Baiksan is a materials maker whose core product is synthetic leather (artificial leather) made by combining polyurethane resin with nonwoven fabric. About 60% of revenue comes from upper and lining materials for global sports shoes such as Nike and Adidas, followed by automotive interior materials (about 15%), so overseas footwear consumption, brand orders and the exchange rate feed directly into results. In March 2026 it announced a corporate value-up plan, and in April and May it successively decided on treasury-stock purchases and cancellation, strengthening returns alongside a 4.4% dividend. What stands out is that it pairs profitability that far exceeds peer materials firms (ROE 13.0% and an operating margin of 10.6% versus peer ROE of 2-4%) with a low valuation (P/E 5.6x, P/B 0.73x, and a forward P/E of 5.4x this year), while much of its revenue is tied to global footwear-brand orders, so quarterly results can swing with overseas consumer conditions and the exchange rate.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 1.6% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 3.1% lower than a year earlier.
- ROE is 13.0% (controlling-interest basis). It is above the sector average.
- Operating margin is 10.6%.
Ownership & governance As of 2025-12-31
Largest shareholder Kim Han-jun 34.84% (individual)
Controlling bloc incl. related parties 59.52%
With the controlling bloc holding 60%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Baiksan is a materials maker whose core product is synthetic leather (artificial leather) made by combining polyurethane (PU) resin with nonwoven fabric.
- About 60% of revenue is upper and lining material for global-brand sports shoes such as Nike, Adidas and Reebok, followed by vehicle interior materials such as car seats and doors (about 15%) and materials for apparel and electronics cases.
- Production is split between the domestic head office and an Indonesian production entity (P.T.
- BAIKSAN INDONESIA); as one link in the supply chain of global footwear brands, the export share is high, and overseas footwear consumption, brand orders and the exchange rate feed directly into results.
- Put simply, it is the company that makes the parts of a sneaker that look like leather.
- The latest close is ₩9,860 and market capitalization is ₩197.5 billion.
- The price sits below the 20-day line (₩10,072) and below the 60-day line (₩11,115).
- Being under both the short- and mid-term moving averages, the trend is on the subdued side.
- The RSI (an auxiliary gauge that scores the strength of gains versus declines over the past 14 days on a 0-100 scale) is 41.6, a neutral level.
- The one-month change is -6.3%, the three-month change is -20.7%, and the position versus the 52-week high is -37.0%.
- Relative strength against the KOSPI is 7 (on a 1-99 scale, converted from returns against the index over the past year with more recent performance weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 94% of all stocks by strength.
- Over the past three months it lagged the index by 37.8%.
- Chart reading is best done alongside trading volume and disclosure dates.
- The P/E (how many times the price is of one year's profit) is 5.90x and the P/B (how many times the price is of book net assets) is 0.76x, so the price is low relative to earnings and assets.
- On top of this comes a dividend yield of 4.4% (₩450 per share).
- Profitability is strong, with ROE (how much is earned in a year on shareholders' equity) of 13.0% and an operating margin of 10.6%, clearly above the peer materials average.
- The balance sheet is stable as well, with a debt ratio (debt relative to equity) of 71.9%, a current ratio of 177% and interest coverage of 4.7x.
- One point to note is that the current P/E of 5.6x is on confirmed 2025 earnings (net profit ₩33.5 billion).
- Usually, right after a year in which profit fell, even a low trailing P/E draws the doubt that the multiple will rise again once earnings recover; but for Baiksan the forward P/E recomputed on this year's expected earnings is 5.4x, actually lower.
- In other words this is not a picture of profit falling again but of recovery and stability, and on that basis the current valuation is closer to undervalued than burdensome.
- Over five years revenue rose from ₩371.1 billion (2021) to ₩504.9 billion (2025).
