TK Chemical is a chemical company that in 2008 took over the chemical business division of Dongkook Trading; synthetic-resin and synthetic-fiber manufacturing is the center of its revenue, with construction and electronics segments diversifying the business. Its 2025 full-year results were revenue of ₩345.8 billion, operating profit of ₩2.4 billion and net profit of ₩116.5 billion, a swing to profit, and in Q1 2026 it carried the core-business profit forward with revenue of ₩104.8 billion, operating profit of ₩5.6 billion and net profit of ₩7.3 billion. The point worth watching now: if the core-business revenue recovery feeds through to a higher operating margin, the asset undervaluation (a debt ratio in the 20% range and a P/B of 0.11x) comes into focus as a strength; but given the non-recurring nature of 2025 net profit being far larger than core operating profit, if the top line grows yet the operating margin stays around 0%, it may take more time for the asset appeal to be confirmed in results.
At-a-glance assessment financial health · growth · profitability · valuation
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue rose 1.8% year over year, and the pace is quickening (3-year trend: mixed).
- Net profit swung from a loss a year earlier back into the black (a turnaround).
- Most recent quarter (Q1 2026) revenue was 20.4% higher than a year earlier.
- ROE is 9.5% (total-net basis). It is above the sector average.
- Operating margin is 0.7%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder SM Industry 32.86% (corporate)
Controlling bloc incl. related parties 47.89%
With the controlling bloc holding 48%, the ownership structure is stable.
🔎 In-depth analysis
- TK Chemical is a chemical company established in 2007 that in 2008 took over Dongkook Trading's chemical business division and continues from there.
- The business breaks into three lines: a chemical segment that makes and sells synthetic resin and synthetic fiber is the center, joined by a construction segment that builds and constructs housing and an electronics segment that makes touchscreens.
- In other words, the sale of chemical and fiber products processed from raw materials is the backbone of revenue, with construction and electronics diversifying the business.
- With a market cap of ₩134.5 billion, not a large one, the picture sharpens when you watch, alongside the core-business trend, the impact a single disclosure has on the financials and share count.
- The latest close is ₩1,497 and the market cap is ₩136.1 billion.
- The price sits below its 20-day line (₩1,616) and below its 60-day line (₩2,023).
- Trading beneath both its short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge comparing upward and downward strength over the past 14 days on a 0-100 scale) is 34.3, a neutral level.
- The one-month change is -12.5%, the three-month change is -31.0%, and the price sits -45.4% from its 52-week high.
- Relative strength versus the KOSDAQ is 72 (on a 1-99 scale that converts return against the index over the past year while weighting recent performance more heavily; higher means stronger than the market).
- That places it roughly in the top 28% of all stocks for strength.
- Over the past three months it lagged the index by 10.8%.
- Chart reading is best done alongside volume and disclosure dates.
- Recent full-year (2025) revenue was ₩345.8 billion, operating profit ₩2.4 billion and net profit ₩116.5 billion.
- ROE (how much the company earns in a year on its own equity) of 9.5% is above the sector average, and the debt ratio (debt against equity) of 20.2% is low, so the financial burden is light.
- On valuation, P/B (the share price as a multiple of book value) is 0.11x, putting the share price at a very cheap spot against the net assets it holds.
- The P/E (the share price as a multiple of one year's net profit) is 1.17x, extremely low on the surface, largely because 2025 net profit (₩116.5 billion) was far larger than operating profit (₩2.4 billion).
- Since it was a year with a big gap between core-business profit and final net profit, rather than declaring an undervaluation on the single line of P/E, it is closer to reality to weigh the P/B that shows asset value together with the core-business recovery trend.
- Revenue fell from ₩693.9 billion in 2021 to ₩379.2 billion in 2023 and ₩339.6 billion in 2024, then rose again to ₩345.8 billion in 2025, braking the decline.
- Operating profit and loss was in the red at -₩4.3 billion in 2023 and -₩1.6 billion in 2024, then swung to a ₩2.4 billion profit in 2025, and net profit and loss likewise turned from a 2024 loss to a 2025 profit.
- In the most recent quarter, Q1 2026, revenue of ₩104.8 billion was up 20.4% year over year, so the recovery is carrying through on a quarterly basis too.
- Q1 net profit of ₩7.3 billion was down from a year earlier, but that owes to the base effect of 2025 net profit being large from factors outside the core business, a different matter from the core-business revenue recovery.
- This year's revenue is estimated around ₩377.7 billion, reflecting Q1 results and past-quarter seasonality, a step up again from last year.
- In short, the chemical core's top line is passing its trough and growing again, and whether this feeds through to margin improvement is the point to watch going forward.
- Looking at the disclosure flow, in February 2026 full-year results (revenue ₩345.8 billion, operating profit ₩2.4 billion, net profit ₩116.5 billion) were confirmed via a profit-structure change disclosure, showing the swing from loss to profit in figures.
- Then in the May quarterly report, Q1 2026 revenue of ₩104.8 billion, operating profit of ₩5.6 billion and net profit of ₩7.3 billion were disclosed, confirming that the top line grew from a year earlier and that core-business profit stayed positive.
- In March, the 2025 business report was filed.
- Interpretation is more accurate when you check together whether the results disclosures point the same way as the annual recovery and whether one-off factors are mixed in.
- The strengths are clear.
- Chemical core revenue is growing again with 2024 as the trough, double-digit growth continued in Q1 2026, and operating profit and loss settled into the black.
- The debt ratio in the 20% range keeps the financials light, and above all a P/B of 0.11x shows the share price is heavily discounted against the net assets it holds.
