Korea Carbon (017960) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
Korea Carbon makes the ultra-low-temperature insulation that seals LNG cooled to minus 163 degrees Celsius so it does not leak. This insulation accounts for more than 85% of total revenue, and with Korea's big three shipbuilders — Samsung Heavy Industries, HD Hyundai Heavy Industries, and Hanwha Ocean — as customers, the company holds about 45-50% of the global market for LNG cargo-tank insulation. In 2026 it signed supply contracts for ultra-low-temperature insulation materials totaling ₩228.0 billion with HD Hyundai Heavy Industries and HD Hyundai Samho and ₩72.0 billion with Hanwha Ocean, with contract terms running through 2027-2029, so future revenue volume is booked in advance; in April it also set a dividend of ₩320 per share. What stands out is the strength of holding half the world market in a high-barrier insulation business, with new supply contracts filling several years of work, giving good revenue visibility and cash generation (FCF yield of 9.6%). The caution is that results are tied to shipbuilders' order cycle, and if the non-operating gains booked in 2025 net profit do not recur, the valuation on a net-profit basis could be set somewhat higher.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Machinery & Electrical Equipment” (Shipbuilding, Machinery, Defense & Power Equipment), a type typically read first through P/E.
Machinery and electrical-equipment makers build and sell industrial gear, and orders and shipments feed fairly directly into profit. Because revenue translates cleanly into current-year net income, price-to-earnings (P/E) is the natural first lens.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Revenue rose 22.5% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 5.7% lower than a year earlier.
- ROE is 16.4% (controlling-interest basis). It is above the sector average.
- Operating margin is 15.7%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2025-12-31
Largest shareholder Cho Yeon-ho 22.86% (individual)
Controlling bloc incl. related parties 34.27%
With the controlling bloc holding 34%, the ownership structure is stable.
🔎 In-depth analysis Reading
Korea Carbon makes the ultra-low-temperature insulation that goes into the cargo tanks of LNG (liquefied natural gas) carriers. LNG is shipped as a liquid cooled to minus 163 degrees Celsius, and the insulation is the material that withstands this extreme cold and seals the tank so it does not leak. This insulation business is the core pillar, accounting for more than 85% of total revenue. Its main customers are Korea's big three shipbuilders — Samsung Heavy Industries, HD Hyundai Heavy Industries, and Hanwha Ocean — and it holds about 45-50% of the global market for LNG cargo-tank insulation. More than 80% of revenue comes from exports (volume shipped out on vessels). It also makes composite materials for sports and leisure and aircraft parts, but their share is small.
The latest close is ₩22,900 and the market capitalization is ₩1.2 trillion. The price sits above its 20-day moving average (₩22,432) and below its 60-day moving average (₩28,839). 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 45.6, a neutral level. The one-month change is -6.5%, the three-month change is -52.0%, and the position relative to the 52-week high is -56.1%. Relative strength versus the KOSPI is 8 (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 7% of all stocks. Over the past three months it lagged the index by 42.8%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Profitability is on the good side. The ROE (how much is earned on equity in a year) is 17.5%, meaning capital is being put to efficient use. The operating margin is 14.4% and the net margin is 11.2%. The P/E ratio (how many times one year's earnings the share price represents) is 11.63x, near the market median. But this P/E is based on last year's (2025) net profit, which carried a large amount of non-operating gains. In fact, in the first quarter of 2026 operating profit rose 32% yet net profit fell 29%. In other words, last year's net profit was somewhat inflated, which makes the trailing P/E look lower than it is. The debt ratio (debt relative to equity) is 180%, not especially heavy for the shipbuilding and materials sectors. Cash generation is attractive: the FCF yield (the ratio of cash actually earned to market cap — higher means more attractive cash generation) is high at 9.6%. EV/EBIT (enterprise value divided by operating profit — a debt-inclusive counterpart to the P/E) is 10.9x, so even accounting for debt the burden relative to earnings is not large. Net debt (total borrowings minus cash) is small at about ₩58.7 billion.