- In 2025 revenue was roughly flat at +1.6% over the prior year, while operating profit fell 30.0% (₩76.5 billion to ₩53.6 billion) and net profit 44.8% (₩60.7 billion to ₩33.5 billion), largely a step down from an unusually large 2024 in which the exchange rate and one-off tailwinds overlapped.
- The important change comes after that.
- In the most recent quarter (first-quarter 2026), operating profit was still depressed at ₩12.7 billion (-33.4%), but net profit was ₩12.9 billion, almost flat with the prior year (-1.5%).
- Support from non-operating factors such as the exchange rate and financial gains means quarterly volatility remains, but it can be read as a sign that net profit is beginning to hold at the bottom.
- That the forward valuation (forward P/E of 5.4x) is below the trailing basis (5.6x) points to profit not falling further from last year's reduced level and reviving again this year, even if not to a 2024-style peak.
- Depending on external variables such as global footwear demand, orders and the exchange rate there will be quarterly swings, but the trend itself has entered a recovery phase after the slowdown.
- This year's disclosures center on shareholder returns.
- Alongside the March annual general meeting it presented a corporate value-up plan (a voluntary disclosure); in April it reported the results of a treasury-stock purchase and decided on a share cancellation; and in May it again decided on a treasury-stock purchase.
- The pattern of buying back and cancelling its own shares to reduce the number of shares outstanding and lift earnings per share (EPS) is repeating.
- Beyond these, the April and March large-holding reports flag changes in major shareholders' stakes, and the June corporate governance report is a periodic disclosure of governance status.
- As for regular filings, the first-quarter report was filed in May and the business report in March.
- This return stance, adding buybacks and cancellations to a 4.4% dividend, clearly shows a direction of returning earned profit to shareholders.
- Baiksan's strengths are distinct.
- It pairs profitability that clearly exceeds peer materials firms (ROE 13.0%, operating margin 10.6% versus peer ROE of 2-4% at Kukdo Chemical, Ilshin Spinning and BYC) with a low valuation of P/E 5.6x and P/B 0.73x, a 4.4% dividend, and active returns through buybacks and cancellations.
- Usually a low-P/B materials firm also has weak ROE, so there is a reason it is cheap; but Baiksan has high profitability and a low valuation coexisting, closer to a case where the discount is excessive.
- Decisively, this year's forward P/E of 5.4x is below even the trailing basis, a setup in which earnings have entered a recovery trend but the price has not yet caught up.
- At the same time, that much of revenue is tied to global footwear-brand orders means quarterly results swing with overseas consumer conditions and the exchange rate, a point to understand as the nature of the business.
- In short, if footwear demand and the exchange rate hold and operating profit continues to recover, there is ample room for the low valuation, high dividend and high ROE to come to the fore together; in a phase where external orders wobble, the swing in quarterly results can grow larger.
🔎 Valuation vs peers Undervalued
Polyurethane synthetic leather is a chemical material yet is tied into the footwear and automotive consumer supply chain, so a polymer-materials firm (Kukdo Chemical) and an export-oriented textile/materials firm (Ilshin Spinning) are taken as the effective peer set.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Kukdo Chemical | 15.15x | 0.38x | 2.53% |
| Ilshin Spinning | 6.99x | 0.25x | 3.59% |
| BYC | 10.97x | 0.38x | 3.48% |
Against the peer set, Baiksan's P/E of 6.2x is among the lowest and its P/B is low at 0.8x, and decisively its ROE of 13% overwhelms the peers (2-4%). Usually a low-P/B materials firm has weak ROE, so there is a reason it is cheap, but Baiksan has high profitability and a low valuation together, making the discount relatively excessive. That said, the current P/E of 5.90x is on confirmed 2025 (trailing) earnings, which stepped down right after a 2024 peak, so in a phase of falling earnings it can look cheaper than it really is. Given that first-quarter net profit this year was almost flat with the prior year, and that even on a forward basis reflecting the normalization of last year's earnings the P/E is still low at around 6x, the undervaluation signal prevails, with the halting of the operating-profit slowdown being the precondition for a re-valuation.
