Hannong Chemicals is a fine-chemicals maker founded in 1976, supplying materials embedded broadly across electronics, consumer and industrial fields, including glycol ethers used as semiconductor cleaners and solvents, surfactants for cosmetics and metalworking, and industrial emulsifiers, while it expands into high-value battery materials such as glyme and solid-state electrolytes. New facility investment first disclosed in December 2024 was re-filed as an amendment in May 2026, signaling intent to expand advanced-material capacity, and a first-quarter operating margin jump from 1.7% to about 5.6% pointed to earnings passing a trough. What stands out lately is that a current ratio of 313% and the earnings recovery pulled the forward P/E down to about 21.7x (less than half the roughly 56x trailing), while, because this recovery is still a single-quarter signal, whether margins hold from the second quarter and when advanced materials actually turn into revenue need to be confirmed.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 13.3% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 4.9% lower than a year earlier.
- ROE is 2.2% (total-net basis). It is below the sector average.
- Operating margin is 1.7%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Kim Eung-sang 32.51% (individual)
Controlling bloc incl. related parties 48.22%
With the controlling bloc holding 48%, the ownership structure is stable.
🔎 In-depth analysis
- Hannong Chemicals is a fine-chemicals maker founded in 1976 that processes chemical raw materials into industrial intermediate materials.
- Its mainstays fall broadly into three streams.
- First, glycol ethers (GE) are used as semiconductor cleaners and as solvents for paints and inks; second, the surfactant family (ethoxylated alcohols, EOA, and the like) goes into cosmetics, personal care and metalworking; and third, specialty industrial emulsifiers (ethoxylated monomers, EM) become raw materials for industrial fine-chemical products such as adhesives, paints and epoxies.
- In other words, the root of its revenue is a 'materials supply' business spread broadly across electronics, consumer goods and industrial materials, and a feature is that it is not concentrated in a single product.
- On top of that, it is expanding its business toward a larger share of high-value advanced chemical products such as functional monomers (FM), glyme (GLIME) and solid-state (polymer) battery electrolyte materials.
- The latest close is ₩12,060 and the market cap is ₩188.6 billion.
- The price sits below its 20-day line (₩14,458) and below its 60-day line (₩18,708).
- Trading below both the short- and medium-term moving averages, the trend is on the subdued side.
- The RSI (a supplementary gauge that measures upward versus downward momentum over the past 14 days on a 0-100 scale) is 30.9, a neutral level.
- The one-month change is -22.4%, the three-month change is -40.6%, and the price sits -55.2% from its 52-week high.
- Relative strength versus the KOSPI is 17 (on a 1-99 scale, computed from returns against the index over the past year with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 84% of all stocks by strength.
- Over the past three months it lagged the index by 54.3%.
- Chart readings are best viewed together with trading volume and disclosure dates.
- The financial structure is on the stable side.
- The debt ratio (debt against equity) is 136.7%, a reasonable level for the chemicals industry, and the current ratio (cash-like assets against debt due within a year) is 313%, leaving ample short-term paying ability.
- Profitability was low in 2025, with ROE (how much is earned in a year on equity) of 2.2% and an operating margin of 1.7%, a result of that year's weak chemicals cycle, though it was not an outright loss.
- On valuation, the trailing P/E (the price multiple on last year's confirmed earnings) comes in at about 56x, which looks high on the surface.
- But that number is less because the company is expensive than an optical illusion created by unusually small 2025 earnings in the denominator.
- For a company like Hannong Chemicals, whose earnings are turning up from a trough, the forward P/E on this year's expected earnings is closer to reality than the trailing P/E calculated on last year's earnings.
- The forward P/E on this year's earnings is about 21.7x, less than half the trailing figure and not excessive even against comparable fine-chemical peers.
- The P/B (how many times net assets the price is) is 1.08x, and the forward P/B on this year's basis is 1.08x, so it is not heavy relative to asset value either.
- Revenue over the past three years moved unevenly, from ₩212.4 billion to ₩247.5 billion to ₩214.5 billion, falling 13.3% year-on-year in 2025.
