Heungkuk Petroleum's core business is petroleum wholesale, taking gasoline, diesel, and kerosene from refiners and reselling them to gas stations, industrial firms, and transport operators. Because it does not refine directly but distributes, its margins are thin while its revenue scale (₩107.9 billion a year) is large. Last year's annual results were weak, with revenue of ₩107.9 billion, an operating loss of -₩1.0 billion, and net profit of ₩0.2 billion, but in first-quarter 2026 operating profit swung into the black and net profit rose sharply, giving a signal that profit is bottoming, while disposal of treasury shares and a corporate-value enhancement plan were also disclosed. What stands out lately is that if the first-quarter profit recovery continues into the remaining quarters and the value-enhancement plan is backed by actual numbers, the expectations that have cooled to -71.9% versus the 52-week high could be retraced; but with revenue shrinking over several years and a current ratio of 53.9% leaving short-term funding tight, it weakens if revenue declines drag profit back down again.
At-a-glance assessment financial health · growth · profitability · valuation
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 53.9%).
- Revenue fell 7.7% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 9.7% lower than a year earlier.
- ROE is 0.2% (total-net basis). It is below the sector average.
- Operating margin is -0.9%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Kim Sang-woo 29.57% (individual)
Controlling bloc incl. related parties 32.16%
With the controlling bloc holding 32%, the ownership structure is stable.
🔎 In-depth analysis
- Heungkuk Petroleum's core business is petroleum wholesale, taking petroleum products such as gasoline, diesel, and kerosene from refiners and reselling them to gas stations, industrial firms, and transport operators.
- In a distribution structure that buys and passes on rather than refining directly, margins are thin while revenue scale is large (₩107.9 billion a year).
- So the company's real strength is decided less by the size of revenue than by how much it keeps (the margin) and how it withstands swings in oil prices and volumes.
- As a small-cap with a market capitalization of ₩138.0 billion, it is worth watching, as much as the quarterly results of the core business, how a single disclosure such as a treasury-share disposal or a corporate-value enhancement plan affects the share count and the balance sheet.
- The most recent close is ₩10,780, with a market capitalization of ₩161.7 billion.
- The price sits above its 20-day line (₩10,050) and below its 60-day line (₩13,553).
- The short- and medium-term trends diverge, so direction should be read separately.
- The RSI (a supplementary indicator that weighs upward versus downward force over the past 14 days on a 0-100 scale) is 49.8, a neutral level.
- The one-month change is -9.4%, the three-month change is -52.8%, and the position versus the 52-week high is -67.0%.
- Relative strength versus the KOSDAQ is 64 (1-99, converted from returns against 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 35% of all stocks by strength.
- Over the past three months it lagged the index by 21.5%.
- Chart interpretation is best done alongside trading volume and disclosure dates.
- On a recent annual basis, revenue is ₩107.9 billion, operating profit is -₩1.0 billion, and net profit is ₩0.2 billion.
- With an operating margin of -0.9% and ROE (how much is earned in a year on equity) of 0.2%, last year stayed near breakeven.
- The P/E (how many times a year's earnings the price represents) prints very high at 867x, but this is closer to an optical effect from the denominator — last year's net profit — shrinking to ₩0.2 billion than from the price being expensive.
- For a company whose profit is inflecting off the bottom, the P/E based on last year's confirmed earnings tends to look abnormally large, so it is hard to declare it expensive on this figure alone.
- The P/B (how many times book value the price represents) is 2.06x, and the debt-to-equity ratio (debt relative to equity) of 117.3% is not excessive.
- That said, the current ratio of 53.9% means assets readily convertible to cash are less than debt due within a year, so it is worth noting that short-term funding room is tight.
- Annual revenue eased gently from ₩132.2 billion in 2021 to ₩107.9 billion in 2025, and last year's revenue fell 7.7% from the prior year.
- Looking at revenue growth alone, it is indeed a de-growth trend.
- On profitability, however, the direction is different.
- First-quarter 2026 revenue of ₩27.1 billion fell 9.7% from the same period a year earlier, but operating profit swung into the black at ₩0.6 billion (+104.3% year over year), and net profit rose to ₩0.4 billion (+147.6%).
- Profit reviving even as revenue falls is a classic pattern in thin-margin distribution when the spread between purchase and sale prices and cost management improve.
- That is, while the top-line growth engine is weak, escaping the loss zone and turning profit around is what changed this year.
- This year's revenue outlook is around ₩106.1 billion, near last year's level, and the point to watch is whether the profit recovery seen in the first quarter continues into the remaining quarters.
- On January 28, 2026, the result of a treasury-share disposal was disclosed, and as this ties to cash returns or changes in shares outstanding, it should be viewed alongside whether earnings strength and cash flow support it.
- On January 29, a results-change disclosure of annual revenue ₩107.9 billion, operating loss -₩1.0 billion, and net profit ₩0.2 billion confirmed last year's weakness.
- Then on April 20, a corporate-value enhancement plan was voluntarily disclosed.
- As material the company itself put forward as a plan, it is appropriate to take it as a primary basis for the outlook if it contains specific numbers, and as an expression of intent if it only offers direction.
- The strengths are clear.
- From last year's loss, first-quarter 2026 operating profit swung into the black and net profit rose sharply, giving a signal that profit is bottoming and inflecting.
- The debt-to-equity ratio (117.3%) is not a burdensome level either, and the price has fallen to -71.9% versus the 52-week high, a spot where expectations have already cooled considerably.
