TKG Huchems (069260) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
TKG Huchems is a fine-chemicals company that supplies chemical intermediates to large chemical firms, with about 96% of revenue from fine chemicals. Its NT line (DNT, MNB, and others - roughly two-thirds), which serves as raw material for polyurethane, and its NA line (nitric acid, ammonium nitrate, and others - roughly a quarter) are handed over almost entirely under long-term supply contracts to customers such as BASF Korea, Hanwha, and Kumho Mitsui Chemicals, and it also books side income from carbon-credit sales. In March it voluntarily disclosed a corporate-value-up plan, in April it issued ₩50 billion of convertible bonds (0% coupon, 1% maturity yield, conversion price ₩17,735) to prepare funds for new businesses, and in May it disclosed preliminary Q1 results (operating profit +20.4%). The key point to watch is that with Q1 operating profit up 20% the core business is turning, and with net cash, a 214% current ratio, a 6.2% dividend yield, a P/B of 0.73x, EV/EBIT of 8x, and a 13.8% free-cash-flow yield, the valuation is subdued; on the other hand, product prices track raw-material and downstream polyurethane conditions, dependence on a few large customers is high, and the convertible bonds leave room for more shares if converted.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Chemicals” (Chemicals, Refining, Steel & Materials), a type typically read first through P/B.
Chemicals is a cyclical business where profits swing with feedstock prices and product spreads, ballooning in upturns and often slipping into losses in downturns. That makes earnings-based multiples unreliable, so price-to-book (P/B) — the share price against the value of the company's heavy asset base — is the first lens.
Price against assets alone says little about where the cycle stands. Reading it together with price against this year's expected earnings shows how far profits have recovered.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 5.1% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 9.5% higher than a year earlier.
- ROE is 6.7% (controlling-interest basis). It is above the sector average.
- Operating margin is 5.9%.
- 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 TKG Taekwang 39.95% (corporate)
Controlling bloc incl. related parties 43.41%
With the controlling bloc holding 43%, the ownership structure is stable.
🔎 In-depth analysis Reading
TKG Huchems is a fine-chemicals company that makes chemical intermediates and supplies them to large chemical firms. Most of its revenue (about 96%) comes from the fine-chemicals segment. Its core products fall into two lines. One is the NT line (DNT, MNB, and others), which makes up about two-thirds of revenue. MNB is a raw material for polyurethane used in car seats, furniture, and building insulation, and DNT also feeds into the polyurethane family. The other is the NA line (nitric acid, ammonium nitrate, and others), at about a quarter. A distinctive feature is the sales structure. Nitric acid goes to BASF Korea and Solvay Korea, DNT to Hanwha affiliates, and MNB to Kumho Mitsui Chemicals and Japan's Mitsui Chemicals, essentially in full under long-term supply contracts. In short, it is a B2B structure supplying a small number of large customers stably. On top of this, it books side income from selling carbon credits generated in the course of reducing greenhouse-gas emissions.
The latest close is ₩15,700 and the market capitalization is ₩641.8 billion. The price sits above its 20-day moving average (₩15,181) and below its 60-day moving average (₩15,996). 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 55.1, a neutral level. The one-month change is -0.1%, the three-month change is -12.9%, and the position relative to the 52-week high is -25.9%. Relative strength versus the KOSPI is 23 (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 23% of all stocks. Over the past three months it outpaced the index by 4.4%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
The valuation sits in an undervalued zone. The P/E ratio (how many times a year's earnings the price represents) is 10.71x, not particularly expensive. The P/B ratio (the price relative to net assets) is 0.73x, trading below book equity. Profitability is unremarkable but sound for the chemical sector: ROE (how much it earns per year on equity) is 6.6% and operating margin is 5.8%. The balance sheet is on the sturdy side. The debt ratio (debt relative to equity) is 129%, not excessive for a chemical-plant company, and a current ratio of 214% gives ample short-term solvency. Notably, net debt is negative - a net-cash state with about ₩131.8 billion more cash than borrowings. Reflecting debt makes the picture even better. EV/EBIT (enterprise value divided by operating profit, akin to a debt-adjusted P/E) is 8.0x, below the P/E, because ample cash makes enterprise value smaller than market cap. The free-cash-flow yield (cash actually generated relative to market cap; higher is more attractive) is a high 13.8%. The dividend is good too: ₩1,000 per share, a 6.2% dividend yield.
