HDC Hyundai EP is a chemicals company that makes plastic materials (its PO segment) used in automobiles, electronics and construction materials, PS and EPS insulation materials (PS segment), and sanitary and fire-protection piping (building-materials segment); rather than finished goods, it earns its living from 'intermediate materials' that go into other manufacturers' products and construction sites, so its results move with downstream utilization rates and raw-material prices. In February 2026 it confirmed full-year revenue of ₩992.7 billion, operating profit of ₩49.7 billion and net profit of ₩33.1 billion, and declared a cash and in-kind dividend with a 13.7% payout ratio. What stands out most recently is that a P/B of 0.33x makes it cheap on an asset basis, and a dividend in the 4% range plus an interest-coverage ratio of about 7x give it a stable financial footing; but with first-quarter operating profit down by about a third and reverting toward a normal level, the key question is whether the margin environment turns favorable again.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 0.2% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 0.4% higher than a year earlier.
- ROE is 9.3% (controlling-interest basis). It is above the sector average.
- Operating margin is 5.0%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder HDC 48.26% (corporate)
Controlling bloc incl. related parties 48.26%
With the controlling bloc holding 48%, the ownership structure is stable.
🔎 In-depth analysis
- HDC Hyundai EP is a chemicals company that makes plastic materials and piping.
- Its business runs along three lines.
- First, the PO segment supplies plastic materials used in automotive and electronics parts, construction materials and consumer goods.
- Second, the PS segment makes PS and EPS (expanded polystyrene, a material used in insulation and the like) for electronics and building materials.
- Third, the building-materials segment supplies sanitary piping for water supply, hot water and heating, along with C-PVC piping for fire protection.
- In other words, it earns money not from finished goods but from 'intermediate materials' that go into other manufacturers' products and construction sites, so its results move together with downstream utilization rates and the price of raw materials (mainly basic petrochemical feedstocks).
- With market capitalization of ₩117.1 billion, it is not large, so it is worth watching how each dividend- and capital-related disclosure affects the metrics, not just the business itself.
- The latest close is ₩3,720 and market capitalization is ₩118.7 billion.
- The price sits below its 20-day line (₩3,908) and its 60-day line (₩4,524).
- Being under both the short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that scores upward versus downward momentum over the past 14 days on a 0-100 scale) is 39.1, a neutral level.
- It is down 5.3% over one month and 23.3% over three months, and sits 42.8% below its 52-week high.
- Relative strength versus the KOSPI is 21 (on a 1-99 scale, converted from the past year's return against the index with recent performance weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 80% of all stocks by strength.
- Over the past three months it lagged the index by 41.5%.
- Charts are best read alongside trading volume and disclosure dates.
- For the most recent full year (2025), revenue was ₩992.7 billion, operating profit ₩49.7 billion and net profit ₩33.1 billion.
- An operating margin of 5.0% and an ROE (how much it earns in a year on its equity) of 9.3% are above the peer average, and an interest-coverage ratio of 7.4x with a current ratio of 1.6x give it a sound capacity to service debt.
- The debt ratio is 185.4%, but it comfortably covers its interest burden, so we treat financial soundness as 'stable.' On valuation, on last year's results the P/E (how many times one year's earnings the share price represents) is 3.58x and the P/B (how many times book value) is 0.33x.
- A P/B of 0.33x means the stock trades at a third of the company's net assets, so on an asset-value basis it is clearly in cheap territory.
- That said, this company is in a phase where this year's earnings settle back from last year's high level toward a flatter one, so a trailing P/E of 3.53x can look lower than the reality.
- A forward P/E that reflects this year's expected earnings is the figure that better shows current earnings power.
- Rather than taking a low trailing metric at face value, it is reasonable to use 9.14x, based on normalized earnings, as the reference line.
- Over the long run, revenue has moved sideways around ₩1 trillion: ₩1,008.1 billion in 2023, ₩990.6 billion in 2024 and ₩992.7 billion in 2025.
- Profit, by contrast, jumped in 2025, with operating profit up 52% from ₩32.7 billion to ₩49.7 billion and net profit up 76% from ₩18.8 billion to ₩33.1 billion.
- With revenue flat, the jump in profit was largely driven by a favorable turn in raw-material prices and product margins (spreads).
- This year, however, some of that strength is unwinding.
- First-quarter 2026 revenue of ₩254.9 billion was about flat with a year earlier (+0.4%), but operating profit fell 33.4% to ₩7.8 billion and net profit fell 35.7% to ₩4.6 billion.
- The margin environment has come down from last year's strength toward a normal level.
- This year's outlook of about ₩1.0 trillion in revenue, ₩25.3 billion in operating profit and ₩12.9 billion in net profit reflects a step down from last year's unusually strong result to a more normal earnings power.
- The forward P/E is set on this normalized earnings figure, so it is priced against the level of profit the company can sustainably generate rather than a single year's peak.
- In short, it is closer to the facts to view this as a materials company whose profit rises and falls with the economy and margins on revenue of around ₩1 trillion, rather than a fast-growing one.
- On February 2, 2026, a disclosure on changes in revenue and profit structure conveyed the confirmed full-year results of ₩992.7 billion in revenue, ₩49.7 billion in operating profit and ₩33.1 billion in net profit; it is worth checking whether these move in the same direction as the annual trend and whether any one-off factors are mixed in.
- On February 23, disclosures on a cash and in-kind dividend and the related record-date register closure were issued.
- Since it is a decision to return cash through dividends, it is worth examining whether earnings power and cash flow support it.