Both the top line and profit have jumped sharply in recent years. Revenue grew from ₩594.4 billion in 2023 to ₩908.8 billion in 2025, a 22.5% annual pace. Operating profit leapt nearly eightfold, from ₩16.5 billion in 2023 to ₩131.0 billion in 2025. Net profit swung from a loss in 2023 (-₩13.4 billion) to a ₩101.7 billion profit in 2025. This reflects the rise in LNG-carrier orders lifting both insulation volume and productivity. In the first quarter of 2026, revenue fell 5.7% year on year but operating profit rose 32%, a direction in which low-price volume drops out and higher-margin volume fills in. The basis for future earnings is also clear. In the first half of 2026 the company signed new insulation supply contracts worth ₩228.0 billion with HD Hyundai Heavy Industries and HD Hyundai Samho and ₩72.0 billion with Hanwha Ocean, effectively securing work that runs through 2027-2029 in advance. With LNG-carrier orders themselves in an expansion phase, the demand backdrop for insulation looks firm for the time being.
Substantial supply contracts followed through 2026. In April the company disclosed ultra-low-temperature insulation supply contracts with HD Hyundai Heavy Industries and HD Hyundai Samho totaling ₩228.0 billion. In May it disclosed a ₩72.0 billion contract with Hanwha Ocean (7.9% of the prior year's revenue). With contract terms running through 2027-2029, the volume that will feed future revenue is booked in advance. In April it also set a dividend (₩320 per share). Such order disclosures are the most direct signal of how much work the company is actually filling.
The strengths are clear. In LNG-carrier insulation, a field with high barriers to entry, the company holds half the world market. It is riding an order-expansion phase, and new supply contracts have filled several years of work, giving good revenue visibility. Cash generation (FCF yield of 9.6%) is solid too. On the other hand, there are cautions. This company's results are tied to shipbuilders' order cycle: if LNG-carrier orders cool, volume shrinks a few years later. Also, if the non-operating gains carried in 2025 net profit do not recur, the valuation on a net-profit basis could be set somewhat higher than it now appears. It is strong during super-cycle periods when orders cluster and weak when orders slow or raw-material and currency moves pressure margin.
🔎 Valuation vs peers Fairly valued
Domestic shipbuilders (the main customers) that move together within the LNG-carrier value chain are used as the peer set, while noting that Korea Carbon is not a shipbuilder but a materials-and-components supplier of cargo-tank insulation.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hanwha Ocean | 22.31x | 4.07x | 22.43% |
| HD Korea Shipbuilding & Offshore Engineering | 13.06x | 2.09x | 19.91% |
| Samsung Heavy Industries | 35.65x | 4.31x | 12.31% |
Korea Carbon's trailing P/E of 13.4x is lower than its shipbuilder customers (Hanwha Ocean 25.7x, Samsung Heavy Industries 37x) and sits near HD Korea Shipbuilding & Offshore Engineering (11.8x). That said, this trailing P/E looks lower than it really is because of the non-operating gains carried in last year's net profit. As in Q1 2026, when operating profit rose but net profit fell, the valuation on a net-profit basis is set somewhat higher than it now appears. Normalizing this year's earnings on our own estimate lifts the earnings-based valuation above the trailing figure to around the market median. On the other hand, debt- and cash-inclusive measures such as an FCF yield of 9.6% and EV/EBIT of 10.9x do not carry a heavy burden. Taken together, this sits in a Fairly valued zone — neither excessively cheap nor expensive — and the LNG order cycle and order backlog will steer the direction of the valuation.
Price history Close · MA20 · MA60
The latest close is ₩22,900 and the market capitalization is ₩1.2 trillion. The price sits above its 20-day moving average (₩22,432) and below its 60-day moving average (₩28,839). 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 45.6, a neutral level. The one-month change is -6.5%, the three-month change is -52.0%, and the position relative to the 52-week high is -56.1%. Relative strength versus the KOSPI is 8 (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 7% of all stocks. Over the past three months it lagged the index by 42.8%. 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 -42.77% / 6M -43.66% / 12M -60.21%
Key metrics Computed vs sector median
Valuation
The P/E of 11.63x is below the sector median (14.98x). The P/B of 2.04x is above the sector median (0.78x).
