Kumho Petrochemical makes and sells rubber and plastic feedstocks: SBR and BR for automotive tires; NB latex, the raw material for medical latex gloves (roughly 25% global share, the world's largest); the specialty synthetic rubber EPDM; and synthetic resins and phenol derivatives. Its profit swings heavily on the spread, the gap between raw-material costs and product selling prices. First-quarter 2026 operating profit of ₩59.4 billion halved year on year, but NB latex selling prices have rebounded sharply since April, and the company maintains a dividend stance of ₩1,700 per share (a dividend yield of about 1.5%). What stands out lately is that its world-leading position in NB latex, low debt (35.7%), a P/B of 0.47x, and a selling-price rebound past a cyclical trough are strengths; on the other hand, if butadiene prices spike again or the selling-price rebound stalls, the spread gets squeezed again, and a slowdown in automotive or medical demand could delay the recovery.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 3.4% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 6.7% lower than a year earlier.
- ROE is 4.7% (controlling-interest basis). It is above the sector average.
- Operating margin is 3.9%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Park Chul-wan 9.98% (individual)
Controlling bloc incl. related parties 29.16%
With the controlling bloc holding 29%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- Kumho Petrochemical is genuinely a maker and seller of rubber and plastic feedstocks.
- Its largest axis is synthetic rubber, led by SBR and BR that go into automotive tires and NB latex, the raw material for medical latex gloves.
- NB latex holds a global No.
- 1 position with roughly 25% share, and capacity reaches about 940,000 tons a year.
- On top of this, it holds high-function specialty synthetic rubber EPDM for auto parts (a high-margin product with excellent heat and ozone resistance), synthetic resins such as ABS and PS, phenol derivatives including phenol and bisphenol A, and fine-chemical and energy (cogeneration) businesses.
- In other words, revenue is spread across several chemical materials, and the direction of profit swings heavily on the gap between raw-material costs (butadiene and the like) and product selling prices, that is, the spread.
- The latest close is ₩111,900 and the market cap is ₩2.8 trillion.
- The price sits below its 20-day line (₩120,245) and below its 60-day line (₩131,157).
- Trading under both its short- and mid-term moving averages, the trend is on the subdued side.
- The RSI (a supplementary gauge that weighs upward against downward force over the past 14 days on a 0-100 scale) is 40.0, a neutral level.
- The one-month change is -6.8%, the three-month change is -9.4%, and the position versus the 52-week high is -27.1%.
- Relative strength against the KOSPI is 28 (1-99, computed from returns versus the index over the past year with more weight on recent periods; higher means stronger than the market).
- That places it in roughly the top 73% of all stocks by strength.
- Over the past three months it lagged the index by 30.6%.
- Chart reading is best done alongside trading volume and disclosure dates.
- The financials are unusually solid for the chemical sector.
- The debt ratio (debt against equity) is low at 35.7%, and the current ratio of 200% leaves room in short-term solvency.
- Profitability, however, is depressed as it passes through a cyclical trough, with 2025 ROE (how much it earns in a year per unit of equity) at just 4.7% and an operating margin of 3.9%.
- On valuation, the P/E ratio (how many times a year's earnings the share price is) is 9.68x and the P/B (how many times net assets the share price is) is 0.45x, trading below half of net assets.
- The point to note here is that this P/E of 10.1x is based on last year's earnings, which came at a cyclical trough.
- When profit is turning up off the bottom, a multiple computed on last year's earnings looks pricier than it really is, so it should be re-read on this year's expected earnings.
- Revenue fell 3.4% year on year to ₩6.9151 trillion in 2025, and net profit fell 16.6% to ₩290.9 billion.
- Widen the view to five years and the profit trajectory is clear.
- After latex's pandemic-era super-boom lifted 2021 net profit as high as ₩1.9655 trillion, demand normalization and capacity-expansion competition brought it down through ₩1.0255 trillion in 2022, ₩446.8 billion in 2023, ₩348.6 billion in 2024, and ₩290.9 billion in 2025, a textbook cyclical downturn.
- First-quarter 2026 (cumulative) was weak, with revenue of ₩1.78 trillion and operating profit of ₩59.4 billion (-50.7% year on year), because product selling-price hikes failed to keep pace while raw-material prices such as butadiene spiked, a temporary spread squeeze.
- Net profit of ₩96.3 billion exceeded operating profit, supported by non-operating gains such as equity-method income from subsidiaries and financial income.
- The grounds for expecting this year's profit to grow above last year's are clear.
- In April, the NB latex export price surged 82.8% month on month to about $1,578 per ton (roughly 2.5x the $618 at the end of last year), with selling prices beginning to outrun raw materials, and with the first quarter as the trough the spread widens over the remaining quarters.
- We judge that profit has entered a recovery phase, turning up off the bottom.
- Recent disclosures center on results and on governance and shareholder returns.
- On May 7 the company disclosed first-quarter 2026 consolidated preliminary results (operating profit of ₩59.4 billion, halved year on year) and, the same day, gave notice of an investor briefing.
- In June it disclosed a corporate governance report, and from April to June there were numerous filings on holdings of specified securities by executives and major shareholders.
- On April 16 there was an earnings-announcement pre-notice, and on May 15 the regular first-quarter report was filed.
