BGF Eco Materials (126600) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
BGF Eco Materials makes and sells high-performance polymer materials that add heat resistance and rigidity to plastic; its nylon, PP, PBT, and PC compounds are used as lightweight materials in automotive and electrical/electronic parts, and it has broadened into biodegradable plastics, recycled materials, fluorine-based specialty chemicals for semiconductors and secondary batteries, and electronic component materials—a diversified materials company. A March business report confirmed 2025 revenue of ₩397.9 billion (+9.2%) and operating profit of ₩17.3 billion (+23.8%), and it is building an anhydrous hydrofluoric acid plant in Ulsan for about ₩150 billion, targeting completion in 2026. The point to watch now is that a P/B of 0.44x asset discount plus business diversification and fluorine-materials investment are strengths, while at the same time a thin ROE of 3.4%, a 33% drop in first-quarter operating profit, and the up-front costs of a large investment mean the key is whether profitability turns up, which should be weighed together.
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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
- Revenue rose 9.2% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 6.2% lower than a year earlier.
- ROE is 3.3% (controlling-interest basis). It is below the sector average.
- Operating margin is 4.0%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2025-12-31
Largest shareholder BGF 69.95% (corporate)
Controlling bloc incl. related parties 71.65%
With the controlling bloc holding 72%, control is very secure but the free float is thin.
🔎 In-depth analysis Reading
BGF Eco Materials makes and sells high-performance polymer (engineering plastic) materials that add heat resistance and rigidity to plastic. Its main products are compound materials such as PA66/PA6 (nylon), PP, PBT, and PC, used as lightweight materials that replace heavy metal in automotive interior and exterior parts and electrical/electronic parts. On top of this it is broadening its business: (1) plant-based biodegradable plastics (white bio such as PLA), (2) recycled materials that return waste plastic to raw material, (3) fluorine-based specialty chemicals for semiconductors and secondary batteries (high-purity F2 gas and its feedstock, anhydrous hydrofluoric acid), and (4) electronic component materials such as optical films and MLCCs. In short, it is not a single-product company but a diversified materials company that ties several business units around "materials," with the center of revenue still in engineering plastics.
The latest close is ₩2,900 and the market capitalization is ₩182.0 billion. The price sits above its 20-day moving average (₩2,834) and below its 60-day moving average (₩3,133). 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 50.5, a neutral level. The one-month change is -3.0%, the three-month change is -30.9%, and the position relative to the 52-week high is -42.2%. Relative strength versus the KOSDAQ is 60 (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 61% of all stocks. Over the past three months it outpaced the index by 5.8%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
On valuation, the P/E ratio (how many times one year's earnings the price is) is 13.02x and the P/B (how many times book net assets the price is) is 0.44x. A P/B of 0.44x means the share price (₩2,895) is about half the company's net assets (about ₩6,540 per share), so on asset value it is clearly valued low. The forward P/B is also 0.43x, almost the same, so this discount is not a temporary phenomenon but a steadily persistent feature. Behind it, however, is low profitability. ROE (how much is earned in a year on equity) is 3.4%, below the industry average, and with an operating margin of 4.4% and a net margin of 3.5%, margins are not thick. It means that just as the asset value is cheap, the profit the equity generates is still small, so both sides should be viewed together. The debt ratio (debt relative to equity) is 68.7%, not overly heavy, but an interest coverage ratio of 1.45x means there is tight room to pay interest out of operating profit, sensitive to rate and earnings swings. The P/E is on a "last year's confirmed earnings" (trailing) basis, and converted to this year's expected earnings it is about 15x (forward). The forward being slightly above the trailing points to this year's profit trending a touch below last year, and it is not a spot loaded with unreasonably high expectations.
