Kukdo Chemical makes epoxy resin, the base material for adhesives, coatings, and electronic materials, and holds the No. 1 domestic epoxy market share; it also makes hardeners, composites, and electrical-electronic materials and has lately been widening its product range into high-value materials for semiconductors and AI. In its March 2026 corporate value-up plan it stated goals of raising total dividends from about ₩5.0 billion in 2024 to about ₩11.2 billion in 2025 and improving its equity ratio to 30% or more, and a ₩1,300-per-share dividend (about 3.9%) was decided in February, while the first quarter confirmed a margin slowdown. What stands out lately is that its No. 1 domestic standing and a P/B of 0.36x with a dividend yield of about 3.9% underpin the downside of the price, while at an ROE of 2.5% earnings still have shallow power to turn capital, and a debt ratio of 203% becomes a weak link when margins wobble, so the direction of raw-material spreads and downstream demand settles the conclusion.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 203.0%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue rose 6.9% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 29.7% higher than a year earlier.
- ROE is 2.5% (controlling-interest basis). It is below the sector average.
- Operating margin is 3.8%.
- 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 Kukdo Corporation 29.44% (corporate)
Controlling bloc incl. related parties 32.25%
With the controlling bloc holding 32%, the ownership structure is stable.
🔎 In-depth analysis
- Kukdo Chemical is a company that makes epoxy resin (a thermosetting plastic raw material that is the base for adhesives, coatings, and electronic materials) and is the No.
- 1 player in the domestic epoxy market.
- The center of revenue is epoxy resin and the hardeners that pair with it, and alongside these it makes composites, polyurethane, and electrical-electronic materials used in semiconductor and electronics processes.
- Because epoxy has broad downstream industries such as marine and automotive coatings, wind-turbine blades, and electronic boards (PCBs), it rides the cycle directly, and lately the company has been widening its product range toward high-value materials for semiconductors and AI.
- Revenue is heavily swayed by two variables, raw-material prices (mainly bisphenol A and epichlorohydrin) and downstream demand.
- The recent close is ₩35,650 and the market cap is ₩330.1 billion.
- The price sits above its 20-day line (₩34,708) and below its 60-day line (₩36,427), so the short-term and medium-term trends diverge and should be read separately.
- The RSI (an auxiliary gauge that weighs upward against downward force over the past 14 days on a 0-100 scale) is 53.6, a neutral level.
- The one-month change is +14.1%, the three-month change is +1.1%, and the position versus the 52-week high is -19.6%.
- Relative strength against the KOSPI is 32 (1-99, converting return versus the index over the past year with recent periods weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 68% of all stocks by strength.
- Over the past three months it lagged the index by 23.3%.
- Chart reading is best done alongside trading volume and disclosure dates.
- On a confirmed annual (2025) basis, the P/E (how many times one year's earnings the price is) is 15.15x, the P/B (how many times net assets the price is) is 0.38x, the ROE (how much is earned in a year on equity) is 2.5%, the operating margin is 3.8%, and the debt ratio (debt to equity) is 203%.
- The most striking strength is the P/B of 0.36x.
- It means the market cap is far below the company's net assets, a stretch where the share price is set cheap against held assets.
- Added to this, a dividend yield of about 3.9% underpins the downside of the price.
- That said, at an ROE of 2.5% the power of capital to earn is still weak, and a debt ratio of 203% with an interest-coverage ratio near 1x is a spot where the burden could grow if earnings wobble further.
- In other words, assets and the dividend are cheap and dependable, but the efficiency of turning capital into earnings is a picture where recovery must be watched further.
- Looking at the past three years, 2025 revenue was ₩1.4 trillion, up 6.9% from the prior year, operating profit was ₩53.2 billion (+109.9%), and net profit jumped to ₩21.8 billion (+146.6%).
- The industry, weak in 2023-2024, clearly rebounded in 2025.
- That said, in the most recent quarter, the first quarter of 2026, revenue grew further to ₩413.9 billion (+29.7%) while operating profit of ₩10.3 billion (-20.2%) and net profit of ₩1.5 billion (-73.2%) showed margins pressed down again.