- Operating profit also swings with the chemicals cycle, recovering from a loss in 2023 to ₩3.6 billion in 2025.
- The important change came in the most recent quarter.
- First-quarter 2026 operating profit of ₩3.3 billion nearly matched full-year 2025 operating profit (₩3.6 billion) in a single quarter, and the operating margin rose from 1.7% to about 5.6%.
- Net profit also grew from the same period a year earlier.
- This margin recovery is the key lifting this year's earnings picture, because unit prices and demand in the glycol-ether and surfactant core business have entered a recovery phase, and product upgrading toward advanced materials (glyme and solid-state electrolytes) is improving profitability on top.
- As a result, the forward P/E on this year's basis is about 21.7x, meaning something very different from the trailing figure (about 56x) that uses last year's weakness as the denominator.
- That is, the trailing figure is high because last year was a trough, and viewed on this year's recovered earnings the multiple comes down to a far more reasonable level.
- That said, since this recovery is a single-quarter signal, whether it continues past the second quarter is something to confirm further.
- The core of the disclosure flow is new facility investment.
- New facility investment disclosed in December 2024 was re-filed as an amendment in May 2026, which shows the company's mid- to long-term growth intent to build capacity for advanced chemical products such as glyme and solid-state (polymer) electrolyte materials (Hannong Chemicals has participated as the lead institution for a national R&D project on solid-electrolyte materials for lithium-metal polymer batteries).
- Beyond that, routine disclosures followed, including the March 2026 general meeting and business report and the May first-quarter report.
- In particular, the earnings recovery in the May quarterly report was a meaningful change that dispels the optical illusion of a multiple that looked high because of last year's weakness.
- Rather than large ordinary supply-contract disclosures, a 'materials-upgrade' narrative grounded in facility investment and R&D is at the center of this company's disclosures.
- Starting with the strengths, finances are solid (a current ratio of 313%) and, above all, the signal that earnings are turning up from a trough is clear.
- The first-quarter 2026 operating margin jumped from 1.7% to about 5.6%, nearly matching last year's full-year profit in a single quarter, and the forward P/E on this year that reflects this is about 21.7x, less than half the trailing figure (about 56x) and not excessive even against fine-chemical peers.
- Looking only at the high trailing P/E on the surface, it seems expensive, but on this year's actual earnings the burden is in fact not heavy.
- On top of a stable core business of glycol ethers and surfactants sits a battery-materials growth axis of glyme and solid-state electrolytes, and facility investment is underway.
- The caution is that this earnings recovery is still a single-quarter signal.
- The chemicals cycle has quarter-to-quarter volatility, so whether the margin holds past the second quarter needs confirming, and it takes time and investment cost before advanced-material revenue settles into actual numbers.
- In sum, if the first-quarter margin recovery carries into the next quarter, the current price is a sufficiently reasonable spot relative to recovered earnings, while if the recovery proves one-off or core demand bends again, the appeal fades accordingly.
🔎 Valuation vs peers Fairly valued
Domestic small- and mid-cap fine-chemical makers spanning glycol ethers, surfactants and electronics/battery materials were taken as peers.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Kyung-In Synthetic | 21.59x | 0.51x | 2.35% |
| Unid | 6.45x | 0.39x | 6.03% |
Against peers, a trailing P/E of 65x and a P/B of 1.45x are high on the surface (Kyung-in Synthetic and Unid have P/Bs below 1x). But that P/E is largely an optical illusion, with 2025 earnings so depressed that the denominator shrank. In an earnings-inflection phase, the limitation of a trailing multiple based on last year's confirmed earnings is clear, and reflecting the margin recovery revealed in the first quarter of 2026 (operating margin 1.7% to 5.6%) into this year's earnings brings the forward multiple well below the trailing one. Much of the premium versus peers is explained by expectations for the battery-materials growth option; if that expectation is confirmed in actual results, it tilts toward fairly valued to undervalued, while if the recovery proves one-off it can tilt toward overvalued, so a one-sided conclusion is hard to draw. The current read is therefore 'fairly valued (a balanced judgment).'
