Namhae Chemical is the domestic market leader in agricultural mineral fertilizers such as compound and urea fertilizers, holding roughly a 40% share of Korea's domestic fertilizer market. On top of this core business, it runs a thin-margin fuel distribution operation (₩161.1 billion in Q1 2026) and, through its subsidiary NES Materials, supplies high-purity sulfuric acid for semiconductors, while its annual supply contract with its largest shareholder, NongHyup Agribusiness Group, forms the backbone of revenue. On June 9, 2026, its 2026 mineral fertilizer contract with NongHyup was revised upward on a unit-price increase, from ₩315.1 billion to ₩352.9 billion (23.23% of recent revenue), and in late May the company financed spring raw-material purchases with ₩237.9 billion in short-term borrowings tied to a government policy-fund program, yet Q1 saw revenue grow while operating profit slipped into the red. What stands out lately is that while the top market share of the core business, the NongHyup contract that secures about 23% of revenue, and a P/B of 0.52x provide a solid foundation, this is a cost-sensitive stock: nearly all key raw materials except sulfur are imported, so earnings swing sharply with global commodity prices and exchange rates, and because selling prices are set by NongHyup tenders, cost increases are hard to pass through immediately.
At-a-glance assessment financial health · growth · profitability · valuation
- Revenue rose 5.6% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 12.6% higher than a year earlier.
- ROE is 5.3% (controlling-interest basis). It is above the sector average.
- Operating margin is 2.7%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder NongHyup Agribusiness Group 56% (corporate)
Controlling bloc incl. related parties 56%
With the controlling bloc holding 56%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Namhae Chemical makes and sells agricultural mineral fertilizers and is the domestic market leader with roughly a 40% share of Korea's domestic fertilizer market.
- Revenue splits into three main streams.
- First, fertilizers and chemicals (compound fertilizers, customized fertilizers, urea fertilizer, plus chemical products such as ammonia and sulfuric acid) form the heart of the core business.
- Second, fuel distribution (₩161.1 billion in Q1 2026), in which the company buys diesel, kerosene, and gasoline from refiners and resells them to outlets such as NongHyup gas stations, is large in revenue terms but thin in margin.
- Third, its subsidiary NES Materials produces high-purity sulfuric acid used in semiconductor processes and is expanding those deliveries.
- Because domestic fertilizer is priced and supplied through a once-a-year tender with the largest shareholder, NongHyup Agribusiness Group, the annual supply contract with NongHyup effectively serves as the backbone of revenue.
- The latest close is ₩5,620 and the market cap is ₩279.2 billion.
- The price sits below the 20-day line (₩5,940) and below the 60-day line (₩7,579).
- Trading below both its short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that weighs upward versus downward momentum over the past 14 days on a 0-100 scale) is 33.2, a neutral level.
- The one-month change is -8.8%, the three-month change is -31.6%, and the position versus the 52-week high is -52.1%.
- Relative strength versus the KOSPI is 12 (1-99, converting the past year's return versus the index with heavier weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 88% of all stocks by strength.
- Over the past three months it has lagged the index by 42.1%.
- Chart readings are best viewed together with trading volume and disclosure dates.
- Based on last year's confirmed results (2025), the P/E ratio (how many times one year's net profit the share price represents) is 9.58x and the P/B (how many times net assets the share price represents) is 0.51x, both on the low side versus the chemical-sector average.
- ROE (how much is earned in a year on shareholders' equity) is 5.3%, slightly above the chemical-sector average (4.0%).
- The operating margin is thin at 2.7%, a natural feature of a business mix in which a large share of revenue comes from low-margin fuel distribution.
- The debt ratio is 150.1%, reflecting a structure in which working-capital borrowings temporarily rise because fertilizer requires buying large volumes of raw materials ahead of the spring peak season; with a current ratio of 208%, short-term solvency has room to spare.
- That said, rather than reading a P/B of 0.52x simply as 'cheap,' it should be seen alongside the fact that earnings have been declining this year.
- The share price is low relative to asset value, but the profit those assets generate has weakened for now.
- Earnings had been recovering for some time.
- Operating profit rose steadily from a trough of ₩11.1 billion in 2023 to ₩36.3 billion in 2024 and ₩43.1 billion in 2025, and net profit recovered over the same period.
