Aekyung Chemical starts from basic petrochemical feedstocks and earns money along four lines. Its plasticizer business (including PVC additives) is the largest at about 44%, followed by household chemicals — detergent and cosmetics ingredients — at about 15%, synthetic resins for paints and adhesives at about 17%, and bio and energy at about 21%, which includes biodiesel and hard carbon for sodium-ion batteries (SIB). Most of its profit today comes from traditional chemicals, while battery materials are a new business the company is growing itself. In the first quarter of 2026 it returned to operating profit, and it has laid out targets through FY2027 of ROE of 8%+alpha, a P/B of 1.0x+alpha, and a payout ratio of 35%+alpha, with aramid feedstock TPC and hard carbon as new growth pillars. What stands out lately is that a P/B of 0.66x is cheap on asset value, but that value reflects a loss-making bottom, so the assessment splits heavily on the pace at which core-chemical margins normalize and new businesses settle into actual profit — an early-recovery stock.
At-a-glance assessment financial health · growth · profitability · valuation
- The most recent full-year net result was a loss.
- Revenue fell 11.6% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 0.2% higher than a year earlier.
- ROE is -0.4% (controlling-interest basis). It is below the sector average.
- Operating margin is -0.7%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder AK Holdings 60.3% (corporate)
Controlling bloc incl. related parties 62.23%
With the controlling bloc holding 62%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Aekyung Chemical starts from basic petrochemical feedstocks and earns money along four lines.
- First, the plasticizer business (plasticizers, phthalic anhydride, lubricant base oils) is the largest at about 44% of revenue, making additives that go into products like PVC flooring and cables.
- Second, household chemicals (surfactants, refined glycerin) supply detergent, shampoo, and cosmetics ingredients at about 15%; third, synthetic resins (UPR, hardeners, coating resins, polyester polyols) account for about 17% as feedstocks for paints, adhesives, and ship insulation.
- Fourth, the bio and energy business (biodiesel, bio-heavy oil, hard carbon for anode materials) is about 21%, and within it sits hard carbon for sodium-ion batteries (SIB, next-generation batteries that use sodium instead of lithium), which the company puts forward as a future breadwinner.
- In short, most of its profit today comes from traditional chemicals, and battery materials — still small in weight — are a new business the company is growing itself (revenue weights are on a 2023 separate basis, from company IR materials).
- The recent closing price is ₩9,200 and the market capitalization is ₩447.6 billion.
- The price sits below the 20-day line (₩10,160) and below the 60-day line (₩12,716).
- Trading beneath both its short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that weighs upward versus downward momentum over the last 14 days on a 0–100 scale) is 37.3, a neutral level.
- The one-month change is -9.5%, the three-month change is -24.5%, and the position versus the 52-week high is -51.8%.
- Relative strength versus the KOSPI is 24 (on a 1–99 scale, converting the past year's return versus the index with more weight on recent performance; higher means stronger than the market), placing it in roughly the top 76% of all stocks by strength.
- Over the past three months it lagged the index by 41.2%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- On confirmed annual (2025) results, the P/E ratio (how many times a year's earnings the share price represents) is not computed because net profit is negative; the P/B (how many times the company's net assets the share price represents) is 0.63x, ROE (how much is earned in a year on equity) is -0.4%, the operating margin is -0.7%, and the debt ratio (debt to equity) is 195.3%.
- The important point here is that these figures rest on the 'bottom results' of a 2025 loss.
- Viewing valuation on a loss-year's numbers can make the company look worse than its true strength, so for balance one should also see the first quarter of 2026, where operating profit turned positive at ₩5.8 billion (+67.0% year on year).
- A P/B of 0.66x is a price below net assets, but chemical peers trade at even lower P/Bs (0.23–0.39x), so it is hard to call it 'overwhelmingly cheap relative to assets.' Also, a debt ratio of 195% and an interest coverage ratio (the degree to which operating profit can cover interest) below 1 mean the finances run tight until earnings recover in earnest.