- The high P/E of 867x is an optical effect from last year's profit being near zero rather than a signal of being expensive, so there is no need to read it as risk at face value.
- Conversely, the cautions are also distinct.
- Revenue is on a multi-year downtrend, so the top-line growth engine is weak, and a current ratio of 53.9% leaves short-term cash room tight.
- In short, it is a strong stock when the first-quarter profit recovery continues into the remaining quarters and the corporate-value enhancement plan is backed by actual numbers, and it weakens if revenue declines drag profit back down again or short-term funding strain surfaces.
🔎 Valuation vs peers Overvalued
A comparison set of wholesale names with nearby market capitalization.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Uniquest | 5.80x | 0.48x | 8.35% |
| Hwaseung Enterprise | 6.72x | 0.39x | 5.79% |
| Unitrontech | 8.62x | 0.79x | 9.12% |
We looked first at a public-data comparison set of wholesale names with nearby market capitalization. The current P/E (how many times a year's earnings the price represents) is 1,016.98x, and the P/B (how many times book value the price represents) is 2.06x. That said, lower-market-cap names are heavily affected by earnings swings and financing disclosures, so we did not draw firm conclusions from metrics based on last year's confirmed results alone. The basis for the outlook box is a DART seasonality approximation.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩106.1 billion | — | — |
| Next quarter | Q2 2026 | ₩26.8 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩10,780 and the market capitalization is ₩161.7 billion. The price sits above its 20-day moving average (₩10,050) and below its 60-day moving average (₩13,553). 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 49.8, a neutral level. The one-month change is -9.4%, the three-month change is -52.8%, and the position relative to the 52-week high is -67.0%. Relative strength versus the KOSDAQ is 64 (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 65% of all stocks. Over the past three months it lagged the index by 21.5%. 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 -21.46% / 6M +1.24% / 12M -14.52%
Key metrics vs sector median
Valuation
The P/E of 1016.98x is above the sector median (9.68x). The P/B of 2.06x is above the sector median (0.80x). 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.
Profitability & financials
Return on equity (ROE) is 0.2%, below the sector average (7.0%). The operating margin is -0.9%. The debt ratio is 117.3%, so the financial structure is moderate.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $84.0M | $77.4M | $71.5M | -7.70% ↑ faster |
| Operating profit | $57,649 | -$187,415 | -$659,364 | — |
| Net profit | $748,395 | $411,192 | $104,928 | -74.48% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $87.6M | $97.2M | $84.0M | $77.4M | $71.5M |
| Operating profit | -$19,098 | $901,535 | $57,649 | -$187,415 | -$659,364 |
| Net profit | $927,109 | $1.8M | $748,395 | $411,192 | $104,928 |
| Revenue CAGR | 4-yr avg -4.96% | ||||
Revenue fell 7.7% year over year (2023 ₩126.7 billion → 2024 ₩116.9 billion → 2025 ₩107.9 billion), and the three-year trend is 'falling'. That said, the rate of decline narrowed from the prior year. Operating results are in the red, so a swing back to profit matters more than the growth rate here. Over the 5 years on record, revenue compound annual growth (CAGR) is -5.0%. The two-year revenue CAGR is -7.7%. In the most recent quarter (Q1 2026), revenue was 9.7% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- Revenue fell 7.7% year over year (3-year trend: falling).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-04-20UpdateCorporate-value enhancement plan (voluntary disclosure): original company plan confirmedThis is material the company itself put forward as a plan. If it contains numbers, we treat it as a primary basis for the outlook box; if not, we treat it only as directional material. Source
- 2026-01-29EarningsChange of 30% or more (15% for large corporations) in revenue or profit structure: annual revenue ₩107.9 billion, operating loss -₩1.0 billion, net profit ₩0.2 billionThis is recent confirmed or preliminary results material. We check whether it is in the same direction as the annual trend and whether there are one-off factors. Source
- 2026-01-28UpdateTreasury-share disposal result report: return terms confirmedThis is a disclosure related to cash returns or changes in the share count. We check whether earnings strength and cash flow support it. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩10,780 | ₩10,780 | Confirmed | link |
| Latest quarterly results | revenue ₩27.1 billion, operating profit ₩0.6 billion | revenue ₩27.1 billion, operating profit ₩0.6 billion | Confirmed | link |
| Annual results | revenue ₩107.9 billion, operating profit -₩1.0 billion | revenue ₩107.9 billion, operating profit -₩1.0 billion | Confirmed | link |
| Original outlook/plan disclosure text | : | : | Confirmed | link |
| Original results disclosure text | revenue30%: revenue ₩107.9 billion · operating profit -₩1.0 billion · net profit ₩0.2 billion | revenue30%: revenue ₩107.9 billion · operating profit -₩1.0 billion · net profit ₩0.2 billion | Confirmed | link |
| Original shareholder-return disclosure text | : | : | Confirmed | link |
| Outlook box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-05-19OwnershipOwnership-change filing
- 2026-05-13PeriodicQuarterly report
- 2026-04-20Disclosure
- 2026-04-09OwnershipOwnership-change filing
- 2026-03-30Disclosure
- 2026-03-27Shareholders' meeting notice
- 2026-03-27PeriodicAnnual business report
- 2026-03-19Audit report
- 2026-03-09OwnershipOwnership-change filing
- 2026-03-09OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-06OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-06OwnershipOwnership-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.