SK Chemicals (285130) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
SK Chemicals is a company with three faces: a green-chemical business (about 70% of revenue) that makes eco-friendly copolyester (PETG) for cosmetics containers and food packaging plus recycled and bio-based materials; a pharmaceutical business with products such as arthritis and cognitive-function treatments; and a roughly 66% stake in its listed subsidiary SK Bioscience. This year it disclosed a corporate-value-up plan laying out a return to profit in materials, vertical integration in recycling, and top-line growth in pharma, and it launched a combination hypertension drug; the dividend is ₩1,150 per share, returning about half of profit. What stands out lately is that its listed SK Bioscience stake alone is worth about ₩2 trillion while the market cap is about ₩0.7 trillion, a discount of more than 60% to asset value that leaves room for the gap to narrow if the subsidiary's profit recovers; the caution is that the subsidiary is still lossmaking, so consolidated net profit is negative, the timing of a turnaround hinges on vaccine trials and is uncertain, and a debt ratio of 169% is a burden.
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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.
That said, the company is currently in a revenue-growth rather than a profit phase, so this metric alone offers only a limited read.
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 36.2% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 22.2% higher than a year earlier.
- ROE is 2.0% (controlling-interest basis). It is below the sector average.
- Operating margin is -0.0%.
- Valued against the net asset value (NAV) of its listed holdings rather than a consolidated P/E — see the in-depth valuation for the detailed basis.
Ownership & governance As of 2025-12-31
Largest shareholder SK Discovery 40.79% (individual)
Controlling bloc incl. related parties 53.08%
With the controlling bloc holding 53%, control is very secure but the free float is thin.
Net asset value (NAV) assessment 60% discount to NAV
💡 How to read a holding company · A holding company owns stakes in several subsidiaries. Its P/E swings with equity-method gains and losses on those stakes, so read it only as a rough guide. P/B is more meaningful because subsidiary stakes sit in equity, but book value carries them at low historical cost (so P/B looks higher than reality). The most accurate view is the price against the market value of those stakes (NAV) ↓
Valued against the net asset value (NAV) of its listed holdings rather than a consolidated P/E — see the in-depth valuation for the detailed basis.
Listed subsidiaries ownership
| SK Bioscience | 66.37% |
🔎 In-depth analysis Reading
SK Chemicals makes money in two broad ways. The first is the green-chemical business. It makes copolyester (PETG), an eco-friendly plastic material that is transparent and shatter-resistant, along with recycled and bio-based materials, and supplies them for cosmetics containers, food packaging, and household-goods materials. This green-chemical business is the real core, accounting for about 70% of company revenue. The second is the life-science (pharmaceutical) business, which generates revenue from medicines such as arthritis treatments and cognitive-function agents and from new products like a combination hypertension drug. On top of this, it holds about a 66% stake in its listed subsidiary SK Bioscience, known as a vaccine company. In other words, it has three faces at once: a chemical company that sells materials, a pharmaceutical company, and a controlling company that oversees a large bio subsidiary.
The latest close is ₩42,700 and the market capitalization is ₩738.7 billion. The price sits above its 20-day moving average (₩39,672) and above its 60-day moving average (₩42,077). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 57.4, a neutral level. The one-month change is -0.6%, the three-month change is -26.6%, and the position relative to the 52-week high is -46.5%. Relative strength versus the KOSPI is 8 (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 7% of all stocks. Over the past three months it lagged the index by 9.9%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
On the surface, the valuation metrics read as undervalued. The P/B (how many times the book net assets the price represents) is 0.33x, a price below a third of book net assets. The P/E ratio (how many years of earnings the share price equals) is 16.54x. The dividend yield is 2.8%, and the payout ratio (the share of net profit paid as dividends) is 50%, returning half of profit to shareholders. Profitability, however, is weak: ROE (how much a company earns in a year on its equity) is a low 2.0%, and last year's operating profit was essentially zero (a small loss). The debt ratio (debt versus equity) is a somewhat high 269%, but the current ratio (assets that can be turned to cash versus debt due within a year) is 224%, so short-term solvency is secured. There is a trap here. The 16x P/E is overstated relative to the company's true strength because last year's profit was temporarily shrunk by the subsidiary's losses. The low-looking P/B is also because the subsidiary stake is carried at its purchase price (acquisition cost) on the books; the stake's actual market value is far larger than book.
The top line is expanding quickly. Last year revenue rose 36% year-on-year, and Q1 revenue this year rose 22% year-on-year, driven by wider copolyester sales and a recovery in subsidiary revenue. Profit, though, tells a different story. Operating profit, which was ₩550 billion five years ago, has fallen every year to essentially zero last year. Q1 this year was an operating loss of ₩18.9 billion and a net loss of ₩26.1 billion. The biggest reason profit is depressed is the subsidiary SK Bioscience. That company is running large operating losses during a vaccine-development phase, pulling down the consolidated profit that flows into SK Chemicals. The core copolyester business has a living revenue and profit base, but the subsidiary's losses now govern total net profit. Still, subsidiary revenue is recovering and the loss is narrowing, so profit can be seen as at an inflection point, rising off the bottom.
This year the company acknowledged its own undervaluation and put forward remedies. It disclosed a corporate-value-up plan, laying out stronger core-business competitiveness, a return to profit in functional and bio materials, vertical integration in recycled materials, and top-line growth in pharma. Execution followed as well, with the launch of a combination hypertension drug in the pharma unit. In May it filed last year's audit report and business report and held an investor briefing to communicate with shareholders. In April and May it disclosed disposals of shares in other companies to trim part of its holdings, showing a move toward asset efficiency. The dividend of ₩1,150 per share maintains a policy of returning about half of profit. These moves can be read as the company itself trying to narrow the discount, where the stake is worth more than the market cap but the market does not recognize it.