Revenue grew steadily over five years, from ₩203.5 billion in 2021 to ₩397.9 billion in 2025 (about 18% average annual). That said, the pace of growth eased from +27.5% in 2024 to +9.2% in 2025. Earnings are uneven. Net profit swung greatly year to year—₩28.9 billion in 2022, -₩10.5 billion (a loss) in 2023, ₩14.9 billion in 2024, and ₩14.0 billion in 2025—because results are swayed by material prices and downstream automotive and electronics demand. Within that, 2025 operating profit of ₩17.3 billion rose 23.8% from the prior year, showing the core margin recovering once. In the first quarter of this year, revenue was ₩92.8 billion (-6.3%), operating profit ₩3.2 billion (-33.0%), and net profit ₩2.7 billion (-4.9%), all down from the prior year, with the operating-profit drop especially large as slowing downstream demand pressed margins. Reflecting this flow, it is natural to see this year's profit as similar to or a touch below last year. This does not mean the company is broken but is closer to a phase where the demand cycle has briefly paused to catch its breath. If automotive and electronics demand turns and the new fluorine materials come online, there is room for the profit range to widen again.
This year's disclosures center on regular reports. On March 18, the 2025 business report confirmed annual revenue of ₩397.9 billion (+9.2%), operating profit of ₩17.3 billion (+23.8%), and net profit of ₩14.0 billion (-6.2%); on May 7, consolidated preliminary results confirmed the weak first quarter, followed by the quarterly report on May 15. The event carrying the most weight, however, is a change in business structure rather than the quarterly figures. The company is building an anhydrous hydrofluoric acid plant (50,000 tons per year, about half of domestic usage) in the Onsan National Industrial Complex in Ulsan for about ₩150 billion, targeting completion in 2026. This is aimed at localizing the feedstock for subsidiary BGF Eco Specialty's high-purity F2 gas (for semiconductor etching) and dovetails with the government's supply-chain leadership tasks. It is an investment that reshapes the medium- to long-term portfolio rather than short-term results.
The strengths are distinct. The share price is about half asset value (P/B of 0.44x), and the forward P/B is also 0.43x, so the discount is steady. On top of the engineering-plastics core it is diversifying into eco-friendly, recycled, and semiconductor materials, and if the anhydrous hydrofluoric acid localization investment comes online as planned, a new profit source different from ordinary chemical stocks can be added. The double-digit rise in 2025 operating profit also shows room for the core margin to recover. The points to examine are profitability and the cycle. With an ROE of 3.4%, the profit the equity generates is still thin; first-quarter operating profit fell 33% as slowing downstream demand pressed margins; and the interest coverage ratio is tight. A large facility investment is booked first as a cost burden until completion and start-up. In sum, this company is strong when automotive and electronics demand recovers and the fluorine-materials investment actually comes online and turns to profit, and weak if the demand slowdown drags on or the investment payback is delayed. The asset value is already priced low, so the key hinges on whether that low profitability turns up.
🔎 Valuation vs peers Inconclusive
A specialty chemicals/semiconductor materials peer set that views both the engineering plastics and specialty chemicals core and the newly growing fluorine-based semiconductor materials (F2 gas, anhydrous hydrofluoric acid) together.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hansol Chemical | 17.25x | 2.19x | 13.99% |
| Soulbrain Holdings | 1.44x | 0.40x | 28.38% |
| Kolmar Korea | 20.17x | 2.69x | 17.29% |
Looking only at a P/B of 0.49x, it trades at half of net assets and looks cheap, but on the same yardstick as the peer set it is hard to conclude. Companies with high P/B, such as Hansol Chemical (P/B 3.1x, ROE 13.6%) or Kolmar Korea (P/B 2.3x, ROE 13.7%), receive high multiples because their ROE exceeds 13% with strong profitability. By contrast, BGF Eco Materials' ROE stands at just 3.4%, so the low P/B can be seen as largely reflecting low profitability. The P/E of 14.4x is on a last year's confirmed-earnings (trailing) basis, and with first-quarter operating profit down 33% this year, earnings are at an inflection, so it is hard to split high or low valuation from the trailing multiple alone. In the end the crux is twofold: whether the core margin recovers so ROE rises, and whether the new-materials investment such as anhydrous hydrofluoric acid connects to actual profit. Until those results are confirmed, "inconclusive" is the honest conclusion.
