ISU Chemical's core business is petrochemicals — using kerosene and benzene as feedstock to make LAB, a raw material for synthetic detergents, and normal paraffin — which made up about 84% of consolidated revenue in 2025, on top of which construction and biopharmaceutical subsidiaries are layered, so profitability swings heavily with oil prices and the kerosene-to-product spread. In 2025 standalone operating profit grew to ₩29.7 billion (+934%), widening the surplus, and in Q1 2026 consolidated revenue was ₩635.9 billion (+58.7%) with operating profit of ₩25.4 billion, a swing back to profit that confirmed a profit recovery over two consecutive quarters, and the forward P/E reflecting this profit is below the sector median. The point to watch: if the spread stays favorable and the quarterly surplus firms up into an annual one, the low forward P/E is justified, whereas with a debt ratio of 934% and a current ratio of 81% the finances are tight, and if oil prices or the spread turn, the financial burden could come back into focus.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 934.0%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 81.0%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The most recent full-year net result was a loss.
- Revenue fell 13.4% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 58.7% higher than a year earlier.
- ROE is -32.3% (controlling-interest basis). It is below the sector average.
- Operating margin is 0.4%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder ISU 34.73% (corporate)
Controlling bloc incl. related parties 37.61%
With the controlling bloc holding 38%, the ownership structure is stable.
🔎 In-depth analysis
- ISU Chemical's core business is petrochemicals, using kerosene and benzene as feedstock to make LAB (linear alkylbenzene, the key raw material for synthetic detergents and surfactants) and normal paraffin (NP).
- About 84% of 2025 consolidated revenue came from this petrochemical line (LAB, NP, LAS, hard alkylbenzene and the like).
- Because 90% of raw-material purchases are kerosene (bought entirely from S-Oil), profitability is heavily shaped by oil prices and the price gap (spread) between kerosene and product.
- The remainder is construction through subsidiaries (apartments, public buildings, plants; about 13% of revenue) plus biopharmaceuticals (Clotinab, Abcertin and others; about 3%).
- In its business report the company states that it is pursuing the commercialization of special alkylate and special normal paraffin, which carry higher margins than existing LAB and NP, so its direction of shifting the core product mix toward higher margins is clear.
- The latest closing price is ₩12,510 and the market cap is ₩328.9 billion.
- The price sits below the 20-day line (₩13,280) and above the 60-day line (₩11,993).
- With the short- and mid-term trends diverging, direction should be read separately.
- The RSI (a supplementary gauge that compares upward and downward strength over the past 14 days on a 0-100 scale) is 48.0, a neutral level.
- The one-month change is +1.6%, the three-month change is +60.4%, and the position versus the 52-week high is -25.1%.
- Relative strength against the KOSPI is 74 (1-99, converting return versus the index over the past year with more weight on recent moves; higher means stronger than the market).
- That places it in roughly the top 25% of all stocks by strength.
- Over the past three months it outpaced the index by 23.6%.
- Chart reading is best done alongside trading volume and disclosure dates.
- On a confirmed annual basis (2025 consolidated), the P/E ratio (how many times a year's net profit the price is) cannot be calculated because net profit is a loss, and the P/B (how many times net assets the price is) is 3.42x.
- That is higher than the chemicals-sector median (1.00x), so it looks expensive on the number alone, but this company is at a profit inflection from loss to surplus, so last year's trailing figures do not capture the real picture.
- The key is the timing gap.
- Last year's annual operating profit was only ₩6.9 billion, yet Q1 2026 consolidated operating profit (₩25.4 billion) exceeded that full-year figure in a single quarter.
- The forward P/E reflecting this recovered profit is below the sector median, and the forward P/B also comes down sharply to 1.89x from the trailing P/B (3.32x).
- In other words, as profit normalizes the valuation burden unwinds quickly, and on a recovered-profit basis it reads as undervalued.
- That said, the financial burden of an ROE of -32.3% (a loss), an operating margin of 0.4%, and a debt ratio of 934% is a separate weakness that must be checked together.
- Five-year consolidated revenue went ₩1.7 trillion in 2021 → ₩2.2 trillion in 2022 → ₩2.0 trillion in 2023 → ₩1.9 trillion in 2024 → ₩1.7 trillion in 2025, declining since 2022 to -13.4% year on year in 2025.
- Over the same period annual operating profit was a loss in 2023-2024 before swinging to a ₩6.9 billion surplus (consolidated) in 2025, and the recovery widened sharply in the most recent quarter.
