KPX Chemical produces and sells polyether polyol, the core raw material for polyurethane. Because that material goes into car seats, insulation foam, and cryogenic insulation for LNG carriers, the company's results are tied directly to the health of its downstream industries. In December 2025 it spun off its electronic-materials division to concentrate on the urethane business, and even in a year of lower profit it maintained a dividend of ₩3,750 per share (a dividend yield of about 7.3%). Still, the 2025 annual report (revenue -6.9%, operating profit -29.6%) and the first quarter (operating profit -36.7%) confirmed a slowdown in the core business. What stands out lately is that the low valuation (a P/E of 4.2x and a P/B of 0.33x), a stable balance sheet (debt ratio of 32%), and a thick dividend are clear strengths, while the fact that revenue has now fallen for three straight years means profit recovery could be slow unless demand and raw-material spreads pick up.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 6.9% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 6.0% lower than a year earlier.
- ROE is 7.7% (controlling-interest basis). It is above the sector average.
- Operating margin is 3.4%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder KPX Holdings 52.28% (corporate)
Controlling bloc incl. related parties 52.55%
With the controlling bloc holding 53%, control is very secure but the free float is thin.
🔎 In-depth analysis
- KPX Chemical produces and sells polyether polyol (PPG-family, the base material for urethane), the core raw material used to make polyurethane.
- Beyond standard base polyol it also makes polymer polyol and ready-to-use PU systems.
- The polyurethane made from this material goes into car seats and interiors, refrigerator and building insulation foam, cryogenic insulation for LNG carriers, mattresses, and much else across everyday life and industry.
- In December 2025 the company spun off its electronic-materials division (semiconductor etchants, LCD cleaners, CMP pads) into KPX Electrochem, so today's KPX Chemical is focused on its core urethane and organic-chemical business.
- In other words, it makes money by selling raw materials rather than finished goods, which ties its results directly to the business cycles of its downstream industries (construction, autos, appliances).
- Part of the KPX Holdings group, it operates a large single-site polyol plant in Korea along with production and sales networks in China, Vietnam, Thailand and elsewhere.
- The latest close is ₩50,300 and the market cap is ₩220.2 billion.
- The price sits above its 20-day line (₩49,730) but below its 60-day line (₩51,008).
- With the short- and medium-term trends diverging, direction should be read separately.
- The RSI (an auxiliary gauge that weighs upward against downward force over the past 14 days on a 0-100 scale) is 52.6, a neutral level.
- The one-month change is +1.6%, the three-month change is +1.8%, and the price sits -10.7% from its 52-week high.
- Relative strength versus the KOSPI is 34 (on a 1-99 scale, computed from the past year's return against the index with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 67% of all stocks by strength.
- Over the past three months it has trailed the index by 19.0%.
- It is best to read the chart alongside trading volume and disclosure dates.
- The P/E (share price divided by earnings per share) is 4.23x and the P/B (share price divided by net assets per share) is 0.33x, both noticeably low even within the chemicals sector.
- A P/B well below 1x means the market price is set below even the book value of net assets, a clear sign of undervaluation relative to assets.
- Profitability is decent for its peer group, with an ROE (annual return on shareholders' equity) of 7.7% and a net margin of 6.3%.
- The operating margin of 3.4% is not high, which is typical of a raw-materials business, but net profit exceeding operating profit reflects added income from outside the core business, such as equity-method gains from overseas subsidiaries.
- The balance sheet is sound: a debt ratio (debt to equity) of 32% and a current ratio of 211% mean little debt and ample short-term liquidity.
- Low trailing P/E and P/B are not necessarily a 'value trap' here; it is more natural to read this as a low-debt, asset-rich company trading below both its earnings and its net assets.
- Revenue has been declining over the past three years (₩911.1 billion in 2023 → ₩868.6 billion in 2024 → ₩808.4 billion in 2025).
- Operating profit also fell from ₩58.4 billion in 2023 to ₩27.4 billion in 2025 (-29.6% year on year), and net profit was ₩50.6 billion (-21.1%).
- This largely reflects a cycle in which demand from downstream construction and durable-goods markets softened while product prices (spreads) were weak.