Price history Close · MA20 · MA60
The latest close is ₩12,060 and the market capitalization is ₩188.6 billion. The price sits below its 20-day moving average (₩14,458) and below its 60-day moving average (₩18,708). 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 30.9, a neutral level. The one-month change is -22.4%, the three-month change is -40.6%, and the position relative to the 52-week high is -55.2%. Relative strength versus the KOSPI is 17 (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 16% of all stocks. Over the past three months it lagged the index by 54.3%. 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 -54.30% / 6M -52.63% / 12M -66.14%
Key metrics vs sector median
Valuation
The P/E of 48.79x is above the sector median (14.79x). The P/B of 1.08x is in line with 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.
Profitability & financials
Return on equity (ROE) is 2.2%, below the sector average (4.0%). The operating margin is 1.7%. The debt ratio is 136.7%, so the financial structure is moderate.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $140.8M | $164.0M | $142.2M | -13.33% ↓ slower |
| Operating profit | -$1.6M | $4.0M | $2.4M | -41.22% |
| Net profit | $8.2M | $3.0M | $2.6M | -13.90% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $162.5M | $158.7M | $140.8M | $164.0M | $142.2M |
| Operating profit | $11.9M | $3.0M | -$1.6M | $4.0M | $2.4M |
| Net profit | $13.1M | $5.7M | $8.2M | $3.0M | $2.6M |
| Revenue CAGR | 4-yr avg -3.29% | ||||
Revenue fell 13.3% year over year (2023 ₩212.4 billion → 2024 ₩247.5 billion → 2025 ₩214.5 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 41.2% year over year. Over the 5 years on record, revenue compound annual growth (CAGR) is -3.3%. The two-year revenue CAGR is 0.5%. In the most recent quarter (Q1 2026), revenue was 4.9% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 13.3% year over year (3-year trend: mixed).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-29FilingDisclosure on new facility investment (an amended filing of the original December 2024 disclosure). Facility investment underway to expand capacity for advanced chemical products.Over the medium term, a factor that widens the production base for high-value products such as glyme and solid-state electrolytes and builds growth capacity. That said, it takes time to recoup the investment and carries short-term cost and depreciation burdens. Source
- 2026-05-14EarningsQ1 2026 quarterly report filed. Operating profit of about ₩3.3 billion, close to full-year 2025 operating profit (about ₩3.6 billion), with the operating margin sharply improved year-on-year.In the short term, the first signal of an earnings recovery. It is a starting point for confirming whether margin normalization takes hold in earnest, and it serves as grounds for dispelling the trailing P/E's optical illusion. Source
- 2026-03-27FilingDisclosure of general meeting results (routine agenda items such as financial-statement approval and director appointments).A routine confirmation step for governance and dividend policy, with limited short-term impact on the share price. Source
- 2026-03-19Filing2025 business report filed. Annual revenue of about ₩214.5 billion (-13.3% year-on-year) and operating profit of about ₩3.6 billion, confirming a weak year.Confirms the weak results that form the denominator of trailing metrics (P/E of 65x, etc.). It is a baseline for gauging the inflection point against the subsequent quarterly recovery. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 annual revenue | approx. ₩214.5 billion(₩214,492,954,042) | approx. ₩214.5 billion | Confirmed | link |
| 2024 annual revenue (for year-on-year comparison) | approx. ₩247.5 billion(₩247,473,264,569) | approx. ₩247.5 billion | Confirmed | link |
| 2026 estimated net profit (basis for forward P/E) | 1 self-estimate | — | Unverified | link |
Recent filings
- 2026-05-29Amended filing
- 2026-05-28Corporate governance report
- 2026-05-14PeriodicQuarterly report
- 2026-03-27Disclosure
- 2026-03-27Shareholders' meeting notice
- 2026-03-19PeriodicAnnual business report
- 2026-03-19Audit report
- 2026-03-17OwnershipOwnership-change filing
- 2026-03-17OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-17OwnershipLargest-shareholder ownership change report
- 2026-03-06Shareholders' meeting notice
- 2026-03-06Shareholders' 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.