Yulchon Chemical is a film and packaging maker built on a steady cash cow — flexible packaging that wraps snacks, instant noodles and other food products, supplied to food companies such as Nongshim — while growing electronic materials like pouch films for secondary batteries as its next engine. Annual revenue runs at around ₩485 billion. Having swung from losses in 2023-2024 to a profit in 2025, the company is now in the middle of an earnings normalization: its forward P/E of 43.67x has fallen to about half the trailing 89.22x, and on March 25 it formally disclosed a corporate value-up plan committing to overseas expansion of electronic materials and a payout ratio kept at 40% or higher. The point worth watching is that if electronic-materials revenue actually rises and quarterly earnings settle, a valuation around 1.27x P/B could be justified quickly — while a Q1 2026 that saw operating profit fall sharply, together with an ROE of just 1.4% and an interest coverage ratio of 1.38x, means profitability is still thin and the smoothness of the earnings recovery needs to be confirmed.
At-a-glance assessment financial health · growth · profitability · valuation
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 99.5%).
- Revenue rose 6.2% year over year, and the pace is slowing (3-year trend: rising).
- Net profit swung from a loss a year earlier back into the black (a turnaround).
- Most recent quarter (Q1 2026) revenue was 4.2% lower than a year earlier.
- ROE is 1.4% (controlling-interest basis). It is below the sector average.
- Operating margin is 1.8%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Nongshim Holdings 31.94% (corporate)
Controlling bloc incl. related parties 56.61%
With the controlling bloc holding 57%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Yulchon Chemical makes thin films and packaging.
- Its largest business is flexible packaging — the pliable film that wraps snacks, instant noodles and other foods — supplied to food companies including its de facto parent Nongshim as well as outside customers.
- This is the steady cash cow that forms the base of revenue.
- The second pillar is electronic materials, which covers pouch film that encases secondary (lithium-ion) batteries along with industrial and protective films; this is the area the company is cultivating as a growth engine.
- In short, it earns steady revenue from 'packaging that wraps food' and adds growth from 'films for batteries and electronics.' Founded in 1973, it has a long operating history, and revenue is in the ₩485 billion range annually.
- The latest close is ₩14,040 and the market cap is ₩348.2 billion.
- The price sits below the 20-day line (₩16,145) and below the 60-day line (₩20,746).
- Trading beneath both the short- and mid-term moving averages, the trend is on the depressed side.
- The RSI (a supplementary gauge comparing upward and downward force over the past 14 days on a 0-100 scale) is 31.9, a neutral level.
- The one-month change is -18.7%, the three-month change is -44.1%, and the position versus the 52-week high is -63.2%.
- Relative strength against the KOSPI is 2 (1-99, computed from the past year's return versus the index with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 99% of all stocks by strength.
- Over the past three months it lagged the index by 55.5%.
- Chart reading is best done alongside trading volume and disclosure dates.
- On a confirmed annual (2025) basis the P/E ratio (how many times one year's earnings the share price is) is 83.62x, which looks high on the number alone.
- But this uses as its denominator the thin profit of an early recovery that has just turned from losses, so rather than reading it outright as 'expensive,' it is more accurate to see it as a figure from an inflection phase that falls quickly as profit normalizes.
- The forward P/E is 43.67x, about half the trailing level, reflecting how the earnings recovery is being priced into the valuation.
- P/B (how many times net assets the share price is) is 1.19x, forward P/B is 1.27x, and P/S (how many times revenue the share price is) is 0.91x, so relative to net assets and revenue the price is not stretched.
- On profitability, ROE (how much is earned in a year on equity) is 1.4%, operating margin is 1.8% and net margin is 0.9% — still thin — so whether margins thicken is the key question.
- The debt ratio (debt against equity) of 135.3% is not excessive, but the current ratio of 99.5% (assets readily convertible to cash against debts due within a year) sits just below 1, and interest coverage is 1.38x, so as earnings settle the financial cushion should widen with them.
- Over five years, revenue ran ₩538.7 billion in 2021 → ₩508.9 billion in 2022 → ₩414.5 billion in 2023 → ₩457.1 billion in 2024 → ₩485.4 billion in 2025, bottoming in 2023 and recovering for two straight years (+6.2% year on year in 2025).
