Hansol Chemical is classified as a chemicals company but in practice earns its money from precision and electronic materials such as hydrogen peroxide for semiconductor cleaning, precursors for thin-film deposition, QD materials and secondary-battery binders, with hydrogen peroxide and precursor revenue moving in step with the semiconductor cycle as the core driver of results. In May 2026 it focused on shareholder returns with successive decisions to acquire, dispose of and cancel treasury shares, and on May 15 it confirmed its results via the Q1 quarterly report. The recent point of note is a balance of strengths and cautions: the strengths are that semiconductor materials and secondary-battery binders are growing at the same time, so profit is rising faster than revenue, with solid profitability at an ROE of 13.6% and an operating margin of 17.7%, leaving this year's expected-earnings multiple below peers; the cautions are the financial leverage of a 148% debt ratio, the link to the semiconductor cycle, and the short-term volatility following a large share-price rise over the past half year.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 13.9% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 10.6% higher than a year earlier.
- ROE is 13.6% (controlling-interest basis). It is above the sector average.
- Operating margin is 17.7%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder National Pension Service 13.1% (corporate)
Controlling bloc incl. related parties 13.1%
With the controlling bloc holding 13%, ownership is dispersed, leaving room for control-related or activist dynamics.
🔎 In-depth analysis
- Hansol Chemical is classified as a chemicals company but in practice earns its money from precision and electronic materials that go into semiconductors, displays and secondary batteries.
- There are three main pillars.
- First, fine chemicals, whose flagship product is hydrogen peroxide used to clean semiconductor wafers, and which also includes chemicals for paper and the environment.
- Second, electronic and secondary-battery materials, covering the precursors used in semiconductor thin-film deposition, the QD (quantum dot) materials for TVs and displays, and the secondary-battery binders that hold battery electrodes in place.
- Third, as a new business, it is growing silicon anode material that increases battery capacity.
- The core driver of this company's results is that hydrogen peroxide and precursor revenue moves in step with the semiconductor cycle (DRAM and foundry utilization).
- The latest close is ₩243,000 and the market cap is ₩2.7 trillion.
- The price sits below the 20-day line (₩273,675) and below the 60-day line (₩281,825).
- Trading below both the short- and medium-term moving averages, the trend is pressed down.
- The RSI (a supplementary gauge that weighs upward against downward force over the past 14 days on a 0-100 scale) is 41.5, a neutral level.
- The one-month change is -7.2%, the three-month change is -6.7%, and the position versus the 52-week high is -28.1%.
- Relative strength against the KOSPI is 38 (1-99, computed from returns versus 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 62% of all stocks by strength.
- Over the past three months it lagged the index by 28.2%.
- Chart readings are best interpreted alongside trading volume and disclosure dates.
- Profitability is solid.
- ROE (how much is earned in a year on equity) is 13.6%, the operating margin is 17.7% and the net margin is 16.7%, retaining profit well for a materials company.
- Financially, the debt ratio (debt versus equity) of 148% looks somewhat high, but with an interest-coverage ratio of 12.3x (operating profit covers interest 12 times over), the interest-repayment burden is not large, and a current ratio of 1.63x keeps short-term payment capacity stable.
- On valuation, the P/E (how many times one year's profit the share price is) on last year's results is 23.5x and the P/B (how many times net assets the share price is) is 3.2x.
- However, for a company like this whose profit is rising, a P/E marked on already-past last-year profit tends to look more expensive than it really is, so on this year's expected profit the multiple comes down (explained in the growth section).
- The quality of growth is good.
- Revenue went from ₩771.7 billion in 2023 to ₩776.4 billion in 2024 to ₩884.0 billion in 2025, with the recent pace quickening (+13.9% year on year), and operating profit (+21.3%) and net profit (+20.1%) rose more than revenue, so profit leverage is working.
- In Q1 2026 too, net profit rose +19.7% year on year, extending this trend.
- The backdrop is that hydrogen peroxide utilization is climbing on the semiconductor recovery, and precursors (with rising share within customers) and secondary-battery binders (with newly added customers) are growing at double-digit rates.
- Reflecting this path, this year's net profit is projected to rise clearly from last year (₩147.2 billion) to the mid-₩170 billion range, and applying this to the current market cap, the multiple on this year's expected profit falls noticeably from last year's.
- In other words, even if last year's P/E looks high, it is not that expensive on this year's basis.
- Recent disclosures are focused on shareholder returns.
- In May 2026 there were successive decisions to acquire, dispose of and cancel treasury shares (including a May 27 report on disposal results), a signal of aiming to lift per-share value by cutting share count.
- On May 29 it disclosed a corporate governance report, presenting the predictability of its medium- to long-term dividend and shareholder-return policy, and on May 15 it confirmed results via the Q1 2026 quarterly report.
- Reports on executive and major-shareholder ownership and large-holding changes also followed.
- Overall, this was a period in which confirmed results and active shareholder returns appeared together.
- Observation: semiconductor materials (hydrogen peroxide, precursors) and secondary-battery binders are growing at the same time, so profit is rising faster than revenue, with solid profitability at an ROE of 13.6% and an operating margin of 17.7%.
- This year's expected-earnings multiple tends to be below that of peers with a semiconductor-materials character (Soulbrain, Leeno Industrial and the like), so it is hard to declare it expensive on last year's P/E alone.
- On top of this comes shareholder returns including treasury-share cancellations.