- The dividend, based on the 2025 close, is ₩1,700 per share (a dividend yield of about 1.5%, a payout ratio of 15%), maintaining a stable return stance.
- The strengths are clear: a world No.
- 1 position in NB latex, low debt (35.7%) and a 200% current ratio rare in the chemical sector, and a price below half of net assets (P/B of 0.47x).
- With profit past a cyclical trough and NB latex selling prices rebounding sharply since April, even a P/E that looks somewhat high on last year's earnings is actually on the low side when measured against this year's recovering profit.
- The point to note is the structural trait that this company's profit is sensitive to the raw-material-to-product spread.
- If butadiene prices spike again or the latex selling-price rebound stalls, the spread can get squeezed again, and a slowdown in automotive or medical demand could delay the recovery.
- In sum, in a recovery phase of widening spreads it gains footing as an undervalued, high-quality materials stock, but if raw materials jump again or downstream demand cools, the profit recovery is delayed.
🔎 Valuation vs peers Undervalued
The peer set is domestic listed diversified and petrochemical companies whose business character overlaps with this chemical-materials maker.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Lotte Chemical | 0.00x | 0.21x | -16.19% |
| SK Chemicals | 15.81x | 0.31x | 1.98% |
| Korea Petrochemical Ind. | 20.81x | 0.36x | 1.73% |
| OCI Holdings | 0.00x | 0.87x | -2.29% |
Among the peers, Lotte Chemical and OCI Holdings are in the red (negative ROE), making a P/E hard to compute at all, while the profitable SK Chemicals (P/E of 15.9x) and Korea Petrochemical (P/E of 23.3x) trade at higher multiples instead. In between, Kumho Petrochemical stays profitable and trades at a P/E of 10.1x and a P/B of 0.47x. The key here is that this P/E of 10.1x is based on last year's earnings at a cyclical trough. With NB latex selling prices rebounding sharply from April with the first quarter as the trough and this year's profit recovering, recomputing on the recovering earnings brings the multiple distinctly lower. Taken together with financial soundness, market position, and a price below half of net assets, we judge it undervalued relative to peers.
Price history Close · MA20 · MA60
The latest close is ₩111,900 and the market capitalization is ₩2.8 trillion. The price sits below its 20-day moving average (₩120,245) and below its 60-day moving average (₩131,157). 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 40.0, a neutral level. The one-month change is -6.8%, the three-month change is -9.4%, and the position relative to the 52-week high is -27.1%. Relative strength versus the KOSPI is 27 (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 27% of all stocks. Over the past three months it lagged the index by 30.6%. 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 -30.63% / 6M -41.89% / 12M -60.02%
Key metrics vs sector median
Valuation
The P/E of 9.68x is below the sector median (14.79x). The P/B of 0.45x is below the sector median (0.97x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets.
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 4.7%, above the sector average (4.0%). The operating margin is 3.9%. The debt ratio is 35.7%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $4.2B | $4.7B | $4.6B | -3.35% ↓ slower |
| Operating profit | $237.9M | $180.8M | $180.2M | -0.36% ↑ faster |
| Net profit | $296.1M | $231.1M | $192.8M | -16.55% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $5.6B | $5.3B | $4.2B | $4.7B | $4.6B |
| Operating profit | $1.6B | $760.7M | $237.9M | $180.8M | $180.2M |
| Net profit | $1.3B | $679.6M | $296.1M | $231.1M | $192.8M |
| Revenue CAGR | 4-yr avg -4.92% | ||||
Revenue fell 3.4% year over year (2023 ₩6.3 trillion → 2024 ₩7.2 trillion → 2025 ₩6.9 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 0.4% year over year. That said, the decline narrowed. Over the 5 years on record, revenue compound annual growth (CAGR) is -4.9%. The two-year revenue CAGR is 4.6%. In the most recent quarter (Q1 2026), revenue was 6.7% lower 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 balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 3.4% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-05-07EarningsFirst-quarter 2026 consolidated preliminary results disclosed — revenue of ₩1.78 trillion, operating profit of ₩59.4 billion (about -50.7% year on year), net profit of ₩96.3 billion (-22.9% year on year).Operating profit halved on a temporary spread squeeze from surging raw materials, but net profit exceeded operating profit as non-operating (equity-method, financial) gains supported the downside. Grounds for viewing the first quarter as the profit trough. Source
- 2026-05-07IRInvestor briefing notice — explaining first-quarter results and the business situation.A channel for the company to explain the backdrop to results and its second-half direction directly, a place to check the progress of the spread-recovery phase. Source
- 2026-06-01FilingCorporate governance report disclosed — laying out governance including the board and shareholder returns.Provides information on shareholder returns and decision-making transparency over the mid term. Tied to the stable dividend stance (₩1,700 per share). Source
- 2026-05-15FilingFirst-quarter 2026 regular report filed — detailing results and financials by business segment.Primary source material for checking the spread situation by segment, such as synthetic rubber, specialty synthetic rubber, synthetic resins, and phenol derivatives. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-01OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-01OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-01Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-29Large-business-group status disclosure
- 2026-05-22OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-22OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-15PeriodicQuarterly report
- 2026-05-13OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-07Disclosure
- 2026-05-07EarningsFair-disclosure notice
- 2026-04-16EarningsEarnings 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.