- Revenue returned to growth in 2025 at ₩1.6 trillion, up 5.6% year on year.
- But in the most recent quarter, Q1 2026, the trend shifted.
- Even though revenue rose +12.6% (₩493.0 billion) year on year, operating profit came in at -₩120 million and net profit at -₩2.5 billion, turning to a loss.
- As the company explained, the prices of imported raw materials (urea, ammonia, sulfur) rose sharply, so higher revenue was fully eroded by costs.
- In other words, 'selling more at higher prices, but with purchase costs climbing faster' is what changed this year.
- This is also why the forward P/E, which weighs this year's expected earnings against the price, comes out higher than the trailing P/E on last year's results: it captures the picture that this year's earnings are unlikely to match last year's.
- Since the core business itself has not disappeared, there is room for earnings to recover once raw-material prices stabilize and cost increases are reflected in NongHyup tender prices.
- The 'Purchase and Supply Contract for 2026 Mineral Fertilizers' with NongHyup Agribusiness Group, amended in a corrective disclosure on June 9, 2026, grew from ₩315.1 billion to ₩352.9 billion as a unit-price increase was reflected (23.23% of recent revenue).
- In effect, a core contract responsible for nearly a quarter of revenue was confirmed together with a price increase.
- In late May the company increased short-term borrowings by ₩237.9 billion (43% of shareholders' equity); on closer look, this is a policy-fund arrangement in which it was selected for the Ministry of Agriculture, Food and Rural Affairs' 'raw-material purchase funding program for mineral fertilizers' and borrowed raw-material funds from NH NongHyup Bank at a fixed 3.28% annual rate.
- In other words, more important than the surface fact that debt rose is the business context that 'spring raw-material purchases are financed with low-cost government funds.' The May 15 quarterly report confirmed the weak Q1 earnings, and in March there were routine disclosures such as the regular shareholders' meeting and the appointment of outside directors.
- The strengths are clear.
- A stable core business as the No.
- 1 domestic fertilizer supplier with a 40% share, the annual NongHyup contract that secures about 23% of revenue, and a structure that funds spring raw materials with government policy money all underpin the business.
- Expanding high-purity sulfuric acid deliveries for semiconductors through the subsidiary NES Materials is a long-term growth option, and the share price relative to assets (P/B of 0.52x) is on the low side.
- The points to watch are equally clear.
- Because nearly all key raw materials (ammonia, urea, phosphate rock, potassium chloride) except sulfur are imported, earnings swing sharply with global commodity prices and exchange rates, and indeed in Q1 2026 operating profit turned to a loss even as revenue grew.
- In addition, because selling prices are set through NongHyup tenders, rising costs are hard to pass through to prices immediately.
- In sum, this is a stock sensitive to cost trends: when raw-material prices stabilize and tender prices rise to follow costs, the strength of the stable core business comes through, whereas when commodities and exchange rates swing, earnings are pressured even as revenue grows.
🔎 Valuation vs peers Inconclusive
The comparison prioritizes fertilizer and agrochemical companies with a similar business substance, with Kyung Nong (crop protection and fertilizer) and KG Chemical (fertilizer and fine chemicals) the closest, and Lotte Fine Chemical referenced as a secondary peer given its raw-material overlap in ammonia and urea solution.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Kyung Nong | 9.52x | 0.67x | 7.08% |
| KG Chemical | 3.96x | 0.28x | 6.97% |
| Lotte Fine Chemical | 10.44x | 0.45x | 4.36% |
On last year's confirmed results, a P/E of 10.8x and P/B of 0.57x are below the chemical-sector medians (P/E 14.9, P/B 1.19). But these trailing metrics are meaningful only when earnings are stable. Because operating profit all but disappeared in Q1 2026, a P/E using last year's earnings as the denominator risks making the share price look cheap relative to actual forward earning power. With no official company forecast, the forward view could only be checked as a DART seasonality approximation (annual revenue of roughly ₩1.73 trillion), and an earnings approximation could not be produced because of the loss-making quarter. Its position versus the peer group is therefore 'middle,' and until earnings normalization is confirmed it is hard to conclude either undervalued or overvalued, so we regard it as inconclusive.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩447.1 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩5,620 and the market capitalization is ₩279.2 billion. The price sits below its 20-day moving average (₩5,940) and below its 60-day moving average (₩7,579). 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 33.2, a neutral level. The one-month change is -8.8%, the three-month change is -31.6%, and the position relative to the 52-week high is -52.1%. Relative strength versus the KOSPI is 12 (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 12% of all stocks. Over the past three months it lagged the index by 42.1%. 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 -42.12% / 6M -46.91% / 12M -69.79%
Key metrics vs sector median
Valuation
The P/E of 9.58x is below the sector median (14.79x). The P/B of 0.51x is below the sector median (0.97x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets.