- With a payout ratio of 13.7%, the dividend is not stretched relative to earnings, so there is room for the payout capacity itself to hold even if earnings revert to a normal level.
- This company's strengths are clear: an asset undervaluation, trading at a third of net assets (a P/B of 0.33x); a dividend reaching the 4% range; and a stable financial structure supported by an interest-coverage ratio of about 7x and a current ratio of 1.6x.
- Even against its peers, its P/B is among the lowest, so the fact that it is cheaply valued on an asset basis is a strength that should not be overlooked.
- At the same time, the honest point to consider is the direction of profit.
- Earnings jumped in 2025 on favorable margins, but first-quarter 2026 operating profit fell by about a third and is reverting toward a normal level, and this year's expected profit is also below last year's.
- In sum, this stock is strong from a perspective that values asset value and dividends, and weak from one that expects fast profit growth.
- If the margin (product-spread) environment turns favorable again, there is room for the asset undervaluation to come into focus along with profit; conversely, if soft margins persist, it may take time for the low P/B to close.
🔎 Valuation vs peers Undervalued
Peers of comparable market capitalization within chemicals.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Tonymoly | 12.66x | 1.19x | 9.43% |
| Nano | 13.53x | 2.23x | 16.46% |
| Taekyung Industrial | 7.98x | 0.44x | 5.46% |
We looked first at public-data peers of comparable market capitalization within chemicals. The current P/E (how many times one year's earnings the share price represents) is 3.58x and the P/B (how many times book value) is 0.33x. That said, smaller-cap stocks are heavily affected by earnings swings and financing disclosures, so we did not draw firm conclusions from last year's confirmed-results metrics alone. The outlook box is based on a DART seasonality approximation.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩1.0 trillion | ₩25.3 billion | ₩12.9 billion |
| Next quarter | Q2 2026 | ₩260.4 billion | ₩6.5 billion | ₩2.9 billion |
Price history Close · MA20 · MA60
The latest close is ₩3,720 and the market capitalization is ₩118.7 billion. The price sits below its 20-day moving average (₩3,908) and below its 60-day moving average (₩4,524). 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 39.1, a neutral level. The one-month change is -5.3%, the three-month change is -23.3%, and the position relative to the 52-week high is -42.8%. Relative strength versus the KOSPI is 21 (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 21% of all stocks. Over the past three months it lagged the index by 41.5%. 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 -41.49% / 6M -45.93% / 12M -60.55%
Key metrics vs sector median
Valuation
The P/E of 3.58x is below the sector median (14.79x). The P/B of 0.33x 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.
Profitability & financials
Return on equity (ROE) is 9.3%, above the sector average (4.0%). The operating margin is 5.0%. The debt ratio is 185.4%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $668.2M | $656.5M | $657.9M | +0.21% ↑ faster |
| Operating profit | $21.9M | $21.7M | $32.9M | +52.07% ↑ faster |
| Net profit | $14.1M | $12.5M | $22.0M | +75.94% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $569.8M | $693.2M | $668.2M | $656.5M | $657.9M |
| Operating profit | $18.8M | $13.5M | $21.9M | $21.7M | $32.9M |
| Net profit | $6.8M | $7.6M | $14.1M | $12.5M | $22.0M |
| Revenue CAGR | 4-yr avg 3.66% | ||||
Revenue rose 0.2% year over year (2023 ₩1.0 trillion → 2024 ₩990.6 billion → 2025 ₩992.7 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit rose 52.1% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 3.7%. The two-year revenue CAGR is -0.8%. In the most recent quarter (Q1 2026), revenue was 0.4% 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.
- The dividend yield, at 4.3%, is on the high side.
- The balance sheet is stable in terms of debt and liquidity.
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
- 2026-02-02EarningsChange in revenue or profit structure of 30% or more (15% for large corporations): full-year revenue ₩992.7 billion, operating profit ₩49.7 billion, net profit ₩33.1 billionThis is a recent confirmed or preliminary earnings disclosure. Check whether it moves in the same direction as the annual trend and whether any one-off factors are present. Source
- 2026-02-23UpdateCash and in-kind dividend decision: confirm return termsThis disclosure concerns cash returns or changes in share count. Check whether earnings power and cash flow support it. Source
- 2026-02-23UpdateRegister closure (record date) for cash and in-kind dividend decision: confirm return termsThis disclosure concerns cash returns or changes in share count. Check whether earnings power and cash flow support it. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩3,720 | ₩3,720 | Confirmed | link |
| Latest quarterly results | revenue ₩254.9 billion, operating profit ₩7.8 billion | revenue ₩254.9 billion, operating profit ₩7.8 billion | Confirmed | link |
| Annual results | revenue ₩992.7 billion, operating profit ₩49.7 billion | revenue ₩992.7 billion, operating profit ₩49.7 billion | Confirmed | link |
| Earnings disclosure (source text) | revenue30%: revenue ₩992.7 billion · operating profit ₩49.7 billion · net profit ₩33.1 billion | revenue30%: revenue ₩992.7 billion · operating profit ₩49.7 billion · net profit ₩33.1 billion | Confirmed | link |
| Shareholder-return disclosure (source text) | ㆍ: | ㆍ: | Confirmed | link |
| Shareholder-return disclosure (source text) | ㆍ: | ㆍ: | Confirmed | link |
| Outlook box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-06-01Large-business-group status disclosure
- 2026-05-29Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-03-26Disclosure
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-18PeriodicAnnual business report
- 2026-03-18Audit report
- 2026-02-27Large-business-group status disclosure
- 2026-02-23Disclosure
- 2026-02-23Disclosure
- 2026-02-23Shareholders' 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.