The core of this company fits in one sentence: the value of its SK Bioscience stake far exceeds the whole company's market cap. The listed stake alone is worth about ₩2 trillion while the market cap is about ₩0.7 trillion, a discount of more than 60% to asset value, deeper even than the 30-50% discount common at holding-style companies. On top of this sit the separate values of the core copolyester materials business and the pharma business. The strong case is clear: if the subsidiary SK Bioscience recovers profit on vaccine-development results, there is ample room for today's deep discount to narrow. It also helps that the company is pushing this direction directly through its value-up plan, and that a 50% payout supports shareholder returns. The weak case is equally clear: the subsidiary is still lossmaking, so consolidated net profit is negative, and when it will turn to profit depends on vaccine-trial results, making the timing uncertain. A debt ratio of 169% is also somewhat high, a burden. In short, this is a company where asset value is thick but the timing of a profit recovery is the key. Looking at profit metrics (P/E) alone is easy to misjudge; the reality is seen through net asset value (NAV).
🔎 Valuation vs peers Undervalued
Given its structure as a business-holding company with a core operation (green chemicals plus pharma) and a large listed subsidiary stake, we referred both to the chemical-core peer set and to the control-and-subsidiary relationships within the group. The multiples below are on-site figures at the current price.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| SK Discovery | 7.31x | 0.31x | 8.62% |
| SK Gas | 8.66x | 0.65x | 13.03% |
| SK Bioscience | — | 1.59x | -3.21% |
(a) Position versus the true peers: viewed as a holding-style operation, it sits in the low asset-multiple range within the group, alongside SK Discovery (P/B 0.29x) and SK Gas (0.68x). (b) Premium/discount: the most striking feature is the discount to the subsidiary's stake value. The roughly 66% SK Bioscience stake, worth about ₩2.0 trillion, far exceeds the whole company's market cap of about ₩0.7 trillion, so a deep parent-company discount is at work in which the core and pharma businesses are priced almost as a throw-in. (c) The limits of the trailing P/E and the forward basis: last year's profit is distorted, depressed by the subsidiary's vaccine losses, so the 16x P/E does not reflect true asset value. The 0.32x P/B also carries the illusion that the subsidiary stake is carried low at cost on the books, so what really matters is net asset value (NAV). On an asset-value basis we judge it undervalued, but the timing of the subsidiary's turnaround hinges on vaccine results and is uncertain.
Price history Close · MA20 · MA60
The latest close is ₩42,700 and the market capitalization is ₩738.7 billion. The price sits above its 20-day moving average (₩39,672) and above its 60-day moving average (₩42,077). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 57.4, a neutral level. The one-month change is -0.6%, the three-month change is -26.6%, and the position relative to the 52-week high is -46.5%. Relative strength versus the KOSPI is 8 (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 7% of all stocks. Over the past three months it lagged the index by 9.9%. 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 -9.94% / 6M -47.71% / 12M -67.69%
Key metrics Computed vs sector median
Valuation
The P/E of 16.54x is above the sector median (14.15x). The P/B of 0.33x 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 2.0%, below the sector average (4.0%). The operating margin is -0.0%. The debt ratio is 132.6%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.2B | $1.2B | $1.7B | +36.18% ↑ faster |
| Operating profit | $58.5M | -$31.7M | -$145,674 | — |
| Net profit | $28.0M | $6.2M | $31.4M | +405.11% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.5B | $1.3B | $1.2B | $1.2B | $1.7B |
| Operating profit | $390.0M | $161.9M | $58.5M | -$31.7M | -$145,674 |
| Net profit | $118.1M | $134.4M | $28.0M | $6.2M | $31.4M |
| Revenue CAGR | 4-yr avg 3.14% | ||||
Revenue rose 36.2% year over year (2023 ₩1.7 trillion → 2024 ₩1.7 trillion → 2025 ₩2.4 trillion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating results are in the red, so a swing back to profit matters more than the growth rate here. Over the 5 years on record, revenue compound annual growth (CAGR) is 3.1%. The two-year revenue CAGR is 16.3%. In the most recent quarter (Q1 2026), revenue was 22.2% higher 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.
- Revenue grew 36.2% year over year, a sign of growth.
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
- 2026-05-08EarningsLast year's consolidated audit report and business report filed. Revenue rose 36% year-on-year to ₩2.37 trillion, and net profit was ₩44.6 billion. Operating profit, however, was essentially zero.Short term: confirms top-line growth. Mid term: reveals a structure in which profit recovery is governed by the subsidiary's results. Source
- 2026-05-13EarningsQ1 quarterly report filed this year. Revenue rose 22% year-on-year, but the company posted an operating loss of ₩18.9 billion and a net loss of ₩26.1 billion.Short term: confirms the flow in which the subsidiary's vaccine losses pull down consolidated net profit. Mid term: the timing of a profit recovery is the key valuation variable. Source
- 2026-05-29FilingDecision to dispose of shares and investment securities in another company (amended filing). Trims part of the holdings.Short term: room to improve cash and financial structure by disposing of non-core assets. Mid term: a signal of asset efficiency and portfolio adjustment. Source
- 2026-03-30DividendRoutine year-end dividend procedures under way. The dividend of ₩1,150 per share maintains a policy of returning about half of profit.Short term: limited impact. Mid term: keeping shareholder returns even in a loss phase adds weight to closing the discount to asset value. Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-06-04OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-29Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-29Amended filing
- 2026-05-21OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-13PeriodicQuarterly report
- 2026-05-13OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-08EarningsFair-disclosure notice
- 2026-05-08EarningsFair-disclosure notice
- 2026-05-08Disclosure
- 2026-04-03Disclosure
- 2026-03-30OwnershipOwnership-change filing
📖 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.