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 5.3%, above the sector average (4.0%). The operating margin is 2.7%. The debt ratio is 150.1%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.1B | $1.0B | $1.1B | +5.62% ↑ faster |
| Operating profit | $7.3M | $24.0M | $28.6M | +18.93% ↓ slower |
| Net profit | $7.9M | $16.7M | $19.3M | +15.90% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $962.3M | $1.4B | $1.1B | $1.0B | $1.1B |
| Operating profit | $13.6M | $41.5M | $7.3M | $24.0M | $28.6M |
| Net profit | $14.4M | $31.3M | $7.9M | $16.7M | $19.3M |
| Revenue CAGR | 4-yr avg 2.53% | ||||
Revenue rose 5.6% year over year (2023 ₩1.6 trillion → 2024 ₩1.5 trillion → 2025 ₩1.6 trillion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit rose 18.9% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 2.5%. The two-year revenue CAGR is 0.5%. In the most recent quarter (Q1 2026), revenue was 12.6% 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.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-06-09UpdatePurchase and supply contract for 2026 mineral fertilizers with NongHyup Agribusiness Group revised upward on a unit-price increase, from ₩315.1 billion to ₩352.9 billion (23.23% of recent revenue; contract term 2026-01-01 to 12-31)A core contract accounting for about a quarter of core-business revenue grew alongside a unit-price increase. However, the contract quantity may change with NongHyup's purchase volume, so the confirmed volume should be checked in later disclosures. Source
- 2026-05-29FilingDecision to increase short-term borrowings by ₩237.9 billion (43% of shareholders' equity); policy-fund borrowing from NH NongHyup Bank at a fixed 3.28% annual rate after selection for the Ministry of Agriculture, Food and Rural Affairs' raw-material purchase funding program for mineral fertilizersOn the surface an increase in borrowings, but in substance low-cost government policy funds for spring raw-material purchases. This should be viewed together with the recurring nature of working-capital turnover inherent to the core business. Source
- 2026-05-15EarningsQ1 2026 quarterly report. Revenue of ₩493.0 billion (+12.6%), but operating profit of -₩120 million and net profit of -₩2.5 billion, a swing to a loss (impact of surging imported raw-material prices)Official material confirming that, while revenue grew, rising costs eroded earnings. It shows the limits of reading undervaluation off the confirmed trailing P/E from last year. Source
- 2026-03-27FilingResults of the regular shareholders' meeting and filing on the appointment of outside directorsA routine disclosure on governance and board composition. Resolutions such as dividend and executive agenda items can be checked in the original text. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| NongHyup annual fertilizer supply contract amount | ₩352.9 billion | ₩352.9 billion(₩352,915,126,630) | Confirmed | link |
| Domestic fertilizer market share | approx. 40% | 40% | Confirmed | link |
| Q1 2026 operating profit | -₩0.1 billion | approx. ₩0.7 billion | Unverified | link |
| Latest close | ₩5,620 | — | Unverified | link |
| 2026 annual revenue approximation | approx. ₩1.73 trillion | — | Unverified | link |
Recent filings
- 2026-06-09Single supply/sales contract (amended)
- 2026-06-01Corporate governance report
- 2026-06-01Large-business-group status disclosure
- 2026-05-29Disclosure
- 2026-05-29Disclosure
- 2026-05-29Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-04-10Disclosure
- 2026-03-27Amended filing
- 2026-03-27Disclosure
- 2026-03-27Shareholders' meeting notice
- 2026-03-27Disclosure
📖 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.