Officially classified under chemicals, Aekyung Industrial is in practice a consumer-goods company: it sells cosmetics such as AGE 20's and LUNA alongside household products like Kerasys, 2080 and Trio, so its results hinge on brand awareness, the recovery of channels like duty-free and China, and marketing efficiency. In April it simplified its structure through a small-scale merger absorbing its wholly owned cosmetics affiliate ONE THING (with no equity dilution). Earnings that bottomed in 2025 have begun recovering in 2026, and on this year's expected profit the P/E works out to roughly 10.6x, on the low side versus cosmetics peers. What stands out most is that, on top of a solid asset and financial base (P/B of 0.72x, current ratio of 318%, interest coverage of 14x), a recovery in the duty-free and China channels combined with operating profit settling back into the black would set up a re-valuation, while the surge in first-quarter net profit included non-operating gains, so it is worth confirming whether the core operating profit turns positive on a quarter-by-quarter basis.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 3.6% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 5.1% higher than a year earlier.
- ROE is 3.8% (controlling-interest basis). It is below the sector average.
- Operating margin is 3.2%.
- P/B is low versus peers too, so it looks cheap on an asset basis as well.
Ownership & governance As of 2025-12-31
Largest shareholder AK Holdings 45.08% (corporate)
Controlling bloc incl. related parties 63.28%
With the controlling bloc holding 63%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Aekyung Industrial earns money along two main lines.
- One is cosmetics, led by the skincare and color brands AGE 20's and LUNA, where duty-free, online, home-shopping and export channels such as China carry a large weight.
- The other is household goods, where it makes everyday consumer products such as the Kerasys shampoo, 2080 toothpaste, Trio dish soap and Wool Shampoo fabric softener, sold through large discount stores and online.
- Although it is officially classified under 'chemicals', it is more accurate to view it as a consumer business selling branded cosmetics and household goods.
- As a result, its performance is driven less by raw-material prices and more by brand awareness, the recovery of channels such as duty-free and China, and the efficiency of marketing spend.
- The latest close is ₩10,880 and market capitalization is ₩287.3 billion.
- The price sits below both the 20-day line (₩11,342) and the 60-day line (₩12,924).
- Trading below both its short- and medium-term moving averages, the trend is on the soft side.
- The RSI (an indicator that gauges upward versus downward momentum over the last 14 days on a 0-100 scale) is 39.2, a neutral level.
- The one-month change is -4.1%, the three-month change is -22.7%, and the price is -41.5% from its 52-week high.
- Relative strength against the KOSPI is 8 (on a 1-99 scale, computed from returns over the past year against the index with more weight on recent performance; higher means stronger than the market).
- Among all listed names it sits in roughly the top 93% by strength.
- Over the last three months it lagged the index by 39.0%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- On confirmed full-year figures (FY2025), the P/E (how many times one year's earnings the price is worth) is about 19x and the P/B (price relative to net asset value per share) is 0.72x.
- The key point here is that the two measures point in different directions.
- A P/B of 0.72x means market cap is actually smaller than the company's net assets, so on an asset basis the price is clearly cheap.
- The reason the P/E looks high is simple: 2025 was a trough year in which operating profit more than halved in a single year, and when earnings are small the same share price automatically makes the P/E look larger.
- In other words, this P/E is high not because the company is expensive but because last year's earnings were temporarily depressed, so it is not a figure to read as a 'burden'.
- Reflecting this year's recovered earnings, the forward P/E comes down and is actually on the low side versus cosmetics peers (Amorepacific in the mid-24x range, Kolmar Korea in the mid-16x range).
- Financial stability is solid too.
- The debt ratio is 124.7%, but with a current ratio of 318% and interest coverage of 14x, its ability to service debt is ample.
- Over five years revenue rose gently from ₩573.9 billion in 2021 to ₩654.5 billion in 2025.
- Profit peaked at operating profit of ₩61.9 billion in 2023 and then declined through 2024 and 2025, bottoming in 2025 at operating profit of ₩21.1 billion (-54.8%) and net profit of ₩15.2 billion (-64.3%).
