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.
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 3.4% (controlling-interest basis). It is below the sector average.
- Operating margin is 4.4%.
- 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 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
- 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 ₩2,860 and the market cap is ₩179.5 billion.
- The price sits below the 20-day line (₩3,034) and below the 60-day line (₩3,565).
- Being under both the short- and mid-term moving averages, the trend is on the depressed side.
- RSI (a supplementary gauge that weighs upward versus downward force over the past 14 days on a 0–100 scale) is 38.8, a neutral level.
- The one-month change is -6.7%, the three-month change is -28.6%, and the position versus the 52-week high is -43.0%.
- Relative strength versus the KOSDAQ is 66 (1–99, converting the past year's return versus the index with more weight on recent periods; higher means stronger than the market).
- That places it in roughly the top 33% of all stocks by strength.
- Over the past three months it lagged the index by 5.6%.
- Chart reading is best done together with volume and disclosure dates.
- On valuation, the P/E ratio (how many times one year's earnings the price is) is 12.84x 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 | 18.76x | 2.56x | 13.63% |
| Soulbrain Holdings | 1.40x | 0.40x | 28.56% |
| Kolmar Korea | 19.40x | 2.67x | 13.74% |
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 ₩2,860 and the market capitalization is ₩179.5 billion. The price sits below its 20-day moving average (₩3,034) and below its 60-day moving average (₩3,565). 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 38.8, a neutral level. The one-month change is -6.7%, the three-month change is -28.6%, and the position relative to the 52-week high is -43.0%. Relative strength versus the KOSDAQ is 66 (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 67% of all stocks. Over the past three months it lagged the index by 5.6%. 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 -5.63% / 6M -5.14% / 12M -8.41%
Key metrics vs sector median
Valuation
The P/E of 12.84x is in line with the sector median (14.79x). The P/B of 0.44x is below the sector median (0.97x).
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)
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 3.4%, in line with the sector average (4.0%). The operating margin is 4.4%. The debt ratio is 68.7%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $189.3M | $241.5M | $263.7M | +9.21% ↓ slower |
| Operating profit | $11.4M | $9.3M | $11.5M | +23.81% ↑ faster |
| Net profit | -$7.0M | $9.9M | $9.3M | -6.16% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $134.8M | $174.5M | $189.3M | $241.5M | $263.7M |
| Operating profit | $14.8M | $10.6M | $11.4M | $9.3M | $11.5M |
| Net profit | $525,771 | $19.1M | -$7.0M | $9.9M | $9.3M |
| 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 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 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 | ₩179.5 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
- 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.