- The change in earnings is larger.
- Operating profit went from a ₩11.0 billion profit in 2021 to losses of -₩16.2 billion in 2023 and -₩18.4 billion in 2024, two straight loss years, then turned back to an ₩8.5 billion profit in 2025, and net profit also turned positive at ₩4.2 billion in 2025.
- This is a phase of climbing out of the loss zone and beginning to accumulate profit again.
- That the forward P/E of 43.67x is about half the trailing 89.22x reflects a picture in which this year's profit normalizes to a level thicker than 2025's.
- The drivers of the recovery are overseas revenue expansion in the electronic-materials business the company is cultivating, plus improved profitability in the core business that has crossed from loss into profit.
- Quarter to quarter, however, there are bumps: Q1 2026 revenue was ₩127.2 billion (-4.2% year on year) with operating profit of ₩560 million, far below the ₩10.2 billion of a year earlier.
- It is too early to call a trend on the strength of a single quarter, and the checkpoint for this year's picture is whether profit recovers back to the tens of billions of won range across the remaining quarters.
- On March 25, 2026 Yulchon Chemical filed a 'corporate value-up plan (voluntary disclosure)' on its own.
- The core points are: (1) expanding overseas revenue in the electronic-materials division; (2) strengthening a profitability-centered management system to raise earning power; (3) lifting compliance with core corporate-governance indicators from 33.3% to 40% (targeted for disclosure in May 2027); and (4) a dividend policy of keeping the payout ratio, on a consolidated net-profit basis, at 40% or higher.
- It held its regular shareholders' meeting on March 24 of the same year, and results were confirmed via the 2025 business report on March 16 and the Q1 2026 quarterly report on May 15.
- On April 1 a large-holding report disclosed a change in ownership stakes.
- Judging by the disclosure flow, the most meaningful change is that the company has formally committed to dividends, governance and overseas expansion of electronic materials.
- The strengths are clear.
- On the steady revenue base of food flexible packaging, the company turned its 2023-2024 losses into a 2025 profit, and it is in an inflection phase of earnings normalization — its forward P/E of 43.67x has fallen to about half the trailing 89.22x.
- The company has also formally committed, by disclosure, to overseas expansion of electronic materials and to keeping the payout ratio at 40% or higher, while a P/B of 1.27x and P/S of 0.91x mean the price is not stretched against net assets or revenue, leaving some downside cushion in the valuation.
- At the same time, points to watch are clear too.
- Q1 2026 operating profit dropped sharply in a single quarter, so the pace of recovery has not been smooth, profitability is still thin at 1.4% ROE and 1.8% operating margin, and interest coverage of 1.38x makes the finances sensitive to swings in profit.
- In sum, if electronic-materials revenue genuinely rises and quarterly profit settles back into the tens of billions of won range, the current valuation is quickly justified — this is a stock to watch while confirming whether the earnings recovery carries through smoothly quarter by quarter.
🔎 Valuation vs peers Inconclusive
The comparison was made directly against stocks in the rubber-and-plastics sector whose businesses overlap in film and packaging: Dongwon Systems for comprehensive packaging such as food packaging and cans, and PI Advanced Materials for high-performance films for electronics — each matching one of Yulchon's two pillars (flexible packaging and electronic materials).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Dongwon Systems | 10.86x | 0.68x | 6.23% |
| PI Advanced Materials | 17.17x | 1.47x | 8.56% |
On P/E alone, at 5-9x the peers, Yulchon looks expensive, but that is an illusion stemming from 2025 profit being an early-recovery thin gain (operating margin 1.8%). In such an inflection phase the trailing P/E distorts real value, so a firm call is hard. P/B of 1.5x and P/S of 0.9x are not extremely high against revenue and net assets, but with Q1 2026 operating profit plunging -94.5% again, it is not yet confirmed whether forward earnings will recover. With no official company revenue outlook, forward figures can only be gauged from a DART seasonality approximation, and until earnings normalization is confirmed it is more appropriate to leave the call inconclusive than to declare it undervalued or overvalued.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩124.8 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩14,040 and the market capitalization is ₩348.2 billion. The price sits below its 20-day moving average (₩16,145) and below its 60-day moving average (₩20,746). 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 31.9, a neutral level. The one-month change is -18.7%, the three-month change is -44.1%, and the position relative to the 52-week high is -63.2%. Relative strength versus the KOSPI is 2 (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 1% of all stocks. Over the past three months it lagged the index by 55.5%. 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 -55.49% / 6M -66.42% / 12M -81.25%
Key metrics vs sector median
Valuation
The P/E of 83.62x is above the sector median (12.90x). The P/B of 1.19x is above the sector median (0.75x).