- In the first quarter of 2026, revenue was ₩197.7 billion (-6.0%) and operating profit ₩5.4 billion (-36.7%), so the core-business slowdown continued, but net profit rose sharply to ₩10.5 billion versus the same quarter a year earlier (+196.6%, helped by a low prior-year base).
- The forward P/E, based on this year's earnings, is 4.9x, still in a low range with little difference from the trailing 4.23x.
- That figure reflects a phase in which revenue is finding a floor rather than falling further, and given the nature of a raw-materials business, profit could rebound quickly once demand and prices recover.
- But the pace and timing of any recovery depend on downstream conditions and raw-material spreads, so for now it is more accurate to view profit as moving sideways at a low level.
- The biggest recent change is the December 1, 2025 spin-off of the electronic-materials division.
- The unit that made semiconductor etchants, LCD cleaners, and CMP pads was carved out into KPX Electrochem (newly created, a split ratio of 10%), leaving KPX Chemical (the surviving entity, 90%) focused on its core urethane and organic-chemical business.
- The split simplified the business mix around urethane and made peer comparison clearer.
- In February 2026 the company set a cash dividend of ₩3,750 per common share for fiscal 2025 (a dividend yield of about 7.3%, a payout ratio of 31.4%), continuing a steady dividend even in a year of lower profit.
- The March annual report (revenue -6.9%, operating profit -29.6%) and the May first-quarter report (operating profit -36.7%) confirmed the core-business slowdown in the numbers, and in June a corporate-governance report was disclosed.
- This is a stock where a 'core-business slowdown' sits alongside a 'low valuation and a solid balance sheet.' The strengths are clear.
- At a P/E of 4.2x and a P/B of 0.33x it is among the cheapest in its peer group, its finances are stable (debt ratio 32%, current ratio 211%), and it kept a dividend yield in the 7% range even in a down year for profit.
- The signs of undervaluation relative to both assets and earnings are pronounced.
- The cautions are equally clear.
- Revenue has fallen for three years and operating profit sits near a cycle low, so profit recovery could be slow unless downstream construction and durable-goods demand and raw-material prices (spreads) revive.
- In sum, when demand and spreads turn and core profit recovers, the low valuation and thick dividend provide firm support; but if the downcycle drags on, core profit may linger at low levels.
- This is a case to weigh both the cheapness and the uncertain timing of any recovery.
🔎 Valuation vs peers Undervalued
The peer set was drawn from domestic KOSPI chemical-materials makers with a business profile close to KPX Chemical's, such as polyol and polyurethane producers.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Unid | 6.45x | 0.39x | 6.03% |
| Korea Petrochemical Ind. | 20.81x | 0.36x | 1.73% |
| Lotte Chemical | 0.00x | 0.21x | -16.19% |
A P/E of 4.41x and a P/B of 0.34x are lower than comparable chemical names such as Unid (P/E 7.2x) and Korea Petrochemical (P/E 26.5x), and represent a large discount to net assets as well. Its dividend yield in the 7% range is the highest in the peer group. That P/E, however, is on a trailing basis (last year's confirmed earnings), which has limits at an earnings inflection marked by five straight years of falling revenue and three straight years of falling operating profit. And because the electronic-materials division was spun off at the end of 2025 and the core business narrowed to urethane, it is hard to apply metrics based on the old combined results directly to the future. With no official company annual guidance disclosed, this year's earnings can only be viewed as an approximation extending recent quarterly trends, and if profit falls further the forward P/E would rise somewhat. Even so, given that the share price is low relative to asset and dividend value, we view this as undervalued, while noting it is hard to declare it flatly 'cheap' without a recovery in downstream conditions.