Price history Close · MA20 · MA60
The latest close is ₩9,860 and the market capitalization is ₩197.5 billion. The price sits below its 20-day moving average (₩10,072) and below its 60-day moving average (₩11,115). 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 41.6, a neutral level. The one-month change is -6.3%, the three-month change is -20.7%, and the position relative to the 52-week high is -37.0%. Relative strength versus the KOSPI is 7 (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 6% of all stocks. Over the past three months it lagged the index by 37.8%. 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 -37.82% / 6M -52.08% / 12M -72.97%
Key metrics vs sector median
Valuation
The P/E of 5.90x is below the sector median (12.90x). The P/B is 0.76x.
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 13.0%, above the sector average (6.0%). The operating margin is 10.6%. The debt ratio is 71.9%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $276.9M | $329.4M | $334.6M | +1.60% ↓ slower |
| Operating profit | $35.2M | $50.7M | $35.5M | -29.96% ↓ slower |
| Net profit | $27.4M | $40.3M | $22.2M | -44.84% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $245.9M | $315.4M | $276.9M | $329.4M | $334.6M |
| Operating profit | $15.4M | $33.3M | $35.2M | $50.7M | $35.5M |
| Net profit | $12.7M | $30.0M | $27.4M | $40.3M | $22.2M |
| Revenue CAGR | 4-yr avg 8.00% | ||||
Revenue rose 1.6% year over year (2023 ₩417.7 billion → 2024 ₩497.0 billion → 2025 ₩504.9 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit fell 30.0% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 8.0%. The two-year revenue CAGR is 9.9%. In the most recent quarter (Q1 2026), revenue was 3.1% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The dividend yield, at 4.6%, is on the high side.
- ROE of 13.0% points to solid profitability.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue rose 1.6% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-05-13UpdateDecision to purchase treasury stock (material-fact report). A decision to buy the company's own shares in the market, reducing free-floating shares to enhance shareholder value.Favorable to short-term supply-demand and prevents per-share dilution. It does not, however, reverse the earnings slowdown itself (medium term). Source
- 2026-04-10FilingDecision to cancel shares. Cancelling held treasury stock to reduce the number of shares outstanding itself, a direct shareholder return that lifts EPS.A rise in per-share value from the reduction in shares outstanding (favorable medium term). A signal showing commitment to returns. Source
- 2026-04-09UpdateReport on results of treasury-stock purchase. A disclosure that the previously decided buyback was actually completed.Confirms execution of the shareholder return (favorable to short-term supply-demand). Source
- 2026-03-27IRVoluntary disclosure of a corporate value-up plan. A medium-to-long-term plan in which the company itself set out the direction for shareholder returns such as dividends and buybacks and for improving capital efficiency (ROE).Institutionalizing the shareholder-return policy supports the downside (medium term). Its effect persists only if earnings recovery accompanies it. Source
- 2026-05-12EarningsFirst-quarter 2026 report. Revenue ₩130.1 billion (-3.1% YoY), operating profit ₩12.7 billion (-33.4%), net profit ₩12.9 billion (-1.5%), with net profit defended amid an operating-level slowdown.The operating-profit decline is a burden, but the defended net profit and low valuation are balancing factors (short and medium term). Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-01Corporate governance report
- 2026-05-13TreasuryMaterial-fact report
- 2026-05-12PeriodicQuarterly report
- 2026-04-17OwnershipOwnership-change filing
- 2026-04-10Disclosure
- 2026-04-09TreasuryTreasury-stock acquisition decision
- 2026-03-27OwnershipOwnership-change filing
- 2026-03-27Disclosure
- 2026-03-27Shareholders' meeting notice
- 2026-03-19PeriodicAnnual business report
- 2026-03-19Audit report
- 2026-03-12Shareholders' meeting notice
📖 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.