First, the path so far. Revenue fell 5.1% year over year to ₩1,127.7 billion in 2025. Net profit dropped 22.9% to ₩59.9 billion. Profit has been on a downslope for the past three years (₩134.8 billion in 2023 to ₩59.9 billion in 2025). That said, the size of the decline is shrinking, suggesting it is nearing the bottom. Here a signal of a turn appeared. Q1 2026 revenue rose 9.5% year over year. Operating profit rose 20.4% to ₩15.2 billion. In other words, core-business profitability is back on a recovery path. Net profit fell 4.6% to ₩13.3 billion, but that owes to a base effect from large non-operating gains (such as FX) in the prior-year first quarter, not to the core business worsening. The industry backdrop is also favorable: demand for polyurethane, fertilizer, and fine chemicals - where nitric acid, MNB, and DNT are used - is firming gradually into 2026. If this recovery continues, this year's profit shapes up as a modest rebound off last year's trough. So while the P/E on last year's earnings looks ordinary at 11x, it falls lower on this year's recovered earnings.
Into 2026, disclosures took care of shareholder returns and growth preparation at the same time. In March it voluntarily disclosed a corporate-value-up plan. It set out directions of stronger shareholder returns, expanded dividends, improved capital efficiency, and new-business development - a plan that spelled out direction rather than concrete targets. In April it decided to issue ₩50 billion of convertible bonds. With a low funding cost of a 0% coupon and 1% maturity yield, the purpose is to secure funds preemptively ahead of new-business investment. The conversion price is ₩17,735, set above the current share price. In May it disclosed preliminary Q1 results (operating profit +20.4%) via fair disclosure and held an IR. Taken together, the company is maintaining and strengthening dividends and shareholder returns while securing future investment funds at low cost.
Consider the points to watch and the cautions separately. First, the strengths. First, the core business has turned - Q1 operating profit rose 20%, signaling the end of the profit-decline cycle. Second, the balance sheet is safe - a net-cash structure with a 214% current ratio gives strong staying power. Third, shareholder returns are generous - a 6.2% dividend yield acts as a defense line in a down market. Fourth, the valuation is subdued - a P/B of 0.73x, EV/EBIT of 8x, and a 13.8% free-cash-flow yield leave room if profit recovers. Now the cautions. First, product prices track raw materials (such as ammonia) and downstream polyurethane conditions, so profit has some volatility. Second, high dependence on a few large customers means results can hinge on specific customers' utilization. Third, the convertible bonds leave room for more shares upon future conversion (conversion price ₩17,735). In short, when downstream chemical demand firms gradually, profit recovery and a high dividend work together; conversely, if polyurethane and nitric-acid demand turns down again, the profit rebound can be delayed.
🔎 Valuation vs peers Undervalued
Among domestically listed fine- and basic-chemical companies, those with similar business character were taken as peers. Lotte Fine Chemical handles specialty and fine-chemical materials, and Kukdo Chemical handles polyurethane and epoxy downstream, so their downstream demand overlaps.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Lotte Fine Chemical | 11.54x | 0.50x | 5.01% |
| Kukdo Chemical | 16.82x | 0.42x | 2.04% |
Placed side by side with peers, its position is clear. Its P/E of 11x is similar to Lotte Fine Chemical (11.05x) and lower than Kukdo Chemical (14.7x). Yet its ROE of 6.6% is the highest of the three and its dividend yield of 6.2% is the most generous. In other words, it earns more and returns more while trading at a lower multiple. Its P/B of 0.73x, trading below net assets, is likewise the case. The P/E on last year's earnings looks ordinary because profit was near the trough of a three-year decline. Factoring in the 20% rebound in Q1 operating profit, the multiple on this year's recovered earnings falls further. Adding EV/EBIT of 8x - which reflects net cash of about ₩131.8 billion - and a 13.8% free-cash-flow yield, it looks undervalued relative to its cash generation. That said, the fact that product prices track downstream polyurethane and nitric-acid conditions should be factored in.