- Revenue held up, but marketing and channel costs weighed on earnings during this stretch.
- The signal that the trend turned back up came in the first quarter of 2026.
- Revenue grew to ₩158.8 billion (+5.1%) and net profit jumped to ₩13.7 billion (+172.2%).
- That said, the operating line was -₩1.6 billion, so non-operating gains also helped lift net profit.
- The natural reading of this year, then, is a recovery phase in which earnings that have passed their trough are climbing back to a normal track.
- The forward P/E coming down to about 10.6x is likewise a figure that assumes the earnings that were depressed like last year recover again.
- The drivers of that recovery are the normalization of cosmetics export channels such as duty-free and China, brand turnover for AGE 20's and LUNA, and the steady cash flow of household goods.
- The key to firming up this picture is whether the recovery shows through as a quarter-by-quarter swing of operating profit into positive territory.
- The most substantial recent disclosure is the merger decision of April 9, 2026.
- Under it, Aekyung Industrial absorbs its wholly owned cosmetics affiliate ONE THING Inc.; it is a small-scale merger at a 1:0 ratio (absorbing a full subsidiary, so there is no new share issuance or equity dilution), with a merger date of June 12, 2026.
- It reads as a structural reorganization to fold the cosmetics business into the parent and lift operating efficiency.
- Next came the preliminary first-quarter results (fair disclosure) on May 11 and the quarterly report on May 15, which confirmed the first-quarter numbers, followed by the corporate governance report on May 29 and the large business group status disclosure on June 1.
- In May there was also an amended large-holding report (change in stakes).
- In short, the recent narrative centers on 'simplifying the business structure (absorbing an affiliate) plus confirming first-quarter results.'
- Aekyung Industrial reads as a recovery-phase name whose price is low relative to its assets.
- Its strengths are clear.
- At a P/B of 0.72x, market cap is below net assets; with a current ratio of 318% and interest coverage of 14x, its finances are solid; and it owns recognized consumer brands such as AGE 20's, LUNA, 2080 and Kerasys.
- Above all, with earnings that bottomed in 2025 recovering into 2026, the forward P/E has come down to about 10.6x, on the low side versus cosmetics peers.
- The core appeal is that both the assets are cheap and the valuation on recovered earnings carries no burden.
- The point to watch alongside this is the quality of earnings.
- The first-quarter jump in net profit included non-operating gains, so the picture firms up if the core operating profit settling into the black continues quarter after quarter.
- In sum, if the recovery in cosmetics channels such as duty-free and China arrives together with operating profit stabilizing in positive territory, the low asset value and low forward valuation are well positioned to feed a re-valuation; if the recovery is slow, that re-valuation is simply pushed back.
- The official classification is 'chemicals', but since the real business is consumer goods, comparison with cosmetics peers is more meaningful than with the chemicals average.
🔎 Valuation vs peers Inconclusive
Rather than the industry code (chemicals), peers were chosen on the actual business of cosmetics and household consumer goods, selecting companies that also sell branded cosmetics (current-price metrics are the site's base calculations).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Amorepacific | 30.85x | 1.33x | 4.33% |
| LG H&H | — | 0.68x | -1.84% |
| Kolmar Korea | 19.40x | 2.67x | 13.74% |
| Amorepacific Holdings | 14.49x | 0.52x | 3.56% |
Against consumer-goods peers, Aekyung Industrial sits on the discounted side on P/B (0.80x), while its P/E (21x) looks high because of last year's weak earnings. The two measures give conflicting signals. On a forward basis the P/E on a seasonality approximation falls to single digits, but this estimated net profit includes the one-off non-operating gains from the first quarter, so the case for calling it 'cheap' is weak. An ROE of 3.8% is also lower than Kolmar Korea's (13.7%), so there is no profitability premium. In the end, until operating profit turns positive and the quality of earnings is confirmed, it is hard to separate under- from over-valuation, so 'Inconclusive' is appropriate.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩168.8 billion | — | approx. ₩11.6 billion |