- Caution: the 148% debt ratio carries some financial leverage, and because hydrogen peroxide and precursor revenue is linked to the semiconductor cycle, the pace of profit improvement can slow together if DRAM and foundry demand cools.
- Given the large share-price rise over the past half year, short-term volatility is also worth accounting for.
- In sum, it is strong in a phase where semiconductor and battery-materials demand holds, and weaker in a phase where the semiconductor cycle rolls over.
🔎 Valuation vs peers Undervalued
Compared with precision-chemicals companies of a semiconductor and electronic-materials character (a group more similar in materials and cycle structure than commodity petrochemicals).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Soulbrain | 29.03x | 2.17x | 7.49% |
| Leeno Industrial | 35.11x | 7.30x | 20.78% |
| Lotte Fine Chemical | 10.44x | 0.45x | 4.36% |
Compared with peers of a semiconductor and electronic-materials character (Soulbrain at a P/E of 33.3x, Leeno Industrial at 40.9x), Hansol Chemical's P/E of 23.5x on last year's basis is actually on the low side, and its ROE (13.6%) is higher than Soulbrain's (7.5%). Commodity petrochemicals (Lotte Fine Chemical) differ in business structure and are not a straightforward comparison. Last year's P/E looks somewhat high because of the limit of marking a multiple on past profit in a phase where profit is rising; if the Q1 net-profit growth of +19.7% continues, the multiple on this year's expected profit falls to about 19x, widening the discount versus peers further. There is semiconductor-cycle-linkage risk, but taking current growth, profitability and returns together, the current level is close to an undervalued zone relative to peers.
Price history Close · MA20 · MA60
The latest close is ₩243,000 and the market capitalization is ₩2.7 trillion. The price sits below its 20-day moving average (₩273,675) and below its 60-day moving average (₩281,825). 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 41.5, a neutral level. The one-month change is -7.2%, the three-month change is -6.7%, and the position relative to the 52-week high is -28.1%. Relative strength versus the KOSPI is 38 (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 38% of all stocks. Over the past three months it lagged the index by 28.2%. 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 -28.19% / 6M -38.82% / 12M -39.13%
Key metrics vs sector median
Valuation
The P/E of 18.76x is above the sector median (14.79x). The P/B of 2.56x 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.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 9.8%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.222x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 13.6%, above the sector average (4.0%). The operating margin is 17.7%. The debt ratio is 148.1%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $511.4M | $514.5M | $585.9M | +13.86% ↑ faster |
| Operating profit | $82.3M | $85.4M | $103.5M | +21.28% ↑ faster |
| Net profit | $69.8M | $81.3M | $97.6M | +20.05% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $509.5M | $586.9M | $511.4M | $514.5M | $585.9M |
| Operating profit | $131.0M | $123.3M | $82.3M | $85.4M | $103.5M |
| Net profit | $98.3M | $102.8M | $69.8M | $81.3M | $97.6M |
| Revenue CAGR | 4-yr avg 3.56% | ||||
Revenue rose 13.9% year over year (2023 ₩771.7 billion → 2024 ₩776.4 billion → 2025 ₩884.0 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 21.3% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 3.6%. The two-year revenue CAGR is 7.0%. In the most recent quarter (Q1 2026), revenue was 10.6% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- ROE of 13.6% points to solid profitability.
- Revenue grew 13.9% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-18UpdateDisclosure of decisions to acquire and dispose of treasury shares - decided to acquire and dispose of treasury shares to stabilize the share price and enhance shareholder value.Favorable for per-share value through management of shares outstanding and strengthened shareholder returns. Source
- 2026-05-18UpdateShare-cancellation decision - decided to cancel held treasury shares to reduce the total number of shares issued.A factor lifting per-share earnings and asset value through fewer shares issued (favorable over the medium term). Source
- 2026-05-27UpdateTreasury-share disposal results report - reported the results of the previously decided treasury-share disposal.Confirms delivery of the shareholder-return policy (short-term neutral to favorable). Source
- 2026-05-15EarningsQ1 2026 quarterly report - confirmed cumulative Q1 revenue of ₩231.9 billion, operating profit of ₩44.4 billion and net profit of ₩42.5 billion (net profit +19.7% year on year).Confirms continued profit growth (favorable over the short and medium term). Source
- 2026-05-29IRCorporate governance report disclosure - presented the medium- to long-term shareholder-return policy including dividends and future plans.Enhances the predictability of shareholder returns (favorable over the medium term). Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 net profit | 147,278 | (DART) | Confirmed | link |
| Q1 2026 net-profit growth rate | +19.7% YoY | 2026 1 (DART) | Confirmed | link |
| 2026 treasury-share cancellation and disposal | — | DART ·· (2026-05) | Confirmed | link |
| 2026 expected net profit (own estimate) | approx. ₩174.5 billion · forward PER approx. 19.2x | — | Unverified | link |
Recent filings
- 2026-06-02OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-29Corporate governance report
- 2026-05-27TreasuryTreasury-stock disposal decision
- 2026-05-27Large-business-group status disclosure
- 2026-05-22OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-19OwnershipOwnership-change filing
- 2026-05-18TreasuryMaterial-fact report (amended)
- 2026-05-18TreasuryMaterial-fact report
- 2026-05-18Disclosure
- 2026-05-18TreasuryMaterial-fact report
- 2026-05-18OwnershipOwnership-change filing
- 2026-05-15PeriodicQuarterly report
📖 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.