- Over five years, revenue moved from ₩1.6 trillion in 2021 to ₩2.2 trillion in 2022, ₩1.8 trillion in 2023, ₩1.6 trillion in 2024, and ₩1.5 trillion in 2025 — a declining trend amid the post-2022 chemical downturn (a down-cycle, a phase where product prices weaken).
- Operating profit also turned to a loss over the same period, from ₩93.3 billion (2021) to -₩10.2 billion (2025), the accumulated result of weak product prices in its core plasticizers and synthetic resins.
- The signal of change comes in the most recent quarter: in the first quarter of 2026, revenue was ₩370.6 billion (+0.2%) and operating profit was ₩5.8 billion (+67.0% year on year), so profitability swung back to positive.
- Once core-business profit that had been in the red begins to recover, this year's forward earnings, measured off a near-bottom starting point, can look sharply larger on even a small recovery.
- In other words, the picture of this year's earnings outlook is driven not by 'a new-business explosion' but by 'a cyclical recovery in which suppressed core-chemical margins return to normal.' That said, this recovery is only just beginning, so it is a stretch where trust must be built while confirming quarter by quarter whether the profit continues.
- Recent disclosures fall broadly into three lines.
- First, in the value-up plan the company itself announced in December 2024, it set targets through FY2027 of ROE 8%+alpha, a P/B of 1.0x+alpha, and a payout ratio of 35%+alpha, and specified aramid key feedstock TPC (full production planned in 2026) and hard carbon for sodium-ion batteries (the only domestic maker) as new growth pillars.
- Second, entering June 2026, several decisions on guarantees for others' debt and large-holding reports appeared, extending stake and funding-related changes.
- Third, there were governance and management disclosures such as a change of CEO in June 2026 and a corporate-governance report in May.
- These are signals that separate whether new-business progress and core-business earnings recovery move together, so they are worth tracking alongside quarterly results.
- Two axes read this company: 'the pace at which suppressed core-chemical margins normalize' and 'the pace at which new businesses (hard carbon, TPC) settle into actual revenue and profit.' The strong condition is when operating profit continues quarter to quarter, as in the first quarter of 2026, hardening into a full-year profit, and the company's own targets (ROE recovery to the 8% range, payout ratio 35%+alpha) are confirmed in results.
- In that case a low asset-value assessment of a 0.66x P/B, meeting recovered earnings, opens up room for re-valuation.
- The weak condition is when the chemical down-cycle drags on and plasticizer and synthetic-resin margins are pressed again, or when the earnings recovery slows with a 195% debt ratio and an interest coverage ratio below 1.
- In sum, on asset value (P/B) it sits in a cheap spot, but that cheap value reflects a loss-making bottom, so ultimately this is an early-recovery stock whose assessment splits heavily on 'how quickly core-business profit returns to normal.'
🔎 Valuation vs peers Inconclusive
Domestic diversified fine-chemical and petrochemical-affiliated stocks overlapping in business substance were taken as the peer set (on a diversified structure of plasticizers, synthetic resins, household chemicals, and the like).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Lotte Chemical | — | 0.21x | -16.19% |
| SK Chemicals | 15.81x | 0.31x | 1.98% |
| Unid | 6.45x | 0.39x | 6.03% |
(a) Position versus the true peer set: while large and mid-cap stocks in the same chemical industry trade at P/Bs of 0.26–0.46x, Aekyung Chemical is at 0.71x, so on a net-asset basis it is somewhat pricier than peers. (b) Premium factor: this can be seen as partly reflecting expectations for new businesses such as hard carbon for sodium-ion batteries and aramid feedstock TPC. (c) Limits of trailing and the forward basis: with 2025 in the red, value cannot be seen on last year's confirmed P/E, and the company's value-up plan set FY2027 targets of ROE 8%+alpha and a P/B of 1.0x+alpha. However, these are targets, not confirmed results, and the DART seasonality-approximated operating profit (about ₩23.8 billion) is also of low reliability. Therefore, rather than declaring it cheap or expensive, the verdict is left inconclusive until the pace of the loss exit and whether the new businesses materialize are confirmed.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩392.4 billion | approx. ₩7.4 billion | — |
Price history Close · MA20 · MA60
The latest close is ₩9,200 and the market capitalization is ₩447.6 billion. The price sits below its 20-day moving average (₩10,160) and below its 60-day moving average (₩12,716). 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 37.3, a neutral level. The one-month change is -9.5%, the three-month change is -24.5%, and the position relative to the 52-week high is -51.8%. Relative strength versus the KOSPI is 24 (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 24% of all stocks. Over the past three months it lagged the index by 41.2%. 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 -41.20% / 6M -36.77% / 12M -67.40%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 0.63x 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.
