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.
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 17.5% (controlling-interest basis). It is above the sector average.
- Operating margin is 14.4%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
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
- 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 was ₩23,250 and the market cap is ₩1.2 trillion.
- The price sits below its 20-day line (₩28,465) and below its 60-day line (₩37,575).
- Trading below both the short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a gauge comparing the strength of gains and losses over the past 14 days on a 0-100 scale) is 28.1, close to depressed territory.
- The one-month change is -24.8%, the three-month change is -45.6%, and the price is -55.5% from its 52-week high.
- Relative strength versus the KOSPI is 23 (on a 1-99 scale that weights recent returns against the index over the past year more heavily; higher means stronger than the market).
- That places it in roughly the top 78% of all stocks by strength.
- Over the past three months it lagged the index by 57.5%.
- Chart signals are best read alongside trading volume and the dates of disclosures.
- 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 11.81x, 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 | 19.33x | 3.90x | 20.19% |
| HD Korea Shipbuilding & Offshore Engineering | 10.69x | 1.74x | 16.32% |
| Samsung Heavy Industries | 33.80x | 4.44x | 13.15% |
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 ₩23,250 and the market capitalization is ₩1.2 trillion. The price sits below its 20-day moving average (₩28,465) and below its 60-day moving average (₩37,575). 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 28.1, near oversold territory. The one-month change is -24.8%, the three-month change is -45.6%, and the position relative to the 52-week high is -55.5%. Relative strength versus the KOSPI is 23 (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 23% of all stocks. Over the past three months it lagged the index by 57.5%. 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 -57.45% / 6M -52.92% / 12M -58.94%
Key metrics vs sector median
Valuation
The P/E of 11.81x is below the sector median (16.68x). The P/B of 2.07x is above the sector median (1.43x).
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 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 17.5%, above the sector average (10.0%). The operating margin is 14.4%. The debt ratio is 179.8%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $394.0M | $491.6M | $602.3M | +22.52% ↓ slower |
| Operating profit | $10.9M | $30.1M | $86.8M | +188.14% ↑ faster |
| Net profit | -$8.9M | $13.5M | $67.4M | +400.67% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $243.8M | $244.7M | $394.0M | $491.6M | $602.3M |
| Operating profit | $21.7M | $16.4M | $10.9M | $30.1M | $86.8M |
| Net profit | $9.5M | $13.4M | -$8.9M | $13.5M | $67.4M |
| 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 Q1 2026 · vs year-ago
Technical indicators
What stands out
- ROE of 17.5% 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
- 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.