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 1.4%, below the sector average (6.0%). The operating margin is 1.8%. The debt ratio is 135.3%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $274.7M | $302.9M | $321.7M | +6.19% ↓ slower |
| Operating profit | -$10.7M | -$12.2M | $5.6M | — |
| Net profit | -$12.6M | -$5.7M | $2.8M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $357.1M | $337.3M | $274.7M | $302.9M | $321.7M |
| Operating profit | $7.3M | -$3.1M | -$10.7M | -$12.2M | $5.6M |
| Net profit | $5.6M | -$2.7M | -$12.6M | -$5.7M | $2.8M |
| Revenue CAGR | 4-yr avg -2.57% | ||||
Revenue rose 6.2% year over year (2023 ₩414.5 billion → 2024 ₩457.1 billion → 2025 ₩485.4 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Over the 5 years on record, revenue compound annual growth (CAGR) is -2.6%. The two-year revenue CAGR is 8.2%. In the most recent quarter (Q1 2026), revenue was 4.2% 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 rose 6.2% year over year, and the pace is slowing (3-year trend: rising).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-03-25FilingCorporate value-up plan (voluntary disclosure): expand overseas revenue in electronic materials, strengthen profitability, raise compliance with core governance indicators from 33.3% to 40% (targeted May 2027), keep the consolidated net-profit payout ratio at 40% or higherThe core is that, over the medium term, the company has formalized its dividend policy and its growth direction in electronic materials. That said, it did not present specific revenue or profit targets, so actual execution must be confirmed through subsequent results. Source
- 2026-05-15EarningsQ1 2026 quarterly report: revenue ₩127.2 billion (-4.2% year on year), operating profit ₩560 million (-94.5%), net profit ₩1.5 billion (-82.6%)In the near term this raises doubts about the durability of the turnaround to profit. Revenue was similar but profit plunged versus a year earlier, so it is hard to say a full-fledged profitability recovery has begun. Source
- 2026-03-16Earnings2025 business report (consolidated): revenue ₩485.4 billion (+6.2%), operating profit turned positive at ₩8.5 billion, net profit ₩4.2 billionOver the medium term this confirms the turn to profit after two straight loss years (2023-2024). Still, at an operating margin of 1.8%, the breadth of the recovery is thin. Source
- 2026-03-24FilingRegular shareholders' meeting outcome and dividend confirmation (₩250 per share, total dividend about ₩6.2 billion, payout ratio 148.9%)Over the medium term, maintaining a dividend even right after losses reads as a commitment to shareholder returns. However, a payout ratio well above net profit can be a burden until earnings normalize. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 dividend (DPS, total dividend, payout ratio) | ₩250 · 148.9% | ₩6,200,000,000 · 148.86% | Confirmed | link |
| Q1 2026 operating profit | ₩0.6 billion | (2026.03) | Confirmed | link |
| 2025 annual operating profit (turn to profit) | ₩8.5 billion | (2025.12) | Confirmed | link |
| 2026 annual revenue approximation | approx. ₩472.1 billion | — | Unverified | link |
Recent filings
- 2026-05-29Large-business-group status disclosure
- 2026-05-29Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-04-01OwnershipOwnership-change filing
- 2026-03-25Disclosure
- 2026-03-24Disclosure
- 2026-03-24Shareholders' meeting notice
- 2026-03-16PeriodicAnnual business report
- 2026-03-16Audit report
- 2026-03-09Shareholders' meeting notice
- 2026-03-05Shareholders' meeting notice
- 2026-02-27Large-business-group status disclosure
📖 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.