Kolon Industries earns money across four businesses: industrial materials (about 36%) such as aramid for body armor and tire reinforcement plus tire cord and airbags; chemical materials (about 21%) such as petroleum resin and mPPO, an AI-semiconductor substrate material; the fashion of Kolon Sport (about 24%); and film. Classified as a chemical company, it in fact supplies materials to the automotive, electronics, and apparel industries. In April 2026 it absorbed its engineering-plastics subsidiary Kolon ENP, reshaping the portfolio; in May its Q1 preliminary results confirmed an earnings rebound; and it formalized a dividend policy of at least ₩1,300 per share paid twice a year over 2025-2027. The point to watch is that last year is confirmed as the earnings bottom, and with a P/B of 0.46x, cash-generating power in the 9% range, and a new growth axis in mPPO added in the second half, the stock trades cheaply against recovered earnings; but aramid and tire cord are cyclically sensitive, and one-off items tied to the merger are mixed into the Q1 net-profit surge, so full-year earnings are likely to settle below that pace.
At-a-glance assessment financial health · growth · profitability · valuation
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue rose 0.6% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 0.5% higher than a year earlier.
- ROE is 1.0% (controlling-interest basis). It is below the sector average.
- Operating margin is 2.2%.
- P/B is low versus peers too, so it looks cheap on an asset basis as well.
Ownership & governance As of 2021-12-31
Largest shareholder Kolon 33.43% (corporate)
Controlling bloc incl. related parties 33.43%
With the controlling bloc holding 33%, the ownership structure is stable.
🔎 In-depth analysis
- Kolon Industries does not lean on a single product but earns money across four businesses.
- The largest axis is industrial materials, which include aramid fiber used in body armor, optical cable, and tire reinforcement, along with automotive tire cord and airbags (about 36% of 2025 revenue).
- The second is chemical materials, which make petroleum resin used in adhesives and tires and mPPO, a material for AI-semiconductor substrates (CCL) (about 21%).
- The third is fashion, running brands such as Kolon Sport (about 24%), and the fourth is film for displays and electronics (about 12%).
- In other words, though classified as a chemical company, it actually supplies materials to the automotive, electronics, and apparel industries.
- The latest close is ₩54,500 and the market cap is ₩1.6 trillion.
- The price sits below its 20-day line (₩63,275) and below its 60-day line (₩75,767).
- Trading under both its short- and medium-term moving averages, the trend is on the soft side.
- RSI (a supplementary gauge that weighs upward against downward force over the last 14 days on a 0-100 scale) is 33.8, a neutral level.
- The one-month change is -21.0%, the three-month change is -29.6%, and the position versus the 52-week high is -46.0%.
- Relative strength versus the KOSPI is 55 (1-99, computed from returns against the index over the past year with recent performance weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 44% of all stocks by strength.
- Over the last three months it has lagged the index by 47.3%.
- Chart reading is best done alongside trading volume and disclosure dates.
- When reading the figures, last year's results and this year's must be seen separately.
- On a last-year (2025) basis the P/E ratio (how many years of profit the price represents) is 42.63x, which looks high, but this was a year when earnings were at their bottom, so the multiple is inflated.
- Conversely, P/B (the price relative to the company's net assets) is 0.42x, a price below even half of book net assets.
- The operating margin is 2.2% and ROE (how much is earned in a year on equity) is 1.0%, so profitability is still on the low side.
- The debt burden also bears watching: the debt ratio (debt against equity) of 92% is not excessive, but interest coverage below 1x means last year operating profit could not fully cover interest.
- On a debt-inclusive basis the picture shifts a little: EV/EBITDA (enterprise value including debt divided by operating profit before depreciation) is around 11x, and the FCF yield (actual cash generated relative to market cap) is 9.5%, so the cash-generating power itself is not low.
- The earnings trend over the past three years was a downslope.
- Revenue was almost flat at around ₩4.9 trillion, but operating profit fell from ₩200 billion in 2023 → ₩158.7 billion in 2024 → ₩108.9 billion in 2025, and net profit also dropped to ₩38.3 billion in 2025, down 61% from the prior year.
- Falling tire-cord export prices and intensifying aramid competition weighed on earnings.
- But from Q1 this year the direction changed.
- Cumulative Q1 2026 operating profit was ₩61.9 billion, up 130% from the same period last year, and net profit was ₩79.7 billion, up 203%.
- The Q1 operating margin alone was 5.0%, more than double the full prior year's (2.2%).
- Steadying tire-cord prices and a recovery in aramid utilization showed up in results.
- Add to this that new mPPO revenue for AI semiconductors is set to be layered in from the second half, and viewing the company on last year's low earnings versus this year's recovered earnings tells completely different stories.
- This year brought a run of disclosures reshaping the business structure.
- On April 1 the company absorbed its engineering-plastics subsidiary Kolon ENP, reshaping the portfolio toward high-value materials, and in the process about 2.43 million new shares were issued.
- In May it disclosed Q1 preliminary results, confirming the earnings rebound.
- On the dividend side, the company formalized a policy of at least ₩1,300 per share paid twice a year over the three years 2025-2027.
- Meanwhile, in May and June there were inquiry-disclosure requests over rumors of a materials-business sale, to which the company replied 'undetermined.' This shows the market is reacting sensitively during the restructuring process.
- The points to watch are clear.
- The strength is that last year being the earnings bottom was confirmed by Q1 results.
- Industrial-materials normalization and an aramid recovery are underway, and a new growth axis in mPPO is added from the second half.