- The business trait of raw-material prices and product spreads swinging quarter to quarter came through directly.
- This year's (2026) earnings-based forecast P/E reflects a phase of catching its breath after last year's strong recovery.
- In other words, if last year was a year of rebound, this year is a stretch of firming up that recovery and pacing itself, with top line growing while profit hinges on whether the raw-material and demand cycle turns again.
- As there is no basis to view the outlook from next year on as lower than this year's, it is more natural to read this as one beat within the recovery process rather than a cycle top.
- The center of recent disclosures is the March 16, 2026 corporate value-up plan.
- The company raised total dividends by 123.1%, from about ₩5.0 billion in 2024 to about ₩11.2 billion in 2025, alongside a payout ratio of 51.2% (2025), and set out a financial-structure goal of improving the equity ratio from 15% or more to 30% or more, along with a direction of treasury-stock disposal and profit retirement that does not impair shareholder value.
- Results were then confirmed in sequence with April 20 first-quarter provisional results, an April 30 IR, and the May 15 quarterly report.
- On February 26, a ₩1,300-per-share cash-and-in-kind dividend was decided, underpinning a dividend of about 3.9%.
- In sum, this is a flow in which the company's promises of shareholder returns and financial-structure improvement and the actual numbers of a first-quarter margin slowdown were confirmed side by side in the same quarter.
- Starting with the strong points, the No.
- 1 domestic epoxy standing, a P/B of 0.36x far below net assets, a dividend yield of about 3.9%, and the company's officially formalized will to expand dividends and improve its financial structure firmly underpin the downside of the price.
- Looking at assets and the dividend alone, it is clearly in undervalued territory even within the peer set.
- The point to examine is the flow of earnings.
- Earnings that rebounded sharply in 2025 were pressed down again in the first quarter of 2026, lifting this year's earnings-based forecast P/E.
- Assets are cheap, but earnings' power to turn capital (ROE 2.5%) is still shallow, and a debt ratio of 203% becomes a weak link when margins wobble further.
- So if raw-material spreads and downstream demand turn and the equity-ratio improvement is confirmed in the numbers, earnings recovery is added to the asset-and-dividend appeal and it is on the strong side; if the top line only grows while margins keep being pressed, it is on the weak side.
- Rather than committing to either side, this is a stock well suited to confirming quarterly margins and financial-structure changes quarter by quarter.
🔎 Valuation vs peers Inconclusive
The comparison is against mid-to-large chemical firms making epoxy and basic chemical materials whose business nature and data can be confirmed. UNID (basic fine chemicals, caustic potash), KCC (coatings, silicones, building materials), and Kyung Nong (mid-sized chemicals, high dividend) are kept as a reference group, with the caveat that exact same-product competitors are few in the listed peer set.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Unid | 6.45x | 0.39x | 6.03% |
| KCC | 2.48x | 0.49x | 19.66% |
| Kyung Nong | 9.52x | 0.67x | 7.08% |
The P/B of 0.34x is the lowest among peers, so the discount is large on the asset side. That said, the trailing P/E of 13.57x is computed on earnings that recovered in 2025, so in a phase where earnings are pressed down again as in the first quarter of 2026, the valuation can look heavier against current earnings power. With no official company outlook figure, the forward is gauged only by a DART seasonality approximation (this year's operating profit about ₩66.2 billion, net profit about ₩5.9 billion), and on this approximation forward net profit is thinner than last year. In other words, assets look cheap but the quality and durability of earnings are not yet confirmed, so rather than committing to cheap or expensive on one side, it is appropriate to defer judgment while watching whether quarterly margins recover.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩448.3 billion | approx. ₩23.4 billion | approx. ₩2.3 billion |
Price history Close · MA20 · MA60
