividendCash and in-kind dividend decision - ₩300 per share, a dividend yield of about 2.95%Maintaining a dividend even in a period of weak earnings continues the shareholder-return stance. Source
- 2026-05-13FilingFiling of the first-quarter 2026 quarterly report - the first-quarter earnings recovery confirmed in formal financial statementsConfirms the final figures against the preliminary results, reinforcing information reliability. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-02PeriodicAnnual business report (amended)
- 2026-05-29Corporate governance report
- 2026-05-13PeriodicQuarterly report
- 2026-04-28EarningsFair-disclosure notice
- 2026-03-20Disclosure
- 2026-03-19Shareholders' meeting notice
- 2026-03-04Shareholders' meeting notice
- 2026-03-04PeriodicAnnual business report
- 2026-03-03Audit report
- 2026-02-23Shareholders' meeting notice
- 2026-02-23DividendCash/stock dividend decision
- 2026-02-23DividendCash/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.