Price history Close · MA20 · MA60
The latest close is ₩50,300 and the market capitalization is ₩220.2 billion. The price sits above its 20-day moving average (₩49,730) and below its 60-day moving average (₩51,008). 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 52.6, a neutral level. The one-month change is +1.6%, the three-month change is +1.8%, and the position relative to the 52-week high is -10.7%. Relative strength versus the KOSPI is 34 (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 34% of all stocks. Over the past three months it lagged the index by 19.0%. 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 -18.98% / 6M -31.99% / 12M -56.26%
Key metrics vs sector median
Valuation
The P/E of 4.35x is below the sector median (14.79x). The P/B of 0.34x is below the sector median (0.97x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets. 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 7.7%, above the sector average (4.0%). The operating margin is 3.4%. The debt ratio is 32.0%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $603.9M | $575.7M | $535.8M | -6.93% ↓ slower |
| Operating profit | $38.7M | $25.8M | $18.2M | -29.64% ↑ faster |
| Net profit | $43.0M | $42.6M | $33.6M | -21.14% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $676.6M | $651.9M | $603.9M | $575.7M | $535.8M |
| Operating profit | $29.6M | $30.8M | $38.7M | $25.8M | $18.2M |
| Net profit | $31.9M | $19.0M | $43.0M | $42.6M | $33.6M |
| Revenue CAGR | 4-yr avg -5.67% | ||||
Revenue fell 6.9% year over year (2023 ₩911.1 billion → 2024 ₩868.6 billion → 2025 ₩808.4 billion), and the three-year trend is 'falling'. The rate of decline widened from the prior year. Operating profit fell 29.6% year over year. That said, the decline narrowed. Over the 5 years on record, revenue compound annual growth (CAGR) is -5.7%. The two-year revenue CAGR is -5.8%. In the most recent quarter (Q1 2026), revenue was 6.0% lower 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 dividend yield, at 7.5%, is on the high side.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 6.9% year over year (3-year trend: falling).
Recent news & events searched · sourced
- 2025-12-01FilingCompletion of the electronic-materials division spin-off: KPX Electrochem (newly created; semiconductor etchants, LCD cleaners, CMP pads) separated, with KPX Chemical continuing its core urethane and organic-chemical business (split ratio: 90% surviving, 10% new entity)The business mix was simplified around urethane and valuation comparison became clearer, while carving out the growth-oriented electronic-materials unit raised the core business's cyclical sensitivity. The surviving company pursued a changed listing and the new company a fresh KOSDAQ listing. Source
- 2026-02-12DividendFiscal 2025 cash dividend set: ₩3,750 per common share, a dividend yield of about 7.3%, a payout ratio of 31.4%Maintaining a high-dividend stance highlights shareholder-return appeal. Whether dividend capacity holds up even amid falling profit is a point to watch. Source
- 2026-03-12Earnings2025 annual report: revenue ₩808.4 billion (-6.9%), operating profit ₩27.4 billion (-29.6%), net profit ₩50.6 billion (-21.1%)Softer downstream demand confirmed the decline in revenue and operating profit. Margin pressure in the core business is the key drag. Source
- 2026-05-15EarningsFirst-quarter 2026 report: revenue ₩197.7 billion (-6.0%), operating profit ₩5.4 billion (-36.7%), net profit ₩10.5 billion (+196.6% on base effects)Core operating profit slowed further, while net profit rebounded on a low prior-year base, revealing reliance on non-operating items. Source
- 2026-06-01FilingCorporate-governance report disclosedA routine disclosure on governance and shareholder rights. Its near-term earnings impact is limited. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 revenue | ₩808.3 billion | DART 2025 revenue approx. ₩808.4 billion | Confirmed | link |
| Dividend per share (DPS) | ₩3,750 | DART · : 1 ₩3,750 | Confirmed | link |
| First-quarter 2026 results | revenue 1,977·operating profit 54·net profit 105 | DART 2026 1 | Confirmed | link |
| The spin-off event | — | KRX KIND : ·, 2025-12-01, 90% : 10% | Confirmed | link |
| In-house 2026 net-profit estimate | approx. ₩44.0 billion | — | Unverified | link |
Recent filings
- 2026-06-01Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-04-15OwnershipLargest-shareholder ownership change report
- 2026-03-20Disclosure
- 2026-03-20Shareholders' meeting notice
- 2026-03-12PeriodicAnnual business report
- 2026-03-12Audit report
- 2026-03-05Shareholders' meeting notice
- 2026-02-12Shareholders' meeting notice
- 2026-02-12DividendCash/stock dividend decision
- 2026-02-12DividendCash/stock dividend decision
📖 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.