The latest close is ₩35,650 and the market capitalization is ₩330.1 billion. The price sits above its 20-day moving average (₩34,708) and below its 60-day moving average (₩36,427). 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 53.6, a neutral level. The one-month change is +14.1%, the three-month change is +1.1%, and the position relative to the 52-week high is -19.6%. Relative strength versus the KOSPI is 32 (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 32% of all stocks. Over the past three months it lagged the index by 23.3%. 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 -23.34% / 6M -31.07% / 12M -59.04%
Key metrics vs sector median
Valuation
The P/E of 15.15x is in line with the sector median (14.79x). The P/B of 0.38x is below 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.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 9.8%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 2.5%, below the sector average (4.0%). The operating margin is 3.8%. The debt ratio is 203.0%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $869.4M | $865.4M | $924.9M | +6.88% ↑ faster |
| Operating profit | $12.7M | $16.8M | $35.2M | +109.88% ↑ faster |
| Net profit | $5.1M | $5.9M | $14.4M | +146.56% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.0B | $1.1B | $869.4M | $865.4M | $924.9M |
| Operating profit | $135.7M | $64.2M | $12.7M | $16.8M | $35.2M |
| Net profit | $104.5M | $49.3M | $5.1M | $5.9M | $14.4M |
| Revenue CAGR | 4-yr avg -3.01% | ||||
Revenue rose 6.9% year over year (2023 ₩1.3 trillion → 2024 ₩1.3 trillion → 2025 ₩1.4 trillion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit rose 109.9% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is -3.0%. The two-year revenue CAGR is 3.1%. In the most recent quarter (Q1 2026), revenue was 29.7% 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 dividend yield, at 3.6%, is on the high side.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-03-16FilingCorporate value-up plan: payout ratio 51.2%, total dividends from about ₩5.0 billion in 2024 to about ₩11.2 billion in 2025 (+123.1%), equity ratio improvement from 15% to 30% or more, and a direction of treasury-stock disposal and profit retirementThe company officially formalizes a will to strengthen medium-term shareholder returns and improve its financial structure. That said, no revenue or operating-profit targets were given, so it cannot be used as a basis for a results outlook. Source
- 2026-04-20EarningsFirst-quarter 2026 consolidated provisional results (fair disclosure): revenue about ₩413.9 billion (+29.7% year on year), operating profit about ₩10.3 billion (-20.2%), net profit about ₩1.5 billion (-73.2%)Short term: the top line grew but margins and net profit slowed sharply. A signal raising questions about the durability of the earnings recovery. Source
- 2026-04-30IRNotice disclosure of an investor briefing (IR)Short term: a venue where the company explains first-quarter results and progress on the corporate value-up plan directly. Whether progress on financial-structure improvement is confirmed at the IR is the point to watch. Source
- 2026-02-26DividendCash-and-in-kind dividend decided: dividend per share ₩1,300, payout ratio 51.2%Medium term: a dividend yield of about 4.1% at the current price underpins the high-dividend character. That said, if earnings fall the payout ratio rises further, so durability needs checking. Source
- 2026-05-15FilingFiled the first-quarter 2026 reportMedium term: the confirmed material for the provisional results. Officially confirms cumulative revenue ₩413.9 billion, operating profit ₩10.3 billion, and net profit ₩1.5 billion. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Dividend per share (DPS), payout ratio | DPS ₩1,300,x 51.2% | DPS ₩1,300,x 51.2% | Confirmed | link |
| First-quarter 2026 operating profit | approx. ₩10.3 billion | approx. ₩10.3 billion | Confirmed | link |
| Total-dividend growth rate | — | 2024 approx. ₩5.0 billion → 2025 approx. ₩11.2 billion(+123.1%) | Confirmed | link |
| Seasonality-approximated this-year operating profit | approx. ₩66.2 billion | — | Unverified | link |
Recent filings
- 2026-06-01Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-04-30Disclosure
- 2026-04-20EarningsFair-disclosure notice
- 2026-03-16Disclosure
- 2026-03-13Disclosure
- 2026-03-13Shareholders' meeting notice
- 2026-03-05PeriodicAnnual business report
- 2026-03-05Audit report
- 2026-02-26Shareholders' meeting notice
- 2026-02-26Amended filing
- 2026-02-26DividendCash/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.