- Q1 2026 consolidated revenue was ₩635.9 billion, up 58.7% year on year, and operating profit swung to a ₩25.4 billion surplus, with a single quarter's operating profit exceeding last year's full-year figure.
- The reason this year's forecast profit shapes up this way is clear: as the kerosene-to-product spread that had deepened losses returned to normal, the profitability of the core LAB and NP recovered, on top of the ongoing shift of the product mix toward higher-margin special alkylate and special normal paraffin.
- And with 2025 standalone operating profit having improved first to ₩29.7 billion (+934%), that flow carried through to a consolidated Q1 surplus, so the recovery is a trend confirmed over two consecutive quarters, not a one-off single quarter.
- The forward P/E reflecting this profit shows that the recovery is settling in as real numbers.
- Three strands of disclosure shaped the recent flow.
- First, a February 12, 2026 fair-disclosure of preliminary results confirmed that 2025 standalone operating profit grew to ₩29.7 billion, up 934% year on year, widening the surplus (standalone revenue ₩1.3777 trillion).
- Second, the disposal of 643,833 treasury shares (2.45% of shares outstanding), decided on December 18, 2025 and completed December 26, was done via after-hours block trade, an event that released stock into the market.
- Third, the May 15, 2026 quarterly report was where the profit recovery was officially confirmed, with Q1 consolidated revenue of ₩635.9 billion (+58.7%) and operating profit of ₩25.4 billion (a swing to profit).
- Beyond these, there were subsidiary-related capital transactions such as a May 2025 rights offering and a decision to acquire shares of another company, so the changes in the capital and debt structure are worth viewing together.
- The strengths are clear.
- With 2025 standalone operating profit widening its surplus and Q1 2026 consolidated results swinging to profit, the move out of loss was confirmed over two consecutive quarters, and the forward P/E reflecting this recovered profit is below the sector median, so on a profit basis it sits cheap.
- Although the trailing P/B is above the sector average, the structure is such that it comes down to a forward P/B of 1.89x as profit normalizes, so in a recovery scenario the valuation burden unwinds quickly.
- The cautions are also clear.
- With a debt ratio of 934% and a current ratio of 81%, the finances are tight, and because the core business is heavily swayed by the kerosene-to-product spread, quarterly profit can lurch if oil prices wobble.
- The release of stock into short-term supply through the treasury-share disposal is also worth noting.
- In sum, if the spread stays favorable and the quarterly surplus firms up into an annual one, the low forward P/E is justified and the stock is strong; if oil prices or the spread turn and the profit recovery stalls, the heavy financial burden comes back into focus, a weak stretch.
🔎 Valuation vs peers Inconclusive
Because the core business is petrochemicals centered on synthetic-detergent raw materials (LAB and NP), it was compared against domestic listed chemical and petrochemical large-caps closest in business character; that said, ISU Chemical is a small-to-mid-cap of around ₩400 billion market cap and a diversified firm mixing construction and bio, so there are limits to a simple one-to-one comparison.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Lotte Chemical | — | 0.21x | -16.19% |
| LG Chem | — | 0.55x | -5.54% |
| KCC | 2.48x | 0.49x | 19.66% |
Looking only at position versus peers, ISU Chemical's P/B (4.16x) is markedly higher than Lotte Chemical, LG Chem, and KCC, so a large premium is attached relative to net assets. But it is hard to call this premium overvaluation. First, last year's annual net profit was a loss, so there is no P/E and the trailing figures themselves sit on a profit inflection. Second, Q1 2026 consolidated operating profit (₩25.4 billion) exceeded the full-year 2025 figure (₩6.9 billion) in a single quarter, so if this surplus carries through the year, part of the expectation embedded in the current P/B could be filled in by results (the forward basis is not a company forecast but only a DART seasonality approximation). Conversely, if the Q1 strength was a one-off leaning on oil prices and the spread, the premium is hard to justify. With the strengths (the early stage of profit recovery) and the burdens (a high P/B, a 934% debt ratio, the treasury-share disposal supply) evenly balanced, Inconclusive is appropriate at this point.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩596.6 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩12,510 and the market capitalization is ₩328.9 billion. The price sits below its 20-day moving average (₩13,280) and above its 60-day moving average (₩11,993). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 48.0, a neutral level. The one-month change is +1.6%, the three-month change is +60.4%, and the position relative to the 52-week high is -25.1%. Relative strength versus the KOSPI is 74 (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 75% of all stocks. Over the past three months it outpaced the index by 23.6%. 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 +23.61% / 6M -6.35% / 12M -16.72%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 3.42x 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.