- Given a share price at about half of net assets (P/B of 0.46x) and cash-generating power in the 9% range, the stock trades far cheaper against recovered earnings than its surface last-year P/E of 47x suggests.
- The cautions are equally clear.
- Aramid and tire cord remain materials sensitive to the cycle and competition, so the pace of recovery may be uneven from quarter to quarter.
- With interest coverage still low, the debt burden eats into part of the earnings recovery.
- And because one-off factors tied to the merger are mixed into the Q1 net-profit surge, full-year earnings are likely to settle at a lower level.
- In the end, this is a structure that is strong if industrial-materials margin recovery and mPPO revenue realization proceed as planned, and weak if that pace is slow.
🔎 Valuation vs peers Undervalued
The peer set was defined as materials companies that compete directly in aramid and tire cord, plus large chemical companies.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| HS Hyosung Advanced Materials | 0.00x | 0.82x | -2.68% |
| Lotte Chemical | 0.00x | 0.21x | -16.19% |
| SK Chemicals | 15.81x | 0.31x | 1.98% |
A trailing P/E of 47x on last year looks expensive, but this is inflated because 2025 earnings were at their low point. With Q1 operating profit up 130% and net profit up 203%, the earnings inflection has passed, so on this year's recovered earnings the multiple falls considerably. On an asset basis too, a P/B of 0.46x is a low price against net assets compared with Hyosung Advanced Materials (0.88x) and SK Chemicals (0.32x), which compete directly in aramid and tire cord. Profitability (ROE 1.0%) and the interest burden are still improving, which must be weighed, but taking the earnings-recovery trajectory together with asset value, the current price is judged to be in undervalued territory.
Price history Close · MA20 · MA60
The latest close is ₩54,500 and the market capitalization is ₩1.6 trillion. The price sits below its 20-day moving average (₩63,275) and below its 60-day moving average (₩75,767). 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 33.8, a neutral level. The one-month change is -21.0%, the three-month change is -29.6%, and the position relative to the 52-week high is -46.0%. Relative strength versus the KOSPI is 55 (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 55% of all stocks. Over the past three months it lagged the index by 47.3%. 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 -47.31% / 6M -20.13% / 12M -49.42%
Key metrics vs sector median
Valuation
The P/E of 42.63x is above the sector median (14.79x). The P/B of 0.42x is below the sector median (0.97x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
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 1.0%, below the sector average (4.0%). The operating margin is 2.2%. The debt ratio is 92.1%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $3.1B | $3.2B | $3.2B | +0.63% ↓ slower |
| Operating profit | $132.3M | $105.2M | $72.2M | -31.39% ↓ slower |
| Net profit | $28.3M | $65.4M | $25.4M | -61.17% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $3.1B | $3.6B | $3.1B | $3.2B | $3.2B |
| Operating profit | $167.5M | $160.7M | $132.3M | $105.2M | $72.2M |
| Net profit | $125.4M | $119.2M | $28.3M | $65.4M | $25.4M |
| Revenue CAGR | 4-yr avg 1.11% | ||||
Revenue rose 0.6% year over year (2023 ₩4.7 trillion → 2024 ₩4.8 trillion → 2025 ₩4.9 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit fell 31.4% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 1.1%. The two-year revenue CAGR is 1.5%. In the most recent quarter (Q1 2026), revenue was 0.5% 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
- Revenue rose 0.6% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-05-08FilingDisclosed a material-fact report covering the share-exchange/transfer decision for the absorption merger of subsidiary Kolon ENP (merger completed April 1, about 2.43 million new shares issued). Absorbing engineering-plastics materials to reshape the business toward high-value materials.A medium-term structural-improvement factor that resolves the duplicate-listing structure and strengthens the materials portfolio. The new-share issuance increases the share count slightly. Source
- 2026-05-08EarningsDisclosed Q1 2026 consolidated preliminary results. Operating profit ₩61.9 billion (up 130% year on year) and net profit ₩79.7 billion (up 203%), a sharp earnings rebound.A short-term positive that confirmed last year as the earnings bottom. Industrial-materials normalization shows up in results. Source
- 2026-06-10UpdateReplied 'undetermined' to an inquiry-disclosure request regarding rumors and reports of a materials-business sale (the second time, following May).Uncertainty over the direction of the restructuring remains, a factor for short-term share-price volatility. Source
- 2026-05-07DividendFormalized a dividend policy over the three years 2025-2027 of at least ₩1,300 per share (₩600 interim + ₩700 year-end) paid twice a year, with additional dividends within a limit of 30% of consolidated net profit.A medium-term factor raising the predictability of shareholder returns. The dividend yield at the current price is about 2.2%. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 operating profit | ₩108.9 billion | — | Confirmed | link |
| Basic dividend per share (DPS) | ₩1,300 | ₩1,300 | Confirmed | link |
| New shares from the Kolon ENP absorption merger | approx. 243 | 2,430,126 | Confirmed | link |
| 2026 full-year net profit (estimate) | approx. ₩140.0 billion(self-estimate) | — | Unverified | link |
Recent filings
- 2026-06-10Disclosure
- 2026-06-01OwnershipOwnership-change filing
- 2026-06-01Large-business-group status disclosure
- 2026-06-01Corporate governance report
- 2026-05-18OwnershipLargest-shareholder ownership change report
- 2026-05-15PeriodicQuarterly report
- 2026-05-11Disclosure
- 2026-05-11Disclosure
- 2026-05-08Disclosure
- 2026-05-08Material-fact report (amended)
- 2026-05-08EarningsFair-disclosure notice
- 2026-05-07Disclosure
📖 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.