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) Estimate
Model output — not a price target. This is what the formula returns under the assumptions below, not a view on where the share price should go.
DCF (discounted cash flow) estimate — discount rate 10.1%, initial growth 2.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 0.804x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 16.4%, above the sector average (1.0%). The operating margin is 15.7%. The debt ratio is 87.8%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $417.6M | $521.1M | $638.4M | +22.52% ↓ slower |
| Operating profit | $11.6M | $31.9M | $92.0M | +188.14% ↑ faster |
| Net profit | -$9.4M | $14.3M | $71.5M | +400.67% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $258.4M | $259.4M | $417.6M | $521.1M | $638.4M |
| Operating profit | $23.0M | $17.4M | $11.6M | $31.9M | $92.0M |
| Net profit | $10.1M | $14.2M | -$9.4M | $14.3M | $71.5M |
| Revenue CAGR | 4-yr avg 25.37% | ||||
Revenue rose 22.5% year over year (2023 ₩594.4 billion → 2024 ₩741.7 billion → 2025 ₩908.8 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 188.1% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 25.4%. The two-year revenue CAGR is 23.6%. In the most recent quarter (Q1 2026), revenue was 5.7% lower than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- ROE of 16.4% points to solid profitability.
- Revenue grew 22.5% year over year, a sign of growth.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-04-17UpdateFiled a corrected disclosure of ultra-low-temperature LNG-carrier cargo-tank insulation supply contracts with HD Hyundai Heavy Industries (₩185.0 billion) and HD Hyundai Samho (₩43.0 billion). Totaling about ₩228.0 billion, with contract terms running to March 2029 and June 2028 respectively.Expands medium-term revenue visibility. Securing large volume that runs into 2027-2029 fills the floor of future results. Source
- 2026-05-21UpdateSigned a ₩72.0 billion LNG-carrier cargo-tank ultra-low-temperature insulation supply contract with Hanwha Ocean. About 7.9% of the prior year's annual revenue, with a contract term running to December 2027.Reinforces the short- and medium-term order backlog. Confirms that the company is securing volume evenly across the big three shipbuilders. Source
- 2026-04-13DividendThe board resolved a cash dividend (₩320 per share). The dividend payout relative to net profit is around 16%.Maintains shareholder returns alongside rising earnings. The dividend yield of about 1.2% is not large but supports the settled return to profit. Source
- 2026-05-14EarningsDisclosed Q1 2026 results. Revenue of ₩211.8 billion (-5.7% year on year), operating profit of ₩41.1 billion (+32.0%), and net profit of ₩15.5 billion (-29.0%).Operating profitability improved, but net profit fell on non-operating items. The direction of a rising operating margin is positive. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 revenue | ₩908.8 billion | ₩908.8 billion | Confirmed | link |
| Direction of Q1 2026 results | revenue ₩211.8 billion(-5.7%), operating profit ₩41.1 billion(+32.0%), net profit ₩15.5 billion(-29.0%) | revenue -5.7%, operating profit +32.0%, net profit -29.0% | Confirmed | link |
| Size of new 2026 supply contracts | HD ₩228.0 billion + ₩72.0 billion = approx. ₩300.0 billion | — | Confirmed | link |
| 2026 estimated net profit (own estimate) | approx. ₩82.0 billion | — | Unverified | link |
Recent filings Source
- 2026-05-29Corporate governance report
- 2026-05-21Single supply/sales contract
- 2026-05-19OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-14PeriodicQuarterly report
- 2026-05-13Material-fact report (amended)
- 2026-04-17Single supply/sales contract (amended)
- 2026-04-13Paid-in capital increase
- 2026-04-13Disclosure
- 2026-04-06OwnershipLargest-shareholder ownership change report
- 2026-04-06OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-06OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-06OwnershipOfficers'/major-shareholders' holdings 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.