Profitability & financials
Return on equity (ROE) is -0.4%, below the sector average (4.0%). The operating margin is -0.7%. The debt ratio is 195.3%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.2B | $1.1B | $962.6M | -11.56% ↓ slower |
| Operating profit | $29.9M | $10.2M | -$6.8M | -165.94% ↓ slower |
| Net profit | $21.9M | $2.6M | -$2.0M | -174.07% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.0B | $1.4B | $1.2B | $1.1B | $962.6M |
| Operating profit | $61.8M | $63.0M | $29.9M | $10.2M | -$6.8M |
| Net profit | $51.3M | $39.9M | $21.9M | $2.6M | -$2.0M |
| Revenue CAGR | 4-yr avg -1.93% | ||||
Revenue fell 11.6% year over year (2023 ₩1.8 trillion → 2024 ₩1.6 trillion → 2025 ₩1.5 trillion), and the three-year trend is 'falling'. The rate of decline widened from the prior year. Operating profit fell 165.9% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is -1.9%. The two-year revenue CAGR is -10.0%. In the most recent quarter (Q1 2026), revenue was 0.2% 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 most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 11.6% year over year (3-year trend: falling).
Recent news & events searched · sourced
- 2024-12-16IRValue-up plan announced — targets through FY2027 of ROE 8%+alpha, P/B 1.0x+alpha, and payout ratio 35%+alpha. Aramid feedstock TPC into full production in 2026, and hard carbon for sodium-ion batteries specified as new businesses.The company itself presented its medium-term growth direction and capital-return policy in figures. Whether the targets are met is the key variable for future re-valuation. Source
- 2026-06-08FilingDecision on guarantee for another party's debt — a matter in which the company decided to guarantee the debt of an outside party (such as an affiliate).In the short term this can be a contingent-liability and financial-burden factor, so the size and target of the guarantee need confirming. Source
- 2026-06-01FilingNotice disclosure of a change of CEO (representative executive officer) — management replacement.A governance change that can affect management strategy and the pace of new-business execution. Source
- 2026-06-05FilingReport on large holdings of stock (general) — reporting of stake changes by holders of 5% or more (multiple filings received during June).A signal of change on the supply-demand and governance side; the party behind the change and its direction (accumulation or disposal) need confirming. Source
- 2026-05-27FilingCorporate-governance report disclosed — periodic reporting of governance status such as board composition and internal controls.A periodic document for checking governance transparency from a medium-term view. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Major business-segment revenue mix | approx. 44%· approx. 17%· approx. 15%·& approx. 21% | 44.4%· 17.3%· 14.9%·& 21.0% | Confirmed | link |
| Largest shareholder's stake | AK | AK 60.3% | Confirmed | link |
| Latest closing price | ₩9,200 | — | Unverified | link |
| 2026 annual operating profit seasonality approximation | approx. ₩23.8 billion | — | Unverified | link |
Recent filings
- 2026-06-08Disclosure
- 2026-06-05OwnershipOwnership-change filing
- 2026-06-01OwnershipOwnership-change filing
- 2026-06-01Amended filing
- 2026-06-01Amended filing
- 2026-06-01Amended filing
- 2026-06-01Amended filing
- 2026-06-01OwnershipLargest-shareholder ownership change report
- 2026-06-01Disclosure
- 2026-05-29OwnershipOwnership-change filing
- 2026-05-29Large-business-group status disclosure
- 2026-05-27Corporate governance report
📖 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.