Price history Close · MA20 · MA60
The latest close is ₩15,700 and the market capitalization is ₩641.8 billion. The price sits above its 20-day moving average (₩15,181) and below its 60-day moving average (₩15,996). 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 55.1, a neutral level. The one-month change is -0.1%, the three-month change is -12.9%, and the position relative to the 52-week high is -25.9%. Relative strength versus the KOSPI is 23 (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 23% of all stocks. Over the past three months it outpaced the index by 4.4%. 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 +4.40% / 6M -36.90% / 12M -53.87%
Key metrics Computed vs sector median
Valuation
The P/E of 10.71x is below the sector median (14.15x). The P/B of 0.73x is below the sector median (0.90x). 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) Estimate
Model output — not a price target. This is what the formula returns under the assumptions below, not a view on where the share price should go.
DCF (discounted cash flow) estimate — discount rate 9.8%, initial growth 5.3%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.053x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 6.7%, above the sector average (4.0%). The operating margin is 5.9%. The debt ratio is 33.2%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $739.5M | $834.7M | $792.2M | -5.10% ↓ slower |
| Operating profit | $85.2M | $56.8M | $46.1M | -18.80% ↑ faster |
| Net profit | $94.7M | $54.6M | $42.1M | -22.85% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $605.0M | $868.2M | $739.5M | $834.7M | $792.2M |
| Operating profit | $65.6M | $82.3M | $85.2M | $56.8M | $46.1M |
| Net profit | $53.2M | $57.4M | $94.7M | $54.6M | $42.1M |
| Revenue CAGR | 4-yr avg 6.97% | ||||
Revenue fell 5.1% year over year (2023 ₩1.1 trillion → 2024 ₩1.2 trillion → 2025 ₩1.1 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 18.8% year over year. That said, the decline narrowed. Over the 5 years on record, revenue compound annual growth (CAGR) is 7.0%. The two-year revenue CAGR is 3.5%. In the most recent quarter (Q1 2026), revenue was 9.5% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
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 6.4%, is on the high side.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 5.1% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-03-26FilingVoluntary disclosure of a corporate-value-up plan - set out directions of stronger shareholder returns, expanded dividends, improved capital efficiency, and new-business development (no concrete targets given)Medium term: confirms commitment to sustained dividends and shareholder returns. A support factor for the current 6%-range dividend yield. Source
- 2026-04-08FilingDecision to issue ₩50 billion of convertible bonds - 0% coupon, 1% maturity yield, aimed at securing funds preemptively for new-business investment, conversion price ₩17,735 (above the current price)Short term: securing investment funds at low cost (positive). Medium term: room for more shares upon future conversion (mind dilution). Source
- 2026-05-08EarningsQ1 2026 consolidated preliminary results via fair disclosure - revenue of ₩294.89 billion (+9.5% YoY), operating profit of ₩15.20 billion (+20.4% YoY), net profit of ₩13.33 billion (-4.6% YoY)Short term: a double-digit rebound in operating profit signals core-business recovery. The slight net-profit decline reflects the base effect of prior-year non-operating gains. Source
- 2026-05-08IRNotice of investor briefing (IR) - a venue to explain results and business statusMedium term: maintaining the investor-communication channel. Source
- 2026-03-26DividendYear-end dividend for fiscal 2025 confirmed at the annual general meeting - ₩1,000 per share (payout ratio about 65%)Medium term: dividend maintained despite lower profit, supporting a dividend yield in the 6% range. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 operating profit YoY | operating profit 152.0, +20.4% YoY | — | Confirmed | link |
| Convertible-bond issuance size and terms | base | ₩50.0 billion, 0.0%· 1.0%, ₩17,735, 2031-04-23 | Confirmed | link |
| Dividend per share (DPS) | DPS ₩1,000,x 6.2%, approx. 65% | — | Confirmed | link |
| 2026 net-profit estimate | approx. ₩63.0 billion(self-estimate, forward PER 10.4) | — | Unverified | — |
Recent filings Source
- 2026-05-29Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-05-08Disclosure
- 2026-05-08EarningsFair-disclosure notice
- 2026-04-27OwnershipOwnership-change filing
- 2026-04-23Paid-in capital increase
- 2026-04-08Material-fact report
- 2026-04-02PeriodicAnnual business report (amended)
- 2026-04-02OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-26Disclosure
📖 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.