- The chart is near depressed territory too, so the price burden is on the lighter side.
- What to weigh alongside is the quality of earnings.
- 2025 net profit was far larger than core operating profit, and profit of that non-recurring nature is hard to repeat every year.
- So rather than the surface P/E in the 1x range, the asset value shown by P/B and how steadily the core operating margin improves are what separate the actual value.
- If the core-business revenue recovery feeds through to a higher margin, the cheap price against assets comes into focus as a strength; conversely, if the top line grows yet the operating margin stays around 0%, it may take more time for the asset appeal to be confirmed in results.
🔎 Valuation vs peers Undervalued
Peers with adjacent market capitalizations within the chemicals sector.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| iFamily SC | 6.51x | 1.36x | 20.91% |
| Noroo Paint | 8.93x | 0.35x | 3.96% |
| Purit | 8.43x | 1.19x | 14.10% |
We looked first at public-data peers with nearby market capitalizations within chemicals. The current P/E (the share price as a multiple of one year's earnings) is 1.17x and P/B (the share price as a multiple of book value) is 0.11x. That said, smaller-cap names are heavily affected by earnings swings and financing disclosures, so we did not draw firm conclusions from last year's confirmed-earnings ratios alone. The basis for the outlook box is a DART seasonality approximation.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩377.7 billion | — | — |
| Next quarter | Q2 2026 | ₩101.0 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩1,497 and the market capitalization is ₩136.1 billion. The price sits below its 20-day moving average (₩1,616) and below its 60-day moving average (₩2,023). 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 34.3, a neutral level. The one-month change is -12.5%, the three-month change is -31.0%, and the position relative to the 52-week high is -45.4%. Relative strength versus the KOSDAQ is 72 (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 72% of all stocks. Over the past three months it lagged the index by 10.8%. 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 -10.85% / 6M +20.16% / 12M -9.90%
Key metrics vs sector median
Valuation
The P/E of 1.17x is below the sector median (14.79x). The P/B of 0.11x 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 9.5%, above the sector average (4.0%). The operating margin is 0.7%. The debt ratio is 20.2%, so the financial structure is stable.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $251.3M | $225.1M | $229.2M | +1.82% ↑ faster |
| Operating profit | -$2.8M | -$1.1M | $1.6M | — |
| Net profit | -$1.4M | -$74.0M | $77.2M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $459.9M | $499.3M | $251.3M | $225.1M | $229.2M |
| Operating profit | $44.1M | $318,662 | -$2.8M | -$1.1M | $1.6M |
| Net profit | $232.5M | $182.4M | -$1.4M | -$74.0M | $77.2M |
| Revenue CAGR | 4-yr avg -15.98% | ||||
Revenue rose 1.8% year over year (2023 ₩379.2 billion → 2024 ₩339.6 billion → 2025 ₩345.8 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Over the 5 years on record, revenue compound annual growth (CAGR) is -16.0%. The two-year revenue CAGR is -4.5%. In the most recent quarter (Q1 2026), revenue was 20.4% 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.
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
- 2026-02-19EarningsRevenue or profit-structure change of 30% or more (15% for large corporations): full-year revenue ₩345.8 billion, operating profit ₩2.4 billion, net profit ₩116.5 billionThis is recent confirmed or preliminary results. Check whether it points the same way as the annual trend and whether any one-off factors are involved. Source
- 2026-05-14EarningsQuarterly report (2026.03): Q1 2026 revenue ₩104.8 billion, operating profit ₩5.6 billion, net profit ₩7.3 billionThis is recent confirmed or preliminary results. Check whether it points the same way as the annual trend and whether any one-off factors are involved. Source
- 2026-03-23EarningsBusiness report (2025.12): revenue ₩320,000, operating profit ₩7,080, net profit ₩120,000This is recent confirmed or preliminary results. Check whether it points the same way as the annual trend and whether any one-off factors are involved. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩1,497 | ₩1,497 | Confirmed | link |
| Latest quarterly results | revenue ₩104.8 billion, operating profit ₩5.6 billion | revenue ₩104.8 billion, operating profit ₩5.6 billion | Confirmed | link |
| Full-year results | revenue ₩345.8 billion, operating profit ₩2.4 billion | revenue ₩345.8 billion, operating profit ₩2.4 billion | Confirmed | link |
| Results disclosure source text | revenue30%: revenue ₩345.8 billion · operating profit ₩2.4 billion · net profit ₩116.5 billion | revenue30%: revenue ₩345.8 billion · operating profit ₩2.4 billion · net profit ₩116.5 billion | Confirmed | link |
| Results disclosure source text | (2026.03): 2026 1 revenue ₩104.8 billion · operating profit ₩5.6 billion · net profit ₩7.3 billion | (2026.03): 2026 1 revenue ₩104.8 billion · operating profit ₩5.6 billion · net profit ₩7.3 billion | Confirmed | link |
| Results disclosure source text | (2025.12): revenue 32 · operating profit ₩7,080 · net profit 12 | (2025.12): revenue 32 · operating profit ₩7,080 · net profit 12 | Confirmed | link |
| Outlook-box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-06-01Large-business-group status disclosure (amended)
- 2026-05-29Large-business-group status disclosure
- 2026-05-21OwnershipOwnership-change filing
- 2026-05-14OwnershipOwnership-change filing
- 2026-05-14PeriodicQuarterly report
- 2026-04-30Disclosure
- 2026-04-24OwnershipOwnership-change filing
- 2026-03-31Shareholders' meeting notice
- 2026-03-23Amended filing
- 2026-03-23PeriodicAnnual business report
- 2026-03-23Audit report
- 2026-03-16Shareholders' 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.