Price history Close · MA20 · MA60
The latest close is ₩2,900 and the market capitalization is ₩182.0 billion. The price sits above its 20-day moving average (₩2,834) and below its 60-day moving average (₩3,133). 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 50.5, a neutral level. The one-month change is -3.0%, the three-month change is -30.9%, and the position relative to the 52-week high is -42.2%. Relative strength versus the KOSDAQ is 60 (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 61% of all stocks. Over the past three months it outpaced the index by 5.8%. 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 +5.80% / 6M +0.21% / 12M -5.46%
Key metrics Computed vs sector median
Valuation
The P/E of 13.02x is in line with the sector median (14.15x). The P/B of 0.44x is below the sector median (0.90x).
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 4.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 3.3%, below the sector average (4.0%). The operating margin is 4.0%. The debt ratio is 71.0%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $200.7M | $255.9M | $279.5M | +9.21% ↓ slower |
| Operating profit | $12.1M | $9.8M | $12.2M | +23.81% ↑ faster |
| Net profit | -$7.4M | $10.5M | $9.8M | -6.16% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $142.9M | $185.0M | $200.7M | $255.9M | $279.5M |
| Operating profit | $15.6M | $11.2M | $12.1M | $9.8M | $12.2M |
| Net profit | $557,288 | $20.3M | -$7.4M | $10.5M | $9.8M |
| Revenue CAGR | 4-yr avg 18.26% | ||||
Revenue rose 9.2% year over year (2023 ₩285.7 billion → 2024 ₩364.3 billion → 2025 ₩397.9 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 23.8% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 18.3%. The two-year revenue CAGR is 18.0%. In the most recent quarter (Q1 2026), revenue was 6.2% lower 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.
Points to watch
- Revenue rose 9.2% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2024-06-20IRAnnouncement of a new anhydrous hydrofluoric acid plant (50,000 tons per year, about ₩150 billion, targeting completion in 2026), a key semiconductor feedstock, in the Onsan National Industrial Complex in Ulsan — localizing the feedstock for subsidiary BGF Eco Specialty's high-purity F2 gasMedium to long term: expands the business portfolio into fluorine-based specialty chemicals. Short term: an investment-cost burden until completion and start-up, with profit contribution only after start-up. Source
- 2026-05-07EarningsFirst-quarter 2026 consolidated preliminary results: revenue ₩92.8 billion (-6.3% year on year), operating profit ₩3.2 billion (-33.0%), net profit ₩2.7 billion (-4.9%)Short term: revenue and profit fell together on slowing downstream (automotive, electronics) demand, with the large operating-profit drop signaling margin pressure. Source
- 2026-05-15FilingFiling of the first-quarter 2026 quarterly report — detailed results by business segment and financials disclosedMid term: confirms the details of the preliminary results. Allows checking the engineering-plastics-centered revenue structure and the progress of the new-materials business. Source
- 2026-03-18FilingFiling of the 2025 business report — confirmed annual revenue of ₩397.9 billion (+9.2%), operating profit of ₩17.3 billion (+23.8%), net profit of ₩14.0 billion (-6.2%)Mid term: revenue growth continued, but net profit slipped slightly from the prior year. Reconfirms the trait of a materials company with large earnings volatility. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| P/B (price / net assets per share) | 0.49x | — | Confirmed | link |
| Market capitalization | ₩182.0 billion | — | Confirmed | link |
| First-quarter 2026 results | revenue ₩92.8 billion, operating profit ₩3.2 billion, net profit ₩2.7 billion | revenue ₩92.8 billion, operating profit ₩3.2 billion, net profit ₩2.7 billion | Confirmed | link |
| Anhydrous hydrofluoric acid plant investment size | approx. ₩150.0 billion, 5, 2026 | approx. ₩150.0 billion, 5, 2026 | Confirmed | link |
Recent filings Source
- 2026-05-29Large-business-group status disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-07EarningsFair-disclosure notice
- 2026-04-01OwnershipOwnership-change filing
- 2026-03-26Shareholders' meeting notice
- 2026-03-18PeriodicAnnual business report
- 2026-03-13Audit report
- 2026-02-27Large-business-group status disclosure
- 2026-02-25Disclosure
- 2026-02-25Shareholders' meeting notice
- 2026-02-25Shareholders' meeting notice
- 2026-02-13Disclosure
📖 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.