Price history Close · MA20 · MA60
The latest close is ₩10,880 and the market capitalization is ₩287.3 billion. The price sits below its 20-day moving average (₩11,342) and below its 60-day moving average (₩12,924). 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 39.2, a neutral level. The one-month change is -4.1%, the three-month change is -22.7%, and the position relative to the 52-week high is -41.5%. 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 39.0%. 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 -39.03% / 6M -49.15% / 12M -71.82%
Key metrics vs sector median
Valuation
The P/E of 18.90x is above the sector median (14.79x). The P/B of 0.72x is below 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.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 9.8%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 3.8%, in line with the sector average (4.0%). The operating margin is 3.2%. The debt ratio is 124.7%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $443.3M | $450.1M | $433.8M | -3.62% ↓ slower |
| Operating profit | $41.1M | $31.0M | $14.0M | -54.84% ↓ slower |
| Net profit | $32.3M | $28.2M | $10.1M | -64.27% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $380.4M | $404.6M | $443.3M | $450.1M | $433.8M |
| Operating profit | $16.2M | $25.9M | $41.1M | $31.0M | $14.0M |
| Net profit | $10.4M | $11.1M | $32.3M | $28.2M | $10.1M |
| Revenue CAGR | 4-yr avg 3.34% | ||||
Revenue fell 3.6% year over year (2023 ₩668.9 billion → 2024 ₩679.1 billion → 2025 ₩654.5 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 54.8% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 3.3%. The two-year revenue CAGR is -1.1%. In the most recent quarter (Q1 2026), revenue was 5.1% higher 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 3.6% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-04-09FilingDecision to absorb wholly owned cosmetics affiliate ONE THING Inc. (small-scale merger at a 1:0 ratio, merger date June 12, 2026)Because it absorbs a full subsidiary, there is no new share issuance or equity dilution, and it is a structural reorganization to integrate the cosmetics business into the parent for greater operating efficiency. ONE THING's net assets are slightly negative, so the financial impact of the merger itself is limited. Source
- 2026-05-11EarningsQ1 2026 preliminary consolidated results: revenue ₩158.8 billion (+5.1%), operating profit -₩1.6 billion (swung to a loss), net profit ₩13.7 billion (+172.2%)Revenue rose again, but the operating line swung to a loss, and the surge in net profit was largely driven by non-operating gains, so the quality of earnings must be viewed alongside it (short term: a results-release event; medium term: whether operating profit turns positive is the crux). Source
- 2026-05-15UpdateFiling of the Q1 2026 quarterly report (as of March 2026)An official document confirming the preliminary results, allowing the trend in revenue and earnings to be checked against the latest figures. Source
- 2026-05-29FilingDisclosure of the corporate governance reportA periodic disclosure summarizing governance and board-operation status, best viewed together with the phase of structural simplification through the merger. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 revenue | ₩158.8 billion(+5.1% YoY) | ₩158.8 billion(+5.1% YoY) | Confirmed | link |
| Q1 2026 operating profit and net profit | operating profit -₩1.6 billion, net profit ₩13.7 billion(+172.2%) | operating profit -₩1.6 billion, net profit ₩13.7 billion(+172.2%) | Confirmed | link |
| Decision to absorb affiliate via merger | (ONE THING Inc.) 100% , 1:0, 2026-06-12 | 1.0:0.0, 2026-06-12, 2026-06-15 | Confirmed | link |
| 2026 full-year estimate (seasonality approximation) | revenue approx. ₩666.6 billion·net profit approx. ₩41.7 billion | — | Unverified | link |
Recent filings
- 2026-06-01Large-business-group status disclosure
- 2026-05-29Corporate governance report
- 2026-05-20OwnershipAmended filing
- 2026-05-15PeriodicQuarterly report
- 2026-05-11EarningsFair-disclosure notice
- 2026-05-06EarningsEarnings disclosure
- 2026-04-09Material-fact report (amended)
- 2026-04-09Material-fact report
- 2026-04-02OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-02OwnershipLargest-shareholder ownership change report
- 2026-04-02OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-31OwnershipOwnership-change filing
📖 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.