Profitability & financials
Return on equity (ROE) is -32.3%, below the sector average (4.0%). The operating margin is 0.4%. The debt ratio is 934.0%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.3B | $1.3B | $1.1B | -13.40% ↓ slower |
| Operating profit | -$37.1M | -$34.1M | $4.6M | — |
| Net profit | -$20.7M | -$31.4M | -$20.6M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.1B | $1.5B | $1.3B | $1.3B | $1.1B |
| Operating profit | $54.4M | $23.9M | -$37.1M | -$34.1M | $4.6M |
| Net profit | $62.3M | $18.4M | -$20.7M | -$31.4M | -$20.6M |
| Revenue CAGR | 4-yr avg -0.65% | ||||
Revenue fell 13.4% year over year (2023 ₩2.0 trillion → 2024 ₩1.9 trillion → 2025 ₩1.7 trillion), and the three-year trend is 'falling'. The rate of decline widened from the prior year. Over the 5 years on record, revenue compound annual growth (CAGR) is -0.7%. The two-year revenue CAGR is -8.8%. In the most recent quarter (Q1 2026), revenue was 58.7% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- Debt far exceeds equity (debt ratio 934.0%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 81.0%).
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 13.4% year over year (3-year trend: falling).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-02-12Earnings2025 preliminary results fair-disclosure — standalone revenue of ₩1.3777 trillion, operating profit of ₩29.7 billion (about +934% year on year, a widening surplus), while pre-tax profit and net profit remained a lossThe company officially confirmed that operating-level profitability moved out of loss and widened its surplus. That said, standalone net profit is still a loss, so whether the operating improvement flows through to the bottom line needs further confirmation (short-term positive, mid-term item to confirm). Source
- 2025-12-18FilingMaterial-event report (treasury-share disposal decision) — decision to dispose of 643,833 common shares (2.45% of shares outstanding) via after-hours block trade (reference price about ₩9,060)An event supplying additional stock to the market, a burden on short-term supply and demand. The disposal proceeds go to fund operations, and since it draws down held treasury shares, it is not shareholder-return in character. Source
- 2025-12-26FilingTreasury-share disposal result report — the treasury-share disposal decided on December 18 completedWith the disposal actually executed, the market appearance of that stock was wrapped up. The short-term supply event is resolved, but with treasury shares reduced, future capacity for cancellation falls (neutral to short-term burden). Source
- 2026-05-15EarningsQuarterly report (2026.03) filed — consolidated revenue of ₩635.9 billion (+58.7% year on year), operating profit of ₩25.4 billion (a swing to profit)A single quarter's operating profit exceeded the full-year 2025 operating profit (₩6.9 billion), officially confirming the profit recovery. The annual durability of the surplus and the effect of oil prices and the spread are the watch points for the next quarter (short-term positive). Source
- 2026-03-19FilingBusiness report (2025.12) filed — a revenue mix of 84% petrochemicals, 13% construction, 3% biopharmaceuticals and a LAB/NP-centered business structure, with plans to commercialize special alkylate and special normal paraffin statedA primary source confirming the company's actual business mix and its direction toward higher-margin products from the original text. It also confirms that the core business depends heavily on kerosene purchases (90% of raw materials) (mid-term reference). Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 annual operating profit (basis difference) | ₩6.9 billion(base) | ₩29.7 billion | Confirmed | link |
| Q1 2026 consolidated operating profit | ₩25.4 billion(base) | (2026.03) | Confirmed | link |
| Scale of treasury-share disposal | 643,833(2.45%) | 643,833 | Confirmed | link |
| 2026 annual revenue (seasonality approximation) | approx. ₩2.45 trillion | — | Unverified | link |
Recent filings
- 2026-06-08Disclosure
- 2026-06-02OwnershipOwnership-change filing
- 2026-05-29Corporate governance report
- 2026-05-27OwnershipAmended filing
- 2026-05-27OwnershipOwnership-change filing
- 2026-05-21OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-21OwnershipLargest-shareholder ownership change report
- 2026-05-15Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-03-30Disclosure
- 2026-03-27Disclosure
- 2026-03-27Shareholders' meeting notice
📖 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.